Cost Factor In Import Control

Press, Volume CVIII, Issue 31727, 10 July 1968, Page 16

Cost Factor In Import Control

Locally-made switchgear cost 35 per cent more than the imported equivalent, and large transformers would show the same differential when they were made in New Zealand, said the engineer-manager (Mr S. E. Slatter) when the Central Canterbury Electric Power Board yesterday again discussed the effects of import control on its requirements.

Mr Slatter said that the national need for large transformers, a “bread and butter line,” ran into hundreds a year. Should the board seek chea per imported items or just take the dearer locally - made ones?

He was commenting on a letter from the Department of Industries and Commerce which dealt with points in newspaper reports of a board discussion last month on the effects of import control The letter explained the four categories of import licences, and said that applications under category B would not be supported if the items were made in New Zealand and the department, to the best of its knowledge, believed the local manufacturer could meet requirements. If, however, the board could substantiate that loeally-made lines were not suitable, or were substantially dearer, the board would be free to place an order for imported lines. “We're batting on a much better wieket now,” said Mr Slatter. He told the chairman (Mr T. F. Carter) that the board had explored the avenues suggested by the department “In the light of the letter we can support an application for an import licence with much more elaborate details of what is wanted,” he said. Mr Slatter said that the department had referred to a type of insulator made at Temuka, but he explained, this insulator could be imported from France at $4.50, while the New Zealand insulator cost $6.68. The mounting pins cost $l.OB from France and $2.03 New Zealand made.

“Where we feel the local manufacturer neqds to be supported by a tremendous markup in price, we should be allowed to import” he said. The board was in business, and where it considered the

New Zealand-made price to be excessive it should be allowed to import, said Mr W. H. Faulkner. “Mr Slatter has been doing that, and that’s why our complaint got into print," said Mr Carter. On the motion of Mr L. T. Griffith, the board authorised Mr Slatter to renew his application for imports, and to use his discretion on locallymade alternatives. “Only a very small section of local manufacturers do not produce articles to meet our requirements. In general, they do,” said Mr Slatter. 1