CUSTOMS TARIFF

Evening Post, Volume CVI, Issue 38, 14 August 1923, Page 10

CUSTOMS TARIFF

TEA AND SUGAR DUTIES

ALTERATIONS IN SCHEDULE

APPROVED BY 'HOUSE OF, REPRESENTATIVES,

\ The Customs Amendment Bill was in'Jtroduced in the House of Representatives last night by Governor-General's *iMessage, and was treated-as a matter of ;.-urgency, the second reading being moved '-- immediately by the Minister of Indus- "• tries' attd Commerce • (the Hon. W. Dow-' ;;. nie Stewart). ■ ;;. The .'Minister said that tho Bill gave '." effect, tor resolutions, already, passed by «• the House,, in regard to tea, sugar, and rf glass bo,ttles>: subject only to certain

l' r modificalions recommended by the In--21 dustries and; Commerce .Committee. Ecduty^.jyere.proposed in. most •_~ cases,' but there were to be- increases in .-respect to-sugar and' glass bottles. Cerv, taiiii minor, alterations were proposed r. in order t.a".free.: from; duty certain, raw

materials used in the New Zealand in-

■.dustries. Explaining the object of the X'-. various., clauses, helsaid that. Clause .'2' S made, X" sihjill, "alteration in connection . *; with r tho, depreciated currency of Ger-.<-many. and Austria. This was o very !iii intricate arid complicated',question^' and .. §T; the provisions had been Taittehded ."twice V since..the; original -proposals-had- been i- framed. "Ttt Customs" Department Had S. been'singularly ■successful in dealing with ;i the matter as compared with other coun- £/■ tries;.. ■ The regulations • had been care- ■ fullv^preparedj^and the general trading '•-'• c^mmum£y"*se^lnS['"tb"*'ag"r"e'e'"tliat""th'ey; '„'; -ivere Jikely..±a..w.ork..out. satisfactorily:: ';;'Certain goods which >yere made in Ger-»--many and Austria consisticl"partly"' of ?•» British.' materials.''.'.While''others' 'were: '".' manufactured wholly from British ma- ::- terlajs. The Bill enabled ■ differential ■ rates of duty to be levied where por- ■--. tions off an -article-originated'from coun-.. X tries not subject io . depreciated . cur-; :;:;iency: .-■••"•. . ■'-: : •'• j'j, i - DUTY ON-SUGAR. ■■■ ■'■• ■■• - '■> • £ Cldus*e '5' ' provided->< that "six ■ months' ■ .^notice must be'given-of any intention-to • increase the duty'on sugar manufactured, '•.- in.. Australia. „The , next clause .was. in :'■-, accordance,.with the treaty .with South ;.; Africa, under which sugar and tea were ';■-* exempted from-duty,, and .provided that ■- no- -higher"duty "should",*b'e levied than ' vi would.be.the pase if. the goods were sub- :, ject, to the. British preferential tariff. "■Clause 7 made the. provisions of the, "'■ Bill' applicable "to the.'Cook. Islands, if" -'■ so determined by-Order=in-Council.•• He; ':' also proposed certain amendments . mr--respect to-'-leather, framed as a result of • --." representations made* by "boot manufacl'-.' tuTers in the Dominion, who complain- ;;; ed about the competition of "British" •?•■ leathers-goods', -which--were-manufactured" 'il from- German, or Austrian .leather.. It was proposed to suspend'the preferen- ;-•; tial duty on foreign 'goatskins, kid -■■skins, suede leather, sheep.' skins, and ':' lamb' skins, and to. admit British goods v . of that class' free. If this was agreed y~ to by the House it- would be of some as- •»- sistance to manufacturers in obtaining -] II their raw" materials: He. did not think 7j it would fully ineet.the-position, but it y was -the- -best-- he could, propose for the «'. present. „ . He.had asked.-.the..lndustries . md .Commerce Committee, however, to- ■;~ confer with the boot manufacturers to- . r-- see -what further 'could'"be done' to im-i .\.j prove' the: position ;;of this industry, '".which was in difficulties. C ; ; :- ■ . GLASS BOTTLES * There has been a good deal- of - conJ- troversy concernins the duty upon, giaiss £ bottles. .The Industries . and Commerce "Committee had recommended that the glass industry should"be. encouraged, ,--that in view of. the conflict of opinion 'i; the. imposition of duty should be he3d j ';;•; over. for further consideration until tlie -< works in Auckland were fully establish-'I ■Yd,'"and ' that" meanwhile a protective duty should be imposed' on foreign bottles. It was proposed to cut out the r'duty. on. bottles and glass jars used -:;by manufacturers of preserved jams, i.i.under 8 ounces capacity,"and to 1 reduce' '"the .duty/against;- British' bottles of J-rmore than eight ounces, making it 10 •■'-per cent., instead of 20 per cent., as ori.'"gihally proposed. 'A' duty of 10' per; '^ cent, would'be imposed on-foreign bot- '."• ties -under-' eight '■ ounces, while " there. •'; would-be ho'duty-at all: on the British■'",'made: 'article. "Another amendment to r; the schedule by way of remission - of. ■/duty was proposed in respect to ■ cer- -. tain cast iron pipes which were not \ .^manufactured... in New. Zealand: Pipes ;;;manufactured under special processes --were now-being- placed oh the. market-,..1 ...and,it was proposed to exempt all ex-those-made-.of,".inetal-.not exjceSding. HJS-16in in-j thickness,- Another proposal *vwas for the remission of- duty.upon metal -^'poles,, for. .electricity, .transmission purv;pose_s, which were. iiot..made in- the Dp•^.minjqn,^. The .-manufacture ,of special. ■• .poles was '.tfeihg ' immensely developed. ;Vbut*ji was. found that the present tariff '.."."«as.; prohibitive. The Minister assured' Jthe House, thit each item had been fully arid "said"'ho was'satisfied ■vthat"" rib 'material.,idamage, ..would be to;lpcal.industry.' 'He'iioped the ¥Hoaie realised" the importance of the resolution" previously, 'pass'e'd'iri "regard" to ~.the duty on sugar, '.apd.that it.-would not S lje reversed. Jf any-'charngo-in' policy v» was-made; it might have a.,serious ef-■iect-upon-several ; Kew"Zealand indus-X-tries;

t A ' AT THE" HEAD '- OF THE GO\\EKNMENT. .." ......

~i, A long debate ensued; in which many gof the arguments previously ;'adduced»«viipon..ihe. sugau-question were reiterated. .'iXa'oxiur; members, maintained"thai" the ".^Colonial S.ugar'-Befining Company was -holding. <a- pistol' 'at--the- head of the and that if, was asking for .7;.%. tariff wall amounting to £180,000 per 11' ear upon threat of closing down._'Stv*-' Liberal speakers'" repeated their" ...views on. the-same lines. ■ The opposition of the-labour' Party whs' largely ;;,iiponr the 'lines that undue 0 jJrofifrs-^Werf!-■^•being-made the world «verm"the sugar,;producing industry, and -that State .refineries should be established by the The" Leader of'the Opposi#ion-' (Mr: T. M: Wilford) pointed out -that Italy was exempted • from- Ciis'toms CiJuty, .and .was.thereby.reaping the' bene.^it of,,?,,depreciated exchange; and could' New Zealand - without- 'having ;to pay" extra, duty. He referred particularly, to.Michelin' tirss, Vand pointed *'$ut, that other; manufacturers were linkable to ■ compete with that company on ;account.of: the favourable tariff-.imposed. ;Sle urged, that. Italian tires should be ilfhe subject ,pf. an.,extra schedule. y w Mr. ,1V K. ' Sidey" (Dunedin ; South) *thade a statement explaining the reasonsJfrhic'h actuated him in oppasing,his.own 'party when, the vote, was, taken O n the '.question of imposing the duty- on- im--ported reh'/ied sugar- He said -he was .» member of 'the committee that considered" the sugar question. The .evidence submitted was to theviffect-that the-Col-onial Sugar Benning Company could Mot continue to wors^iJifcj-eiinery...jv6rks in Auckland unffits it" was granted a protective duly. The ■ Government'- was ■$? en ,° • enfiicism- 1 or hoCJiayingiearlier

fully investigated the sources of supply so as-to prepare for the present position. The committee liad to face the situation as it found it, vand was not prepared to take the responsibility of recommending a course which involved the risk of the company closing its works. The committee, which included two Labour..members, unanimously recommended thatsome protection should be given to the company for 'bne year; that the amount of protection' should be left with the Minister to be settled by negotiation with-the co/rripany,, but not to exceed £3 per ton; and that steps bo taken to ascertain wiiat sources of supply could be made a-paflablo for New Zealand other than that at the Colonial Sugar Company. ' The Minister acted on the committee's recommendation. If other members of the Jtlouse had heard the evidence they would, have taken up a similar attitude to that adopted by tho committee. Hfi felt that his vote was absolutely jusHfied, and that, having concurred in ,'lihe recommendation, ha could not go ba«rk upon it when it camo before the Hjouse. The committoe had approached like question free from the spirit of party, , iVO EXPLOITATION. • Replying, to the discussion^ tho Minister said it had been found that if a heavier /duty was imposed on Italian goods, /-he trade would be given not into British hands, but American firms, and it. \>as felt that in view of the sacrifices made by Italy and France they should (be given a tariff advantage. He thoughl.) the House concurred witli the views iof the committee upon the glass bottle "question. He had conferred with the Controller of Customs in respect to tho exemption duty on milk bottles, and tihere appeared to be a- difficulty about measurements, but something might; be done to meet the position. The .Labour Party had not been ableto show that the Colonial Sugar Refining Company was exploiting the public of .'the' ]dominion, and the member for Bul.ler'aisemed to assume that because exploitntion was going on in other parts of 'tflia * world it'applied also ' in New -Zeal'Pmd. He; did riot hope to.persuade the Labour members, against their beliefs. There was nothing to be gained by the establishment of a State refinery unlees it could be shown'that the present.',duty was unnecessary. He could not guarantee that there would be no increase in the price of sugar, as it was .subject-to fluctuation .in world prices. ...In committee on the Bill," Mr:" Hr E.'l Holland (BulleT) moved' as-an amendment to the .effect that there should bo iio increase in the price of the Colonial Company's sugar, within ..the. Dominion, .and that the) company should enter into an. undertaking to .maintain a- continuity of ; adequate -sugar supplies. The Minister pointed out that the sugar market! was subject to-, very violent fluctuation. '■

!.Mr. Holland thought it was a reasonable .requirement in view of the concession it was proposed to extend to the company.

The amendment was lost on a division ;p"y'.,35 Tvofes". to"'27: ".'.

'-."-Both'Mr. WJlford and Mr. J. M'Combs (Lyttelton) desired to divide the Committee on the adoption of the new protective duty on sugar. The amendment' by the' member for Lyttelton secured priority, and was defeated by 35 votes to 26.

Mr. Wilford wanted some assurance that the milk bottles used by the Wellington City. Milk Department would not be subject to duty. The Prime' Minister said that these .bottles would 'be classified as jars and admitted free. •■

The Bill was read a third time and passed, and the House rose at 1.30 a.m. until 2.30 p.m. to-day. '