HEAVY DUTIES.

Press, Volume LXVI, Issue 19971, 4 July 1930, Page 13

HEAVY DUTIES.

AUSTRALIAN CUSTOMS TARIFF. EFFECT ON INDUSTRIES. moM ovm owa coanspoirDsirr.) SYDNEY, June 27. Australians have become used to tariff shocks. Perhaps that is why the latest failed to arouse any great public interest. Business people had come to hope that the tariff had settled down; that it would remain stable for a little time at least. But they were doomed to disappointment, for the whole thing went into the melting pot, and its full effect has not yet been ascertained by those who are directly concerned. The schedule, issued last'week was' a vast document covering 422 Customs and 17 excise items. There are many departures from existing practice. For the first time parts have been taken from an article and singled out for special duty. This applies particularly- in the case of motor chassis. Some one has remarked that if much more duty is placed on motor-car parts tjiat manufacturers will be sending ont the name plates only; the rest of the car will be made in Australia in order to avoid the extremely high duties. This would fulfil the policy of the Labour Government.

Generally speaking the new schedule is a consolidation. The timber industry will benefit most. Timber, merchants who for a long time have been asking for higher tariffs on imported timbers, are more than pleased with the assistance that has been given them; but they are not the only ones who are pleased. Manufacturers on all sides are delighted, for they say that they will be able to employ more hands and greatly increase their plant. Metai workers, for instance, say that the new tariff will create 2000 extra jobs within twelve months. Many of the articles that have been import-; ed have now a prohibitive duty tb; contend with, ana it is held that the importations will practically cease. Motor body builders and the makers of car parts say that they will be able to employ hundreds of additional hands, and that the increased trade in New South Wales alone will be nearly a quarter of a million 'pounds. Another effect of the new tariff will be to increase enormously the demand for Australian-made woollen goods A duty that will make the retail price almost prohibitive to the average man or woman has been placed on woollen dress materials made abroad, so this should give a great fillip to the woollen mills in Victoria and New South Wales. Rates on woollen piece goods have been altered from Is 3d to 2s British and 2s 6d to 3s general rate. The weight per square yard has been altered to bring a greater range of cloth within the tariff. The latter change is of great importanoe to the local woollen industry which in the past has not.manufactured the lighter weights. It has been emphasised that the new tariff was not brought down with the object of producing more revenue. Customs revenue has already fallen away by millions as a result of the last schedule, and with the Federal Government searching for funds to make up the deficiency amazement is expressed because the Government did not see fit to increase the excise on luxuries such as beer, spirits, and tobacco. Even a small imnost on these articles would have produced a substantial revenue. The onb alternative seems to be a substantia) increase in the income tax, and that will be a hardship to everybody, especially trading companies, who are already faced with difficulties; already over-taxed. But playing cards did not escape. For the first time in Australia they have been called upon to bear an impost of 2s a dozen packs. . Another innovation has been the imposition of a duty on outside packages of imported goods. These in the past have been admitted duty free, and now they must pay 20 per cent British and 30 per cent, general. This has been done to overcome the practice of exporters to Australia of inflating the value of outside packages. The new schedule was such a surprise that there were no heavy withdrawals from bond before the new rates were announced.