IMPORTED MANURES

Evening Post, Volume CIII, Issue 76, 31 March 1922, Page 4

IMPORTED MANURES

PRICE AND DUMPING

EFFECT OF NEW CUSTOMS ACT

Somo concern is being expressed by manure merchants and farmers at the possible effect of the dumping sections of the .Customs Amendment Act upon the price of imported fertilisers. It is staled by persons interested that the producer in this country is largely dependent upon the use of fertiliser for securing the maximum production from the soil, and price is the deciding factor whether he shall apply 2cwt or lewt per acre, or cut it out altogether. The low prices previous to the war were a great boon to the farmers, and induced them to manure their lands heavily and thus secure the maximum output, which again reflected itself in increased exports. Imported superphosphate in pre-war days' was as low in price as £3 3s per ton for 36/38 per cent., but, during the war period and afterwards, prices soared up io £12 and even £13 per ton. Prices for nil fertilisers are now, howevet-, steadily declining, and farmers ;vre looking for a heavy reduction, 'it the cost ot locally-manufactured superphosphate to correspond with the known reductions in Continental and English superphosphates, but it is thought that the legislation of the recent Parliamentary session has placed restrictions on the importation of low priced but high quality superphosphate from the "Continent, which may make it impossible to import without incurring heavy charges and no little risk. The Customs Amendment Act of 1921 contains certain provisions against dumping manufactured goods in New Zealand, and these dumping provisions are believed by those interested to apply equally to superphosphate and other fertilisers imported from England and the Continent. For example, section 11 states that: "A special duty may be levied in any of the following cases:—(a) In the case of goods imported into New Zealand of a class or kind produced in New Zealand if the actual selling price of the, goods to an importer in- New Zealand is less than the current domestic value of such goods determined in accordance with the provisions of the principal Act; (b) in ythe case of goods-imported into New Zealand if the actual selling price of the goods to an importer in New Zealand is, in the opinion of the Minister, less than the cost of production (including a reas.onable profit) of similar goods in the country of origin or the country of' exportation to New Zealand as.at the time of such exportation." This is taken to mean that if the domestic price of superphosphate, say. in Belgium is £4 per ton and the selling price to New Zealand is £3 per ton, the New Zealand producer would be called upon to pay the difference of £1 per ton. The apparent'Ohject of this section is to prevent surplus stocks being shipped to New Zealand at* lower price than obtainable in the cotmtry of origin. Previous to the war, it is stated, it was quite a (jonimon feature ir the manure business to obtain superphosphate from Europe at much lower prices than those ruling for domestic requirements in the country of origin. It is contended that trading prices prove that fertilisers and other commodities are often quoted at a lower price for export than for local consumption. This section, it is.held, should not be made applicable to fertilisers. The second restriction is in section 12, which, imposes a duty in the case of any trade concession whether by way of railway or shipping freight, special bounty, rebate, or otherwise. This means that, if I any special reduction is secured in the. [ freight on fertilisers from England or the Continent to New Zealand, the New ZeaInhd farmer is liable 1 to be charged the difference between the ordinary freight and the reduced freight. It may take the Customs Department six months or I more to discover the nature o{ the reduction,' and all that time the importer ov farmer is taking the risk of being subjected to the increased duty on his purchase. The third restriction is embodied in section 13, which empowers the impositior of a special duty on goods imported from countries having depreciated cur- | renoy. Representations were made to tho Government against the application of section 13 to manures, and a reply was received that the Minister of Customs had decided to exempt manures from the depreciated currency duty. I Fertilisers have not yet been exempted from the other two sections,^ and consequently at a full meeting oi importers o* fertilisers held in Wellington this week, tho following motion was unanimously passed, and is being transmitted to the Government: — " That this meeting of manure merchants strongly protests against the application of the dumping regulations in the Customs Amendment Act of 1921 to all imported fertilisers on the grounds that such legislation is inimical to the best interests of the farming community —that it increases the cost of production and restricts competition." It is argued that the application of these restrictions to imported superphosphate, besides involving increased taxation to farmers, who are to-day carrying a very 1 heavy and almost unbearable load in low prices for their stock, wool, and produce, is quite unnecessary even if their aim is to protect locally manufactured superphosphate, as the local article is sufficiently protected by shipping freights, insurance, and exchange to successfully compete against importations from countries 13,000 miles removed.