CONTROL OF IMPORTS

Timaru Herald, Volume CXLV, Issue 21215, 9 December 1938, Page 8

CONTROL OF IMPORTS

Effect on Trade Subsidy to Industries Suggested Reduction of Costs Essential When asked to comment on the export license and import control legulations issued by the Government and their effect on trade generally, a propinent local business man expressed the opinion to a representative of “The Timaru Herald” yesterday that a reduction 01 manufacturing and general costs in the Dominion and the introduction of a vigorous policy of encouragement to increase employment in private enterprise in productive work would be the only solution to the situation in which the country now found itself. He suggested that it might even be necessary to subsidise manufacturers in order that they might be able to compete against world trade, and he emphasised the importance of reciprocal trade, contending that it was well-nigh impossible to insulate New Zealand against difficulties when it had to live in a world of competition. “The Dominion finances are in such a state that it is necessary to have a tag on all New Zealand’s financial transactions to prevent the flight of capital,” remarked the business man. “The position is that evidently the Reserve Bank is unable to sell sterling for New Zealand Reserve Bank notes which, of course, definitely precludes capital leaving New Zealand for any other purpose than that of running along the usual lines of trade.

“These usual lines of trade are the remission of money overseas, and, by using the proceeds of the sale of produce overseas, goods for the carrying on of Che trade of the Dominion are imported into New Zealand. By no other means can the trade of the country be carried on, and without that trade the power to provide the taxation of the day that is required will be seriously prejudiced. Lower Costs Desirable “It is argued that the importation of certain products is detrimental to local production, and it would seem that the ban on certain imports is imposed with the idea of forcing the purchase of New ZeaL nd produced goods. After all this country has to compete with all the markets of the world in successful trading, and it seems to me that the cure for the difficulties of manufacturers is for the factories in New Zealand to be brought into line with competition from England and elsewhere by the reduction of working costs, evei. to the extent that manufacturers might have to be subsidised. “Costs have been rising in the last two years,” the speaker continued, and, as the production of merchandise within New Zealand delclines, tnose costs rise in a greater ratio. Balancesheets of various companies to-day disclose the serious handicap manufacturers are under through costs forced on them by legislation. “I would say that those who have put up large sums of money for the establishment and carrying on of manufacturing concerns throughout the Dominion are equally desirous, with others, of seeing prosperity, but if manufacturing costs are driven to a point where it is difficult to make profits at all, the position becomes intolerable, and a general loss to New Zealand ensues. “It should be apparent that it is well nigh impossible to Insulate this country against difficulties when it has to live in a world of competition, and there is no doubt that New Zealand is dependent, more than anything else, on its export trade to achieve prosperity, and unless the Dominion is prepared to play the game in full by reciprocal trade she may find that certain markets for her primary products may be closed to her, for the simple reason that the United Kingdom and other countries will have to trade under a scheme of reciprocity. The Only Solution “I am convinced,” the speaker concluded, “that the only solution to the problem New Zealand has found itself in is by the reduction of manufacturing and general costs and the introduction of a vigorous policy of encouragement to increase employment in private enterprise in productive work.”

Another importer remarked that the harassing nature of the details required of the classes and value of goods imported during the perlvous 12 months’ would involve business houses in considerable detail work in analysing the necessary information, which was one of the outstanding objections to the importers’ license proposals at the moment. Importers felt that there was probably a deep underlying motive, but which would eventually come to the surface. So far as could be seen at the moment there appeared to be nothing restrictive about applications for licenses to import, but it was not difficult to anticipate that there would be some restriction on the importation of certain products and goods within a comparatively short period. LICENSING REGULATIONS LIST OF EXEMPTIONS By Telegraph- Press Association WELLINGTON, December 8. Under the Import Control Regulations just issued, the following exceptions from the requirements of _.e license are gazetted to-night:— Goods which were on board ship for export to New Zealand on December 5, 1938. Goods which were ordered before December 5, 1938, and which are imported into New Zealand not later than December 31, 1938. Bona fide gifts and goods not exceeding £lO in value (New Zealand currency )in.respect of any one importation Imported per post by persons for their own use and not for purposes of sale or business. Goods imported for exhibition at‘he New Zealand Centennial Exhibition

and entered to be warehoused in the Exhibition bond. Goods being the property of the Crown. In respect of the Government oi New Zealand the goods referred to in Sections 139, 140, and Subsection 2 of Section 141 of the Customs Act, 1913.. also goods included under the following items of Customs tariff:—Heirlooms not exceeding in value £lOO on *uch conditions as may be approved by the Minister; natural-history specimen* and such ethnological or similar specimens as may be approved by the Minister; r *fficial supplies, uniforms, flags and sueb other articles as may be approved by the Minister for the official use of Conc”lar officers. Trade Commissioners or oth?’* accredited representatives of any or foreign Government; passengers’ baggage and effects which are not intended for any other person or persons or for sale; shipbuilders’ models of vessels suited only for exhibition; models of invei*tions as may be approved by the Minister.

Under the Export Licenses Regulations the following goods will be subject to the regulations according to another Gazette notice: —Scrap metal, gold exported through the Post Office. The following goods shall for the time being not be subject to the said regulations—Bona fide gifts; goods being bona fide passengers’ baggage and effects; goods exported temporarily for repair and return; goods exported to the South 3ea Islands, provided that the Collector of Customs ; s satisfied that the quantities so exported are not in excess of the usual quantities shipped by the exporter ~oncerned.