IMPORT TRADE

Wairarapa Times-Age, 22 April 1939, Page 8

IMPORT TRADE

CONTROL DURING SECOND HALF OF YEAR Position Explained by Minister CONDITIONS OF PREFERENCE INDICATED MANUFACTURERS ASKED TO CO-OPERATE • By Telegraph. —Press Association. —Copyright. WELLINGTON,. This Day. Details regarding the basis on which licences are to he issued in respect of imports during the second half of this year were announced by the Minister of Customs (Mr Nash). Explaining the position, Mr Nash said : .“Indications are that there ■will be some contraction in the return from exports this year compared with 1938. The funds that did accrue from exports last year were,insufficient, by, a considerable margin, to cover the cost of imports in 1938, after providing for debt-services and other charges accruing overseas. “Tn the circumstances,” said the Minister, “it is unavoidable that imports should be reduced and the Government has taken the course by means of which it can best control the situation. With the'abnormal reduction of sterling funds, it is necessary to institute a system of import selection in order that preference may be given to essential goods, necessary for the development of the Dominion-, and next to the restriction of import of unnecessary or non-essential goods. Reductions to save exchange should be made in the import of those goods which could be produced or manufactured in the Dominion.; The effect of the last-mentioned restriction has resulted in an extension of the Government’s policy of developing suitable industries within the Dominion. Although reductions have been applied to imports of a number of classes of goods, during the first half of lhe year certain factors operated which tended to offset those reductions in so far as lhe total volume of imports was concerned.” CONSERVATION OF STERLING. Respecting the actual restriction on goods, the Minister stressed the fact that the major factor responsible for such restriction is the conservation of sterling funds, and he added that should it be possible for importers to arrange for goods to be supplied without a call on the Dominion's overseas funds, every consideration will be given to applications they may make in that regard. “In most cases where imports are restricted,” he stated, “the goo'ds are of a class which is made in New Zealand or might be substituted by Dominion produced goods. Doubtless considerable stocks of sjuch imported goods are also held in New Zealand-at the present time In general, therefore, it is expected that sufficient supplies "will be available to meet the needs of the community.” Mi’ Nash added that it would be recognised that, as a result of the measures now being applied, soine reorganisation would be necessary in certain instances. In view of the difficulties that would have been created by such action, it was felt unwise to publish details of the reductions applied to imports during the first half of the present year. In response to frequent requests, however, and in order that importers might be fully aware of the position, the Government had decided to make the details of the present measures available. The Minister ’ here included a list of percentage reductions of tariff items, for the second period of 1939. It occupied sixteen typewritten, foolscap sheets y \

GREATER REDUCTIONS NEEDED Mr Nash continued that experience had' shown that very large quantities of goods were on order prior to control being effected and indications were that, under normal circumstances, imports for the first half of this year would probably have exceeded those for the corresponding period of 1938. Any goods ordered prior to December 6 last were admitted, provided the quantities were not abnormal, and in addition it was necessary' to provide for additional imports of plant and materials required for the development of industry in the Dominion. “It will bo necessary therefore,” added the Minister. “if any substantial reduction c.f imports is to be effected over the whole year, that greater reductions must be applied during the second half of the year than during the current period. In applying such reductions the policy has been to admit as far as possible without restriction goods of an essential nature, whether consumer goods or goods required by New Zealand industries. A maximum measure of preference has been given to manufacturers in the United Kingdom.” A LENGTHY SCHEDULE. The Minister has issued a schedule of. goods for which licences may be issued ’to the extent of the value of similar goods imported by the applicant i’roih the same country of origin during the period July 1 to December 31, 1938. This schedule comprises eleven foolscap typed sheets, and in referring to it Mr Nash states from a perusal of the list of items to which no restriction of imports, is being applied, beyond limitation to the level of imports during the corresponding period of 1938. it will be noted that goods which are being admitted on this basis cover a very wide range and include upwards of 350 items and sub-items of the customs tariff.

Referring to the Government’s policy respecting the development, of New Zealand industries, the Minister said

the Government would make every endeavour to ensure that manufacturers could obtain all the raw materials necessary for industries. If was important that over-importation should be avoided as this would only have the effect of accentuating difficulties in regard to overseas funds. To this end, Mr Nash appeals to manufacturers for co-operation in limiting applications tc actual requirements.,ln order that manufacturers' requests‘may be dealt with as c-xpaditiously as possible, they are asked to supply certain details regarding their stocks and requirements, particulars regarding which arc obtainable from the Collectors'of Customs. EXCESSIVE IMPORTATION. Necessarily the whole position would require to be reviewed later in the year, said Mr Nash, and it was hoped that considerable relaxation would be possible in respect to next year’s imports. He continued that while the depletion of sterling funds was due to capital transfers which occurred during the later months of last year, the major cause of the reduction was the over-importation of commodities. In 1938 the surplus of exports over imports amounted to less than three millions, whereas a surplus, of between twelve and fifteen millions was required to meet debt and other services that were not recorded in the import figures. The Government’s policy was to provide maximum funds for the import of essential commodities, particularly to ensure that the farmers were fully provided with fertiliser, on which there was no restriction, and that raw materials and plant for manufacturers were available as required. Both policies would bo helped considerably if importers would keep their applications for licences to actual requirements. Given this co-operation until sterling funds were again available in reasonable amount, it should be possible within a reasonably early period to cease restrictions, so that the import of commodities not now considered essential might be provided for.