EQUALITY SOUGHT.

Auckland Star, Volume LXIV, Issue 190, 14 August 1933, Page 9

EQUALITY SOUGHT.

GAS AND ELECTRICITY.

DUTY ON CRUDE OIL

TARIFF COMMISSION EVIDENCE

Equality of treatment in comparison with the electric industry was sought by Mr. James Lowe, general manager of the Auckland Gas Company, when giving evidence before the Tariff Commission this morning. Witness said that when the tariff was framed care should be taken to prevent inequalities between competing industries, and also that the protection of local industries should be given consideration. How far that protection should go lie was not prepared to say. but ho emphasised that the cost of freight and charges were in themselves equivalent to a very considerable protection to local industries. The specific duties to which his company objected were the duty of 25 per cent on gas ranges, heaters and grillers. the 10 per cent duty on' gas engines, and the 20 per cent duty on oast iron pipes above 9in in diameter, and wroughtiron pipes above Gin in diameter. Witness asked that these items be treated in the same manner as similar electric appliances; The duty on electric ranges, grillers, etc., was 20 per cent. He asked that both be placed on the mine footing and in the event of the duty on tho electric being reduced or wiped off, then the gas should be treated similarly. Electric motors were duty free, and he urged that the 10 per cent duty on gas engines be abolished. In regard to castiron and wrought pipes, he asked that the same concessions be afforded as in the case of insulated cable and wire, which was free of duty. Professor B. E. Murphy: You are indifferent to what the duty is. so long as the two industries are on the same footing. Witness: I want equality and no increases. "Gas Industry Squeezed." The British Government had recently imposed a dutv of Id a gallon on crude oil, in the inte'rests of British coal, said witness, in urging that a duty of at least 2d a gallon should be imposed on crude oil imported into New Zealand. The fuel, he said, was being used to the exclusion of coal, coke and gas, thus helping to create unemployment in these New Zealand industries. "The gas industry is being squeezed between Stateaided electricity, on the one hand, and the free imports of crude oil, on the other, and wc would be glad- of some relief in the interests of consumers, employees and all concerned."

Mr. Lowe added that the company was a manufacturer of refractory materials, including fireclay and silica bricks, retorts, blocks and linings. Fireclay retorts and silica goods were duty free-, and he asked that they be brought into line with the imported fireclay bricks, blocks, etc., on which there was a duty of 20 per cent. " Expansion Slowed Down." Referring to the statement that the" gas industry was being squeezed, Professor Murphy commented that'the three major gas companies in New Zealand were showing quite good proQts. . Witness replied that that was due to their good management; Their rate of expansion was, however, being slowed down. In replv to Br. G. Craig, witness replied that there was not much danger of. the gas industry being held up by strikes. That was guarded against by carryings and by stocks of coal. Manufacture of Catgut. The imposition of a duty on imported catgut was sought by Mr. Charles Pettcrson. ' He stated that he had been doing preliminary work in the manufacture'of catgut string and was "ready to proceed with its manufacture. At present this article, was duty free, and ho sought a duty of 25 per cent on importations from the' United Kingdom, and CO per cent from other sources. Professor Murphy: You are really asking for a duty on a contemplated industry. Do you think it is a good principle to impose duties in such circumstances? Witness replied that it had been done in Australia and the United States. Professor Murphy replied that the Australian and Indian commissions had laid it down that it was uneconomic to impose duties to protect a contemplated industry. Asked if he would be able to compete with the imported article without protective duties, witness said that he would be able to struggle along. Dry White, Lead. Stating that dry white lead as a raw material was essential to the local manufacture of paint, Mr. T. H. Sussex, assistant manager of Phillipps and Impey, Ltd., asked that it continue to be admitted duty free. There had been a request in Wellington for the imposition of a duty, and to % this he was opposed.