Tariff Increases To Protect N.Z. Industry

Press, Volume XCIX, Issue 29264, 23 July 1960, Page 14

Tariff Increases To Protect N.Z. Industry

(From Our Own Reporter)

WELLINGTON, July 22. New Zealand industries, particularly those fulfilling a want which otherwise must be met by imports of manufactured goods, are among the main beneficiaries of changes in the Customs tariff made by Parliament last night. The electrical goods, rubberware and plastics manufacturing industries received a considerable measure of protection by the changes. Others which are screened in various degrees from overseas competition are the manufacturers of woollen goods and of packaged goods. Single-unit industries also received protection. An example is Crown Lynn Potteries, of Auckland, New Zealand’s only manufacturer of the heavier types of crockery. The raised tariffs on imported articles raises the prices to the consumer, but allows the local industry to compete. Through a wide range of products a margin of 10 per cent, in the tariff is granted to packagers of goods, principally foodstuffs. This was one of the recommendations made by the Board of Trade in its 1957 report. The protection is indirectly extended to manufacturers of packaging material, such as cardboard. This protection is given to packers of macaroni, vermicelli, spaghetti, e-«g noodles and similar products. For a different reason protection is given to the manufacturers of peanut butter. This item was queried by Opposition members in the- House on Thursday night. In this case, a British preferential, tariff of 25 per cent, is established where before there was only a 3 per cent, primage duty, and the general tariff goes to 40 per cent. -This is to protect local industry from imports from lowcost countries.

An example of increased protection for the local woollen industry is seen in the increased tariff on blankets other than wool. This is designed tq-halt incursions made into the market of the local industry by cheap blankets of synthetic fibres from low-cost countries. v

A tariff increase .on some synthetic fibres affords protection to local industry without increasing the cost of women’s hosiery and interlock underwear. In the case of chinaware, there was previously no British preferential tariff and the general tariff was 45 per cent. This has been changed to 7Jd a lb on the British preferential tariff and the same, plus 55 per cent, ad valorem, on the general tariff.

These rates are designed to protect Crown Lynn Potteries, which employs almost entirely New Zealand materials and which, the Government believes, is capable of sustained development. This industry formerly received no protection at all. Because the tariff is calculated on weight, increases in the price of imported chinaware will bear most heavily on the heavy type of china in which the local manufacurer principally deals. On the lighter types, which are wholly imported, the price increase will be small.

Changes have been made to protect manufacturers of certain types of agricultural implements. This group of machines and implements has been protected at the rate of 10 per cent, for many years. The Government considers it an anomaly that one group of products of the engineering and mechanical industries shotlid receive protection of only 10 per cent, while other machines and appliances made by the same industries have been protected at 20 per cent. This anomaly is removed.

It is claimed that the farming industry should suffer no disadvantages. as for a great many years, the bulk of its requirements has been specially designed and built to suit local conditions.