IMPORTERS PROTEST

Evening Post, Volume CXIV, Issue 121, 18 November 1932, Page 8

IMPORTERS PROTEST

INCREASE UNJUSTIFIED

EXPORT BONUS FAVOURED

The following resolution was passed by the New Zealand Importers' Federation at a special meeting ■ held this morning:-— . .

"That the New Zealand Importers' Federation ■ most strongly protests against the attempt which, is now being made by certain sections of Parliament to force the banks to increase the existing rate of exchange, and considers that any increase in exchange is entirely unwarranted and unjustified. Furthermore, the federation insists that if an increase eventuates, it will be a flagTant breach on New Zealand's part of the spirit if not of tho letter of the

Ottawa agreements, and must adversely affect ISTeiv Zealand's credit and the sale of her primary products in Great Britain. The existing financial difficulties of the Government must also be very materially accentuated, since the proposed increase of 15 per cent, in exchange will add, 15 per cent, to the annual interest bill on tho Public Debt, will greatly reduce tho Government's revenue from Customs duties, will increase unemployment, and consequently add to tho expenditure on unemployment relief, and will ultimately lead to lower receipts from income taxation.

"This federation strongly urges to the Government that, the evils of unwarranted exchange inflation far outweigh the illusory benefits accruing therefrom, and suggests that the most beneficial and equitable method of ensuring assistance to the primary producers is by means of an export bonus, as previously suggested to the Government by the Associated Banks."