OVERSEAS FUNDS

Gisborne Herald, Volume LXVI, Issue 20097, 17 November 1939, Page 5

OVERSEAS FUNDS

BASED ON EXPORTS MORE PRODUCTION URGED PLIGHT OP IMPORTERS LETTER TO MR. SAVAGE (Sudcial to tlio HuvnM.) ' AUCKLAND, this day. A protest against the "chaotic conditions" which have been brought about by the import control regulations is voiced in a letter that has been forwarded to the Prime Minister, the Rt. Hon. M. J. Savage, by Mr. W. A. Boucher, president of the Bureau of Importers. Mr. Boucher urges the need for increased primary production and expresses strong resentment at the continuance of non-productive public works and, in particular, at the statement of the lion. P. Fraser in London that the transfer of men from public works to industry “will be considered." "In view of the stagnation and unemployment which has been caused in the import trade through the lack of London funds," the letter states, "the Bureau of Importers trusted that your administration would be fully seized with the necessity of devoting its energies to the encouragement of exports and the consequent restoration, of London funds. This policy is obviously essential in the interests of the country as an ordinary peace-time measure, quite apart from war necessities. Business Men Alarmed "Business men jn New Zealand are, therefore, alarmed to learn from the statement of the Hon. P. Fraser in London that the Government has not yet been seized with the importance of devoting every effort to the encouragement of the primary production. It is apparently only as a war contribution that, to quote the Minister of Education, 'the transfer of men and machinery from certain public works to primary production will be considered.'

"In the meantime, hundreds of businesses have been virtually destroyed, and thousands of men engaged indirectly in flic importing and distributing business have been thrown out of work. Importers, warehousemen. distributors, shopkeepers, etc., are facing, on the part of employers—ruination; on the part ol the workers— unemployment. "The fact that Mr. Fraser, a responsible Cabinet Minister, should, whilst in London, state that 'the transfer of men and machinery from certain public works to primary production will be considered' shows either lack of knowledge of the conditions existing in New Zealand, or an utter disregard of those who are involved in ruination or unemployment. Unemployment Fears "We feel that it is the duty of the Government and not a matter ‘for consideration’ to see that the primary production of this country is immediately expanded to the utmost. This can only be done by abandoning the idea of attempting to further uneconomic industries in this country. What is obvious, and has been obvious for months to bankers, business men and the commercial community in general. i s the necessity for the immediate building up of our London funds. This can only he done by exporting. it would seem, however, that, the Government intends to ignore a vase section of the New Zealand public, i.c., those engaged in the importing and distributing business. By keeping men on public works there is no prospect of increasing London funds. The result will be unemployment and the standard of living will be reduced. "As you are aware, there is great difficulty to-day in securing money to effect payment overseas for actual foodstuffs required in this country although this was smoothly arranged by importers in the past, prior to the import control regulations. A large number of overseas suppliers ate asked to accept the time payment system, which in most cases they refuse to do. Business houses which in the past have paid casli before or on arrival of the shipment of goods are now compelled to plead with thcii suppliers to lake time payment for such goods spread as far ahead as June next. “Chaotic Conditions” "This is all caused through the lack of funds; funds which can best be created by the increasing of exports of primary products. We would like to point out that many of our members have been in business for 50 to 75 years and had not, until the import control regulations came into operation, been placed in a position where they could not pay in sterling for the goods which they ordered. "The resentment of the commercial community of the statement made by Mr. Fraser should bo fully understood. As the import control regulations have proved to be an utter failure and are bringing chaotic conditions in the importing and distributing business, we urge you to consider the suggestion which" has been made so frequently, viz., (he abandonment of the import control regulations, 193 a. and' the amendments thereto. If the control of exchange is left in the hands of the trading banks, we are confident that in a comparatively short time whole position would adjust itself.