THE MANUFACTURERS' SIDE.

Auckland Star, Volume LII, Issue 281, 25 November 1921, Page 2

THE MANUFACTURERS' SIDE.

SAFEGUARD AGAINST DUMPING. ONLY A<5K A STEADY MARKET. The manufacturer takes the view that the action in reffard to the Australian article is quite fair and reasonable, justified by the Australian attitude to New Zealand goods, and that it will eventually operate to the benefit of the consumer in New Zealand as well ac that of the manufacturer and merchant. Mr. H. Clark (president of the Auckland Boot Manufacturers' Association), in the course of a chat with a "Skir"' reporter, stressed the point that when Australia placed an outside tariff oil New Zealand goods it ten* quite just and reasonable tliat NH* Zealand should protect its own manufacturers by a similar tariff. So far as children's footwear was concerned he stated that quite a number of New Zealand factories turned out this class of goods in quantity, and it had to be remembered that the tariff on the English article hart not been raised at all, ho that while Australian and American competition was shut out. there was; yet always a steady competition by the English manufacturer to check any restrictive action that the local manufacturer might be disposed to take. It was. he Said, absolutely incorrect to say that tlie New Zealand factories could supply only half the local demands. For the two years in the middle of the war, despite loss of hands by enlistment, the New Zealand factories supplied the merchant* steadily with all they asked for. About nine months ago, however, the wholesalers and retailers placed practically no orders, with the result that the factories could not keep their hands fully employed, ami were faced with the position of either letting the men go or filling the factories with stock, for which they might subsequently get no orders. With the exception of three firms—one in Auckland arid two in Wellington—the factories had to put their men off. These men drifted to other employment, and now there was a shortage of skilled operatives in evfery factory in New Zealand. Bui if this tariff had any permanency and the orders came in the factories would get the men back in a short time, and the New Zealand boot manufacturers could supply practically all the boots that were wanted. The shortage of men, he held, was really the fault of the wholesale and retail merchants in trying to make the manufacturers "carry the baby" when they could get boots elsewhere for a time. He was prepared to give an absolute denial to the statement that there had been no dumping of Australian boots in New Zealand, there was dumping—in the sense that Australian firms quoted lower prices in New Zealand than those at which they were regularly selling in Australia. Provided the manufacturers were given a secure ■market they could get the men and fully supply the "New Zealand demand, while, aa he had previously said, the consumer would be adequately safeguarded bt English competition. ROOFESTG MATERIAL TO GO UP. When the tariff efctne down in the House at the begining of the mouth froofing material was plated on the free •list as far as England w*e concerned, ten per cent, far thfe second schedule, and ten per cent. for foreign countries. The amendment brought, down now (provides ft ten jier '«,»*. impost on British material and 20 for foreign. TBis means an increase of ten per cent on present prices for euch things as aetesto eheeting ahd eimJUr eaterial,

as practically all the imports of ttus nature that reach N*w Zealand come from Canada.

PAINTS AND OILR Tuerc was an obvious mistake in regard to paints when the tariff Was first announced, but this has now been set right to a certain extent. If the alterations announced yesterday had not been made mixed paints would have had to bear a less impost comparatively than tho white lead which was a necessary ingredient of any paint that had to be made locally. Local manufacturers would have had very small chance of building up a bueineea Under the original tariff. White lead will now bear an impost of 10 per cent if from the United Kingdom and 20 per cent if from foreign countries. Mixed paints, varnishes, etc.. are- now liable to 15 per cent and 25 per cent respectively instead of 10 and 90 under the original proposals. TTIK TOBACCO DUTY. A meeting of the trade was held hero to consider the amended tariff. It was decided that it should come into operation at once as far as the wholesale firms are concerned. Any alterations which may be found necessary in regard to the retail prices will not be announced linttl next week. Shortly thn effect ot the amended tariff is to put up the price of plug tobacco two pence per pound. The rate on cut totneco is reduced from what wa« originally suggested, and it is considered likely as far ac the trade are concerned, that one will balance the other. ,4t may be mentioned that duty has Iwen paid on a lot of tobacco cleared from bond since the tariff waa fifet brought down, utid in rasee where reductions are now made, this means a proportionate ]oca to the importer. Tlie reduction of one shilling on the tariff prst proposed for New Zealand manufactured cigarettes ie, of eourae. allowed to encourage a local iitdnetrv.

HIGHER COST OF LIVING.

AUSTRALIAN FOODSTUFFS AFFECTED. The placing of Australian goods in Uio third schedule will, in the opiuion of a prominent importer, make a considerable impression on grocery commodities imported into New Zealand from Australia. New Zealand in in an unfortunate position inasmuch that many everyday lines are not manufactured or packed in this country, and we have been compelled to go to overseas markets, and naturally have given preference to the nearest country, especially on account of it being British territory. Unfortunately, while they considered it good to have po close a market, insurmountable barriers were put in front of our export trade. For instance, at one time a considerable portion of our surplus produce found its way into Australia; quite a common event was a shipment of five or six thousand sacks of maize at a time, but when a duty of ninepence per bushel -was proclaimed, exportation from here to Australia was an impossibility as a paying proposition. The action by our Government Will now seriously affect Australian trade with this country, and place a prohibitive barrier on many lines, but considering that New Zealand is their nearest market, and values here are in conformity with Australia's, an early attempt to surest preferential tariffs can be looked for.

To keep these markets open cither lower costs must be quoted or preferential tariff be mutual. Confectionery, for instance, is to bear » penalty of twopence per lb plus freights, etc., and the market value is consequently tob higlif One Australian exporter of confectionery hae notified Kew Zealand clients that he has received so many cancellations of orders hold, that he deems it policy to hold up all orders awaiting confirmation now the uew fimff is declared, thinking it is impossible that merchants here can accent deliveripn at the netv landed costs. He thinks Now Zealand will be- a closed market until the restrictions are lifted. and that they cannot expect any more business. This season's supplies of tinned fruits have been confined to Australian markets, tliia foein much lower than the American cost*, which market was foreign and taxed Tii per cent on fruits, but the new tariff now places 37J petcent on Australian, ah addition of 12| per cent, or roughiy twopence per tin. so that. American competition may now be expected. Dfitstl apricots and peaches, which are already dear according to the public, are now to suffer a duty of fourpence per lb, and these will find very restricted inquiry. For macaroni and vermicilli we entirely depend on Australia, itiid the increase of duty to 35 per Pent will certainly increase" tlie cost of these useful supplies. Cream of tartar shows an increase to 20 per cent for foreign, aiid as preference has been given to tbe French, higher costs are looked for.