IMPORT LICENCES

Wanganui Chronicle, Volume 83, Issue 4, 6 January 1939, Page 6

IMPORT LICENCES

"JOI E first decisions in respe-.-t to the applications for import licences having been released, the business community is now in a state of perplexity. This mental condition will slow down business and accentuate the problems which are now facing the Government. In the first place it must be recognised that the Customs Department is faced with an avalanche of work with which no administrative department could easily cope. First decisions may be wide of the mark and can be rectified a little later. This will not avoid damage being done to the business activities of the community, resulting in unemployment and rising prices, but there is no reason to assume that the decisions which are now being made will be adhered to for all time. The Government’s first duty is to reduce imports because too much is being imported and the London funds are at a low ebb. When the sterling holdings of the Reserve Bank recover, and they should do so very speedily, the Government will be in a position to relax its present stringent policy of granting importing permits. Whether it will do so is another matter. Those engaged in the distributive trades are naturally concerned with a position which does not bear elucidation at the moment and which promises to injure them severely. Many importers are men who have a small capital and who operate their businesses successfully by working long hours and at a low expense rate. Any reduction in their turnover of business frequently causes them severe hardship and, consequently, in order to avoid such hardship being inflicted the Government should apply restriction with a view to the personal element which is involved.

'l’be policy of the Government, whatever it may be, should be stated clearly as soon as possible; for both the trading community and the public are entitled to know precisely what that policy is at the earliest moment. Just now the essence of the policy seems to be restriction of imports to the lowest limit, and it may be that in this the new broom is sweeping too cleanly. A good ease can be made out for bringing about a reduction of imports, but while that is so it must be borne in mind that if such activities result also in an ultimate decline in the exports which other countries will receive from New Zealand, then the last position will be worse than the first.