BRASS TRADE

Evening Post, Volume CXXII, Issue 13, 15 July 1936, Page 4

BRASS TRADE

BRITISH COMPLAINT

"A THORNY PROBLEM"

EXPORTER'S VIEWS

(From "The Post's" Representative.) LONDON, June 17.

Criticism of the attitude adopted by New Zealand to British products of the brass foundry trade has been made by Mr. G. Neville Sperryn, president of the Brassfounders' Employers' Association, who recently returned from a business trip to the Dominion. Mr. Sperryn has been impressed by the determination of the Dominion authorities to foster their own industries, despite the fact that it may involve discrimination against this country, where, it is of the utmost importance to remember, he says, an entirely free market is offered to their products. In the opinion of Mr. Sperryn a much larger measure of good will and co-operation will have to be exhibited "on the other side" if the balance of trade on reciprocal lines is to be properly adjusted. The trade correspondent of the "Birmingham Post" says that many avenues formerly open to the brass foundry trade have been entirely closed, while even in the Dominions, which might be expected to offer fair opportunities, severe difficulties have to be met. At one time both Australia and New Zealand took large quantities of brass goods, but owing to the depression, and for other reasons, that trade was interfered with to a considerable extent so that it fell almost to vanishing point." Benefits anticipated for British manufacturers under the Ottawa agreements have not materialised in the manner that was expected. In view of the : existing situation, the Brassfounders' Employers' Association has thought well to take the matter up with the Board-of Trade in England. The president of the association (Mr; G. . Neville Sperryn), during a recent business trip to the Dominions, took the opportunity of investigating conditions for Himself so that the association might be in a better position to deal with what is admittedly a thorny problem, i SUBSIDISED. BUILDING. A notable example of the- sort of obstacle placed in the way of British firms is io be found in a New Zealand plan for mitigating unemployment, says "The Post's" correspondent. Printed rules in the scheme of the Unemployment Board provide that specific penalties shall be imposed for the use of goods "not of New. Zealand manufacture." The omission of any preferential consideration in respect of British materials is a matter of some concern to manufacturers in England; Experience shows, it is said, that this is symptomatic of much of the attitude'adopted in regard to England^ It is felt that with the open market in the Motherland the imposition of such restrictions is far from ; compatible with equitable trading conditions. , "The Post's" correspondent says that the scheme of the .New.Zealand, board under which subsidies are paid for certain work is of general interest to the trading community.: After reviewing this scheme, he says that it is held that the New. Zealand Government,is wilfully prevent; ing the use of British ■ manufactured goods, in spite of the promise at Ottawa, and that this building subsidy, not only prevents the;use of English' goods in subsidised buildings^ b/ut mei> chants, who supply materials: :f,or subsidised buildings;- will ■7noVTals6_'.'.s.toe'k' English ■.products.-ow-ing- to -the: expense; In these circumstances the;' contention is made" that the - use of goods ' from' England becomes virtually impossible for any work,"with few exceptions. TARIFF REPRESENTATIONS, r In other ways handicaps, are imposed upon transactions with this cpuntiryf Mr. Sperryn found upon histamvaTin; New Zealand that the brass'. trade-was applying to the Governments or'ah in-, crease of duty. He was -able -to dp some useful propaganda work,-- and after negotiations ■ which "occupied some time a written'promise was obtained from the. Minister ■■ of - Customs that before any increases \vere":made in duty an . opportunity ■. woUld be afforded British manufacturers' of making representations. This is regarded as a very important' concession /Which may exert considerable influence upon; the future trend of business. ■ Experiences in New. Zealand impressed upon Mr. Sperryn the fact that no industry there is likely tp receive fair treatment unless it is .claimed in a vigorous manner. In one case the reply to a complaint was: "Well, you made no representation .to us when the duties were, fixed,, and had you acted as the motor trade-you would no doubt have got advantages in reductions the same as occurred in that case." 'Now, further action has been taken on behalf of the Brassfounders' Employers' Association. It is likely that formal application will be made for a reduction in the tariff on brass goods on the ground that the Ottawa agreement has not been. carried out, inasmuch as the British manufacturer has not been given the opportunity of reasonable competition. It will also be claimed that the penalty on the use of British materials in subsidised buildings is a breach of agreement, and that it should be withdrawn. THE EXCHANGE PROBLEM. Further, emphasis will be laid upon the fact that, as the exchange gives Australia an advantage over British manufacturers, steps should, be taken to alter this so that United Kingdom firms may be placed on the same footing as Australian concerns. The position in regard to this matter of exchange is one of vital importance. In New Zealand, as in Australia, there is a difference in exchange which acts as a duty, the equivalent of about 26J per cent. As this has operated since the Ottawa Agreement and seems to have become a permanent charge on imports, it is felt to be a breach of the arrangements. Another serious effect of the exchange rate is that Australia, having depreciated her currency to a like amount, is able to send goods to New Zealand with an advantage of about 26i per cent, over British goods. Having manufactured behind a high tariff wall, having shut out British competition, Australian firms are then able to export to New Zealand behind the exchange wall, which acts to the disadvantage of the United Kingdom and takes away trade in New Zealand previously done by this country. This is regarded as a serious menace which cannot be lightly treated, as it applies to a large variety of goods and is increasing rapidly.