MEMBERS' VIEWS

Evening Post, Volume CXIII, Issue 99, 28 April 1932, Page 11

MEMBERS' VIEWS

TARIFF AGREEMENT

CANADA-NEW ZEALAND

PBOTECTING INDUSTRY

The necessary: resolutions giving effect to the New Zealand-Canadian Tariff Treaty were passed by the House of Representatives last night, and a Customs Amendment Bill ratifying the agreement was read a first time.

After explaining the terms of the agreement, as reported under other headings, the Minister of Customs (tho Hon. W. Downie Stewart) said that tho duties would bo niado operative by Proclamation on a date to be arranged. Mr. J, McCombs (Labour, Lyttelton) suggested that while the House was considering the proposed- tariff changes, the Minister should give an opportunity for dealing with'urgent matters which had been represented to him by manufacturers in the Dominion.; There were manufacturers who had "machinery and plant lying idle principally due to the competition of foreign countries, sometimes very unfair competition. To his mind that was much more urgently needed than an understanding with Canada. Mr. McCombs congratulated the Minister on the success of his negotiations, but he would congratulate him still more if he made an amendment to the Customs Act to give protection to promising young industries in New Zealand which wanted assistance. He 'felt there was a danger in making it . easier for Canadian timber to be imported. • PULPING INDUSTRY. -Mr. W. E. Parr.v (Labour, Auckland Central) said more information would be required in connection with the -import of timber. There was also tho paper pulp industry' to be considered, and they should have a guarantee against the import of paper pulp free before the' New Zealand industry had started. The Government ought to be considering the encouragement of the local industry. i Mr. Stewart said that, the question of,paper pnlp had not been overlooked, although it appeared, as.free on the schedule. The last deputation which saw him before he left Auckland represented a company, the directors of which had told .him that they expected to commence the manufacture of paper pulp within eighteen months or. two years. He had promised to place their case before the Canadian representative. They did not want to put a duty on paper pulp before it was manufactured in New Zealand, but i they had the right to impose a duty as soon as it was manufactured. There was provision in the treaty for the giving of three months' notice of such intention, and Canada would have no objection to such a, course being followed. Mr. Parry: "How about dumping?'' ■ Mr. Stewart:-"TheTe is provision against dumping.,; Both countries have their own law in that respect."s As,to timber, the Minister said it was not a fact that the duty on Canadian timber was being lessened. • All that was being done was to.put the duty up by 2s against the United Btates. The importation of timber would not be made any easier. What had, been done was to make it more difficult for America to compete with Canada. ADVANTAGE OF EXCHANGE. Mr. Stewart/Bald he. agreed that there were several other tariff matters which could be cleared, up with advantage, especially so far as the manufacturers were concerned, but it had to be remembered that the present was an emergency session, and if. they once opened .'up the whole tariff it might fake them weeks and even months to put it through. He knew of manufacturers who were prospering as a result of the 10 per cent, exchange, and one manufacturer had told him that in the last few; months he had been able to take on an extra 150 employees. The Bey. Clyde Can- (Labour, Timaru): "Was_ that the boot industry?"' ■

The Minister: "No, the woollen industry." In reference to rubber goods, Mr. Stewart said he understood that the main imports from Canada were rubber-soled shoes. His recollection was that the New Zealand company which was being starred intended to manufacture rubber "tires. He quite realised that the more flexible the tariff was made the more it would help local manufacturers, but the present would not be a very suitable time for a complete revision, especially as they did not know what the outcome of the Ottawa Conference • was likely to be. He had been very impressed by the manner in which manufacturers' had put their shoulders to the wheel in recent months in. an endeavour to assist the primary "producers.

Mr. H. Atrnore (Independent, Nelson) • asked whether v the, agreement •would affect the manufacture, of cases for fruit export. In the Nelson district it was hoped to export 1,000,000 cases of apples this season, and most of the eases bad-been made from Canadian wood. One Nelson firm had now installed up.-to-date machinery for the making of these cases from New Zealand wood, and aimed at njaking 750,000 cases. This was a promising industry, and he hoped that it would not be adversely affected by. any alteration in the tariff.

Mr. W. E. Barnard (Labour, Napier) suggested the possibility of an export trade for New Zealand tobacco, and asked for figures as to the duty imposed on Australian unmanufactured tobacco imported by Canada and the United States.

Mr. W. J. Jordan (Labour, Manukau) suggested that due protection should be given to the local manufacture of plaster sheets for building.

Mr. J. A. Lee (Labour, Grey Lynn) said it seemed to him-that the treaty would give an advantage to tho Canadian motor industry at tho expense of Great Britam and the local try. He made a plea for protection to local industry., After all, charity to industry could well begin at home. "We are passing this Bill," said Mr. Lee, "in the hope that the price of wheat in Canada may improve and that we may be able to sell more butter to Canada."

Mr. C. H. JClinkard (Government, Botorua) expressed the hope that nothing would be done to injure the boxmaking industry or the timber-milling industry.; With the exception of long lengths, New Zealand had no need to import timber, and no advantage should be given to Canada, at the expense of the New Zealand industry. , BTJTTER MABKETS. Mr. H. T. Armstrong (Labour, Christchurch East) hoped that before a Bill was passed giving concessions to .Canada, members would be able to gijire it serious consideration. It was not Uong ago that the Prime Minister had been compelled to place Canada on the list of foreign countries, but apparently he had to give way to his new colleagues. "There are some members who would give anything away for tho purpose of getting . a butter market," said Mr. Armstrong. "In order to get this they will make New Zealand a dumping ground for anything." There was no doubt New Zealand for a, long thno had been a dumping ground for Canadian timber.

■ Mr. Stewart: "There has been no redaction in timber."

Mr. Armstrong said that New Zea

land might just as well import her motor-cars from the United States as from Canada, and the same applied to sevoral other Canadian importations. Mr. H. G. Dickie (Government, Patea): "There are ample safeguards." Mr. Armstrong said that a firm in Christchurch manufacturing electric cookers had told him that if it could get a reasonable amount of protection it could employ 200 more men.

Mr. G. B. Sykes (Government, Mas- j terton): "There is 11 per cent." Mr. Armstrong: "Yes, but it ia not nearly enough." He advocated a total embargo on imported boots. It had been said that such a policy would create monopoly prices, but such action in Australia had resulted in a drop" of 20 per cent, in the price of footwear. There were several industries which were entitled to reasonable protection. For many years the trade between New Zealand and Canada and' the United States had been against New Zealand, because of the high tariff barriers in those countries, and they should be given a dose of their own.medicine. TIMBER PROTECTION. Mr. Dickie.said that 19s 6d per 100 super feet should be' sufficient .protection'for the local timber. He made a plea for development of the rennet j industrj-. , The greater part of tho, footwear imported from Canada' was! rubber goods. v j

Mr. G. C. Black (Independent, Motueka) agreed that, the House should have an opportunity of considering a general revision of the tariff to assist local industries. Ho mentioned the possibility of Onak&a iron being exported to Canada, provided it could be shipped from the wharf' in' New Zealand at £5 10s a ton. '-~-'

I TKe Bey. C. Can- (Labour, Timaru) said that New Zealand, should import nothing that she could manufacture herself. He was glad that the Minister of Finance was 'favourable to New Zealand manufacturers, because before he assumed, office there had been a suspicion that tariffs, were jmposed for revenue and not protective purposes. He hoped that at the Ottawa Conference the > Dominion delegates would press the claims of the local industries. ...:;' ..■■■■■- : ' ' '

Mr. W. Nash (Labour, Hutt) said ha agreed that there was quite a lot to bo said in favour of the proposals in the treaty, but he urged that instead of giving preference to complete Can-adian-made cars, the Government should remove the duty completely on motor parts which were used in manu-^ facturing cars in. the Dominion. That would considerably help the local trade and would lead to 80 per cent, of tho cars used in New Zealand being assembled locally. ■■■

Mr. W. J. Broadfoot (Government, Waitomo) congratulated the Minister on the agreement with Canada, and said it was good evidence of tho friendly feeling between the Dominions and augured -well for #ie Ottawa Conference. Many people ■wore .expecting a little too much of the Conference. The trend, in recent years had been for the erection, of tariff walls, and tho v present 'agreement would set a good' example. • H« thought we could attain a big place for our butter in Canada. Mr; P.- Jones (Labour, Dunedin South) urged that further protection should be given to the footwear.industry, and he hoped that would be one of the outcomes of the' Ottawa Conference. ■■■•'..■.'.'■• MOTOE-BODY BUIIiDEES. Mr. C. H. Chapman (Labour, Wellington North) said, that apparently the principal achievement of the agreement was the reduction of the duty on butter.- _ He advocated greater encouragement of the motor body building industry; This could be accomplished by stipulating that one in four of the. chassis imported should bo without a body.'--. ••■■'■-• - ■■■: ■.. ■'■.; "": Mr. A: S, Richards (Labour, 'Koskill) said" that New Zealand would have to look to the secondary industries in. the future and they would have to give them encouragement. •'. . MOTOR-CAR QUALIFICATION. The Minister emphasised that- there was no reduction in tb'e'duties on Canadian timber and that what had happened was that a higher duty had been imposed on., such importations from America and other countries. No alteration had been made regarding,the duty on fruit cases, but an increased protection, had been afforded plaster pulp sheets. When at Honolulu) he- had received; cablegrams from' British manufacturers of motor-cars asking that there should be a 75 • per cent, qualification for Canadian cars, and that had been given, with an additional 10 percent, duty if the qualification were' .not' complied with. The British manufacturers had jeally got more than they had asked for, and he did not think there would be many complaints from them. Dealing with tho question, of an assembly duty,1 Mr. Stewart said it had been suggested that more should be done towards putting that duty on such a basis that it jvould encourage the assenibly of cars in New Zealand. He quite agreed that such a duty might bo desirable, but in 1926, when the Government was revising the duty on motor-xars, he fell foul of the motor body building industry, which still enjoyed the highest duty of any industry in New Zealand. Experts had advised him ,at that time that the future of the industry lay in assembling rather than in body-build-ing. Assembling employed a large amount of '.unskilled or. semi-skilled labour. His advice had been, that anything that would promote the development of the assembly industry would be of great _ value to New Zealand. When he put' forward a proposal for recasting the duties; however, tho motor body builders, including General Motors, denounced him, and in the end he had to allow it to stand over. Just as the old coach building industry had had to give way to body building, so He believed the body building industry would have to change over to assembly work. The duty on electric cookers was substantial, and, with the surtax, really amounted to 36 per cent., and that would surely be sufficient protection for what undoubtedly was a very important industry, : The resolutions wore, agreed to, and a Customs Amendment Bill ratifying the treaty was introduced by GovernorGeneral's Message and read a first timeN . ■ .. ■ .

The statement of the Minister with reference to the Tariff■ treaty appears on page 6. .