EXPORT LICENSES

Hokitika Guardian, 24 December 1931, Page 6

EXPORT LICENSES

foreign exchange. TO BE PLACED UNDER CONTROL. (Per Favour of Government.) WELLINGTON, December 23. A special Gazette, issued to-day, contains important and regulations under the heading of “Export Licenses Order, 1931,” which, however, is not designed to restiict exports, but merely to facilitate a general control of the Exchange credits resulting from the sale of our exports abroad. In regard to the matter, the Prime Minister, Rt. Hon. G. \\ . Forbes, lias issued the following explanatory statement: — “Some of the commercial community, particularly exporters, may feel a little apprehensive when this order first comes under their ' notice, but I can assure them that there is no occasion for alarm, and, on investiga-

tion, exporters will find that their operations will not be unduly hampered, nor will they be put to any great inconvenience, or any additional expense. In fact, every effort is being made to achieve the object in the simplest wav possible. •“No chainge in the method of handling exports is involved, and, in most cases, the additional work required is nothing more than the filling in of a simple form at the Customhouse.

“The necessity for the scheme is a direct outcome of the financial difficulties in London, which have forced Great Britain to go off the gold standard. As a result of this sudden financial crisis, which developed so unexpectedly, and the scarify of funds, consequent upon the huge amount of foreign balances withdrawn from the London market, it is unfortunately now necessary to make an abrupt change in our financial plans, and to make arrangements to meet all overseas commitments as, and when, they 'fall due for payment from New Zealand funds. “Further, it remains to be seen whether it will be possible, next financial year, to follow the practice and raise a long-term loan at any reasonable rate of interest. “I may say that it is the policy of the Government to taper off the borrowing abroad; but it must be recognised that a. sudden cessation, under present economic conditions, would add considerably to our difficulties. Even so, in view of the general uncertainty of the whole position, it is not prudent to count upon being able to float a long-term loan in London next year at any reasonable rate of interest, and we must be prepared to carry oil without outside assistance. “Tlie exchange requirements of the Government will be large, and, in order to insure that sufficient London credits available for the purpose, the Government, after a careful review of the whole position, reached the conclusion that it is necessary to introduce a scheme for conserving the exchange resources of the Dominion in the national interests.

"The banks have agreed to pool their exchange resources SO' as to be in a position to meet the Government’s requirements, and the scheme embodied in the regulations just issued was drawn up for the purpose of blunging all of the exchange credits arising from the sale of exports into the pool. It was found that the best way of doing this, with a minimum of inconvenience to the commercial community, was by licensing exports. Exporters, however, will continue to receive, as heretofore, the current rate of exchange on th&ir remittances from abroad, and otherwise w,ill be put to very little trouble. Provision is made in the regulations for the issue of two classes of license: (a), a particular license, and (b) a general license. The particular license will authorise the exportation of. particular shipments ol goods, and nil that is required, in this case, is that the exporter should fill in a form (which can be obtained from the Collector of Customs at any port), setting out particulars of the goods to be exported in the same way as tor an ordinary export entry, and indicating the bank through which the documents are to be transmitted or negotiated. The license will be completed without any delay by the Collector of Customs on the bottom of the application form.

“The general license has been provided for the convenience of firms exporting continuously. Subject to the acceptance of the few straightforward conditions laid down in the Regulations, the license will give freedom to export goods for a period to be fixed in the license. General licenses will be issued by the Secretary of Industries and Commerce, but forms of application may bo obtained from any Collector of Customs. Once a license has been issued, all that is required from the exporting firms is an extra copy of the usual export /entries, with the name of the Bank through which the documents are to be transmitted or negotiated endorsed thereon. In the case of both the particulars and the General License, the essential condition is that the proceeds from the sale of the exports shall pass through the hands of one of the banks doing business in New Zealand. The amount available for financing imports will be affected by the. State buying so much exchange, but, fortunately, in this respect the imports for the current year have lagged considerably behind the exports, so that the contraction required is not nearly so great as it otherwise would have been.

“It is necessary for the new arrangements to operate from the Ist January next, an<j the Government desires to give as much notice as possible of the change. The Government is (Satisfied that the steps taken are

absolutely necessary in the public welfare in order to meet its minimum requirements for national commitments, and, this being so. confidently appeals for the support and co-operation of the commercial community and the people generally in order that the desired object may be achieved without inconvenience or irritation.

• /‘The measure is an extraordinary one, hut we are passing through extraordinary times, when prompt action is necessary to cope with the rapidly changing circumstances. lam sure that the people of tlie Dominion will agree that New Zealand must honour her bond, and this control of the exchange resources is merely for the purpose of ensuring that the Government is in a position to meet all commitments on the due date. “The Government realises that, as a result of this essential re-arrange-ment of its external financial obligations, there will he large reflections in the Budget revenues, in addition to exchange costs. Consequently, with a view to assisting in the planning of a programme for the next financial year, the Government has . decided to set up a Special Economy Commission immediately after the New Year.”