TARIFF INQUIRY

Dominion, Volume 27, Issue 35, 4 November 1933, Page 17

TARIFF INQUIRY

British Motor Imports ?REE ENTRY SOUGHT Manufacturers’ Requests Requests that his Majesty’s Government in New Zealand adjust the British preferential tariff to permit fret! entry into New Zealand of motor ve» hicles, spare parts, service and garage equipment, rubber tires and tubing, and marine inboard engines manufactured in the United Kingdom, and having .a British. Empire content of 75 per cent, of labour and/or material, were made to the Tariff Commission yesterday by Mr. A. W. Hawley, on behalf of the Society of Motor Manufacturers and Traders. Ltd., 83 Pall Mall, London. Mr. Hawley said the removal of all barriers to United Kingdom trade was earnestly desired in order that the undue advantage obtained by foreign manufacturers during the Great War and subsequent years, when Britain’s entire manufacturing. plants.were concentrated on the manufacture of munitions of war, might be counteracted. 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. Hawley said the importance of the motor industry as a factor in the national life of Great Britain was apparent by the fact that on the most conservative of calculations, 1,000,000 persons were employed in the manufacture, maintenance,, and operation of motor vehicles, and that despite high taxation and the inevitable handicaps that follow thereon, the industry, with the protection of the McKenna duties, continued to expand in competition with its overseas rivals. Its expansion, however, would be much more rapid by a policy of . reduced tariffs, on the part of Dominion Governments. As a potential supplier of Empire markets, and as an employer of labour, it had few equals in Great Britain. Export Business Necessary.

It was vital for. the well-being of the motor industry of Great Britain, particularly at the present juncture, that if the industry was to become really competitive with the United States and Canada, it must develop export business on a permanent and progressive basis, Mr.' Hawley continued. By adopting the recommendations submitted, the New. Zealand Government would ensure to the industry a measure of practical and permanent preference, which it was hoped would be the outcome of the Ottawa agreement. Mr. Hawley said anomalies existed in an ad valorem system ,as applied to motor products. His society was of the opinion that the present basis of assessing current domestic value did not take into account the different costs of manufacture and distribution, and methods of distribution and other circumstances surrounding the motor industries in the various ; competing countries, resulting in a considerable handicap to the manufacturers in Great Britain to extend their business in New Zealand. It was submitted the most satisfactory and straightforward system of assessing revenue duties was to assess on a weight basis, as was in general operation in Germany, Belgium, Italy, Norway and other countries. Weight could be ascertained .with ease and certainty, thereby reducing administrative costs to a minimum for the Customs Department, and for the importer and the exporter. In the relatively fewcases where a weight basis was impracticable, it was suggested that specific duties be imposed. Net Gain to New Zealand. After stating in detail the articles on which free entry from Britain was requested, Mr. Hawley said the advent of the smaller car to New Zealand, with its lower petrol consumption, was an economic - advantage to the Dominion, considering that practically the whole of the petrol , consumed had to be imported from ■foreign sources, and paid for by our exports.; If the. same work could be done with a lower consumption of fuel by the use of more economical and efficient engines, the result was a net gain to New Zealand. Mr. Hawley quoted figures showing the relative amounts payable in Customs tariff on entry into various countries, the rates being on f.0.b., value of £lOO. £0 in the case of Denmark. £ll Spain, £lO Holland, £23 New Zealand, ar.d Canada free. It would be observed that’it cost considerably more in Customs tariff to get British cars into Now Zealand than into any of the countries referred, and further similar instances could no doubt be revealed upon investigation. Dr. Craig:,.There are other countries where the duties are much higher. I could tell you some. Mr; Hawley: There may be some. I purposely took _tho.se countries, not knowing they .were lower, but feeling they were competitors of ours on the Home market for primary products, you-may have in mind Australia, but there complete car imports cannot take place. Dr. Craig: But they have duties. Body Duties. In respect to body duty, Mr. Hawley said it was considered the present basis, of assessing body duty had failed in its primary objective, which, he assumed, was to provide protection for and create an economic local bodybuilding industry. , It had definitely resulted in a restriction of trade due to the extra cost to the public that this body duty entailed. He concurred with representations made previously to the commission on behalf of the motor trade of New Zealand that the existing body duties be abolished. There was no foundation for the suggestion that the price of chassis was deliberately loaded to discourage local body builders. Motor-car manufacturers in Britain generally welcomed the existence of separate independent body builders, whether - in the United Kingdom or New Zealand. “We strongly urge that the minimum content percentage of 75 as provided for in the existing New ZealandCanadian trade treaty be continued,’’ Mr. Hawley said, "and in fact be extended so as to apply- to motor vehicles and parts imported into New Zealand from any country, including United Kingdom. Furthermore, we ask that the existing provision for entry under intermediate rate of British preferential, plus 10 per cent, for vehicles containing over 50 per cent, but under 75 per cent, of British content be abolished. “Our considered opinion is that a motor vehicle is either of British or it Is of foreign origin, and thus should be treated under either one of these two headings, in respect to payment of Customs duties. We . contend that, motor vehicles having a minimum of 75 per cent. British content of labouranri/or material should be regarded as British, and as such should enjoy the privileges of British preferential rates, and all others we consider should be regarded as of foreign origin, and should be dutiable accordingly.”