TRADE POLICY

Dominion, Volume 29, Issue 202, 23 May 1936, Page 9

TRADE POLICY

Licensing System In Australia IMPORT REGULATION Diverting Business From Poor Customers PREFERENCE TO EMPIRE By Telegraph—Press Assn. —Copyright. (Received May 22, 8.25 p.m.) Canberra, May 22. In the House of Representatives to-day the Minister for Trade Treaties, Sir Henry Gullett, announced what lie termed the first step in a considered policy to place Australia s overseas financial affairs in a sound and enduring position. He said that the Government had adopted a licensing system over a limited range of imports over wliicti it would impose higher duties should that course be deemed des.rable. By tins means the Government hoped to divert a ter ” tain amount of Australia’s import trade irotu countries which had been very indifferent purchasers of Australian exports. The main points of the Government’s policy are:— . jew specific duties on foreign textiles. New duties on foreign cotton piecegoods. Au additional duty of .7d. per pound on ail imported motor chassis and parts and the payment of a bounty on local motor-engine production, imports of chassis from the United States will be restricted to import levels for the year ended April 30, 1936. Empire Goods Exempt. Negotiations with the Canadian Government for an arrangement whereby the supply of imports subject to license control will not be diverted from their present source of supply to Canada. With a view to diverting a certain amount of import trade to Australian secondary industries the Government Intends to prohibit the iniportat.on of a large variety of goods and commodities from countries outside the British Empire, except w.tb the consent of the Minister of Customs Sir Henry Gullett, explaining the licensing system, said that all goods of British Empire origin would be exempt from the licensing proposals. Licenses would be freely granted in respect of imports to all countries with which Australia had a favourable trade balance, and all countries with which the Government was satisfied with the trade position. The total value of Australia’s import trade which the Government anticipated would be diverted almost immediately by licensing and increased duties was £2,290,000, and it was estimated that Australian manufacturers would benefit by increased output to the extent of £845,000. The additional duty on motor chassis, coupled with the bounty for local motor engine production, should, said Sir Henry Gullett, enable Australian manufacturers to produce within live or six years 80 per cent, of their own engine requirements. How Japan is Affected. He went on to explain how Japanese textile interests would be affected, and •said that the Government was not prepared to allow imports of low-priced foreign textiles to continue unchecked. He detailed the alterations to the tariff and said that Japan would continue to be the principal supplier to Australia’s market of rayons, but under the new duties the United Kingdom should recover a considerable increase in imports of cotton, although a substantial proportion would still be supplied by Japan. Duties in each instance would be applied in accordance with most-favoured-nation principles. Sir Henry Gullett also mentioned with regret the Government’s inability to reach a friendly arrangement with the Japanese Government on the subject of curtailment' of Japanese Importations of cotton and artificial piecegoods. Included in the long list of goods, the importation of which is now prohibited outside the Empire except with the Minister’s consent, are. cotton piecegoods, artificial silk costumes, and corsets, men’s and boys’ hats, linoleums, floor coverings, iron and steel plates, copper and steel pipes, lawn mowers, pasteurisers, typewriters, hinges, files, rasps, gypsum, plaster of paris, polished or other glass, spectacles, boots and slippers, writing paper, posters for advertising, brake linings, motor-cycles and parts, brooms, carpet sweepers, wireless receivers, storage batteries, rifle and revolver cartridges, various typos of machinery and wall and ceiling decorations. The Minister also announced increased duties on tobacco leaf .other tobacoe products, and certain kinds of timber. The tariff rate on mineral lubricating oil has been increased from 44d. to Cd. a gallon.