TARIFF INQUIRY

Dominion, Volume 27, Issue 32, 1 November 1933, Page 11

TARIFF INQUIRY

Requests to Commission POORS FROM OVERSEAS Retention of Duty Sought Submissions were made to 'tile Tariff Commission yesterday by Mr. A. Seed, on behalf of the Dominion Federated Sawmillers’ Association, that an increase be made in the preferential and general tariff on rough sawn timber cut to lengths and sizes for making doors, and that the present rate of duty in respect to wooden doors be retained. Mr. Seed said the price of New Zealand doors had been consistently reduced since the present rates of duty were imposed, thus proving that the higher rates of duty had not meant higher prices to the users. • ' The Comptroller of Customs, Dr. G. Craig/presided, and he had associated with him Professor B. E. Murphy, Mr. J. B, Gow, and Mr. G. A. Pascoe. Mr.. Seed' said that practically the whole of the evidence previously submitted relative to timber imports generally had application to door stock, but it was urged that that material merited an appropriate increase of duty over that on rough sawn timber owing to the fact that it was “further manufactured.” Before the advent of imported door stock (and imported doors), aboiit the late war period, there was a constant demand for door size and quality timber from the New Zealand mills, and this demand provided utilisation for a material volume of the highest grade New Zealand logs. The demand had very markedly decreased owing to the increased use of Oregon and redwood timbers. New Zealand Supplies. In giving his reasons for the retention of the present rates of duty on doors, Mr. Seed said there were more than ample supplies available of eminently. suitable door timbers within the Dominion, and he was unaware of any demand or desire for reduction in duties by the actual users of doors. Excellently manufactured doors of thoroughly seasoned New Zealand woods were available in ample quantity at very reasonable prices, and the factory capacity for door production in New Zealand was in excess of present requirements. . Skilled workmen were employed in New Zealand door factories at award rates of wages. The employment for these men must contract in exact relation to any displacement of the product of their labour by imported doors. Before the war period, practically all doors used in New Zealand were of New Zealand manufacture and of New Zealand timber. The introduction of the American door took place mainly in the immediate post-war period, and the importations-were most noticeable during the period when heavy overseas borrowing by New Zealand took place, and when Great Britain was on the gold standard. Reduction in Price. The price of New Zealand doors had been consistently reduced since the present rates of duty were imposed, Mr. Seed continued, thus proving, that the higher rates of duty had not meant higher prices to the users; The field of employment created by the manufacture'"of doors in New Zealand with New Zealand timber was very much wider than' the work provided in door factories, and it was submitted the creation 'or safeguarding of avenues of employment was one of the most urgent problems confronting the Dominion at present, and should be given the fullest consideration by the commission. If the use of imported or even locally-made Douglas fir doors was encouraged by removal of duty, it was probable that facings and interior finish of the same timber would be more largely sought by house owners to match or harmonise with the doors. This would be very detrimental to the demand for local timbers. Door-mak-iiig was an industry “natural” to New Zealand, as all material used was locally produced and every penny of cost was retained within the country.

WIRE NAIL IMPORTS Amendment to Duty Sought ADDITIONAL PROTECTION Amendments to the existing tariff on Imported nails, tacks and dog spikes Was sought -by Mr.W. G. Harrison, sales representative of the Auto. Machine Manufacturing Co'.; Ltd., in an application to the commission. The present duty is £2 per ton British and £4 per ton foreign. A 20 per cent, ad valorem duty was asked for against British goods, 30 per cent, or £3 per ton (alternative) against Empire goods, and 40 per cent, or £4 per ton (alternative) against. goods coming from foreign sources. It was claimed, Mr. Harrison said, that the cost, of nails to the consumer had not been increased as a result of the existence of protection to the New Zealand industry, but, on the contrary, the New Zealand competition bad directly and repeatedly forced down the price of imported nails. . The nail-making industry had been established in New Zealand for 22 years, Mr. Harrison said. During the last two or three years, mainly owing to the cessation of building activity, the nail-mak-ing industry had suffered considerably,; but given the degree of protection allowed by article 8 or the Ottawa Agreement, it had sound prospects of continued success. The protection asked for against United Kingdom goods was 20 per cent, ad Valorem, and it was claimed this was consistent with the Ottawa Agreement, in that the higher costs of efficient and economical production in New Zealand considerably exceeded this figure. . The existence of the nail-making industry in New Zealand in no way. conflicted with the interests of the United Kingdom, Mr. Harrison said. United Kingdom nail manufacturers were themselves still using a-large amount of imported wire rods, while the New Zealand industry was lining wholly British materia*. British nail manufacturers were nnaole to meet the requirements of the Britisii markets, and Britain was importing about 20.000 tons of nails per annum. It was therefore apparent that exports of nails from Britain to New Zealand must correspondingly reduce the quantity of nails available for the British market, resulting in an equivalent importation of nails into Britain from foreign sources “We claim that as the United Kingdom manufacturers of wire nails are unable to meet the requirements of their domestic market, the interests of the British manufacturers of nail wire »“ould be preserved as requested by them by the retention of a duty necessary to protect the New Zealand nail manufacturer. Mr. Harrison said. Arsenic and Caustic Sala. On behalf of Burton's Ltd., Port Ahurlrf, Hawke’s Bay, Mr. H. R. Horsnell, the manager, made application for the removal of primage duty on white powdered arsenic and milk caustic soda importations used in the manufacture of sheep dip and foot-rot eure. Mr. Horsbsll said there wat> no duty or primag*

present on imported sheep dip of British origin. Burton’s Ltd. had been making dip in New Zealand for the past 47 years, and their price to the farmer had been the means of keeping the prices of imported dips down. If the primage duty were removed, his company might then be in a position to reduce the price of dip still further. All that his company desired was to be put on a parity with British imported dips. As there was no request for a duty on British dips, there could be no question of increased cost to the farmer; on the other hand, there would possibly be a decrease. Butter Box Imports. i Maintenance of the present rate of duty on sawn and dressed timber for the manufacture of butter boxes was asked for by K.D.V. Boxes Ltd., Auckland, in an application submitted by Mr. A. E. Mander, Secretary of the New Zealand Manufacturers' federation. Mr, Mander said the principal competitor of New Zealand butter-box manufacturers was Sweden, which supplied a standard sawn nailed box. Until the Inst, few years, New Zealand boxes were similar, but the necessity arose of conserving local timber and the wire-bound box was evolved accordingly. This contained much less timber than that of the Swedish box and was undoubtedly a very much superior article. ... Owing to improved manufacturing methods of New Zealand factories, the cost of New Zealand boxes had been reduced in the last 12 years from approximately 2/C a box to the comparatively low figure of 1/2 per box, Mr, Manner said. The Dominion absorbed approximately 4.500.060 boxes per annum, and it was estimated that orders for approximately 1,000,000 boxes had gone to Sweden in the current season. Tf these Swedish orders had been placed in New Zealand, approximately 100 extra hands would have been given employment in the manufacturing alone. Dress Models. A request that the present British preferential and foreign tariff schedule ns affecting lay figures, busts, and dress stands be maintained as it is, was. made by Mr. V. Jacobs, of Display Studios, Wellington. Mr. Jacobs made application to have the Australian tariff agreement rates increased to at least 4o per eent. ad valorem and for preference to GO per cent, ad valorem. Display Studios were in a position to manufacture for export to Australia. Mr. Jacobs said, and if the Australian market were open they would be able to reduce their cost of production and compete in that market. To-day’s Proceedings. Evidence will Be tendered to the commission to-day in respect, of the foliow‘ing types of imports: Cork board, silica bricks, sanitary earthenware.