CHANGE WELCOMED.

Auckland Star, Volume LXIV, Issue 116, 19 May 1933, Page 3

CHANGE WELCOMED.

ANOMALIES REMOVED. CHANCE FOR UNITED KINGDOM. IMPORTERS SATISFIED. Merchants, importers and manufacturers in Auckland generally welcome the action of the Government in giving Australia six months' notice of its intention to increase the rates of duty on a number of lines imported from the Commonwealth, so as to bring the rates into line with the duties payable 011 similar goods imported from Great Britain. With the removal of anomalies which have existed for some time, it is considered that the British manufacturer will have a better opportunity 011 the Dominion market.

Expressing the satisfaction of importers at the alterations made, Mr. Gainor Jackson recalled in an interview to-day' that when the tariff agreement with Australia was made in 1922, the rates 011 the lines now altered were the same as those then levied 011 similar goods when imported from the United Kingdom. Under the New Zealand-Australia 11 agreement it was necessary for either country to give the other six months' notice of its intention to alter the rates of duty. Since the agreement was concluded, the rates of duty on a number of lines had been increased when imported from Great Britain, but under tho Australian agreement those increased rates were not applicable to Australia. Similarly, the duty surtax, when imposed, was made applicable to all countries except Australia. Tho increases during recent years in tho rates of duty 011 a number of British lines, together with the 9-40ths duty surtax payable thereon, made the total duty payable 011 British goods considerably higher than 011 similar goods imported from Australia. That caused a considerable divergence of imports from the United Kingdom to Australia.

Advantage Eliminated. The removal of the duty surtax on British goods following the Ottawa agreement, considerably reduced the disparity between the duties on goods from the United Kingdom and goods from Australia, but while the difference in the duty rates remained, imports from Australia enjoyed a considerable preference over those from Britain. The latest action of the Government would eliminate Australia's advantage in the rates of duty on a long list of lines. "Over recent years," he added, "New Zealand in effect has been encouraging Australia's secondary industries to the detriment of British manufactured goods. Thq Government's action will, to some extent, correct this. Australia, however, still enjoys a considerable advantage over Great Britain in the matter of exchange, the rate between Australia and New Zealand being at par, whereas New Zealand's rato with Great Britain is 25 per cent adverse.

"Owing to the impossibility of getting over the high tariff walls in Australia, a number of British manufacturers have been obliged to build factories in Australia to retain the market in that country. As a result of the exchange advantage Australia enjoys with New Zealand, a considerable amount of business has been diverted from the United Kingdom to Australia for manufactured goods. This has been apparent particularly in wire netting, fencing wire, sporting goods, tennis racquets, golf clubs, confectionery, fancy goods, toilet preparations, perfumery, tobacco, gramophone records, household hardware, tinware and nui#erous other lines. In fencing wire and wire netting, Britain once had the whole of the New Zealand market. In the last three years New Zealand's imports of these lines from Britain have fallen from 97 per cent to 55 per cent. In the same period our imports of these two lines from Australia have grown from 3 per cent to 45 per cent. The diversion of this trade from Great Britain, who takes practically the whole of this country's exports, is not in the best interests of New Zealand. The Government's action in correcting the existing anomalies in the Australian tariff will be welcomed by all classes throughout New Zealand."

Bid for Market. It was pointed out by the head of a prominent drapery house that although Australian exports to New Zealand were not large, Australian manufacturers were at present making a bid for New Zealand business in certain directions. The alterations in the tariff, which would bring the duties into line with those levied on British goods, were fair to New Zealand's best customer, and he could not see in what direction the new rates would adversely affect Auckland importers of Australian goods. As far as drapery lines were concerned, no hardship would be created. Generally speaking, jjie changes would be in the interests of both the United Kingdom and New Zealand, and it was unlikely that any falling off in Australian importations would result. Another authority said it had been quite clear for some time that, with respect to certain goods, Australian exporters had been re-exporting, lines made in England in order to take advantage of the more favourable tariff rates. With the duties on Australian poods brought into lne with those on British, both United Kingdom exporters and New Zealand importers would benefit.

Change Not Noticeable. "Nobody will be putting up the flag half-mast, or to the top for that matter, over the altered duties," was the comment of the manager of the warehouse department of aprominent city importing firm. He added that the 2h per cent difference in the duty on drapery lines "was not noticeable, as importations under that heading were very small. There was a fair trade with scents and toiletware, where the difference was 10 per cent, and also with respect to boots and shoes, whero the

Australian tariff was also 10 per cent higher. "It is stated," he added, "that the alterations are designed to bring the Australian tariff into line with that on British goods, but that is correct up to a point only. It means that some are being placed 011 the British level, but those above the British level are not being brought down to it. The case of boots and shoes is an example."

Fresh Fruits. The feeling in the fruit trade is that ill the case of fresh fruits the adjustments will mean that the consumer in New Zealand will have to pay a higher charge for certain lines for which the Dominion depends upon the Commonwealth at certain times of the year. It was pointed out to-day that the rates on fresh fruits imported from Australia were the equivalent of the" rates 011 foreign fruits, notwithstanding that some of the lines had never been imported from Great Britain. It would have been a physical impossibility to import them. The examples quoted were cherries, apricots, peaches, passion fruit, and grapes.

Manufacturers' View. "The fact that the rates of Customs duties on certain goods manufactured in Australia have been for some time lower than those applying to goods manufactured in other parts of the Empire has had the effect of reducing the protection the Government intended New Zealand manufacturers should receive," said Mr. J. A. C. Allum, president of the Auckland Manufacturers' Association. "The new duties just gazetted remove this anomaly, and the action will be appreciated by local manufacturers.' The Australian manufacturers can have no reasonable cause for complaint at being placed on the same footing as other British manufacturers, more especially in view of the fact that there are 110 disadvantages as regards bank exchange, the rates between the Commonwealth and the Dominion being at par." Amazement was expressed by the principal of a large confectionery manufacturing concern that the Government had not taken advantage of the opportunity presented by the amendment of the schedules to place chewing gum 011 the ad volarem tariff, in accordance with the undertaking given local manufacturers. "Chewing gum," he explained, "is the principal confectionery item imported from Australia, and it is a most serious competitor with the sale in Auckland of chocolates and other ordinary confections. Of course, the gum could be made by any of our manufacturers, but if it were it would adversely affect the trade that has been built up for our chocolates. _ For a long time we have been agitating for the removal of chewing gum from the special preference rate it now enjoys—a rate under which it was never intended to be imported. The Government promised that our representations would be favourably considered when the tariff schedules as between New Zealand and Australia were next under review, but the alterations published to-day leave chewing gum at the same rate as previously in operation."