CHANGES DISCUSSED

Evening Post, Volume CXVIII, Issue 45, 22 August 1934, Page 3

CHANGES DISCUSSED

VIEWS OF MEMBEES

MORE CONCESSIONS URGED

THE SECONDARY^NDUSTRIES

Although members generally were not enthusiastic about tho changes made in the original resolutions, thero was little in tho way of concerted opposition to tho proposals, and tho resolutions were agreed to shortly after midnight.

The Leader of the Opposition (Mr. M. J. Savage) said that he would not attempt to discuss tho matter at length that night, as an opportunity would be afforded on the second reading of the Bill. Howover, it seemed that the Commission's report had been knocked out. (Hear, hear.) The amendments were an improvement on the original resolutions. It would bo a matter for dotailed examination as to just how far the whole of the resolutions would make it possible.for a New Zealand industry to be developed. He was still a little bit at sea as to what the Government's policy really was. He referred to cablegrams that' had passed between New Zealand and the Old Country in Teferenee to tariff questions and primary exports, and said that he intended .to refer to the matter fully on the second reading of the Bill. The Government seemed to be backing and filling from day to day. The Minister had said that ho had received more information sinee1 tho first resolutions were passed, but he did not admit that anything in the nature of pressure was brought to bear. He would not blame him for that, buj: it did seem that everybody was living in a maze, and they did not know where1 they were from time to time. "I don't exempt myself,''-.he said, "and the Gor-j

ermnent would stupefy any one? We don't know what to expect next."'

The Minister had made a very creditable move on several items, said Mr. Savage, arid the House had to decide whether it was going to do anything worth while with reference'to the development of secondary industries in New Zealand. There should be some definite plan. ~ ■• It was just as well for the. House to agree right away that the resolutions constituted a move ahead. He hardly thought that the tobacco people were satisfied with the Minister's proposals, jHo trusted that a reasonable opportunity would be afforded to* diicuss the proposals on the second reading on account of their importance. He had heard it stated that the Minister desired to have the second reading disposed of by Thursday, but seeing that the House had spent two months doing "nothing, it could easily spend some time on something involving'the life and death of New Zealand, industry. NO INTENTION TO HURRY. The Prime Minister (the Bight Hon, G. W. Forbes) said that there would be no intention of trying to hurry the second reading. He pointed out that in recent weeks persons had had the opportunity to make representations, and if deputations meant pressure exerted, that was pressure on nearly every occasion. It had been the desire of the Government not to do anything to injure the to'bac'eo-growing industry, and at the same time to protect the revenue of the country. The proposals gave a reasonable protection to tobacco growers, and the others connected, with the industry had not been overlooked-. The position could not be overlooked that irrespective of the protection given, the market was flooded, and it was not^possible to carry on the industry at a profit. ; Mr. J. A. Leo (Labour,. Grey Lynn): Have you abandoned more production? Mr. W. E. Parry (Labour, Grey Lynn) asked whether the Government had received*'information other than through the Commission. The Prime Minister replied that a good deal of information was given that had not been given to the Commission. ■ • i Mr. D. G. Sullivan (Labour, Avon) said there was no tloubt that some concessions were made and they were necessary. Had the- Commission's report been carried out in toto, some of the industries of the country would have been wrecked. It should be recognised now that secondary industries were the only hope of young people coming out of the schools. There were no amended proposals regarding the boot industry, which had been hit very hard. Mr. C. A. Wilkinson (Independent, Egmont) said that the concessions referred to were not concessions, but added burdens. All the representations made, to the Government had been made by interested parties, and none of-the general public had had the opportunity of making representations to the Minister of Customs. As far as ho could see, the duties.-on tobacco had been increased on the original rates. He was disappointed to find that there was no reduction on 'wheat and flour, yet a reduction had >'.. been made on beer. . ■■■. ■':' ... CRUDE OIL. Mr. P. C. Webb (Labour, Builer) said that he .was surprised that the Government had declined to take notice of the representations of tho coalmining industry and the gas companies on the question of the importation of crude oil. There were 40,000,000 gallons of crude oil being imported into New Zealand free of- duty, and in addition it was now proposed that oilburning machinery should be imported free of duty. • A tax of 2d per gallon would bring in £200,000 per annum, and1 such: a, duty would help the Coal industry. ,5 V, ,:.,.. ■. ~. • l Mr.-W.Jf'Polson (Government, btratfordV'isaidr'that the alterations were not satisfactory to, him because ho believed in :;a general lowering of the duties. However, tho amended \ items were better than generally expected in view of the fact that the manufacturers had been waiting on the. door tho Government. :He hoped that _ the duties on goods not in New Zealand would be totally reduced, on British .goods. The-reduction would amount u> only about £20,000 per, annum, but it wouldbe-a fine gestuTcto the United Kingdom. _ •Mr C H. Chapman (Labour, Wellington North) said, that he was grati-. Wl that a modification: had been made in the duties reflecting on the motorbody building industry.. He hoped that the Minister could see-iMs way to abolish the duty on motor• chassis with a view to giving employment to .a large number of men. ■■ i ; ELECTRICAL INDUSTRY. ■The Hon.'.W. Downie Stewart (Government, Dunedin West) said that .he was pleased that the Minister had' reinstated certain duties. He was speaking especially of the .electrical industry which had been lulled- into a sense of Security as the Tesult of the tariff imposed on electrical manufactures, following on the considerable inquiries made years ago. The removal of the duties would have given the local manufacturers a sense of insecurity. It had been stated that because of tho mcreaso in revenue to bo collected under the new. tariff, it was a travesty on the Ottawa Agreement, but it was possible to increase the revenue and at the same time give full effect,to the Ottawa Pact. ■ • Mr. R. Seniplo (Labour, Wellington ■East) said that lie was still afraid that' the amended proposals would pnevent the development of New Zealand, industries. He urged the imposition of a tax on crude oil as a means of raising revonuo and assisting the coal-min-ing industry. i Mr. A. Harris (Government, Waiternata) urged the-removal of the duty on crockery which would not be manufactured in New Zealand for many years to come. Mr. 1 W. E. v Barnard (Labour, Napier) said that he congratulated the Government on its modifications of the tobacco duties, although the amended duties did not go as far as the industry and the manufacturers proposed. The new duties were in the right direction, and it was to be hoped that further concessions would bo made to the local industry. Mr. A. E. Ansell (Government, Chalmers) agreed that the tobacco industry should bo encouraged. He also supported tho plea-for the building up of the motor-body buildinjj industry. Ho had been told by one firm that, if it imported completed cars, the number of hands it would vequiro would bo 35, whereas if the cars were imported completely knocked down, the number of hands employed would bo 4001 Ho considered that the clothing trade was not sufficiently protected to ensure its receiving a fair share of the local market. ' Captain H. M. Eushworth (Country Party, Bay of Islands) said he agreed that the resolutions meant added taxation. The exporter should havo fair trade. BOOT INDUSTRY. Mr. H. S. S. Kyle (Government, Eiccarton) congratulated the Minister on the concessions he had made to the manufacturers. He congratulated the Minister in restoring the duty on the electric cooker. He was doubtful whether the boot industry would be able to exist. Mr. H. T. Armstrong (Labour, Christchurch East) said it was not in the interests of the consumers that New Zealand should be a dumping ground. Mr. W. A. Bodkin (Government, Central Otago) said that the proposals •had been justified by the evidence submitted to the Minister. The Minister had reinstated the duty on jams;

which was of interest to the fruit growers. It was cheaper for the taxpayers to provide work and wages by increased tariffs than for an increase to be brought about in! the?unemployment tax. ' ". •,, .

Mr. W. J. Jordan (Labour, Mariiikau) asked whether further consideration could be given to the ■ bottle-making industry.

■ Mr. H. Holland (Government, Christchurch North) congratulated the Government on the assistance it had given some industries. The tariff seemed to bo playing into the hands of the American manufacturers of doors. .* Mr. E. J. Howard (Labour, Christchurch South) said that- New Zealand should save the industries which it was felt were economic and stand by, them. . ' "NOT FAR ENOUGH." Mr. K. J. Holyoake (Government, Motueka) said that the Government had gono a long way in meeting the tobacco growers but he i consideredl it had not gone far enough. He agreed that the New Zealand grower had to look largely to the manufacture oit cigarettes as his mainstay. Mr. R. McKeen (Labour, Wellington South) said he did not agree that the Minister or Government officials should have the right to fix duties. • If they were going to have tariffs the fixing of the rates should be left to a Committee of the House which would consider the welfare of New Zealand, industries. He made a plea for ih« boot-manufacturing industry. Eeplying, the Minister of Castoiris said that the problem of a tax on crude oil was a difficult one and involved, many interests, among which was shipping. About 24,500,000 gallons were imported, and 17,000,000 gallons exported in bunkering. It was a problem to know where' to draw the- line. An impartial survey of tho position would result in showing that it would not be wise to impose a tax on crud6 oil. He thought that the solution of the problem would be the conversion of coal into by-products, such as oil and petrol.

The resolutions were agreed to, and the Bill giving statutory effect to them was read a first time. ,' The House adjourned at ten minutei past, midnight.