Private Imports Not Restricted

Press, Volume CVI, Issue 31118, 22 July 1966, Page 1

Private Imports Not Restricted

(From Our Own Reporter)

WELLINGTON, July 21.

The Government has made no moves to restrict still further the use of eligible funds for private no-remittance imports. Nor does it intend to do so.

The Minister of Customs (Mr Shelton) made this clear today when asked whether there was any validity in rumours that the use of overseas funds to pay for the sterling component of motorcars and other imports was being further restricted. Members on both sides of the House have declared themselves against the continued use of overseas funds for the purchase of motorcars, but neither party when in office has been prepared to eliminate the practice. The reason for the continuance of the no-remittance licence is given by a high authority as this: “Funds held overseas by New Zealand residents are virtually out of the control of the Government. “When the money is used to pay the sterling component of an import, this import becomes a capital gain for New Zealand.” The exact figure of the amount of non-accessible

funds thus converted into New Zealand-held assets is not known, but no-remittance licences still account for a considerable proportion of new-car imports. “The scheme is continuing, and there are no plans at the moment to replace it,” Mr Shelton said.

He said that the Budget would have been the place to make alterations, but no change was made, except through the restrictions placed on dealing in overseas shares, which had eliminated the premium on these shares.