‘Cloth Duty Reductions Aid To Wool Industry’

Press, Volume CIV, Issue 30936, 17 December 1965, Page 18

‘Cloth Duty Reductions Aid To Wool Industry’

The freeing of light-weight woollen cloths from import licensing and reductions in duty on such cloth would definitely assist wool to combat the marked inroads that synthetic cloths had made into the New Zealand market for both locally-produced and imported woollens, said a statement from the federal executive of the Wholesale Textile Federation, which met in Wellington recently.

Support for the action of the Minister of Customs (Mr Shelton) in implementing the recommendations of the

Tariff and Development Board on light-weight woollen cloths was expressed by the executive.

Early this month the managing director of Millers Worsted and Woollen Mills. Ltd. (Mr R. B. Miller) expressed concern at the “crisis” created by the Government’s acceptance of the board’s recommendations

that all cloths under sjoz for 54-inch widths be duty free from favoured nations from July 1, and that import licensing on such cloths be abolished.

Concern was also expressed by the secretary of the Woollen Mill Workers’ Association (Mr L. B. Swan). “The federation feels that New Zealand woollen mills would be better engaged in concentrating on the production of those types of fabric and products for which they are justly famous, rather than protesting against the importation of light-weight woollen cloths, which they cannot produce in any significant quantity,” the statement said. Duty Abolished

The Government abolished duty on imports of woollen piecegoods up to s)oz a square yard from British sources, reduced it to 10 per cent for those from other countries, and had announced such clothes would be free from import licensing from July next year.

“The board’s recommendations follow the general wool inquiry held in March, 1964. Subsequent careful and detailed Inquiries into the local

production of light-weight wool cloths proved that the output from the New Zealand woollen mills of these was less than IJJ per cent of the total New Zealand production of wool and wonted cloth in 1964, and it was not expected to increase materially.” In spite of fears expressed by “certain New Zealand woollen mills” the federation was confident the effect of the changes would be an over-all increase in the use of wool in New Zealand, at the expense of imported synthetic cloths.

“Provided the New Zealand mills continued to improve the value and range of colours and cloths that they can offer, they will share in the over-all expansion of woollen sales,” said the statement. Sales Encouragement “Surely It is desirable that New Zealand, which depends so much on the production of raw wool for its prosperity and earnings of overseas exchange. should encourage the sale of wool cloths, both locally-produced and imported. These should be as freely available to the public a. the cotton, rayon and synthetic cloths that are now imported without import licence and at low rates of duty. “The Tariff and Development Board, throughout its inquiries, had access to the most detailed and comprehensive information from all sections of the trade, including the mills. It was the board’s opinion that the production in New Zealand of light-weight wool cloths of under 6oz a square yard was relatively small, and by reducing the line of demarca-

tion for license-free imports to sJoz it would completely eliminate any danger to the New Zealand mills.

The board appears to be on firm ground in refusing to apply blanket protection to marginal items of production and in encouraging New Zealand woollen mills to concentrate on the economic production of those classes of materials for which they are best suited,” the statement said.