“GREAT WIN FOR ENGLAND”

Dominion, Volume 20, Issue 298, 15 September 1927, Page 10

“GREAT WIN FOR ENGLAND”

THE NEW CUSTOMS TARIFF VIEWS OF BUSINESS COMMUNITY BENEFIT CONFERRED ON MILLIONS’ Satisfaction generally with the Government’s tariff proposals was expressed by business men in the, city yesterday, when interviewed by reporters of the “ Dominion.” His Majesty’s Trade Commissioner (Mr. L. B. Beale), declared that the increased preference to British goods would be most gratefully received by the. manufacturers and millions of workers in the United Kingdom, and that it would result in improved markets for New Zealand’s primary products. Although holding the opinion that the 5 per cent, allowance on imported unassembled motor-car bodies was absolutely useless to the body-building trade and to the British motor-car interests, the representative of a British manufacturing firm agreed that the new tariff, in the main, was a great win for England. With regard, to the increased duty on foreign films, it was contended by one, interested in the motion picture industry, that it would neither help British producers nor hamper the foreigner and would simply be passed on to the public.

“SOUND REVISION ”

WILL BE WELCOMED AT HOME

VIEWS OF BRITISH TRADE COMMISSIONER

That the further encouragement afforded Great Britain by tlie increased preference would be most gratefully received by the manufacturers and millions of workers in tho United Kingdom, and that coming at a time when the Dominion was emerging from rather unsettled economic conditions, the new tariff was a most heartening and encouraging feature in the prosperity and growth of New Zealand, were tho views expressed by His Majesty’s Trade Commissioner in New Zealand (Mr. L. B. Beale). “I regard the revision of the tariff as a sound revision,’’ said Mr. Beale, “for it is certainly in the best interests of tho producers and consumers of the Dominion, for tho reasons that it reduces duties on things used, by all classes in every home; it facilitates tho introduction of raw materials and machinery io be used in local industries; it enlarges the policy of British Empire preference; and- it contains important proposals for increasing the markets for New Zealand products overseas. “If,” continued Mr. Beale, "the Government, while granting concessions in duty on articles in general use in New Zealand can, in making such concessions, increase tho market for New Zealand products, there will automatically be a double benefit conferred. "If, as I hope and believe, the. changes mean a greater trade in British goods to New Zealand, then the enlarged capacity to employ people at Home will surely be automatically reflected in the ability of the people of the United Kingdom to purchase more New Zealand produce. “I think the tariff is a most able effort of the Government to adjust the conditions governing the economic position of New Zealand, in that increased and regular employment is assisted, the factors entering into the cost of production are lowered in price, many items in everyday use are reduced, and the practical partnership of the Empire is expressed in the clearest terms. “The prospects, too,” he concluded, "of wider markets for New Zealand produce are greatly enhanced by the Government’s new proposals outlined in the appendix to the tariff.” WELL SATISFIED MOTOR ASSEMBLING INDUSTRY With the five per cent, advantage over imported assembled motor vehicles, the managing director of General Motors (N.Z.) Ltd., Mr. Walter E. Hill, is well satisfied "We are naturally pleased,” he said "that the Government has recognised the importance of our contribution to the Dominion’s industrial welfare. Wo have invested a largo sum of money in plant equipment and organisation in order to best serve the interests of New Zealand’s motoring public as we feel that we . shall nrofit only in proportion to tho service that we are able to render. We are of “the opinion that motor transportation in all its phases will occupy an increasingly important position in the Dominion’s economic welfare. and this recognition of the desirability to New Zealand of motor manufacturers assembling . their products in New Zealand is a decided stimulus to the still further extension of our operation.” General Motors Ltd., employ 300 men in assembling imported motors at their works at Petone, while the capital invested is just over half a million sterling.

EFFECT ON TIMBER INDUSTRY MEASURE OF REASONABLE PROTECTION RAISING THE BARRIER Gratification that the Government had at last given the timber industry some measure of reasonable protection was expressed by the secretary of the Dominion Federated Sawmillers’ Association (Mr. A. Seed). He remarked, however, that it could not be said that the amount of increase granted was quite as much. as had been hoped. The actual increases on timber actually scarcely made good tho additional burden that had been placed on the industry by the Government itself in recent .years. For instance, the railway freights on timber had been increased since 1917 on an average of approximately 2s. per 100 superficial feet and average royalties charged had increased fully by one shilling and sixpence per 100 feet. Consequently, the increase of three shillings in 100 feet duty on rough-sawn timber barely made good these additional charges the New Zealand timber industry had had to bear of recent years. “Nevertheless,” said Mr. Seed, "the raising of the Customs barrier to even this extent should at least place the New Zealand sawmillers in the e samo competitive position with the foreigner that ho held prior to the date named, and this should be of material benefit to tho industry. It is very _ disappointing that no additional barrier has been placed against timbers, coming from the United States of. America and other foreign countries as against those coming from other British sources. Similarly, disappointment is felt that American oak should still remain upon the free list, not so much that this is a serious confyetitor with, our lower grade timbers, but. that, it is really a luxurv timber, and being very prone to attack by the borer should be discouraged from use in that wav.” Mr. Seed stated that there had not yet been time to study carefully details of probable effects as effecting timber and timber substitutes such as wallboards and tho manufactured items such as doors, but one would be able to comment more confidently on these matters after careful comparisons had been made. , ~ „ , . "On the whole.” said Mr. Seed in conclusion, “I think that the Government are to be congratulated upon manifesting a sincere desire to give better encouragement to New Zealand industries generally and to direct trade as far as possible within Empire channels.” IMPORTED FILM "A PURPOSE DEFEATED.” That the proposed 200 per cent, increase in duty upon imported kinematograph film would not have the slightest effect on the American producer, and that if it intended to stimulate the production of British film, the Government had gone the wrong way about it, was asserted by a representative of the New Zealand Motion Pictures Exhibitors’ Association..

"By 'film,’" he said, "we assume is meant, in addition to the finished picture, undeveloped film for the purpose of making pictures. To make a motion picture in New Zealand one must import film, say, at least, 10,000 feet, to make a 6000 foot picture. The only reliable film which could be used is manufactured in either America or Germany, so there would be an increase in the cost of any picture made in New Zealand. Then, again, iu the case of the imported finished product, the increased duty will not assist British production. "The contracts which the exhibitors have with the American distributing companies contain a clause which auto-

matically passes on to the exhibitor any increase in duty. The American film producers, therefore, will not pay the added duty. “The New Zealand exhibitors will, and so will the public in the long run, and there will not be the slightest effect on the American producer. The British films are not there to be bought, so we must have the American.” “Only the Best Film Used.” With reference to the importation of film in the undeveloped state for the purpose of making pictures in New Zealand, Mr. Messenger said that the Government Publicity Department regularly imported ten to fifteen thousand feet a week. The proposed new duty would not affect this, as the film was manufactured in Britain. It was essential to use the very best film available, the material being too expensive to waste. A German-made film had been tried, but it had not been found satisfactory. The makers of the film, an American, firm, were putting up works all over Europe and elsewhere, and what was imported by the Department was made in the works already established in England. “PURELY A BRITISH TARIFF” EXCELLENT OPPORTUNITY MISSED MANUFACTURERS’ VIEWPOINT From an early observation of the proposals the president of the Wellington Manufacturers’ Association (Mr. F Campbell) considered the tariff a good one for the British manufacturer. In making absolutely certain of preference t.» Britain the Government, he said, were to be complimented on tfle excellent job they had made. "Whether the proposals are going to help secondary industries,” he added, "is a very debatable matter. My impressions are that the only advantage gained by New Zealand manufacturers is the removal of small anomalies which will not prove of any great help to them. Wherever possible a substantial increase has been given to the British manufacturer and had the same preference been given to the New Zealand manufacturer a step forward would have been certain. While there is no doubt that the assistance given to secondary industries will be helpful one cannot help thinking that such industries as boots, wool, and motor-body building could have received much more consideration.”

Mr. Campbell pointed out that during the next few days the various associations vitally interested in the new proposals would be considering them .as thev affected their particular industries, and until the revision had been considered in such a manner it . would be wise to defer any detailed criticism.

“I think the Government missed an excellent opportunity of making a strong forward movement to assist to establish secondary industries in New Zealand that are becoming more and more evident and which will have to be developed if the Dominion is ever going to carry the ponulation it is no doubt destined to do.” "How do the proposals compare with those recently brought down in Australia,” he was asked. . ‘•New Zealand's effort is lamentably weak.” replied Mr. Campbell. An infinitely greater measure of assistance was given to secondary industries in the Commonwealth. The tariff is purely a British tariff.” “A VERITABLE BOMBSHELL” WHAT MOTOR BUILDERS THINK NEW DUTIES DESCRIBED AS WICKED Dominion Special Service. Christchurch, September 14. The motor body-builders of Christchurch view the tariff announcement with alarm and take a pessimistic view of the future of the industry in t ie Dominion. The annuoncement ot the new duties came as a veritable bombshell to them, and already contracts are being cancelled and workmen are to be dismissed. Two firms cancelled contracts for timber and other materials to-day, and other cancellings will iol“The Government’s action is wicked,” declared one employer. "There is absolutely no benefit to the body-builders of this country,’ Mid Mr. Vivian Grant, secretary ot the New Zealand Coach and Moffir Body-builders Association. “We sought the admission free of British motor-car chassis, and the Government has ignored the appeal. Altogether we asked for a 20 per cent, instead of a 35 per cent, tariff on foreign chassis, but the Government in its wisdom lias left the tariff at 35 per cent., thus affording no help to New Zealand industry. There is no benefit to us at all, yet preference is Riven to knocked-down bodies for assembling in New Zealand. This is against the interests of established motor bodybuilding concerns. British manufacturers are penalised because . American stuff coming from Canada with 50 per cent. British manufacture in it can be landed on the New Zealand market on tho same duty as bodies from England. At the present time none of the English manufacturers is in a state in which he can ship unassembled bodies, therefore al* the preference is given on American stuff coming via Canada. The assembly work done in New Zealand is with unskilled labour and with foreign materials; there is not a particle ot New Zealand material used/' It was learned that there are 250 men employed by the motor body-building firms of Christchurch. One proprietor stated that 30 men will be given notice of dismissal at the end of this week. In the last few months, based on Government help and the placing of largo orders, over £40.000 has been spent by firms in Christchurch in extensions to buildings and the installation of modern plant as good as that to be found anywhere in the world. The builders were encouraged to set out on up-to-date mass production methods, which have nowbeen rendered useless by the action of the Government. The plant and extensions are useless for the purpose for which they are intended. . Mr. R. J. Jay, manager of Christchurch Motors Ltd., regards tlie new tariff as a serious blow to the English car manufacturer instead of assisting the Homeland. The Government had given it a "smack in the eye”; the Government was assisting the Americans to push the Englishman further off the commercial map. The traders in Ung* lish cars were very disappointed indeed at the attitude revealed in the tariff pronouncement. Mr. W. Bryce, of Cooper and Pryce, motor bodi'-builders, said that the way the Government sought to help the body-builders apart from chassis was to increase the tariff on some of the raw materials such as varnishes, white lead paints, etc. Mr. Pryco said that one importer of American chassis notified him this morning to hold his large contract in abeyance pending his investigation of the position regarding cars assembled in New Zealand and coming via Canada. "All of my latest machinery now becomes idle,” said Mr. Pryce, "if the tariff proposals are carried into effect. Despite all our agitation in the past and all the solid evidence we have placed befoie the Government this blow has fallen on the industry.” He said that his firm had signed up and registered, according to Government compulsion, 15 apprentices, who are bound for five years to be taught, their trade. What was to become of those young men who could -not be switched over to car-assembling,

which was not a trade but a business purely for unskilled labour. Mr. Pryce said he was faced by the unpleasant prospect of dismissing several of the workmen. All the winter the firm had been building up its working complement to cope with business that was now being cancelled. The money sunk was being lost, and the men would ba thrown on the unemployment market. Mr. Pryce said that thousands of teet of Southland beech was now drying in the stacks to his order ready for motor bodies. The tariff was therefore a direct setback to the New Zealand timber industry.