Import licensing ‘must go’

Press, 11 April 1979, Page 29

Import licensing ‘must go’

PA Wellington New Zealand's hardearned foreign exchange would never be used to the consumer’s best advantage while the importlicensing system continued. the Retailers’ Federation has said. The federation, disappointed by the Government’s refusal to make a commitment to phase out the system, said that protection by quantative controls made it almost impossible to search out the best and most economic purchases. The amount of the licence available for most consumer items was so small that importers were actively encouraged to spend it on higher-priced items. That left the consumer to pay an artificially high price for basic merchandise from

protected, uncompetitive local industries, the federation said. Control by tariffs alone would encourage importers to seek out goods which, even with the addition of the tariff, would be more competitive with locally-produced goods and allow the consumer a real choice. The. licensing system was merely perpetuating the philosophies of the 1930 s into the 1980 s, the federation said. “While the federation is concerned to see major, viable industries receive fair and adequate protection, particularly from dumping and the products of low-cost countries, the time is more than ripe for a commitment to phase out the unwieldy licensing system, starting with the fringe areas.”