IF PRICES ARE RAISED

Evening Post, Volume CX, Issue 38, 13 August 1930, Page 12

IF PRICES ARE RAISED

UNDER TAEIFF CHANGES

POWER TO MINISTER

By, a special provision in -the Customs Amendment Bill, introduced in the House of Representatives last night, tho Minister of Customs is enabled to remit or reduce tho duty payable on goods if tho producers or manufacturers of similar goods in New Zealand raise their prices owing to the increased protection afforded by the Government's proposals. This applies only to goods affected by the present Bill, or those affected by subsequent legislation. "It is not desired that any hardship should be inflicted on manufacturers," said the Prime Minister (the Hon. G. W. Forbes), "and provision has accordingly been made that the section is not to apply if the Minister is satisfled that the increased prices are duo solely to increased production costs, and that such price's have been fixed in accordance with tho manufacturers' usual commercial practice."

A further clause extends tho powers conferred on the Minister by seetio.n 11 of tho 1927 Act, which, authorised the Minister in certain cases to reduce or remit the duty payable under tho general "tariff, but so that the rate would not be lower than that under the.'British preferential tariff. Mr. Forbes said that owing to the increased preference granted under the present proposals" he thought it was necessary that the interests of our own people should be safeguarded. For example, just as it was necessary in the interests of the consumers of this country and of its industries that competition should exist between manufacturers in the Dominion and those in countries outside New Zealand, so it was desirable that competition should be allowed to exist between British manufacturers and those in other countries. "Again," he said, "manufacturers in other parts of the Empire might take advantage of the increased preference to raise their prices to New Zealand importers, or they might sell their goods to the Dominion under onerous conditions as to importation into or disposal in New Zealand, or there might be a world fall in prices and owing to the advantages accorded by tho tariff here the decreased prices might not be passed on to New Zealand importers. Again, the exporters to the Dominion or their agents might endeavour to control the prices of goods produced locally or might endeavour to limit sales of New Zealand goods to certain definite districts; or international combines might use the preference for their own ends. For these and other reasons it is considered that the provisions in this clause should be passed."