HELP SOUGHT

Evening Post, Issue 13, 16 January 1936, Page 12

HELP SOUGHT

SECONDARY INDUSTRIES

DEPUTATION'S REQUESTS

JAPANESE COMPETITION

Some of the major problems confronting the manufacturing industries of the Dominion were outlined by a deputation representing the New Zealand Manufacturers' Federation, which waited this morning on the Prime Minister (the Hon. M. J. Savage), the Minister of Finance and Customs (the Hon. W. Nash), and the Minister of Industries and Commerce (the Hon. D. G. Sullivan). The deputation, which was headed by the president, Mr. D. Henry, and the secretary, Mr. A. E. Mander, was accompanied by Mr. J. Roberts, secretary of the New Zealand Federated Clothing Trade Workers' Association.

The deputation was particularly concerned about the tariff on Australian and Canadian goods, on which it asked an increase of 15 per cent, compared with the tariff on British goods, the operation of the exchange and sales tax, and Japanese competition in the textile trade. The Ministers indicated how deeply concerned they were with existing conditions, and gave an assurance of the Government's sympathy and co-opera-tion. "Our job," remarked Mr. Savage, "is to try and take back some of what has been taken away." Mr. Mander, stating the case for the federation, suggested that in the coming negotiations regarding the trade agreements with Australia and Canada the Government should adopt the principle of imposing upon imports from those countries a scale of duties higher than the tariff on,corresponding imports from the United Kingdom. The duties on goods from the United Kingdom had recently been adjusted to comply with the terms of the Ottawa Agreement, but this Dominion was under no obligation to place the Australian or Canadian manufacturer in a similarly favoured position. "We urge," said Mr. Mander, "that on Australian and Cliadian goods (of kinds which can be produced in New Zealand or obtained from Great Britain) the tariff should be at least 15 per cent, higher than the tariff ort similar goods from Great Britain." EXCHANGE AND SALES TAX. Coming to the question of exchange and sales tax Mr. Mander said that when Government departments— through the Stores Control Board, or otherwise —purchased materials or goods overseas, the cost of exchange was met, not by the department concerned, but by Treasury. This meant that only 80 per cent, of the actual cost was met by the department concerned, while the remaining 20 per cent. was a charge.on the Consolidated Fund. "The Manufacturers' Federation asked the, Government to abolish this practice of Treasury subsidising (by the amount of the exchange) the overseas purchases of other Government departments. Sales tax was payable by Government departments which purchased goods from New Zealand manufacturers, but it was not payable when goods were purchased overseas. Here again was a case in which the purchasing department was in fact penalised for buying New Zealand goods. TRADE WITH JAPAN. Mr.'. Mander quoted figures showing the unfavourable balance of the Dominion's trade with Japan, and other members of the deputation instanced the effect Japanese competition was having on the secondary industries. Mr. Mander said it was recognised that the question of a possible restriction of Japanese trade was complicated by Imperial and international complications, and on the general question the federation asked now only for an inquiry. Mr. Roberts viewed the Japanese competition with alarm from the point of view of the workers in the industry, as it threatened to jeopardise conditions and wages. Tne deputation also urged that the primage duty on imports from the United Kingdom should be abolished. It was estimated that the primage now paid on United Kingdom goods was in the neighbourhood of £160,000 a year. • Mr. Mander said also that the federation desired a decision, as to the protection at present afforded the nail industry. This protection would expirs in October next. THE GOVERNMENT'S ATTITUDE. Mr. Sullivan replied first to the deputation's representations. He said that one could easily get lost in the details of the position without the guiding principles, and they were laid down to the electors before the General Election. "We want to build New Zealand's industries," he continued, "and our attitude is New Zealand first, the British Commonwealth of Nations second, and other countries third. If we have that principle in front of us it will be a guide to us when we consider the matters that have been brought to our notice this morning. As far as I am able to say the facts as stated by the deputation are in the main correct, and I would say further that as far. as the handling of these matters is concerned, the only common • sense way is to make definite agreements with Japan and other countries.'NOT TO LIFT PRICES. Mr. Nash said he did not think the objective of the Government was to allow the traders to lift prices, but to

make conditions in which traders and everyone engaged in manufacturing industries shared. It was the general masses that they" were thinking about, and the extent to which the manufacturers would give employment to the masses. If the Dominion were to keep the Japanese shipping lines going it would have to take goods from Japan in return for goods sent. "If we are to control external trade with the countries with whom we are dealing," said Mr. Nash, "they will determine what they will take by negotiation, and we will determine what we will take by negotiation. The question of shirting from Japan will require almost immediate decision, because firms will have to determine whether they will place their orders in Great Britain." BARRIERS AGAINST NEW ZEALAND. The Prime Minister said that the Government's disability was the accumulations of the last sixtoen years. He had been in Parliament for that period, and he had watched the barriers being erected against New Zealand and its people. "We have been here eight or nine days trying to implement our policy," he stated, "and it does not seem reasonable that it can be done in lhat time. The accumulations of fifteen or sixten years, you.will agree with me, are pretty large. There are such things as the rate of exchange, which was raised in spite of our opposition, and the sales tax, to which the same" thing applies. A let of your complaints have risen out of those things. "There is any amount of room for development within the British Commonwealth of Nations. That has been our policy always, but it is only now that we have our chance. I agree with everything that has been said. You can take my word for it, we are not going to sleep on the job. Some of our men are working almost all round the clock to provide Cabinet with reports that will enable Cabinet to instruct the law' draftsmen. What you have been saying, we have been saying. Our job is to try and put back some of what has been taken away. lam speaking to friends. You have promised your co-operation, and we wholeheartedly accept it. No doubt you will be able to help us in shaping the conditions that should be. You have the wholehearted sympathy and co-operatinn of the Government."