DUTY ON OIL ENGINES

Dominion, Volume 9, Issue 2766, 9 May 1916, Page 6

DUTY ON OIL ENGINES

BRITISH MAKERS PENALISED] At tho monthly meeting of the Wellington Chamber of Commerce held yesterday afternoon, the . following letter from the Association of .New Zealand Chambers of Commerce was read: — ■ "I am directed by the executive of the association to bring to your notice tho alteration in the Customs duties on oil and gas engines whic'n was made by the Finance Act, 1915. The executive has made representations to' the Government in connection with the matter, and a deputation has waited upon the Prime Minister, the Minister of Finance, and the Minister of Customs, but up to the present t'ue executive has been unsuccessful in ■ getting rectified what they consider to he an injustice to the British manufactured article'. - A brief summary of' the position is as follows:—Tho old tariff was—Oil and gas engines and i motor engines for bicycles' if of British manufacture, free; if not the produce or manuacture of the British Dominions a preferential surtax of 20 per cent, ad valorem. Under the now tariff, brought in by the Finance Act, 1915,' the duty is 10 per cent, ad on all engines not the produce or manufacture of tlie British Dominions. In effect, the position is that the, disparity in percentage of duty between engines of foreign manufacture and erigiues of British manufac-j ture is now 10 per cent., whereas previously it was 2U per cent., the British engine being in a worse position to the extent of 1U per cent, ad valorem.

"Ifc is recognised the alteration in the tariff has effected great improvement in the method of collecting duty on motor-cycles and motor-cars. No doubt'the old tariff caused both the Department and the importer much worry and confusion, hut there is no reason why this improvement should not continue without penalising the British manufacturer. No objection is raised to a 10 per cent, impose on. the British engine, as 110 doubt. New Zealand-mado engines aro entitled to some measure of protection, but what is objected to is that at this time, when we are seek-, tag to foster British Empire trade, the foreign-mafiufactured engine should be placed in a relatively' better position than the British engine to the extent of a duty of 10 per cent.

_ "Tlje chief compotifor of the British engine ill the Neiv Zealand market is tho cheap American engine. The Government's point of view is this—the United States extends to New Zealand products 'favoured nation 1 treatment, and it might bo cause for offence if a duty of 3U per cent, were collected on American engine's imported; the duty should bo '30 per cent, if tbo same differential treatment as previously existed is to obtain as between the British and the American engine. Your executive thinks, that this objection need bo given l very little consideration, particularly in view of the fact that the duty under the United States of America tariff on imported automobiles and motor-cycles is 45 per cent, ad valorem, iit this time the British manufacturer labours under many disabilities. His cost of production is particularly high, in most cases his output is restricted, us ho is giving preference to Government contracts for war material, and lie is subject to very heavy'taxation, it is surely quite difficult enough for the British engino manufacturer to hold his export connection wihout being compelled to compete with the American engine in the New Zealand' market on less favourable terms than formerly. It is hoped to have this matter rectified during the coming session of Parliament, and 1 am directed to ask if you would be good enough to lay tlie facts tafore the memben of Parliament for your district in tiie hope that lie will Mse his best endeavours' to have this! injustice removed." It was tho general opinion of members' that the matter should be pursued further, and it was decided that copies of ■ tho letter should' be forwarded to (Jity members of Parliament.