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holder of the licence in return for the charge he makes. Under present trading conditions and the willingness of people to pay excessive prices to secure the goods, " kerbside " traders and others have been able to sell licences at considerable premiums and render practically no service in connection therewith. Some of these licences are " repeats " of licences granted on evidence of availability to persons not normally importing the classes of goods, while others have been those granted to ex-servicemen not supported by the Rehabilitation authorities. This latter class of licensee has often brought discredit, quite unjustifiably, in business circles to genuine rehabilitation cases where ex-servicemen have established legitimate businesses. 22. There is no complete remedy short of freeing items from control, but the policy of the Committee is to refuse to recommend any further licences for persons not conducting normal businesses and providing proper services. In the case of crockery, licences were " sold " at a premium of up to 40 per cent, of their value and licences have been issued to people who had no business premises and operated from their homes. For example, a man with a £2,000 crockery licence could receive £BOO cash without doing any more than taking the licence to a firm willing to buy—and established traders had to buy licences to maintain their turnovers. In the case of carpets, anything up to 17|- per cent, has been charged by " kerbside " traders. 23. Items commonly subject to trafficking have included electrical goods, hardware goods, and glassware. The trafficking has arisen from the granting of licences to people who should never have been licensed on a more or less permanent basis, if at all. The de-controlling of crockery will remove trafficking in licences for that commodity. Unfortunately, insufficiency of overseas funds will not permit the de-control of those items in which trafficking is most evident. As a consequence, trafficking will probably continue, but the Committee will do everything possible to prevent its extension. I. REHABILITATION LICENCES 24. The Import Advisory Committee received complaints about rehabilitation licences, but in fairness to the Rehabilitation Department is should be said that many of the licences complained about appear not to have been recommended by the Rehabilitation Board. Allowing suitable persons to establish themselves in trade was a valuable and proper method of rehabilitation, but some persons who were returned servicemen received licences on rehabilitation grounds although not sponsored by the Rehabilitation authorities. Such cases were quoted to the Committee, and in several instances the Committee examined the relevant files of the Customs Department. It was difficult to resist the claims of ex-servicemen for some assistance, even though they applied independdently of the Rehabilitation Department. However, in an endeavour to meet these claims of these ex-servicemen, licences were granted in some cases in a manner not calculated to " rehabilitate " the men concerned. There was a tendency to concentrate on the goods in very short supply because of the licensing restrictions, and while this no doubt has been profitable for them, the probabilities are that when supplies become normal many of them will be in difficulties. Following the de-control of items, trade tends immediately to revert to established channels. The Committee has had consultations with the Director of Rehabilitation and a member of the Rehabilitation Board, and it is now appreciated that in future the granting of new licences on rehabilitation grounds must be very closely examined with a view to ensuring that licences are granted only where there is a reasonable prospect of the applicant developing a sound business in the lines he desires to import.

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