TARIFF CHANGES WELCOMED

Press, Volume LXXIV, Issue 22340, 2 March 1938, Page 12

TARIFF CHANGES WELCOMED

EFFECT ON INDUSTRY

MANUFACTURERS’ ASSOCIATION ATTITUDE The Canterbury Manufacturers’ Association welcomed the announced tariff increases, according to a statement made yesterday on behalf of the association by Us secretary (Mr T. Hyde) It was net possible at present, he said, to estimate the immediate effect of the increases in all classes of industry. “It is very gratifying to see that the Government intends to give effect to its nolicy of safeguarding the develop rnent of industry in New Zealand,” said Mr Hyde. "This development *s necessary if we are to produce econom'caHy and maintain the standard of living desired by the Government. "The amendments indicate that most of thf> major industries will be given an opportunity of recapturing a greater proportion of the New Zealand market, with a consequent effect on employment and the national income. , . “These adjustments are the outcome of protracted negotiations between the Now Zealand Manufacturers’ Federation and the Government, and we are «reatlv indebted to the Minister for Industries and Commerce (the Hon. D. G Sullivan) and the officers of his department for the thorough investigations thev have made into all types of industry, and for the manner in which thev have placed the needs of industry clearly before Cabinet. “The results achieved to date augur well,” said Mr Hyde, “and manufacturers will now look forward to the Government's further consideration of items other than footwear coming from the United Kingdom.” Reply to Criticism

The statement of Mr A. P. O’Shea. Dominion secretary of the New Zealand Farmers’ Union, that the tariff increases would result in agitation for wage increases and in a general rise in the cost of living was contested by Mr Hyde.

It did not necessarily follow that the unions would apply for higher wages because of the tariff increases, he said. The unions appreciated that the protection was given to New Zealand industry to enable it to carry on and expand with the existing expenditure. The investigations wore made and the protection was given in accordance with the existing commitments of industry for labour costs and so on. The argument raised by Mr O’Shea about a rise in the cost of living was fallacious, because developments in Australia had proved conclusively that with the greater proportion of the domestic market being confined to local manufactures, unit costs wore reduced. It had been found in Australia that after a reasonable period it was possible to reduce the cost price of articles.

EXPORTERS’ FLA US

POSSIBLE REACTION ON

BRITISH MARKET

OPPOSITION OF FARMERS EXPRESSED . [THE PRESS Special Service.) DUNEDIN, March 1. Whatever their views on the tarifT revisions, business interests in Dunedin displayed marked unwillingness to discuss the Government’s latest enactment. The attitude of the farming community, on the other hand, was expressed by one spokesman, who said that he was quite safe in saying that there would be uncompromising opposition to the schedule, wherever it was read in the country.

The effect of the increased tariff barrie'rs against British manufactures on the sale of New Zealand primary produce in English markets was emphasised by Mr A. C. Cameron, general manager of the Farm Accounting Association, who said that the higher duties could not fail to prejudice a large section of the British consumers against New Zealand produce. The Dominion’s competitors could, and v/ould, make great capital out of these new increases.

“Of course, every added duty of the kind provided for in this list,” said Mr Cameron, "will mean a further increase in the farmer’s costs, and for that reason, if for no other, the new schedule will be very unpopular with farmers, but I think that the reaction of the British consumer against our produce is a much more serious matter. Our competitors need only a single headline like ‘New Zealand Tariff Increased Again’ to do a lot of harm to our produce and destroy much of the goodwill that has been established by the continuous effort of a good many years. “It takes very little in the way of tariff barriers to affect the consumption of a country’s produce, especially in industrial areas that look to countries like New Zealand for an outlet for their manufactures,” he said. INCREASE IN PRICE PREDICTED COMMENT ON FOOTWEAR TARIFF (PHKSB ASSOCIATION TSLEGQA.M.) WELLINGTON, March 1. Surprise at the imposition of increased duties on English footwear was expressed by Mr M. H. Russel, secretary of the United Kingdom Manufacturers’ and New Zealand Representatives' Association in an interview to-day. He said that the association had read the case sent out by the British Boot and Shoe Manufacturers’ Association and it appeared that the association effectively answered any application for an increase in the duty on their products, if only because English costs had risen more or less pro rata with the higher New Zealand costs.

“We have not yet been able to consider what difference the increased duties will make in price, but we are sure that the public will realise that the ultimate effect will be an increase in the retail price,” he added. “We appreciate that the Government has apparently given full consideration to the representations of the United Kingdom manufacturers and we axe relieved to find that only one line of imports from the United Kingdom is so far affected.”