IMPORT CONTROL

Wairarapa Times-Age, 31 August 1939, Page 8

IMPORT CONTROL

4, DEFENDED BY MINISTER RAW MATERIALS PROBLEM. ASPECTS OF DEVELOPMENT. (By Telegraph—Press Association.) WELLINGTON, This Day. “Fundamentally the principle of import control is all right. World experience proves that.” said the Minister of Industries and Commerce, Mr Sullivan, when replying to Opposition speakers during the debate on the Imprest Supply Bill in the House of Representatives last night. Once the initiol difficulties were overcome, Mr Sullivan said, it would be possible to build up New Zealand in a way that would serve the best interests of the Dominion without untoward effects on trade with the United Kingdom. The Minister said he had recently set up an industries committee within the Department of Industries and Commerce to investigate applications by manufacturers for the importation of raw materials in excess of what they imported in 1938. The work of the committee was to hear evidence from the persons concerned and to advise the Customs Department as to the best course to pursue. Most of the manufacturers and certainly all of the groups had had the opportunity of appearing before the committee. A FRANK ADMISSION. "I want to admit quite frankly that the present position in relation to the amount of sterling funds available to meet the country's requirements, particularly cf raw materials, is unquestionably very acute." Mr Sullivan said. Mr Kyle (Opposition. Riccarton): “Who brought it about?” Mr Sullivan: "I am not concerned with that at the moment. The opinion had been expressed in the debate by Mr Coates. Mr Sullivan added, that it might be desirable to take the administration of the import restrictions out of the hands of the public service and place it under the control of bankers and representatives of the industries concerned. The problem. however, went much deeper than that, for it was similar to the problem of trying to make a suit of clothes made for a small boy fit a man three times his size. If it were not for the exceptional shortage of overseas funds the difficulties that had arisen would not exist, and the control system would work like a well-oiled machine. “If control were handed to the banks,” the Minister said, “they would no doubt endeavour first to meet the needs of those who had been their customers over the years, but it is essential that the Government should retain control to ensure that the things the country needs most will receive first treatment.” “A WONDERFUL JOB.” Since control was imposed last year the manufacturers of New Zealand had done a wonderful job, Mr Sullivan said, and if a greater supply of skilled labour had been available they would have been able to do still better. As New Zealand would apparently always have to import substantial quantities of raw materials, it would be necessary to lock after the primary industries to ensure overseas funds, so that the development of lhe primary and secondary industries would go hand in hand. He felt that in the past not nearly enough attention had been paid to the development of the manufacturing industries, and was convinced that eventually in the field of secondary industry New Zealand would surpass what stood to its credit in the field of primary industry. The Minister dealt with various steps taken to give greater flexibility to the control procedure, and said that while each step was fraught with many difficulties because of the fundamental problem of shortage, he thought the Government was making progress toward an improved situation. The system of import control operated in most of the countries of the world, and there was no reason why it should not be used to build New Zealand without harming its overseas trade in any