TARIFF INCREASE

Dominion, Volume 21, Issue 10, 6 October 1927, Page 8

TARIFF INCREASE

CONFECTIONERY WILL COST MORE RETAILERS PROTEST BLOW TO ENGLISH TRADE Importers of British chocolates and confectionery are up in arms against the additional 5 per cent, duty which it is proposed to levy beyond the increase brought down in the revised tariff two or three weeks ago. They say that while it is a serious blow Io the business in British goods, it may act to the detriment of New Zealand confectionery manufacturers. It is further stated that the consequence will be that the public will in future pay 25 per cent, more for English chocolates. A. joint statement was made to a Dominion representative by live of the largest importing firms in New Zealand, Mr. A. J. Rigg (of A. J. Rigg and Co Ltd.) Mr. S. Stichbury (of A. A. Stichburv Ltd.), Mr. J. 11. Whittaker (Epps),'Mr. G. Sara (Cadbury and I’rv), and Mr. 11. A. Goodwin, of Messrs. Bannatyne and Hunter (representing Neilsons, Needlers, Sharpe, Callard and Bowser, aud others). It was contended that the confectionery industry was the one industry which should not have any protection at all, for the reason that sugar, which is the basis of all confectionery, is bought in New Zealand cheaper than anywhere in the world, and, further, is of the best grade for confectionery purposes. All the raw materials and machinery for the manufacture of confectionery are imported free of duty, so that these advantages and the freight charges on imported confectionery gave all the protection necessary. Freights alone meant an addition of 20 per cent, in cost, which was surely protection enough for any trade, without the addition of duty even under the old tariff. 100 Per Cent Increase. “The average increase is about 100 per cent.” said one of the representatives, “although in some instances it is as high as' 800 per cent., as shown bv an increase from 2d. to Is. 4d. a lb. There is no article imported by these firms on which it will not be necessary to raise retail prices, in some cases substantially, while in others it will mean the elimination of some popular lines from the market. We claim that local manufacture is not able to replace these lines, which are of a class and standard not manufactured by local makers, nor enter into competition with the local makers.” The following are extracts from some of the figures which were placed before the Tariff Commission, showing that New Zealand already manufactures well over 80 per cent, of the consumption in the Dominion:—

Local Production Increased. It was further pointed out that in the years 1920-1925 inclusive local productions were 81,8 per cent, of the total. Those figures indicated that with the then existing duties local manufacturers had been able to increase. their business from £427(620 in 1910 to £1,358,950 in 1925, and the percentage of increased trade had not been retarded bv increase in importations. The diversion of some of the trade from Britain to Canada and Australia was said to be due to the fact that Great Britain was unable to export on account of activities in the world war. Had it not been for this fact the United Kingdom would be enjoying a much larger percentage of the imports, which in 1926 represented only 6.5 per cent, of the total, whereas to-day Britain was second to Australia and Canada, and was rapidlv increasing her percentage. “One of the worst features of the whole thing is that there is a reciptocrl tariff witli Australia wlucli, unless it is rescinded, will make matters worse, for it means that Australia remains on at the old tariff, while Great Britain comes under the new tariff.”

Will Bring More Competition.

One speaker asked the question, “Wliy has the confectionery trade been singled out to bear a very large increase in tariff, when rhe general tariff is practically unaltered? He replied to the question himself by saying, “Onlv one section, and that a small one,' of the local manufacturers, has been agitating for this increase, several of the largest manufacturers in New Zealand being quite content with the old tariff. If the present proposed high tariffs are enforced it mav mean that some of the English firms will come out here .and establish factories, which will seriously compete with the local manufacturers, and the last state of the local manufacturer mav be worse than the first. A deputation had already waited upon the Finance Minister, who, it was stated, informed them that the main agitation for the increase m duty had come from the north of the Dominion, and the deputation pointed out that nearly all the .large manufacturing interests were in the South island. Retailers Alarmed. As indicating the alarm felt by retailers in regard to the serious blow the new tariff would inflict on the Christmas trade, a great sheaf o telegrams was produced, copies ot which had been sent to members of Parliament from all parts of New Zealand from Auckland, to the Bluff, protesting strongly against the proposed tariff increase. It would mean increasing the price of English chocolates at least 25 per cent., it was state(j • In conclusion, one gentleman added: “This new duty will act as a boomerang to the local manufacturers, and thev themselves will eventually suffer more than anyone.”

N.Z. N.Z. per cent, of Year. Imports. Manufacture. whole. £ £ 1910 ... 84,527 427,620 83.5 1915 .. 105,391 615,225 78.8 1918 .. 03,867 735,881 92.0 1920 ... 516,502 1,237,085 ■ 70.6 1922 ... 167,086 1,165,104 87.5 1925 ... 330,767 1,358,950 80.5