Rubber tariffs for phase-out

Press, 1 June 1989, Page 45

Rubber tariffs for phase-out

By

PATTRICK SMELLIE

in Wellington Industrial rubber goods manufacturers would be hard-pressed by the latest Government decision removing import controls on a wide range of their products, the chief executive of Christ-church-based Skellerup Industries, Mr Guy Crozier, said yesterday. The Minister of Commerce, Mr Butcher, announced yesterday that import controls would be removed on rubber products, except those involved in new tyre manufacture, from July 1, 1990.

This followed the recent review of the general rubber goods industry development plant (GRGP) in place since 1984

to allow industry time to adjust to lower levels of the border protection. It involved a six year phase-out of import licensing, which ends on December 31 this year. The review set tariffs to apply between the end of import licensing and the end of the general tariff reduction programme in July, 1992. Tariff reductions for GRGP products will occur on January 1, 1990, April 1, 1991, and July 1, 1992. In addition, all Australian preferential rates will became free of duty on July 1, 1990, under CER. Tariff rates for less developed countries (LDCs) will reduce in line with movement in normal rates, and special

LDC rates have been introduced for moulded rubber mats, and parts for bicycles and non-motorised cycles. Preferential rates for Canada will be reduced as appropriate in order to maintain the margin of preference. Mr Crozier said the announcement was in line with expectations, and showed the Government had ignored submissions seeking the retention of some industry protection. “Our view is’ that the announcement fundamentally removes any incentives for rubber manufacturers to set up production facilities for products which are currently imported,” he said.