fOOTWEAR TARIFF

Evening Post, Volume CXXV, Issue 82, 7 April 1938, Page 11

FOOTWEAR TARIFF

DOMINION INCREASE

MR. JORDAN'S STATEMENT

COMMENT IN BRITAIN

(From "The Post's" Representative.) LONDON, March 19.

New Zealand's increased tariff on British footwear continues to be a sore point in boot manufacturing areas, it was the subject of questions in we House of Commons on March U. Mr W. A. Burke, Labour M.P. for Burniey, asked the Dominions Secretary, Mr. Malcolm Mac Donald, if ne was making representations to the New Zealand Government m view oi the grave effects the tariff increases were likely to have on the Lancashire export trade. . ■ , Mr. Mac Donald replied that a preferential margin in respect of imports from the United Kingdom was retained. Before deciding to alter the rates of duty the New Zealand-Gov-ernment gave the United Kingdom Federated Association of Boot and Shoe Manufacturers an opportunity oi submitting their views, and he understood the association had made further representations to New Zealand about the incidence of the specific duty on certain kinds of footwear. The Government was keeping .in touch with the association in the matter. BRITISH COSTS HIGHER. Mr. Burke: How was this increase brought about? Mr. Mac Donald: The New Zealand Government made this change in order to check increasing unemployment^ in their own industry due to increasing imports and the rising cost of production. Mr. Burke: Is it not a fact that the cost of production has also increased in this country, and that the position now is the same between the two countries as in 1934 when the original agreement was made? Mr. Mac Donald said he understood that this was the sort of point on which representations were now being made to the New Zealand Government. ■ Mr. Graham White, Labour M.P. for Birkenhead: Are not these increases a violation of the whole of the spirit of the Ottawa agreements? '<■ ' Mr. Mac Donald: It is not a breach either in letter or spirit. The High Commissioner (Mr. W. J. Jordan) subsequently met members of Parliament from footwear manufacturing districts at the House of Commons. Sir Eugene Ramsden presided over an attendance of fifteen members. Mr. Jordan pointed out that owing partly to the introduction of the 40----hour week and improved wages in New Zealand, costs of local production had increased by 20 per cent., and there had been a rise in boot and shoe imports between 1935 and 1937 of about 33,000 dozen pairs, or £126,000 sterling. Consequently, unemployment and short time had arisen in the New Zealand industry. "THE FLOW OF TRADE." He emphasised the desire of New Zealand to maintain the friendliest trading relations with Britain and declared that the purpose of the increase in the. tax from 20 to 25 per cent,, or a minimum of 3s a pair, was not to' exclude ,British.. maufacturers but to maintain the normal, flow of trade under the new conditions. He stressed that New Zealand was not merely Britain's best customer per capita, but also her largest buyer of boots and shoes despite the small population of the country. He also dealt in detail with the highly, favourable terms given by the Dominion to Lancashire cotton goods. . Many members took part in a subsequent discussion, but it was agreed' that' Mr. Jordan had made out a very good case. One member said he personally felt well equipped to answer any criticisms that might be raised by his constituents. Another member connected with the leather exporting industry expressed the view that the tariff would not in the long run be inimical to British interests. THE ROSSENDALE THREAT. A statement has also been issued by New Zealand trade officials in London pointing out that the Rossendale manufacturers, who have threatened a boycott of Dominion produce, appear to be under a misconception, as the 3s a pair duty does not apply to slippers, the chief export of the district, or to children's shoes between si2es 0 and 9.

It is also pointed out that while Rossendale and other Lancashire districts are^ using more New Zealand butter than formerly, the area continues to be a stronghold of foreign butter, taking a smaller proportion of Dominion dairy produce than most other parts of England. Commenting on the position in a leader, the "Daily Dispatch" (Manchester) says:—"We sincerely trust that the New Zealand authorities-will revise the prohibitive tariffs they are imposing on footwear imported from this country. Hitherto the trading relations between the two countries have been excellent; much, better, in fact, than those obtaining with certain other Dominions. But New Zealand must not overlook the fact that she depends very largely on the Mother Country for her export trade, and that the balance weighs heavily in her favour. "Only the other day a spokesman for New Zealand in this country said the Dominion must buy where she sold. That is no less applicable to Great Britain. The boot and shoe operatives of the Rossendale Valley, of Leicester, Kettering, and Wellingborough are not going to buy New Zealand mutton and lamb, New Zealand butter, and other produce when they are told that the market in New Zealand for the boots and shoes they make has been closed against them. It is no less a matter calling for the urgent attention of Mr. Oliver Stanley and Mr. Malcolm Mac Donald.' We hope they will both get busy." MANUFACTURERS' REPLY. A reply to Mr. Jordan's statements made after the meeting at the House of Commons has been issued by the National Federation of Boot and Shoe Manufacturers. The federation expresses considerable surprise at statements made in a document circulated to the Press giving, an account of the meeting. "It is I particularly noticed that the High Commissioner has stated that the local cost of production in New Zealand has increased by 20 'per cent. This figure has not before been mentioned, the I previous advices having been that the cost of production had increased by only 10 per cent, and upwards," the federation says in its reply. "Consequently the High Commissioner states that unemployment and short time had arisen in the New Zealand industry as a result of the increase in boot and shoe imports between 1935 and 1937. FIGURES OF IMPORTS. "The High Commissioner evidently ignores that New Zealand figures show that in New Zealand adult boots and shoes made from 1936-37 increased by 7 per cent, in quantity and 1G per cent, in value as compared with 1935----36; while children's boots and shoes,

which are not protected against British imports, increased sharply by 42 per cent, in j-quantity and Gl per cent, in value. The production in, slippers in the same year grew by 22 per cent, in quality and 41 per cent, in value. These figures are from New Zealand] sources. j

"The real reason for unemployment and short lame in the New Zealand industry at the end of 1937 was clearly stated by the Minister of Finance in the New-Zealand House of Representatives on October 25 when he said: 'One wise man informs me that boot manufacturers sold themselves out of a job. They persuaded retailers to stock up so much that the time came when they oould not take any more.1 "SEVESJE LOSS OF TRADE." "It is noticed that at the meeting in the House of Commons the opinion was expressed that the High Commissioner had shown that prohibitive duties had not been imposed against' British imports. The author of that statement is not known,; but it is certainly not shared by British manufacturers engaged in the trade. "The federation repeats that in its opinion the 3s specific minimum duty will result ■in a severe loss of trade to the British industry. The United Kingdom-New Zealand trade' agreement requires that duties shall be sufficient to maintain a fair balance between the industries of the two countries. The.-' federation contends that this requirement is exceeded by the 3s per pair duty."