CUSTOMS TARIFF

Evening Post, Volume CIX, Issue 142, 19 June 1925, Page 5

CUSTOMS TARIFF

BRITISH PREFERENCE

QUESTION OF RATIO

BASIS NOT YET DETERMINED.

As" to what the ultimate terms of the British preferential tariff will be on goods entering New Zealand is still in abeyance. This question of tariff preference has been before the Government for some months.

Last September it was announced in tha New. Zealand and Commonwealth Parliaments that both Governments had decided to adopt the figure of 75 per cent, of Britishl material and/or labour as the basis of the British preferential tariff instead of tho existing 25 per cent, basis. Later, Canada asked that the basis should bo 50 per cent., which was what the New Zealand Government had originally proposed. Australia, however, advocated .that to qualify for entry, as British goods, 75 per cent, of the labour or material should be British. Since then representations have been made that this ratio is too high because British industry to a large extent is dependent; upon foreign raw or partlymanufactured materials. Presumably, Australia's request for a 75- per cent, basis was actuated because of a desire to protect local industries, but Canada's objection was raised on account of the fact that American capital had been expended in establishing industries there, so that advantage could be taken of preferential tariffs, and a high qualification would prejudice the volume of her export trade.

Although the 25 per cent, basis may he considered to be too low, apparently 75 per cent, is held to be too highland the Governments concerned are not yet agreed as to what the qualification should be.'.'."";.'-.'■- :

In the middle .of February last it was announced that in view of the importance of the matter, and of the fact that discussion with the Australian Government was still proceeding, it had been decided to postpone until Ist October, 1925, the date upon which tho amended condition to be decided upon should take effect. Last night it was notified in the s "Gazette" that a further postponement has been made until Ist January, 1926. This means that tho 25 per cent, basis will lWmain in force until 31st December nest. :

Until Ist April, 1926, bar, bolt, rod, angle, tee,_ channel, girder, hoop, plate,' or sheet iron, or steel and wire, and other goods, made wholly in Great Britain or other British possessions, from any of the following kinds of iron or steel of foreign origin—viz., pigsy ingots, billets, and blooms—will be regarded as wholly. manufactured in such British countries for the purposes of clause 5 of the regulations. " -. _■

Regarding paper made wholly in Great Britain; or in any other British possessions, from pulp of foreign origin, this will be considered, until Ist April, 1926, to be wholly manufactured in such British countries for the purposes of clause 5 of the. regulations. - This means that any of the articles mentioned will, if the other conditions are complied with, be entitled until 31st March, 1926, to be entered for duty on importation into New -Zealand, under the British prefer-: ential tariff, irrespective of 'the . factory or works cost which ia represented by expenditure in British, material and/or labour. . "... ; .'.. ■ '.'•"• ;