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CORRESPONDENCE.

THE TARIFF AND COACH-

BUILDING,

(To the Editor.)

Sm, —I notice in the Evening Stak, a paragraph having reference to the new tariff' and its effect on the coach-building trade, and stating that a coach builder at Napier had been forced to reduce the wages of his workmen because the proposed tariff alterations would otherwise compel him to import the finished article. This, you . state, is quite opposed to the opinions oE Auckland coach-builders. Now, sir, having carried on this business in Auckland for the last eight years, I beg you to allow me to express my dissent from this view of tho matter, for I consider the new duties will have a most disastrous effect on the trade. For the gist of the whole matter is, " What is our position relatively to the importer of finished work ? Is id better or worse than it was before the alteration in the tariff'?" Now, sir, under the old tariff, finished work paid 15 per cent., and nearly all materials required in the trade were free, all, in fact, which were specially made for carriage or buggy - building, and which could nofc, or were nofc likely to be used for other purposes. Thus we had a clear advantage of 15 per cent, over the importer of the finished article. Now under bhe proposed new tariff', finished work is to pay 20 per cent, and materials 15 per cent., which puts the local manufacturer at a disadvantage of 10 per cent, under the new as compared with the old tariff. Now, sir, you say tho tariff' alterations are distinctly in the direction of encouraging colonial manufactui-e of articles required in coach-building. Bufc I maintain that the colonial market is not sufficiently extensive to induce manufacturing of the accessory branches of the trades to start their business here. There aro so many articles required which can only be made profitably on a large scale—take, for instance, carriage lamp., silver beading, and patent axles. I do not believe a duty of 50 per cent, would induce manufacturers of those articles to start their busings hero yet, as they could not sell enough to make it pay, especially if we a^e to be put to the disadvantage which the new tariff proposes. The inevifcable effect will be to kill all chance of making carriages or buggies here at all, and to throw the whole of the trade into the hands of those who import the thing finished and ready for use. In the matter of wheels, I believe we may help ourselves without much difficulty, j and use New Zealand timber instead of importing spokes and hubs, though it must be remembered that weight is a .thing objected to by buggy-buyers, and that all our timber hard enough for the purpose is very heavy compared with hickory. And again, in getting our wheel stock prepared, ready for putting together, we are only doing what all American buggy-builders do, which is, in fact, simply dividing tho work into parts to do it more advantageously, and consequently cheaper. Again, it is a well-known fact that the dearer a thing is, the fewer people can buy it; so that if wo weio to increase the price of our vehicles in proportion to tho extra duties we shall have to pay, and also charge interest on the larger- sum of money it will require to carry on the trade, wo most assuredly should have fewer customers for our goods.—l am, etc., Edwin Harvie. June 11, 1888. [The coach - builders should meet to* gefcher and offer suggestions to the Government, embodying the requirements of the trade. If the Victorian tariff had been accepted, many of the anomalies of our proposed tariff would have been avoided, as the tariff in that colony has been moulded by the experience of manufacturers.—Et>. E.S.]

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/AS18880612.2.64

Bibliographic details

Auckland Star, Volume XIX, Issue 138, 12 June 1888, Page 8

Word Count
640

CORRESPONDENCE. Auckland Star, Volume XIX, Issue 138, 12 June 1888, Page 8

CORRESPONDENCE. Auckland Star, Volume XIX, Issue 138, 12 June 1888, Page 8