Reduction of tariff for steel products part of package

Press, 13 December 1985, Page 3

Reduction of tariff for steel products part of package

Wellington reporter The eventual reduction of the tariff for steel products to 10 per cent and more liberal import licensing was part of the announced economic package. Import licensing will not be reimposed on New Zealand Steel’s new products and access for the existing products will be substantially increased from early 1986. While most tariffs on the company’s products will be reduced to 10 per cent by 1990, the tariff on some products, hot and cold rolled steel, will actually increase. Sheet steel, now duty-free, will have a 15 per cent tariff imposed on January 1, 1986, and this will reduce to

10 per cent in 1990. The duty on billet steel will remain unchanged at 10 per cent. Galvanised and coil coated products duty will reduce from 15 per cent to 10 per cent in 1990. The tariff on pipes and tubes will drop from 35 per cent to 33.5 per cent, on July 1, 1986, and then to 30 per cent the next year. The changes have been in consultation with New Zealand Steel and are probably the maximum reductions the Government could make in view of its agreement with the company when New Zealand Steel’s expansion project was embarked upon. The Minister of Trade

and Industry, Mr Caygill, said he did not believe the changes would significantly impact on the compan/s profitability. He said if it was so dependent for its profits on protection then it was not really a viable project. It was important to resolve the steel protection question before the matter was taken up in closer economic relations talks, said Mr Caygill. A New Zealand Steel spokesman, Mr Peter Gilmour, said that his company did not wish to comment because it was still in discussions with the Government over a review of the expansion project.