STEEL PIPE INDUSTRY

Evening Post, Volume CXVIII, Issue 23, 27 July 1934, Page 16

STEEL PIPE INDUSTRY

EEQTJEST TO MINISTER

NEW TARIFF PROPOSALS

Eeprescntations for a revision of the tariff proposals wore made to the; Minister of Customs (the Et. Hon.-. J. G.: Coates) by tho Hume ' Steel-Pipe Co.i (Aust.), Ltd., yesterday afternoon. : As. the most logical way ; of giving full effect to the Ottawa. Agreement, together with giving the utmost help to New Zealand's primary producers, the following representations were made: — (1) The Government should restore the former preferential duty of 20 per cent, on iron and steel pipes above 6 inches in diameter, and on east-iron pipes above 9 inches in diameter- (2) the Government should alter its'classification in such manner as to ■•• impose, a 20 per cent, preferential duty on iron, stool, or cast pipes of 4 inches in diameter and over. This would enable the local industry to compete in the smaller pipe field wliere the demand was steadier, and Svould provide a basis for considerable expansion of production and employment; (3) the Government should impose a dumping duty on Australian cast pipes in eases where the price ,at which these pipes wore sold in New Zealand was lower than the price at which they were" sold in Australia. This would remove the unfair form of competition which the industry had at present to suffer, and would tend to stabilise its production and its market. . - ■ . . • "The tariff resolutions now before t.lio House provide for a complete removal of the Customs duty of .20 per cent, on cast-iron pipes, over. 9inj".arid on wrought iron or steel pipes of 6in diameter and over, "said Mr. W.. T. Strand, the principal speaker. "Wo respectfully desire to bring to your notice certain considerations indicating that such, action would definitely place the local' manufacturers in an unfair competitive position, and would be unlikely to benefit Britain's iron and steel industry, or provide freight for British ships. AN ADVANTAGE. "Our keenest competition from Britain, as shown in the recent Wellington and other tenders, comes from a firm "in Britain which built up its trade by using, foreign ingots for the manufacture of pipes. German and Belgian ingots smelted with charcoal aro admitted freo of duty to England, others 33 1-3 per cent., and are substantially cheaper than British ingots. The pipes, manufactured from these ingots are admitted, free of duty to New Zealand. The New Zealand producer cannot' import ingots. He must import plates. He can import the more expensive British plates free of duty, but even if he wishes to uso the cheaper German or' Belgian plates he must pay 20 per cent, general duty on this foreign material. The manufacturer in Britain using the cheaper foreign materials has, therefore, advantage over tho New Zealand manufacturer. "Secondly, thoro is keen competition between cast-iron pipes from Australia and the welded steel pipes produced in New Zealand. The Australian manufacturer enjoys high protection in his own country,1 and, selling at high prices in his own domestic market, can dump his products in New Zealand at prices appreciably lower than the Australian domestic price. These conditions suggest that there is a sound case for a dumping duty against Australian cast pipes, but hitherto we have been unable to secure the protection .that would bo afforded l>y such a dumping duty. "On these grounds we consider that tho tariff proposed is not fully in accordanco with tho Government's policy of-giving the New Zealand producer such conditions as will place him at least on a fair competitive basis with British competitors overseas. SATISFACTORY PROGRESS. "During the three years of our operations in New Zealand our progress has been satisfactory and our financial position strong. The quality of our products, hessian covered, automatically electrically welded steel pipes, lined with bitumen or concrete, may be judged from the fact that the Local Body Loans Board in Neiy Zealand allows our pipes a life of 36J years— tho longest period allowed for any pipes. Our ability to meet competition under the former duties may bo judged from the fact that we havo recently secured a second large contract for the supply of pipes to tho Dunedin City Council for £85,000 (our former contract being for £.35,000), also numerous other local body orders during the last few weeks. Further, being readily available in New Zealand, wo can service our goods and ensure satisfaction. Being amalgamated to a concern operating in many countries we have been able to. keep up to date with our' management and technical effi-. ciency."