POLICY OF IMPORT RESTRICTION

Wanganui Chronicle, Volume 83, Issue 114, 17 May 1939, Page 8

POLICY OF IMPORT RESTRICTION

COMPLAINTS OF DELAY IN INTRODUCTION PRIME MINISTER REPLIES L Per Press Association J WELLINGTON. May 16. Reterence to complaints of the Government's delay in introducing its policy of restricting imports was made by Hon. M. J. Savage in the course of an interview. He said that suggestion had frequently been made that the policy should have been put in;o operation sooner and by easy stages. “That sort of suggestion looks very well on paper, but only on paper,” Mr. Savage commented. “What a popular thing it would have been to restrict imports with 140,000 sterling lying in London! Why it was not even popular last December when the first restrictions were introduced. Trade was good but there had to be a stopping place somewhere, everyone realises that. At the same time I say it would have been madness to restrict imports while our overseas trade balance was so favourable.” New Zealand had to meet tremendous obligations in respect of interest payments on the national and local body debt inherited as a result of policies pursued by previous Governments, but its first consideration would be for a reasonable standard of living for the people. As far as he could see there was nothing else worth working for. No one who wanted to get into Parliament would dare go on the platform and advocate a reduction of incomes. In the circumstances in which New Zealand was placed to-day, Mr. Savage continued, Labour's opponents would have reduced wages and borrowed overseas in order to effect an automatic improvement in trade balance overseas, but the Government, on the other hand, was aiming to protect New Zealand’s industries and to obtain a favourable balance in London by the regulation of imports and deliberately selecting only those goods that were essential. "The only borrowing I favour,” he said, “would be borrowing to obtain supplies of raw material for the use of New Zealand factories. I won't aoplogise to anyone for that. 1 am bound to say here that some people have funny ideas about finance and keep telling us to use the country's credit. These people seem to forget that they are living in New Zealand and not in London and that it is in London where we need the credits,” he reiterated. The curtailment of public works employees would not be considered, but the men would be transferred to secondary industries when opportunities were available. The expansion of the Dominion’s industries and payment of economic wages were the two most important factors in New Zealand’s progress. Reduced wages would destroy Britain’s market in New Zealand and that in its turn would destroy New Zealand’s market in Britain.