IMPORT CONTROL

Manawatu Standard, Volume LX, Issue 126, 27 April 1940, Page 10

IMPORT CONTROL

. ISSUE OF LICENSES. MINISTER’S STATEMENT. Per Press Association. WELLINGTON, April 25. A revision of the Government’s import control policy in view of the cl'.fferent conditions, now operating because of the war was advocated by a deputation representing importing interest's, which waited on the Minister of Customs (Hon. W. Nash), on Wednesday. It was stated that import control was introduced in New Zealand nine months before the war started, for teasons entirely apart from the war situation, and that what might then have appeared to the Government as being in the country’s best interests now" assumed an entirely different complexion under the shadow of war.

Reference was made to some of the difficulties with which importers were faced, and which were hampering the trade and commerce of the Dominion. It was stated there had been too much rigidity in taking the importations of one year as a basis for all future importations, with the result that in many commodities there was a dire shortage, while in others the market was overstocked.

“The conservation of sterling is more important to the United Kingdom than any other single agency in the financial world at the present time,” said the Minister in reply. New Zealand, he said, was doing what it could to help Britain by keeping things within the sterling area. There was not a single pound’s worth of goods that could come into this country from the United Kingdom for which import licenses had not been already granted or authorised. CANNOT DO MORE. Mr Nash said that the Government of Britain did not want goods exported that could not ho paid for. He did not know how New Zealand could obtain from the United Kingdom goods of a greater value than the total sum accruing from the sale of exports or from other credits that automatically accrued. “We. have issued > or authorised licenses for every pound wo can sec,” said the Minister. “We cannot do more than that.” Discussing the question of goods on consignment, Mr Nash said that anyone with money overseas could tomorrow obtain New Zealand currency for it. There was no bar to bringing any foreign currency to New Zealand in exchange for New Zealand currency. While the negotiations with the United Kingdom at the opening of the war were on the basis of the United Kingdom taking all the Dominion’s exportable surplus, he could not get a positive agreement'that that would he done, except in the case of wool. They had taken all the Dominion could produce so far, and the inference was that they would, but, as he had said, he could" not get any positive agreement. He thought that changed conditions in Europe might result in a plain order for the country’s exportable surplus. PRODUCE FOR BRITAIN. “If we look at it from the point of view of saving the world,” said Mr Nash, “our contribution is greater in its measure .because we did say to the United Kingdom, ‘You can have all our products if you want them,’ even if we can get a better price in other countries, and even if it affects our postwar economy. The only moneys that we have out of which imports can be brought here are built up by the sale of goods we send overseas and by other money that may accrue from legacies and commissions.” The Minister emphasised the imperative need of keeping sterling controlled to enable the United Kingdom to conserve dollars and funds in other countries where there was no sterling. No one could obtain a license and have it transferred to any other country if the goods were obtainable in Britain. Referring to local manufacturing, Mr Nash said that to the exent that it would be possible to use raw materials in the Dominion and turn them into usable commodities, even though the cost might be far greater, it was good economy. TRADE AVENUES. “The suggestion has been made that we should alter the direction of trade,” the Minister continued. “That is answered by the fact that there is nothing that we can do to drive trade to the United Kingdom that we have not done. I sometimes think that we might help the United Kingdom more if we imported less; certainly we would help the Allied effort more if we did import less. We are importing to the limit now. We are providing that all the money required to finance our war effort overseas is found overseas. The overseas cost of the war is £20,000,000. If we think there is a good case, we should help to pay for that overseas commitment by exporting more and taking less. in the way of imports. We do require that war finance overseas shall be paid for by the export of goods.” LICENSING DELAYS. Mr Nash admitted that there had been delays in issuing licenses, but he was sure that the improved procedure in the future would look better. The Customs Department was above suspicion (hear, hear). He had never heard of a case where there had been discrimination in favour of anyone; the department tried to be scrupulously fair. He would like to issue licenses on the 1938 basis if that were administratively possible. The abolition of deferred payments did not mean the abolition of the old terms that used to operate. The suggestion had been made- that certain commodities should bo allowed to come in this year and lie paid for next year, but that would double the liability next year. He did not want any more deferred remittance licenses to become a charge in 1941. “We have stopped the sale of exchange at figures ranging’at 142,” said Mr Nash, “so that there will he no remittance licenses and no deferred licenses.”

In reply to specific questions, Mr Nash said it was an offence to send out of New Zealand a cheque drawn on a New Zealand bank, or one drawn on an overseas bank, without a permit. “We thought that might be avoided for the person who had an account in England and wanted to operate on it for other than goods, but if we allowed that wo would still be opening the ‘black market’ again, ,T lie said. “For various causes we had difficulty last year in convincing people that we could pay for all imports. Our difficulty was probably that we had been too kind to you. Too many goods had come in, and we did not have sufficient money to pay for them at that time. “When the exchange is above the fixed rate there is a suggestion that there is something wrong with that country. We did not want to sec the financial system of this country the

subject of bargaining. Every time that was done it. tended to tell everybody outside that New Zealand was a dangerous country. There has never been a period when New Zealand failed to meet its obligations overseas. There are some people at Home who do not like our policy, but they never doubted that we would pay. But when transactions like these take place, it does tend to suggest that we might not pay.” Replying to a point raised by a member of the deputation that imports of jewellery were completely prohibited, while wine and spirits were allowed into the country, Mr Nash said he did not think it was possible to legislate prohibition by import selection.