ACUTE POSITION

Gisborne Herald, Volume LXVI, Issue 20030, 31 August 1939, Page 5

ACUTE POSITION

STERLING FUNDS NEW ZEALAND PROBLEM DEMANDS OF IMPORTERS NEW COMMITTEE’S TASK AID IN CONTROL PI,AN j (Parliamentary Reporter.) WELLINGTON, this day. Concentrating almost the whole of their attention on the import restriction plan, Opposition speakers to the Imprest Supply Bill in the House of Representatives yesterday put up so strong a case that they drew from the Minister of Industries and Commerce, the Hon. D. G. Sullivan, this admission: “I want to admit frankly that the position at the moment in regard to the extent to which sterling funds are available to meet the requirements of the country and meet the requirements of the manufacturing industries in the matter of raw materials is unquestionably acute indeed. - ’

The afternoon was occupied mainly by National members endeavouring to make the Government realise that the import restriction plan bad created a gieat hardship, put people out of business, caused seme unemployment and: 'treated difficulties with New Zealand’s best customer, Britain. They considered that, in view of the difficulties of getting essential supplies of material for New Zealanu manufacturers, the scheme had broken down. Finally the suggestion was made by the Rt. Hon. J. G. Coates that, as public servants could not possibly be expected to understand the requirements of industry, the Government should take the banking interests into consultation, because they had had years of experience of exchange requirements.

Advice From Outside

It transpired later when the Ministerial answer to these broadsides was provided that the Government recently took the step of getting outside advice. This was announced by Mr. Sullivan, who first explained how the manufacturers were invited to make applications for import permits in respect to their raw materials based on the imports of 1938, though in view of probable expansion there were applications in excess of these totals. - These were referred to the industries committee which he had set up within the department. After investigation, the parties concerned being heard, the committee advised the Customs Department as to the best course to pursue. All groups of manufacturers bad been interviewed and a number had appeared before the committee. The question as to whether a line of goods should be imported when it was possible that it could be made in the dominion was also dealt with by this committee. The Minister then made the statement already quoted regarding the acute difficulty of meeting the requirements of manufacturers. “Who brought that about?” asked Mr. H. S. S. Kyle (Nat., Riccarton). Clothes Too Small “I do not propose to answer that interjection now,” replied Mr. Sullivan, who proceeded to deal with the suggestion that’the scheme should be taken out of the bands of public servants and entrusted to bankers and representatives of the industries. “The problem,” he said, “goes deeper than that, because it is like trying to make a suit of clothes that has been made for a small boy fit a man three times his size. That is a problem which would tax the ingenuity of the best tailors in the country.

“That is where the acute difficulty proceeds. If it had not been for the pronounced nature of the shortage, all the difficulties that had been referred to would not exist. The whole thing would work like a well-oiled machine.” All the difficulties, with the consequent exasperation and irritation, declared the Minister, had nothing to do with the administration by public servants and it was necessary that the Government should retain control so that the nation should import the goods which were necessary and most essential, instead of the things which were desirable but not most essential at the present time. Manufacturers’ Disapproval

The New Zealand manufacturers, declared Mr. Sullivan, had disproved gloomy predictions that shortages would inevitably follow reliance on New Zealand factories. It was significant that so little had been heard of shortages, for the manufacturers had done wonderfully well in standing up to the job. If they had had a sufficient number of skilled women and girls, the Minister continued, a still greater and better job would have been done. New Zealand would always find it necessary to import much of its material for manufacturing. It was necessary to encourage the primary industries which furnished a surplus for purchasing this material, but however great a country we had been in the way we had developed our primary industry when the quality and calibre of our people were considered it must be realised that New Zealand was well qualified to excel in secondary industries what it bad done with primary production. Important Committee

The Minister then announced the organisation of an important committee to assist in the administration of the import restrictions. “I have,” he said, “recently set up a committee consisting of representatives o£ industries and commerce, with a banker among them, as well as representatives of departments, for the purpose of considering and advising in regard to the difficulties and to make suggestions to facilitate the operation of the scheme.” The Rt. Hon. G. W. Forbes (Nat., I-lurunui): How long ago was that? The Minister: Only within the past week or 10 days. Their representations will be passed on to the Reserve Bank which, of course, controls sterling.”

Having recapitulated the recent announcement of the Reserve Bank regarding the classification of permits and deferred credit arrangements, Mr. Sullivan concluded by ex-

pressing his belief that considerable progress bad been made towards bringing about an improvement in the situation, which he regarded as being purely transitory. "I have listened to the Minister with a good deal of sympathy,” said the Hon. Sir Alfred Ransom (Nat., Pahiatua) who replied to Mr. Sullivan. His was a speech of despair—a speech without hope.” Mr. A. G. Osborne (Lab., Onehunga): You give us one with hope then. Mr. Sullivan: I seriously misrepresented myself if I gave you that impression. . Sir Alfred: It was a frank admission of the Government’s failure.