PRIVATE IMPORTS WILL BE RECORD

Press, Volume CV, Issue 31001, 5 March 1966, Page 3

PRIVATE IMPORTS WILL BE RECORD

(From Our Own Reporter/

WELLINGTON, March 4.

Total payments for private imports during the current July-June import year are now almost certain to exceed £330 million, setting a new record and representing a monthly increase of almost £3 million on imports last year. They may yet approach £340 million.

Last year, the private import bill was £297.3 million and the previous year £298.2 million. Official returns for the first six months of the present July-June period show an extra £24.1 million spent on imports. The frequently-con-servative forecasts of the Government Statistician suggest an additional rise of £7.2 million in the present quarter alone. Original official predictions of the cost of the present licensing schedule were from £285 to £295 million. By about October last year, the Minister of Customs (Mr Shelton) was mentioning a figure of £320 million in Parliament. Now, he is conceding privately that even this is likely to prove significantly low. Exports, too, are up by £10.6 million at January 1. half-way mark for the season. The recent slump in butter prices is not yet expected to prevent a greater over-all return from exports this year than the £372 million of last year. Some Government officials speak of £4OO million and some of as much as £415 million. AU that can be said confidentally is that the record £387 million of 1963-64 will probably be toppled. Cuts Planned The deficit on non-trade transactions is also increasing and the greater returns from exports will be of only marginal help in softening the impact of the import cuts which the Government is planning. Unlicensed Government imports have also been increasing steadily, and rose by £5.4

million in the calendar vear 1965. The crucial decisions on the shape of the forthcoming schedule are about to be made. The Government is expected to want tn hold the over-all cost of the schedule for the period down to about £3OO million. Since the Government has renewed promises not to recontrol items at present free, the cuts will all be in items to which quantitative restrictions now apply. With the exception of cars, on which cuts of about 20 per cent have been predicted and seem expected by the trade, reductions will concentrate on goods for which New Zealand itself produces counterparts. The “A” licensing scheme.

under which importers can at present, by proving demand, import up to a third more by value than they imported last year, seems certain to be suspended at least for a year. A 20 per cent average reduction on all licensed imports, on which Customs officials were earlier reported to be working, would represent about £4O million. Political considerations in an election year may yet shrink that figure, but the Government is determined to demonstrate a measure of toughness, in spite of the approaching polls. In a similar situation in 1961-62, not long in office, the Government slashed imports by £53.6 million overall and the total level of importing was then lower.