Details of Trade Agreement With Australia

Press, Volume LXXIV, Issue 22339, 1 March 1938, Page 10

Details of Trade Agreement With Australia

GENERAL INCREASE IN TARIFF ON FOOTWEAR

Minister Expects No Rise in Prices

[From Our Parliamentary Reporter.! WELLINGTON, February 28. Full details of the new trade agreement between New Zealand and Australia, together with a schedule of tariff increases on specified imports from Australia and Canada, were given in a statement issued this evening by the Minister for Customs (the Hon. W. Nash). Special interest attaches to the new scale of duties for footwear, the increases having been windo for all imported footwear, including that of British manufacture. A special Gazette was Issued this evening giving notice of an Order-in-Council, which will bring the new customs duties into operation as from to-morrow. “There are large quantities of goods at present being Imported into New Zealand which could satisfactorily be manufactured within the Dominion,” said Mr Nash in the statement. “The proportion of such goods now being made here, even though in a number of cases the industries are very extensive, is not as large as it should be. The increasing volume of imports has made it apparent to the Government that some further measure pf protection is necessary if industries in New Zealand are to develop as it is felt they should. “It is the Government’s policy,” added Mr Nash, “to encourage the development of suitable industries in New Zealand, as far as that is reasonably possible. Such development is a necessary part of the Government’s policy. It is necessary from fhe point of view of employment, for utilising our own resources in the shape of raw materials, for maintaining efficient production, and in the national interest generally.” .

“The action now being taken,” said Mr Nash, “is accordingly designed to afford the industries concerned the measure of protection which, it is considered, should enable them to capture a large proportion of the trade in goods now imported from the countries to which increased duties have been applied, thus leading to an expansion of industry along the- lines desired. “Although duties have been increased, it does not necessarily follow that internal prices will rise. On the contrary, as a result of increased production and the consequent greater efficiency in industry in New Zealand, many manufacturers should be in a position to reduce prices, and internal competition should ensure that prices are kept at their, lowest level.” Before effect could be given to the increased duties, the Minister said, it was necessary, in view of the trade agreements with Canada and Australia,' to enter into negotiations with the Governments of each of those countries. Agreement was finally reached last Friday, so it would be evident that no time had been lost by the Government in implementing the proposals. British Preference Remains “No increases have been' made in the duty under the British preferential tariff,” said Mr Nash, “except_in respect of tariff item 190, footwear, in which case the duty on boots and shoes, other than of rubber, has been increased from 20 per cent, to 29 per Cent, ad valorem, or 3s a pair, whichever is the higher, and' that on slippers from 20 per cent, to 25 per cent, ad valorem. The duties on footwear Imported from Australia, Canada, and foreign countries have also beem incn^sed.” Speaking on the increase in duty on British footwear, Mr Nash said that an’.'“opportunity had been given to Uplfed Kingdom manufacturers to make representations, and full consideration had been given to the case presented on their behalf. “The duty on South African wine has been, increased from 3s 6d to 5s 6d a gallon, and that on Australian wfne from 4s to 5s 6d a gallon. The other Increases apply only to Australian,

Canadian, and foreign goods, and in a number of cases only Australian goods are affected. Australian Concessions “Alter representations made during the negotiations, the Commonwealth Government has signified its willingness to admit into Australia from New Zealand, free of duty, fruit-grading machines and also the infants’ foods, Karilac, Karil, and Kariol. The necessary formalities in this connexion are being proceeded with, and should be completed at an early date. Whether certain other classes of goods can be admitted from New Zealand on a more favourable basis is being considered by the Commonwealth Government.” Mr Nash said he was sure that the decision to admit the infants’ foods referred to free of duty was one which would be highly appreciated by Australian mothers, who should in future be able to obtain these products at a lower cost. It would be evident from the nature °f the proposals which had been given effect to, that the negotiations with Australia had presented a problem of some magnitude, and the task of the Hon, T. W. White, Australian Minister for Trade and Customs, with whom the negotiations had been conducted, had been very difficult, Mr Nash said. He felt that the fact that agreement had been reached on- practically all points was attributable largely to the friendly manner in which the proposals made on behalf of New Zealand had been accepted and discussed by the Commonwealth Government, which recognised the right of the Dominion to safeguard and develop her Industries. Improved Relations Expected He had not reason to think that the action how taken would in any way prejudice trade relationships between the Commonwealth and New Zealand, but on the other hand, he was definitely of the opinion that the negotiations had gone a long way to cement the evident goodwill which existed between the two countries. . There was a similar position regarding trade relations with Canada, the Minister His last word must be one of appreciation of the courtesy and consideration given to the Government’s proposals by the Government of Canada. After his discussions at Ottawa in July of last year and communications during the last three months, the amended duties had been amicably arranged. “Given the co-operation of manufacturers In the competent organisation of their plants and business administration,” Mr Nash added, “the new arrangements will extend employment in the Dominion, and provide products at no greater price than is being charged to-day.”