Minister Tells Importers Controls Likely In 1962

Press, Volume C, Issue 29499, 28 April 1961, Page 12

Minister Tells Importers Controls Likely In 1962

(New Zealand Press Association)

AUCKLAND. April 27. Import controls were likely to remain next year as well as this year, said the Minister of Customs (Mr Marshall) today. Until the country emerged from the present economic situation the Government was forced to take remedial action. Addressing the annual meeting of the Bureau of Importers, Mr Marshall said: “We do not intend to impose heavy taxation and it is not our intention to bring undue hardship to the business community. “I am particularly disappointed that, because ot the situation, we are not able to bring the Government’s original policy of lifting import restrictions Into force.” He said the Customs Department was busy preparing the new Customs tariff. It was intended to legislate for this in September. Mr Marshall said he did not think the Government had been harsh in imposing restrictions on commodities sold under hire purchase. "This is part of the policy of dampening down on expenditure.” he said. The nation needed to earn more and spend less.

The recent investment loan sponsored by the Government has realised £l3 7 million and it was hoped to have another loan later this year. Speaking of import restric-

tions. Mr Marshall said: “Believe me, it hurts me more than it does you.” So far, he said, no licences which had been issued had been withdrawn and it was not the intention of the Government to cut any licences already issued. "But we cannot go on spending £5O million a year more than we earn. It would be irresponsible for the Government to try to convince the nation it can.”

Mr Marshall appealed to the bureau for its help in settling the country’s difficulties. He suggested four factors under which, he said, he would welcome advice. These were:—

1. The possibility of spreading the licences already issued for this year over a longer period.

2. The introduction of more flexibility into the present system. There were some importers who did not need to take advantage of the full licence, while others needed more under present licences.

3. There were also importers who did not need their licences at all. Provided it did not prejudice their future entitlement, these could be asked to surrender their present licences. 4 There were cases where importers had ordered as much as 150 per cent of their yearly entitlement. This was not fair on others who ordered moderately. In reply to a question Mr Marshall said he would be quite prepared to consider a system of exchange control if this would bring greater flexibility.