IMPORT LICENCES FOR CIGARETTES BEING GRANTED

Bay of Plenty Beacon, Volume 13, Issue 98, 13 June 1949, Page 5

IMPORT LICENCES FOR CIGARETTES BEING GRANTED

Although Dominion manufacturers consider they can meet any reasonable demand, import licences for cigarettes are to be granted to meet the possibility of a cigarette shortage. Indication of the Government intention to grant licences was given in k letter from the Collector of Customs at Napier, Mr H. V. Foster, received by the managing director of the National Tobacco Company, Mr , Gerhard Husheer. The letter said that in view of the possibility of the demand exceeding the supply from New Zealand factories, it had been decided to issue licences to imp'ort a limited quantity. An application from the company for a licence would receive consideration. Warning Not Heeded Mr Husheer pointed out in an interview that licences to import huge quantities of cigarettes and tobacco were granted in 1947. The Minister of Industries and Commerce, Mr Nordmeyer, suggested that the imports should be up to 100,000,000 cigarettes a month, but the manufacturers considered this to be far too high. However, their warning was not heeded and heavy stocks, totalling more than 600,000,000 cigarettes, in addition to tobacco, were imported from Canada, Great Britain and the United States.

“Many of these cigarettes became unsaleable through age, and the Government eventually reduced the import duty on stocks still lying in bond,” said Mr Husheer. “This enabled the importers to release these cigarettes at a much reduced price, and retailers cut their losses by placing all imported stock—that already held and that purchased after the reduction in import duty—on sale at half the original price. If they had not done so they would not have been able to clear them.” The manufacturers had not objected to the reduction in the import duty at this time, although it had meant that imported cigarettes were being sold at well below the prices, for the New Zealapd product. Telegram To Minister

An assurance was given by the Government that a similar position would not rise again, continued Mr Husheer, but this latest intimation, which was a complete surprise, opened the way for a recurrence. The reference to “limited quantities” was very indefinite and might mean any volume of cigarettes. Consequently, he considered that a protest should be made, and he had sent the following telegram to the Minister of Industries and Commerce :

“Horrified to learn that Government has decided to issue again new licences for the importation of cigarettes from overseas while the country has hardly recovered from the terrible blow it received and the monetary losses it suffered through the mass importation of cigarettes in 1947 and 1948, which were unsaleable at the prices fixed by the Price Tribunal and could only be got rid of to the public at slaughter prices after the remission op import duties by the Customs. Huge sums of revenue were lost and we protest against a repetition. There was no shortage to cause hardship then, and there is no shortage today, and the local manufacturers are quite in a position to look after the smokers’ needs without working overtime.” Mr Husheer/ pointed out that no licences had yet been granted, so the possibility of the same position arising in a few months as had occurred last year could be avoided altogether if immediate action were taken.