Range of tariff cuts reduced

Press, 18 December 1985, Page 1

Range of tariff cuts reduced

By

MARTIN FREETH

in. Wellington >• The Government Will reverse some of the big tariff cuts on imported goods announced in last week’s economic package. Manufacturing companies have apparently complained that some of the goods are also made in New Zealand and are therefore outside the scope of the Government’s intention to cut or wipe altogether tariffs on virtually all imports not competing with domestically made products. However, the tariff cuts that will be made will take effect from tomorrow, not January 1 as was announced in the package. ■ The Minister of Customs, Mrs Shields, said the date had been brought forward after representations from businesses and because it would cause the least disruption to trading practices. Mrs Shields said extra congestion of goods being held at wharves and air>orts to benefit from the ower or wiped tariffs would be avoided.

There was already a problem of goods being held over for customs clearance until after January 1, Mrs Shields said.

. A list of the goods to be withdrawn from those identified in last week’s package will be made public today. The tariff cuts were to affect a range of goods, including many consumer items expected to drop immediately in retail price. The list included motorcycles which were to have tariffs of up to 30 per cent wiped, a range of musical instruments, some household appliances, and records and tapes. The Minister’s office said about 40 items would be withdrawn after New Zealand companies had told the Government that they were in fact made here. A statement from the Minister said the Government was prepared to consider further submissions from manufacturers who felt they made other goods also earmarked for tariff reductions in the package. Tariff reductions on goods which are also produced here would amount to a cut in protection for domestic producers. That is something the Government is doing, but on the basis of consultation with industries and programmes planned for implementation over a number of years.