Wairarapa Times-Age TUESDAY, NOVEMBER 14. 1939. THE IMPORTS CONTROL MUDDLE.

Wairarapa Times-Age, 14 November 1939, Page 4

Wairarapa Times-Age TUESDAY, NOVEMBER 14. 1939. THE IMPORTS CONTROL MUDDLE.

q> A MOVEMENT initiated by shop assistants in Hamilton to secure, some easing' of the import, restrictions is a new ami hardly surprising development in a situation in which existing measures of import control are already under a heavy lire ol criticism and one for which a considerable amount 01. justification may be perceived. According to the chairman of the meeting of shop assistants held in Hamilton yesterday, t hose who attended it are of one mind in holding that there must be some easing of the import restrictions if shop assistants are to retain their employment. We do not want any action on our part to seem, as if it was dictated by employers (it was added). We are working for the relief of employees who will probably need assistance more than employers. Another spokesman said that all assistants were aware, of the acute position in regard to stocks. It, was probable that, these would hold out for Christmas, but alter that there would be little or nothing on the shelves. This agrees broadly with what has been said in. other parts of the country on the subject, of the present and prospective effects of the import restrictions on retail supplies and trade, and shop assistants manifestly have every right to go very thoroughly from their own standpoint into a position that now threatens rapidly to become acute. It is an extraordinary feature of the situation that, with only a slight reduction in the total annual value of imports, the restrictions appear to be falling with extreme severity on the classes ol goods distributed in retail trade. The Minister of Finance (Mr Nash) pointed out the other day that, our imports for the year ended July 31 last were valued at £56,000,000, as compared with £25,000,000 in 1933. As regards the shortage of retail goods now in near prospect, however, it is still more remarkable that the value of. total imports for the current year is only a little below that of the bumper imports of the preceding twelve months. Taking in every case the twelve months ending July 31. official statistics give the following total import values in the years indicated: —- £ 1935 34.381.000 1936 40,092,000 • 1937 51.390,000 1938 57,310,000 1939 55,968,000 Even when allowance is made for increased prices in the latest period covered and for such factors as heavy imports 01. defence material, it is not, easy to understand, on the basis of these figures, why the country should be faced by a developing shortage of retail goods, with an accompanying threat, to the employment of shop assistants. Since the Dominion’s annual excess of exports in the latest period to which official figures a.re carried (the twelve months to August last) amounted to under £3.()()(),()()() —less than onefifth of the annual amount to which tin l Dominion meantime is committed in meeting debt, and other charges overseas —it is clear that we have been and are over-importing heavily. On the figures of import values even from 1936 onwards, however, it should have been quite possible to effect, the necessary reduction without bringing about anything like the overwhelming disturbance and disorganisation of retail trade (and of related wholesale importing trade) that is now declared to be developing. It. certainly should have been practicable Io make the financial adjustments that are necessary without, dislocating the more essential branches of trade. As compared with what might have been expected, the state of affairs now disclosed is astonishing. The rest riel ions imposed at- the end of last year have done very little, as has been shown, to cut down the total value of imports. It may be doubted whether the reduct ion is much greater than it would have been in any ease, on account of I he fall in exporl values, had no rest riel ions been imposed. Ou the other hand, the restrictions are declared to be operating with shattering effect on importing and retail trade and with shop assistants, as well as the employers concerned, now raising their voices forcibly on this subject, the Government may find itself compelled 1o reconsider its course of action. A strong case evidently is made out for going thoroiighly into the whole, question of import regulation and restriction with a view to improving greatly on the policy al present in operation. The current, policy needs overhauling on Hie ground that it is not. resulting in an appreciable reduction of total imports and also for the reason that it is occasioning an altogether excessive and needless disturbance ami dislocation of t rude. A remit to be discussed at the annual conference of the Associated Chambers of Commerce this week declares that as import licensing is irksome, complicated, and costly and has proved ineffectual, it should lie abandoned and suggests that during the period which must intervene before abandonment can be achieved the existing system should be modified in the following way:—■ (a) Each importer to have allocated to him every six months the total sterling to which he is entitled. (b) Importers to be free to import within their sterling allowance subject to ordinary tariff control and the prohibition of certain lines. (c) The direction of trade to bo controlled by tariff. Il will be observed that under these proposals, lhe Government would retain control over the total volume of funds Io be applied to the purchase of imports. That control possibly might be more effectual in building up lhe sterling balance needed in London than the control supposed Io be exorcised at present. It could hardly be less effectual. That the policy now in operation calls for drastic amendment and moditiealiou appears to be beyond all question.