NEW PREFERENCE CONDITIONS.

Press, Volume LX, Issue 18265, 26 December 1924, Page 14

NEW PREFERENCE CONDITIONS.

DIFFICULTIES IN THE WOOL TRADE.

NEW ZEALANDERS WILL PAY MORE.

(ROtf 01TB. OWK COMIJrOICBIT.)

LONDON", October 30,

At a meeting of tho Bradford Chamber of Commerce eommunic.ations were received giving a fairly full and clear explanation of tho new Preference conditions which it is proposed to adopt in Australia and New Zealand next jear. When the announcement regarding thig subject was first made n. week or two ago several important newspapers went considerably astray in their commonts. Now, however, a more elaborate explanation lias been issued from tho two High Commissioners' Offices, and thero seems no-need for misunderstanding. At the Bradford meeting, however, it was evident that thero are' still difficulties in the way of a clear understanding of what is really implied by the new conditions. When tho communications had been read Mr Emsley, one of tho members, said ho did not know how they wcro going to make declarations to satisfy tho conditions, seeing it was difficult to say where the wool for tho top camo from. He recalled once asking the president what was the composition of his top. Mr Akroyd told him to mind his own business.

Mr W. H. Lister said that the words "provided similar goods uro not produced in Australia" wero a most serious proviso, which would bar all woollen and worsted goods.

Mr J. 11. Wood said it looked to him as though it was a prefe'renco that was no preference at all. Tho president said it would clear the difficulty to a largo extent if, as in the case of New Zealand, the word "British" applied in its widest senso to the Empire as a whole. Mr Edward E. Thackery said that Australia had been tho primo' mover in instituting increased preference for British productions, in her destro to help his Majesty's Government to remove tho burden of .unemployment. Contrary to New Zealand, therefore, Australia confined horsolf to Britain. Tho conditions struck him as u little ambiguous, but there was the evident desire to do something for the Motherland.

It was pointed out, that, as drawn up, the Australian conditions -would appear to preclude from preference goods made of Australian wool. It was decided, on the suggestion of Mr Lockwood, to write for a fuller explanation of tho terms of the Australian preference scheme. Dearer Goods for N.Z. In an article on the same subject, the "Statist" indicates that tho result of the new regulations will be that New Zealand buyers will have to pay more for their goods. "Tho value of Imperial Preference to this country," says the writer, "will be lessened by the decision of the New Zealand Government that, as from April Ist, tho proportion of British value required in goods in order that they may be entered under the British preferential tariff will bo 75 per cent. This has reference to the proportion of labour and material of British origin required in the case of goods which may be manufactured in part from material originating in a foreign country. The proportion of British origin nt present required is 25 per cent., :ind it is obvious that, generally, if British manufacturers attempt to work up to the higher percentage requirement the cost of goods intended for New Zealand, as well as other markets, will show an increase. Otherwise, manufacturers will have to resign themselves to tho necessity of exporting goods to New Zealand under the general, or intermediate, tariffs rather than under the Preferential. It is probable that most manufacturers will elect to follow the latter course, and forego the advantages of the preferential rate. Another factor that tends to lessen the value of Dominion" Preference so far as this country is concerned is, for example, the reciprocal tariff agreoment recently concluded between Canada and Australia, as British imports into tho latter will have in future to meet more strenuous competition. Under this agreement Australia proposes to admit certain goods of Canadian origin under the British Preferential Tariff, while certain other goods are to be admitted under the Intermediate Tariff, which is to be brought into operation for the first time. On the old basis, one type of Canadian machinery (linotype, etc.) would pay 10 per cent.; in future, it will come under tho 'free list.' "It is not difficult to foresee eventually," concludes the writer, "a further contraction of Imporial Preference by the extension of preferential concessions to foreign countries in return for reciprocal advantages. Mr Bruce has already used language which clearly envisages that possibility. Such a policy would, it is evident, be employed sparingly, as, on account of Australia's small population, an undue extension of preference would do much to impair its value. British exporters, therefore, will do well to recogniso the possibility of a progressive curtailment of their competitive advantages in trade with the Southern Dominions."

IMPORTED WHEAT.

READJUSTMENT OF DUTIES. '

An Order in Council published this week declares that the embargo on the importation of flour, wheat, bran, and pollard will b© removed as from March Ist next, and the duties on wheat-flour, including wheatmeal and similar preparations, are to be readjusted so that they may bear the proper relation to the duty on wheat. In addition to the primage duty of 1 -per centum ad valorem imposed by Section 15 of the Customs Amendment Act, 1921. wheatflour and suchlike wheat preparations are to bo liable to a duty of 3s per cent, under the British preferential, the intermediate, and the general tariffs. It is notified for publio information that if, after three months' notice as from Monday last, it is found that flour is being imported into the Dominion under conditions which warrant the imposition of dumping duty under Section 11 of the Customs Amendment Act, 1911, the Minister of Customs reserves the right to immediately impose dumping duty on flour shipments if he is of opinion that such action is required in the public interest.