MEDICINE AND OTHER BOTTLES.

Press, Volume LIX, Issue 17814, 13 July 1923, Page 10

MEDICINE AND OTHER BOTTLES.

THE PROPOSED DUTY. STRONG PROTEST BY IMPORTERS AND USERS. Under the heading "Political Notes" there appeared in last Saturday's issue of "The Press" a copy of a telegram forwarded by Christchurch manufacturing chemists protesting against the proposal to impose a duty of 20 per cent, on all imported bottles (empty). The protest was principally against the duty being imposed on British bottles, particularly dispensing bottles which those signing the tele- ( gram understood the bottle works . in New Zealand would not be able to manufacture for a considerable time. It was also stated that large orders had been placed in England for lettered bottles which could not be cancelled, and could not arrive in the Dominion before September 16th. It was therefore suggested that the duty should not come into effect till January Ist next year. It "was considered, however, I that no duty should be imposed at all, as the freight and charges on imported bottles averaged 60 per cent., and should be quite enough protection without the proposed duty of 20 per cent. In the course,of an interview with Mr H. F. Stevens, of Christchurch, a representative of "The Press" learned that manufacturing chemists in othen parts of the Dominion are also entering strong protests against the proposed duty. Mr Stevens quoted the following from a letter he had received from an Auckland firm:—"There has been a lot of ill-feeling in Auckland in regard to the heavy duty that has been imposed by the Government; it wag a big shock to all the 'users of bottles in and ,a s'trong protest is being put in from here to the people down south (i.e., the Government), al* though the Auckland Industrial Association has sent a telegram congratulating the Minister on has action. The J writer this morning got in touch with) the president of the Industrial Association ~(Mx Allum), when a few facts were given in regard to the f.0.b., Lon- \ don, and c.i.f., New Zealand prices on several articles, and Mr Allum was I absolutely astounded. We are prepar- j ing copies of our various invoices, send- i ing the original invoice to the Minister i of Customs copies of all the other invoices to the members of Parliament. All the users of bottles here are protesting against the imposition, and we j only trust that you people in Christ- j church are doing likewise. For in- j stance, we sell a 21b jam jar; the f.o.b. price London is 30s per gross, or 57s per gross c.i.f.: that means that an article that costs 30s at Home costs 27s to bring out here, freight and insurance being nearly 100 per cent. Surely, this is protection enough for any glass works in the Dominion." With reference to the telegram of protest sent from Christchurch on the sth inst., Mr Stevens said that Mr Massey had replied that he was taking steps to refer the representations made therein to the Minister of Customs. On the 10th inst., Mr Geo. Craig. Comptroller of Customs, under direction from the Minister, wrote that the representations on the subject would receive careful consideration. On Wednesday the Minister (Hon. W. Downie Stewart) announced that he proposed to recommend that the duty should not come into force tillf December 31st, 1923, and, as regards the other representations, he proposed to refer Hhem to the Industries and Commerce Committee to ascertain how far the objections to the duty were sound, and torecommend to the Government any ' modification the committee might suggest. ! Asked for a statement of the whole position, Mr Stevens told the reporter that the request for the duty emanated from an Australian concern that had started a factory in Auckland. He understood that the company was a wealthy one, its capital! running into something like £2,250,000; and that it controlled all the glass bottle works in Australia. It had been able to get a big duty on import-, ed bottles imposed in Australia: fi he understood that it was as high as 40 per cent. As far as he had been able to ascertain, all the shareholders resided in Australia; there were no shareholders, he believed, resident in the Dominion. As had been stated in the telegram to Mr Massey, the average freight and charges on imported bottles was at least 60 per cent.; as stated in the Auckland letter (quoted above) in some instances they were close upon 100 per cent.; and in respect of aerated water and beer bottles they would average between 60 and 75 per cent. Mr Stevens did not consider that, in addition to this, there was any necessity for the imposition of any duty, as the protection given by the freight and charges was sufficient to encourage the New Zealand industry and to provide work for New Zealand workers. The reporter suggested that the duty was required in order that work might be. found for New Zealanders. "We like to encourage industry in New Zealand," Mr Stevens replied, "but we don't like that kind of protection that is going to put thousands a, year into the pockets of the shareholders of a f<yeign company. The shareholders are entitled to a decent profit, but I consider the freight and charges on imported bottles will be sufficient protection. The trouble is that; theyi cannot make the number of bottles required in the Dominion, and •will not be in a position to do so far several years. As a matter of fact, they cannot produce all the kinds of bottles required in the Commonwealth, and Australian users of bottles have to import them. To be in a position to make all the different kinds of bottles in demand would necessitate a very large plant. The whole thing boils down to this: If the Australian company wants protection they should onlyget it in respect of the bottles they can manufacture, and importers should not be penalised by a duty being imposed on bottles that can be manufactured only in England, France, Belgium, America, and other countries where the manufacturers specialise in making a good quality of bottles. In other words, why should importers be penalised -by a duty being imposed on bottles that cannot be manufactured in the Dominion?"