INCREASE IN DUTIES

Press, Volume XCIII, Issue 28002, 23 June 1956, Page 4

INCREASE IN DUTIES

“ Dangerous To N.Z. Economy ” OPINION OF COMPANY CHAIRMAN "The Press" Special Service AUCKLAND, June 22. The efforts being made by New Zealand manufacturers to increase tariffs by 15 per cent, and the attempt by Australia to expand her sales of manufactured goods to the Dominion were | both dangerous to the New Zealand economy, said Sir William Goodfellow, chairman of the Kiwi Fertiliser Company, Ltd., at the annual meeting in Morrinsville.

"If tariffs were increased by 15 per cent.,” he said/ "the Ottawa Agreement would go and New Zealand would lose its right of free and unrestricted entry of farm produce into the British market.”

The local manufacturer already had a free market for almost all his imported materials, said Sir William Goodfellow, whereas the British manufacturer had to pay 20 per cent, duty on such materials, plus the labour cost, plus greater freight on made-up goods.

Trade between New Zealand and Australia was "largely a one-way business, and very greatly in Australia’s favour.” he said. Last year. Australia sold goods to New Zealand to the value of more than £30.000.000. New Zealand sold goods to Australia worth £7.000.000, .comprising mostly goods with a low labour content, such as timber, pulp. wool, grass seed, peas and casings. The adverse balance of more than £20.000.000 was covered largely by a transfer from the New Zealand sterling balance in London. ‘‘lf we continqe to penalise the British manufacturer by increasing tariffs and by allowing Australia to take this market,” Sir William Goodfellow said.

‘‘then we should not complain if Britain cancels the Ottawa Agreement and imposes an import duty on food, thus saving the hard-pressed British taxpayers the cost of the huge subsidy paid to farmers in Britain.” r Trade Officer’s Comment The statement by Sir William Goodfellow that the efforts of the New Zealand manufacturing industry to increase tariffs and thereby increase local sales, were a danger to the New Zealand economy was inconsistent with his statement that Australia was also pushing hard to expand her sales of manufactured goods to New Zealand, said the Assistant Trade Commissioner for Australia, Mr.B. G. Dawson, in a comment. Both factors could not be a danger to the New Zealand economy.

Australia was anxious to develop her sales to New Zealand, but these principally involved capital equipment, such as diesel-electric locomotives, cars, factory machinery and raw and semi-fabricated materials for use by New Zealand manufacturing industries, he said.

‘‘The growing industrialisation of Australia means that it is rapidly becoming a most important market for New Zealand pulp and paper products, softwoods, fish, and other primary products such as quick-frozen vegetables,” said Mr Dawson.

“A rapidly-expanding population and adverse seasonal conditions could transform Australia quite quickly into an important customer for New Zealand primary products,” said Mr Dawson.