Cuts Likely In Import Schedule

Press, Volume CV, Issue 31007, 12 March 1966, Page 1

Cuts Likely In Import Schedule

(From Our Own Reporter)

WELLINGTON, March 11

Although the situation has improved slightly since the Government was advised last month to cut imports drastically, the import schedule to be announced by the Minister of Customs (Mr Shelton) on March 31 is likely to contain some bad news.

This is expected to concern the importation of new cars, consumer items for the direct retail trade, and possibly items used in the manufacture of television equipment.

The A licence scheme, introduced in the 1962-63 season, is almost certain to he suspended, probably with the promise that it will be reintroduced as soon as practicable.

The scheme, introduced to ensure continuity of supply, gives automatic approval to importers of some goods to import up to 75 per cent of the quantity of those goods which they imported the previous year. On giving evidence of need for the goods, they may later obtain permission to import up to 133.3 per cent of the previous year’s quantity. The last schedule freed 90 new items at an estimated value of £45 million. There have been warnings about over-importing in this sector,

and only recently a statement said the items exempted would not be recontrolled. Information just coming to hand indicates that this has combined with the Government’s checks on credit to slow the importing surge. As might be expected at this time of the year, the import rate is dropping.

It is not before time. In the first half of the present importing year, payments totalled £205 million, compared with £lBO million for the first half of 1964-65. If the two halves of the year were even in import expenditure, this would total £4lO million —a disastrous fig-

ure, as it would exceed New Zealand’s overseas income by £lO million.

But there has been a sharp drop. Mr Shelton has said that imports for the year will amount to £320 million. Other sources believe this optimistic, and that the real figure will be £335 million —requiring caution, but not drastic measures.

The requirement could still be to. cut imports by up to £l5 million. It then becomes a problem of what to cut. Consumer goods comprise only 5 per cent of the total. Raw materials for local manufacture can scarcely be touched, nor can spare parts. Car imports are the only group which are highly vulnerable. Imported cars this year are expected to be between 60,000 and 65,000. It would not be surprising if this allocation were cut by up to 15,000.