DEFINITE STATEMENT WANTED

Dominion, Volume 32, Issue 146, 16 March 1939, Page 10

DEFINITE STATEMENT WANTED

Duration Of Import Control

“WHAT IS GOVERNMENT’S AIM?” “Still as muddled and confused as ever,” is the description applied to the import licensing and exchange control scheme by tlie official organ of the New Zealand Federation of Drapers, Clothiers and Boot Retailers. “Even the outbreak of a world war could scarcely have thrown our internal trading activities into such a chaotic state as that which has existed for the past three months,” it states.

“The immediate demand is for some definite explanation of what the Government’s actual aim is, and when some easement of the existing restrictions may be expected.” "Out of many vague and obscure statements made by our Government spokesmen, some light has been gained. It is conceded that the essential reason for the Government’s action is to cheek the shrinking of Loudon funds beyond safety point by restricting imports and exchange transfers, and that the plan of increasing local manufacturing production follows only as a necessity to till the shortages caused by the blocking of imported goods. The Government also hopes by this scheme to transfer workers (at present subsidized from the employment promotion taxes) to industrial production. The federation believes that this would permit the necessary funds for the new social security plan to be diverted from unemployment relief to social services, due to be initiated on April 1. Temporary or Permanent? "The vital question which now arises, so far as our traders are concerned, is what amount of overseas credit the Government aims to create before these restrictions on imports and exchange are eased? "Is the present action and attitude to be regarded as temporary during an emergency, or as a permanent policy for the implementing of a changed economy?” Quotation is made of the Australian ’Trade Commissioner's report to the effect that "the governing factor in tlie control policy will be the amount of foreign credits available.” The policy, as outlined in 'the Trade Commissioner’s report, is referred to, but the federation regards such policy as "of no practical value to our businessmen till some estimate is available of what funds will be needed from abroad for purposes other than the purchase of goods.” The federation journal presses for an official estimate of what the exports are expected to yield and what the Government will require to meet its commitments.

"It is unfortunate,” states the writer, "that right on lop of this shrinkage of overseas credits tlie Imperial authorities should have decided to reduce the quota of meat to be imported from New Zealand, and in view of the fact 'that we continue to stand out as tlie world’s greatest buyer of British goods a head of population, it is not unreasonable to expect that some new trade agreement may be made with Britain which will reciprocate the preference we have always shown for. her products.”

Loss to Retailers. From botli a private busiess and tlie public point, of view the present situation is deplored, as “it means a heavy loss of trade to our retailers at a time when business activity needs encouraging and stimulating.- Loss of trade means loss of revenue to the State on the very eve of launching new social services of a costly nature. “There will be losses through the Customs and through the sales tax, and reduced turnover must mean reduced income lax from next year’s returns.

"If shopkeepers are unable to secure stocks and turnover it means reducing stall's and unemployment for those displaced. That means a recurrence of tlie vicious circle which moves in tlie opposite direction to prosperity and wellbeing, and to avoid such a development the Government should put forward every effort to restore trading conditions to as near norma! as possible, and we urge this not on selfish or narrow grounds, but as an urgent and vital matter of national welfare.”