PROTECTIVE PREFERENCE

Evening Post, Volume CVIII, Issue 80, 1 October 1924, Page 4

PROTECTIVE PREFERENCE

Both British and New Zealand manufacturers will have reason to bo satisfied with proposed alterations in tho law relating to preference through the Customs tariff. At present manufactures containing not less than 25 per cent, of British materials and workmanship are admitted as x out-and-out British manufactures; The prime objeot of this preferential treatment was to place all possible British Dominions' business in the way of bona fide British and Dominions' manufacturers and, through them, give employment to bona fide British workpeople. This object has been largely defeated by astute, foreign competitors. Experience has shown that the 25 per cent, has worked to the' advantage of those manufacturers— British and foreign—who have cut the percentage of material and workmanship in a given article to a bare minimum of 25 per cent., the remainder being foreign materials and foreign workmanship. A premium, indeed, has also been placed upon British importiug from foreign countries of cheap partially manufactured parts and (or) materials up to as high as 75 per cent, by putting such together, plus 25 per cent, of British materials and (or) labour, and shipping them out as genuine British manufactures, so far as the preferential tariff was concorned Again, foreign manufacturers have been induced by this' 25 per cent, provision to erect what are praetioally assembling shops in British territory where the requisite 25 per cent, of finishing was given to an article, and in that way qualifying it for preference. These practices rendered preference almost useless to British manufacturers making a thoroughly British article. It is now proposed to entirely reverse the position by making it necessary for an article purporting to be of British origin to contain not less than 75 per cent, of British materials and workmanship, if its entry into New Zealand is to bo under the preferential tariff. The change is certainly radical in character, but provision is to be made for reviewing the 75 per cent, basis should it prove too high or unworkable after a suffi-ciently-long experience. This is a wise provision, for time aloue will tell if the 75 per cent, is too high or too onerous. The interests' o£ the public, however, will require to have attention paid to them equally with those of the manufacturer at Home jind in New. geajaud.