TARIFF ANOMALIES

Dominion, Volume 12, Issue 215, 5 June 1919, Page 6

TARIFF ANOMALIES

CUSTOMS COMPTROLLER URGES AMENDMENT

ELASTIC DUTIES NEEDED

The amendment of the New Zealand tariff was the subject of some evidence given before the''lndustries Committee yesterday by Mr. W. 11. Montgomery, Comptroller of Customs. Mr. Montgomery said that he believed New Zealand ought to have an evolutionary tariff, instead of a fixed one. The existing tariff was not sufficiently elastic, and there was no doubt that it had hampered the establishment of industries in the Dominion. He had prepared an amendment to the Customs law, which ho understood the Minister of Customs was prepared to place before Parliament a; the first opportunity. The amendmwit v. as designed to reotify anomalies and *eiiGvo oouaitions that had been injurious to New Zealand manufactures.

The amending clause suggested by Mr. Montgomery contained tho following provisions:— Whenever it appears to the Minister of Customs that tho duty on any aritcle or tho freedom from duty of any article imported into New Zealand, or proposed to be imported into New Zealand, operating, or is likely to operate, in an injurious, unfair, or anomalous manner, either with respect to the public or to any industry or to any occupation, or whenever it appeals to the Minister that ■ trade concessions, whether by way of railway rates, snipping freights or otherwise, are being granted to goods exported from countries other than British dominions, as against goods exported from British dominions, tho Minister may set up ' an advisory committee consisting of not more than five persons, to.adviso on the special subject at issue; such committee shall report on any subject submitted to it to the Minister, who may then by his order suspend the existing tariff on any article, or impose such tariff as ho may deem just, provided that any duty or exemption from duty shall receive tho approval of the House of Representatives. The clause further provided that in the ca6e of an article admitted free; the Minister should have power to impose a preferential duty in favour of British dominions. Answering questions, Mr. Montgomery 6aid that tho Minister would be able to act upon the advice of the committee and secure the ratification of Parliament later.

Mr. C. A. Wilkinson: Would it not be possible for Parliament to deal with specified items in the tariff without opening up the wholo tariff? -.

. Mr. Montgomery: That is for Parliament to say. It is a matter of procedure. Mr. Wilkinson: Would it be advisable.' Mr. Montgomery: Certainly it would h» very desirable indeed to arrange that the tariff could be amended at a particular point without throwing the whole tariff open to amendment. Mr. H. Poland: You cannot amend tho land laws without opening uip the wholo question. Mr. Wilkinson: The trouble is that we never get the tariff discussed at all. Mr. Montgomery: Every Government is shy of tackling the tariff. It is a very big subject'for any Government to tacklo.

Mr. Wilkinson: Do you think it is lime tor a general revision of the tariff? Mr. Montgomery: Yes, unquestionably. It is twelvo years 6ince we had « revision of the .tariff, and tho conditions of trade and industry hn.ve altered greatly In that time.' I am satisfied that it is high time- for a revision *'of the s tariff. I'horo are very many vexed questions outstanding.

In illustration of the defects of New Zealand's fixed tariff, Mr. Montgomery imid that during the war manufacturers had been obliged to import bar iron and sheet iron from the-United Stales, since exports from Great Britain were prohibited. The preferential tariff could not be suspended, and consequently* the New Zealand importers had been compelled to pay an extra duty of 10 per icent., imposed originally to hold the 'trade in British channels.