Pref. Tariff Attacked

Press, Volume CVII, Issue 31514, 31 October 1967, Page 21

Pref. Tariff Attacked

(New Zealand Press Association)

AUCKLAND, October 30.

High Customs duties prevent New Zealand from buying from many countries that are, or could be, good customers for our farm products, the chairman of Motor Specialties, Ltd, (Mi* J. F. Johnston) said at the annual meeting of shareholders.

It could be assumed that the United Kingdom would eventually join the Common Market, with disastrous results for New Zealand exports. Yet, automotive parts from Commonwealth countries at-

traded 20 per cent duty, whereas those from Japan, the United States and other "most-favoured-nation” countries were subject to a 55 per cent duty. This differentiation was an almost insuperable barrier in trade, causing a great deal of antagonism toward New Zealand, Mr Johnston said.

He also advocated longterm protection of local automotive industry through tariffs rather than import controls. General Tariff He said it was not generally possible to contemplate manufacturing in New Zealand at prices comparable with overseas countries, because New Zealand did not enjoy the advantages of mass production. Local consumption was relatively limited and the range was very extensive because of the many models of vehicles that were here in limited numbers. This necessitated a more realistic system of Customs tariffs. With the advent of the steel industry, encouragement would have to be given to industries that were consumers of steel. No industry offered a better potential than the motor industry, said Mr Johnston. For this reason a greater measure of tariff protection should be offered, even if prices were materially higher than import costs.