RUBBER GOODS

Evening Post, Volume CXVI, Issue 113, 9 November 1933, Page 13

RUBBER GOODS

BRITISH IMPORTS

ASIATIC COMPETITION

RAISING THE TARIFF

Increased protection for British rubber goods was sought by Macinlop (N.Z.), Ltd., in a case presented to the Tariff Commission today by Mr. A. K. Mead, sales manager of th© company. -The application was made in respect of- flooring and mats, footwear, gumboots, rubberised garments, solution and cements, perambulator tiring, tire repair outfits, waterproof material, gloves, engine packing, boot repairing material, and all other rubber goods included in the tariff schedule.

Mr. Mead said that tho competition in lubber footwear from Asiatic countries, chiefly Japan, but with the Malay States and Hong Kong also well to the front, had created a price condition that it was impossible for United Kingdom manufacturers to meet. The average prices of imports during the period 1929 to 1932 were: United Kingdom, 30s Id per dozen pairs; Canada, 25s Id; Malaya, 23s sd; Japan, 9s 2d. Although 'the nominal preference was 25 per cent., taking the volume> of duty paid on a, dozen pairs of shoes from the United Kingdom, the British manufacturer was not enjoying any preference at all over either Malaya or Japan, but, on the contrary, had to pay on the average 34.2 per cent, more duty than.Japan and 33 1-3 per cent, more duty than Malaya. In three years Japanese imports into New Zealand had increased in value over 3000 times, and prices had fallen by two-thirds. Another factor working against the United Kingdom manufacturer, said Mr. Mead, was that' there appeared to be no machinery *_ existing which enabled the New Zealand Customs Department to verify that the prices at which Asiatic goods were invoiced were the true domestic values in the country of origin. He considered it would be fair and reasonable to apply an increased general tariff to tli© Malay States, Hong Kong, and any other British territory employing Asiatic labour and at present enjoying a. British preferential tariff. > OTTAWA AGREEMENT. "I am aware that under Article 12 of the Ottawa Agreement, the New Zealand Government grants to nongoverning colonies the preference for the time being accorded; to the United Kingdom," said Mr. Mead, "but I base my suggestion on the second part of Article 13 of the' Agreement, which says,' "In the event of circumstances arising which, in the judgment of his Majesty's Government in the United Kingdom or his Majesty's Government in New Zealand, as the case may be, necessitate a variation iii the terms of tho Agreement, the proposal to vary those terms shall form tho subject of consultation between the two Governments." ' ... Professor Murphy: Do you suggest our Government should raise the issue? Mr. Mead: I think it is a mutual desire. . ■ Professor Murphy: Why should we do it? If your people desire a concession I think the first step should como from them. Eepresontations, to my mind, should'start'from, his Majesty's Government in Great Britain. Why should our Government pull chestnuts out of the firo -/for the English rubber industry? . . .You have a Government of your, own. Your people are making, the application, and it is to the advantago of the English rubber iiulustry. Persons asking for the conces3ion are surely the persons who should set the machinery in motion. 'Mr. Mead: Yes. I could arrange for them to approach the Board of Trade. . • . ' ■ . '„ _ > "Would you be in favour or Japan blocking New 'Zealand wool?", asked Mr. J. B. Gow. ..'■.-•• Mr, Mead: That is very hard ,to answer in a few words. I think there is more to it than that. If \ the New Zealand farmer had- to adopt the same- • standard of living as Japan, he wonld desire then that Japanese goods should be excluded from New Zealand. ' .-.'■■■ Mr. 'Gow: If one country takes the goods of another country.^ . . Mr. Mead: It is a big question. I don't tliirfk I could deal with it in a ; few words. CHEAP ASIATIC LABOUR. ' Continuing with his general case, Mr. Mead said that the question of introducing a tariff that would effectively protect United Kingdom manufacturers against manufacturers- in British possessions who employed Asiatic labour almost wholly and paid wages on the level of the Asiatic standards of living should be sympathetically considered. "I think we must accept the. general opinion that the reason for firms establishing works at such places as Hong Kong and Singapore is to avail themselves of cheap Asiatic, labour which lies at their very door, and incidentally to enjoy the benefits derived under British reciprocal tariffs extended by certain of his Majesty's Governments, Mr. Mead said; "Therefore, some form of extra duty is. necessary for, jn the event of a unit duty being made to apply on tho general tariff rate, the transference of factory, and plant to ono or other of these countries might take place with little inconvenience, and the goods would be produced at about the same cost, with the result tha?>£he position would be as before."