Parliament TARIFF REVISION NEARS END

Dominion, Volume 27, Issue 306, 22 September 1934, Page 8

Parliament TARIFF REVISION NEARS END

Only Three Items Out of 449 Left for Discussion • ___ TINWARE AND MOTOR-BODY BUILDING With the exception of three items in the tariff schedules yet to be passed and the third reading of the Customs Acts Amendment Bill the revision of New Zealand’s tariff has now been completed by the House of Representatives. No progress beyond that stage was possible at yesterday’s sitting, for the Minister of Customs, Rt. Hon. J. G. Coates, has arranged to hear on Monday representations in connection with electric stoves, radio sets and iron pipes. Consideration of these three remaining items was therefore postponed until the House resumes on Tuesday, and their adoption will be followed by the third reading debate on the Bill. Having disposed of all the other items by 4.30 p.m. yesterday the House adjourned at that hour. The schedules contain ' a total of 449 items. The main talking points yesterday were tinware and motor vehicles, particularly the latter. Several members raised objections to the reduction in the duty on British tinware from 25 per cent, to 20 per cent., but the item was allowed to pass without a division. Mr. Coates said the industry in New Zealand had been built up under a tariff of 25 per cent, and in the judgment of the Government the reduction was a reasonable one. Various ‘phases of motor-body assembling and motor-body construction were discussed at length, and at times there were some sharp divisions of opinion. Apart from a short discussion on the importation of crude oil and its effect on the coal-mining industry, most of the ■ remaining items dealt with yesterday were quickly passed.

MOTOR INDUSTRY Scope for Construction of Vehicles GOVERNMENT’S POLICY The scope for the construction of cars in New Zealand' rather than the assembling of parts was discussed in the House of Representatives yesterday, when the motor vehicle duties came up for consideration. The policy of the Government was outlined by the Minister of Customs, Rt. Hon. J. G. Coates, who said it should be possible to get down to something reasonable, and that he wanted the British manufacturers to come in and see how far they could go. He pointed out that Parliament had placed in the hands of the. Minister the power to say what a knocked down job should be. The duties were agreed to without a division. '< Mr. W. Nash (Lab., Hutt) said the establishment of an organisation for assembling parts that could not be manufactured in New Zealand would mean the extension of an industry of a most beneficial type. There would probably be some argument as to whether the Government was to help Britain, America or Canada, but at present he thought the position could be met if the facilities provided enabled the parts to come, in from anywhere. He expressed appreciation of the Government’s action in reducing the duty on completely knocked-down motor vehicles, thereby assisting the motor industry in New Zealand. Mr. A. E. Ansell (Govt., Chalmers) stressed the necessity of giving special preference to the products of the United Kingdom even against other parts of the Empire. He asked whether the Minister was satisfied that a margin of 10 per cent, would be sufficient to make the New Zealand industry a permanent one. He thought there was some justification for asking that spare parts should come in on the same basis as completely knocked-down material. He suggested it might be possible to arrange the tariff in order to induce American manufacturers to send their cars to New Zealand for assembling instead of ,to Ganad”. Trade Balances. “1 am concerned about the broad principle Involved in this question,” said Mr. W. J. Broadfoot (Govt., Waltorno). “When we consider the balance of trade between Britain and ourselves and also as between Canada and the United States and ourselves, we find that both Canada and the United States are sellers and not buyers. If the people want American cars, then let them pay for them, but.l would put a very heavy impost on them. I think a great deal of the Americans and Canadians, but if they want trade with us I would give them some of their own sauce.” ' The Leader of the Opposition, Mr. M. J. Savage, said he would place motor parts on the free list in order to give encouragement to the New Zealand assembling Industry. Mr. A. E. Jull (Govt, Walpawa) said the importations of American cars were increasing enormously. That country was competing more than successfully against the people who were buying our goods. Mr. J. Hargest (Govt, Invercargill) urged that additional preference should be given British cars. But for the Canadian agreement there was nothing to preclude New Zealand giving greater preference to the United Kingdom. The agreement expired on March 31 next, and he thought it would have been reasonable If the Government had held the duty In abeyance until then. This course, he believed, would have met with the approval of all members. Minister’s Attitude. “I am not at all keen on postponement,” said the Rt. Hon. J. G. Coates "Having laid down a policy we want to be perfectly fair. We want the British manufacturer to see how far he can go. We will probably have to exercise patience. The moment you start to Interfere you tie everything up in a knot and imports are affected. I think we can get down to something reasonable. Personally, S don’t believe any makeshifts will do. We have an objective, and let us see how we get on.” Mr. Jull said the words of the Mini ster sounded all right, but he was not so sure of his attitude. Mr. W. Nash: You are questioning his bona tides? Mr. Jull: Oh, no. Mr. W. E. Parry (Lab., Auckland Central): You mustn’t quarrel. Mr. Jull said that Canada was not entitled to the consideration it was receiving from New Zealand. The time had arrived when the Governmenr should consider introducing a United Kingdom tariff independently of the British tariff. ' “These military terms such as ‘our objective’ always get my back up.” said Mr. Jull amid' laughter. “They only confuse the situation." Mr. H. Atmore (Ind., Nelson) said the last.speaker had voiced the opinion of all New Zealanders. , It yraa not

only fair to the Old Country, but good business to give preference to England. They were not giving it at present to the extent they §hould. The view that there' was plenty of room for improvement in the tariff proposals in connection with motor vehicles was expressed by Mr. C. H. Chapman (Lab., Wellington North). He suggested that the parts of a motorcar which were not manufactured in New Zealand should be admitted free for the purpose of encouraging the industry. The bodies i!or all motor-cars in New Zealand could quite reasonably be built in the Dominion. There was a big difference between assembling motor-car bodies and constructing motor-car bodies. The purpose of the tariff seemed to be to encourage assemblers and to give practically no support to manufacturers of bodies. The assembling gave employment to a reasonable number of semi-skilled men. Between 300 and 400 men were employed by one organisation, and they could turn*out 30 assembled cars per day. If the entire construction were done instead of merely the assembling, four or five times that number of men would be required for the same output. Practically all the buses in New Zealand had bodies completely built in New Zealand and they were equal to anything in the world. He felt that if there were adequate protection 90 per cent, of the car bodies could be built here, and for that reason he regretted only 5 per cent was to be imposed on the imported article. Mr. Coates said the British manufacturers and their representatives in New Zealand were prepared to see how far it was possible to comply with the policy enunciated. The British manufacturers had been supplied with almost complete specifications of a knocked-down car and asked to see how far they could compete with it. The British manufacturers and Importers of British cars did not appear to have taken seriously the proposals of the Government. The clausa was agreed to.

DUTY ON TINWARE Opposition to Reduction POSITION OF INDUSTRY The reduction in the duty on tinware from 25 to 20 per cent, was objected to by several Opposition and Independent members when the schedules to the Customs Aets Amendment Bill were under consideration by the House of Representatives yesterday morning. ' . • The Leader of the Opposition, Mr. M. J. Savage, said the tinware industry was a fairly substantial one. He had heard representations from those engaged in the Industry and .they had given him the impression that they were concerned over the tendency to cut away the foundation of their business. If more tinware came in as a result of less protection it must affect the industry here. Mr. W. J. Polson (Govt., Stratford) - said he could see no reason for the continual demand for high tariff walls around everything. How' could New Zealand trade with other countries if that was allowed to go on? There was a demand from the Labour Party for still higher protection ' than the extraordinary protection some industries already possessed. A low tariff was the only protection the community had, for if they were exploited by the local industry they could obtain their materials, from elsewhere. Mr. H. G. Dickie (Govt., Piatea) said that 5 per cent, was not going to put a single man out of employment. Mr. C. A. Wilkinson (Ind., Egmont) said the Industry was admittedly efficient, and it had the protection of high freight charges in addition to the tariff. If there was no duty at all the New Zealand manufacturer would still have an advantage. The Minister of Customs, Rt. Hon. J. G. Coates, said the Customs Tariff Commisison had recommended a 15 per cent, duty, but after consideration the Government had fixed the duty at 20 per cent. The industry had been built up over many years under a tariff of 25 per cent. The reduction woul.l leave a little more room for competition, but the facts and figures were such as to indicate that the industry could carry on efficiently without the wages of -one worker in the industry being affected. The item was allowed to pass, TALK OF NEW PARTY Early Developments Expected A rumour that another political party was about to be launched was freely circulated in Parliament. Buildings yesterday. No precise information was obtainable, but the rumour was linked with the name of Mr. William Goodfellow, of Auckland. The general Impression among members who had heard the story was that a development would occur within a few days.