KNITWEAR IMPORTS

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

KNITWEAR IMPORTS

Reduction of Present Duty on U.K. Goods Sought REQUESTS TO COMMISSION Submissions were made by Mr. G. O. Sutton, on behalf of the National Federation of Hosiery Manufacturers Associations in England and Scotland, to the Tariff Commission yesterday, asking for a reduction in the duties at present levied on hosiery and knitwear imported into New Zealand from the United Kingdom. Mr Sutton contended that the United Kingdom producer had not as yet been afforded an opportunity of reasonable competition with the New Zealand manufacturer. He suggested that without detriment to the New Zealand industry, and with considerable advantage to the consumer in - New Zealand, the existing, duties on United Kingdom goods might be reduced to a net 15 per cent, The present duties averaged 27J per cent, after 10 per cent, had been added to the Home consumption value. 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. Sutton said the applicants frankly and cordially appreciated the fact that New Zealand had proved a consistent and valued customer of the industry, purchasing the greater portion of her requirements from the United Kingdom, whose principal competitors in the New Zealand market wore the United States and Italy, and more recently Japan. The commission would doubtless bear in mind that the United Kingdom was a much more valuable customer for New Zealand produce than any of the competitors named. , . The New Zealand manufacturer bad in fact three protective factors in his favour, that afforded by geographical position, which involved the British manufacturer in the cost of expensive packing, in freight, insurance, and several handling charges; that afforded by the statutory tariff, and that afforded by depreciation of exchange. Failing the reduction of duties as asked for, Mr. Sutton said it was feared circumstances of “exchange,” and lower standards of living, with correspondingly lower wages, would combine to enable foreign competitors to obtain at the expense of the United Kingdom hosiery manufacturers a much larger share of the New Zealand market than that which they now enjoyed,, a result the Imperial Economic Conference undoubtedly, desired to obviate. The commission was asked to consider whether it was necessary or desirable to continue the practice of adding 10 per cent, to the Home consumption value before assessing the ad valorem duties. Insulation and Wood-fibre Board. A request that no change be made in the present tariff schedules as affecting insulating board and wood-fibre board, which are both admitted duty free from all sources, was made by Mr. M. A. Inkster, on behalf of Spedding, Limited, agents for the manufacturers in Canada and United States respectively. Mr. Inkster said in regard to insulation board that landing charges under present conditions, basing on a 3 per cent, primage duty, totalled approximately 79 per cent, on the f.o.b. value to land free on- wharf New Zealand port, exclusive of profit. Board of this type was considerably more expensive than ordinary plaster board, and was not, for all practical purposes, in any Way competitive to it. As to wood-fibre board, Mr. Inkster said landing charges on this commodity from f.o.b. point of shipment to free on wharf New Zealand port totalled 84 per cent. A request had been made by local wallboard manufacturers that a duty be placed on the grounds it was competitive to plasterboard. The fact, however, was that these two boards were used for entirely different purposes in New Zealand, and were actually not competitive materials. Iron and . Steel Pipes. Joint application was made by Hume Steel, Ltd., Wellington, and the Steel Pipe and Engineering Co. of New Zealand, Wanganui, for the fixing British preferential and foreign duties if 20 per cent, and 40 per cent, respectively on tlie larger cast-iron and steel.pipes to be imposed .on all pipes with an internal diameter of 4in. and upward, at! smaller pipes to remain free as at present. In support of the application made by Hume Steel, Ltd., Mr. A. H. M. Wright said that there appeared to be no reason why the company should not compete with any other pipe manufacturer if placed on the same footing. Even considering the present disabilities, the local manufacturer could produce at a profit small pipes at about the current price if their plants could be kept in continuous operation. All that was desired was a tariff sufficient to keep the bulk of the orders in New Zealand. It seemed an anomaly, Mr. Wright said, that there should be a protection on large pipes and not on small, for as the size decreased the percentage to materials increased. The value of pipes now imported that could be made locally would be about £330.000 annually, and direct employment would be provided for -490 men on small pipes alone. Mr. A. S. Burgess, a director of the Steel. Pipe and Engineering Co., contended tliat the existence of the local Industry had kept prices down and had saved municipal bodies hundreds ol thousands of pounds. Carbonic Acid Gas. Increases in the duties on carbonic acid gas on the ground that imported gas was only a by-product with its manufacturers and could be sold at a very low price, whereas the manufacture Of the gas in New Zealand was a complete industry, were sought by Brent and Co. (Christchurch), Ltd. The present duties were stated to be as follow: —British preferential, Id per lb.; Australian tariff agreement, IJ<l per lb.; foreign, 3d per lb.