TARIFF COMMISSION

Evening Star, Issue 21510, 7 September 1933, Page 5

TARIFF COMMISSION

HAT MANUFACTURERS’ REPRESENTATIONS INCREASED PROTECTION SOUGHT The Tariff Commission yesterday afternoon heard representations by a number of hat manufacturing Arms for variations in the tariff on imported headwear. The members of the commission are:—Dr G. Craig (chairman), Professor B. E. Murphy, Mr J. B. Gow, and Mr G. A. Pascoe. Mr A. E. Mander (general secretary of the New Zealand Manufacturers’ Federation) and Mr F. Waite (representing the New Zealand Farmers’ Union) were also present. Mr Mander, who introduced the representations, said the application was made on behalf of the industry by the following firms:—Union Felt Hat Company (Dunedin), Ross and Glendining (Dunedin), National Hat Mills (Wellington), and Triester and Co. (Wellington). It was claimed that the protection afforded to the industry was now somewhat below the level of the Ottawa formula. The present duty was 25 per cent, on British goods and 40 per cent, on foreign goods. They asked that this industry should be regarded ns an industry especially suitable for the application of the principle recommended by the Imperial Economic Committee on Imperial Industrial Co-opera-tion, under which the semi-manufac-tured goods should be imported from the United Kingdom, while the New Zealand industry should be safeguarded as regards finished goods in the dominion market. They, therefore, asked for a tariff as under;— Hat hoods: United Kingdom, free; Empire and foreign, 20 per cent, if complementary agreement is made with United Kingdom, otherwise free. Hatmakers’ materials: United Kingdom, free; Empire and foreign, as above. Hats, manufactured: United Kingdom, 25 per cent.; Empire, 40 per cent.; foreign, 50 per cent. The industry, Mr Mander added, made use mainly of imported materials, and the greater part of these materials were, or could be, imported from the United Kingdom in a partially processed or semi-manufactured state. The industry was, therefore, specially suitable for the application of the principles recommended by the Imperial Economic Committee on Imperial Industrial Co-operation. In this case, it was suggested, the United Kingdom and New Zealand should agree to specialise and to respect each others specialisation, in the stage of manufacture relegated to each. The United Kingdom might produce hat-hoods for the New Zealand hatmaker, who would restrict himself to that source, while Great Britain in return would agree to leave the second stage of manufacture —the conversion of this semi-manufac-tured material into finished goods ready for the market—to the dominion industry. This co-operation between Great Britain and tiie dominion was the alternative to competition recommended by the Imperial Economic Committee, and it was asked from the commission and the Government to give it their earnest consideration. The New Zealand industry was to-day in a difficult situation, and manufacturers had been compelled to recognise that position. The value of the New Zealand industry to Britain might be judged by the comparative values of British .and foreign hat-hoods and other materials imported during the last three years by the four firms he had mentioned:— British. Foreign. Hoods £61,894 £5,372 Other materials 20,185 8,961 The United Kingdom itself obtained a large amount of material by importation from foreign countries. In 1930 the foreign imports into the United Kingdom were valued as under:—Hatters’ wares, £86,412; wool felt hats (and bodies), £1,435,159; fur felt hats (and bodies), £437,489. The New Zealand industry, which drew the great bulk of its material from Great Britain, was thus handicapped in competing with British manufacturers, who obtained a great portion of their material from cheaper foreign sources. According to the United Kingdom trade report of 1930, tlie United Kingdom exported to New Zealand in that year as under: — Wool felt hats (including bodies), 31,897 dozen, £57,141; fur felt hats (including bodies), 10,286 dozen, £57,159—total value, £114,300. In that year the New Zealand manufacturers imported from the United Kingdom hoods valued for Customs at, roughly, £24,000, or £21,800 on the valuation adopted for United Kingdom statistics. This left a balance of, roughly, £92,500 (invo : o value) of finished hats imported. The four firms now employed in their factories thirty-eight adult males, fifty-four adult females, nine apprentices, and these figures were considerably lower than normal. If the plant were working to full capacity the number of workers would be at least doubled. The average wages paid per annum over the last three years amounted to £12,336. - Mr Wilson made a general statement regarding the prices of English hats compared with colonial, and pointed out that the New Zealand hats were made from English raw materials. The standard of workmanship in New Zealand, he contended, was equal to that at Home, and, therefore, quality for quality, the New Zealand hat compared very favourably with the imported lint.

Evidence of a confidential nature was given by the parties, and was taken in committee.