EXPORT DUTY ON GUM.

Auckland Star, Volume XXXIV, Issue 229, 25 September 1903, Page 5

EXPORT DUTY ON GUM.

INJURIOUS TO AN AUCKLAND

INDUSTRY

As a large number of settler, as well as several thousands of diggers are interested in the gum industry, a representative of the "Auckland Star" made some inquiries this morning ais to the effect of tiio proposal to place an export. duty on kauri guiin. The general opinion of those spoken to was i-iait beyond what the Government would get in tlie shape of increased revenue, very few workingm_i would be benefited, white the diggers as a whole would '<v the' end have to pay the duty. "We are not philanthropists," said one gum merchant, ''whatever tax is put,on must in the end be paid by the producer, as there is a limit upwards in the price at which it wall pay varnish makers to pay for kauri gum." v Mi- G. W. S. P_.t_._son, in conversation 'with a. "Sfta." representative upon the suggested export duty, said: "I suppose it is proposed with the idea of benefiting the workers, but in this case the majority must suffer, as thisre a.re only .from DO to 100 gum sorters as against 4000 to 5000 diggers. Of course any duty would moan increased cost of handling, and a proportionately lower rate paid to the digger. It really does not afTedt the g-uni men-chants at all. as prices are regulated !>y what, varniish•makers v.ill pay, and noil, what duty is put on at this end."

Then you do not think tHie duty could be charged against the outside buyer?

No. In all these things it is the produce, that suffers. As far as varnish,niiakers are concerned they are- already paying nearly 33 per cent- more for gum on the average than they wer. two year, ago, and even now complain that it. does not pay to use our gum. You can :.__ for yourself that, va___h has not advanced in price at all. Higher prices for kauri gum ..imply mean utilisation of substitutes in the shape of other resting; for New Zealand has not a .monopoly of them. The following extract, from .iters by last mail will show the state of tlile varnish tirade: — "Tfee :-'.ituat_o,n in the \„i_iah tirade is _.at._ as mo_t peculiar, and, .roan the manufacturers' standpoint, decidedly unsatisfactory. Perfvaps this sis tihe only line of staples that is sold itio-day for substantially the same pa-ices that have prevailed for the past seiven years, and this in the face of steady and continuous advance in the cost of raw materials. Varnish gums have almost doubled in price. The average cost of turpentine its 50 per cent, higher than four.years ago, tind all other raw materials show a considerable kicreape in cost. In addition to this, paekngcts, cans, cases and barrels have made tremendoui? strides, upward. Every item thlut is used by va_-ii.li nvanufa.. tuner, either 'in the formulation of their product, or in retaineth. for shipments, or in for wfcorage.' have advance_ in price steadily and to a high, point, ais well as the eoi-t of labour. Another very serious problem that now confronts . tihe varnish manufacturer is gum. There is a tli>i _ai_e'i_e_ sihortage of this ■ commodity. Unprecedented eonsumpitdon' and incommens-UTate receipts have caused a c--ea.rc-.ity. And to add to tihe tinis&ries of the varnish fraternity the irailroadis are now threatening a decided advance in freight rates. There *_.im;_ to be just thireie courses open to the va_ii-_h-niaker—First, continue, to sell his product ait present prices without profit, possibly with actual lots.; second, t-iheap-en the'quality of -lis goods; third, advance prices." That gives an M_t of the pc_.lioo of affair... Guim is just like flax. You know whsen flax gets a certain price ..!. pays better to use Manila hemp. Just the same when -gum .gets to. high, otter re. am aa_ used. Of .our&e there 'is no c_iia_ice of keeping tho gum in New Zealand wand making the varnish' here? ,

. Not white you have to • impot't,everyJMn _■' but tihe gum itsleilf. 'Bel .idles,, it would mean an e.normoui- outlay of capital. No, we'nm-ithra.rVto the export trade, and any duty levied will fall on the producer. / ,