Mills Seek Higher Duty On Woollens

Press, Volume CIII, Issue 30393, 18 March 1964, Page 18

Mills Seek Higher Duty On Woollens

Increased rates of duty on imported piecegoods containing wool and yams of wool are sought by the Woollen Mills Association in submissions presented to the Tariff and Development Board in Wellington yesterday.

The association asks for a rate of 32| per cent or 5s a square yard, whichever is the greater, on British preferential piecegoods containing wool, and 32J per cent on British preferential yarns of wool. For most favoured nation and general goods it requests rates in accordance with policy and agreements. The present rate for yarns of wool is less than half of the 32j per cent rate, and the present rate for piecegoods containing wool is two-thirds the requested rate. In asking for the new rates, the association says it realises there are certain maxima in duties which are limited by policy. “We accordingly adjust our request to meet those limits. If higher rates are possible we have no doubt that the board will grant in accordance with what we have proved in our submissions." The association says the increases are necessary because of the higher level of New Zealand wage rates, wage costs and other costs related to wages generally, and New Zealand’s conditions of employment. Also, New Zealand is an export market for other

countries with huge local markets, which enables those countries to make special prices for export. The association also says that the word “imported” has magic as a sales point.

“Any lessening of output means added unit costs and a consequent lack of competitive ability. If such lessening of output is due to ineffective tariffs, then tariff protection is more costly than it need be, and at the same time, fails to achieve its sole purpose—employment of New Zealanders and the maintenance of development of efficient New Zealand industry. The association says variations in the price of raw wool such as those experienced this season, coupled with the limited area from which the New Zealand mills are able to buy their wool, and the limited period in which the wool is available, show how impossible it is for the industry to survive on a tariff only, without the addition of import controls.

Versatile

The association says also that modern machinery is so versatile that mills are no longer woollen mills only but also textile mills.

“We submit most strongly that under a policy of conservation of overseas funds, there should be no importation of all-synthetic yarns which can be spun by the New Zealand woollen mills. “Our mills are able to spin these yarns and desire to do so. All that is required is to terminate the importation of the all-synthetic yarns in this category, and, in substitution therefor, grant licences to our New Zealand mills for the synthetic fibres which are the raw material.”