TARIFF REVISION

Evening Star, Issue 21515, 13 September 1933, Page 11

TARIFF REVISION

MANUFACTURERS GIVE EVIDENCE CASE FOR HALT EXTRACT INDUSTRY To-day was the fifth day of hearing evidence by the Tariff Commission, which is comprised as follows:—-Dr Craig (chairman), Professor Murphy, Messrs J. B. Gow and G. A. Pascoe. Mr A. E. Mander is representing the Manufacturers’ Federation. PARALLEL WITH DAIRY INDUSTRY. Retention of the present tariff of 20 per. cent, or 2d a lb on malt extract was claimed by the Dunedin Brewery and Wilson Malt Extract Co. Ltd., for whom Messrs C. A. Wilson and J. D. Dempster appeared. “ As the dairy factory owners claim their right to be regarded practically as a primary industry, so do we claim a similar right,” said Mr Wilson. “ The dairy factory company buys its milk from the farmer, takes it to the factory, and converts it into either butter or cheese. Similarly do we buy direct on contract from the farmer, take the barley into our factory, and turn it out as malt extract. We therefore hold that we are on the same footing os the dairy industry.” Any damage done to the company would have a serious effect on those farmers who had been contracting with them for very many years. They had_ been, unloubtedly, of great material assistance t-o the farmers of New Zealand. While applies were limited purely to New Zealand barley, the British manufacturer bought in any part of the world n which ho could purchase the cheapest barley—Mediterranean contries, India, America, Australia, Canada, and so on. Furthermore, in all oyer■xjas purchases they expressly stipu'ate British goods—that is, goods from the Homeland. Even at the present .time they were negotiating for some English machinery and also purchasing •m English car for one of the travellers ■n preference to a foreign one. That was their attitude in all buying, and they thought that the New Zealand manufacturer generally was now doing all he could to place his orders in the British market. He thought the British manufacturer in his demands on New Zealand to lower tariffs would create a decidedly unfriendly tendency and might in the long run alienate the sympathetic feeling which had been engendered and cause the New Zealand manufacturer to seek around for cheaper markets for his importations. It seemed to them unwise on the part of the New Zealand fanner to demand a reduction of the duty on malt extract which was going to penalise the Now Zealand barley grower in favour of for-eign-grown grain. Major Elliot was reported as urging the Home barley user to use more of the Home-grown barley, and they had other authentic information as to the use of foreign barleys by the Horae manufacturer. The company, at this time, took exception to the suggestion of Messrs Potter and Birks that the New Zealand extracts were lower in quality than tho imported. They quoted the standard required by the Health Department, but they surely knew that their standard was a minimum one, and that it was very greatly exceeded by the New Zealand manufacturer of malt extract. Cases had arisen even of late of British malt extract being sold in the New Zealand market of quality inferior to the requirements of the New Zealand Health Department. “ To say that we are taking any advantage of rhe tariff protection would bo incorrect, as our prices to-day are below pre-war, and we can only sell at these prices on account of increased trade,’ said Mr Wilson. “ Any reduction of sales will mean a rise in our costs, and consequently increased prices. Notwithstanding the very high quality of our goods there is still a prejudice against them to a certain extent by people from tho Homeland. This, of course, is by no means general, but it obtains to a greater extent than is generally thought. Before we started business* malt extracts were very highly priced. Now it is possible for poor people to avail themselves of this extremely beneficial food, and we again

ntress the fact that any crippling of our business will certainly result m higher prices having to be paid by the public. The British manufacturer certainly exploited the New Zealand public to his tremendous before we appeared in the market.” 1 tn reply to Mr Mander, Mr Wilson said he was prepared to submit his extract for a comparative analysis with the English importation by an independent analysis. He spoke of the early struggles to establish the malt extract industry. The company was now returning its shareholders a reasonable dl Mi^Mander: Could you do that with°UCould you carry on to-day without a duty P_No hope. The margin of profit Is very small indeed, and we could not nossiblv carry on. Our _ company is tho pace for reductions in price. If there was no competition here, the market would be a beautiful thing tor the importers. Prices would go up immediately. INKS AND PASTES. Mr W F. Meek, director of Stephens Inks (N*.z.) Ltd., asked for the maintenance of the present duty of 20 per cent. British and 45 per cent, foreign on ink powders; 20 per cent. British or 2s a gallon and 45 per cent, foreign or 4s a gallon on writing, drawing, and marking inks, and also that ticketing inks be included under this heading; 20 per cent. British and 40 per cent, foreign on adhesive pastes for household and office use, in packages of less than one gallon. As fegards the lastnamed, an application was made that the definition be reworded as follows: —‘‘ln packages of one gallon or loss, and that the term “ household and office pastes or adhesives” be substituted for the term “ Gloy,” which was a registered trade name. j - In reply to Mr Mander, Mr Meek said his firm used Auckland-made containers and was well satisfied with them.

ELECTRIC AND COAL RANGES. H. E. Shaddock and Co. applied for the maintenance of the present duties of 25 per cent. British and 50 per cent, foreign on electric ranges and 20 per cent. British and 40 per cent, foreign on coal ranges. Messrs J. B. Shacklock and S. F. Bridgeman appeared in support of the applications. “ For well over fifty years the kitchen range industry has been established in New Zealand, and its progress has been such that there is now practically no importation of coal-burning ranges. In the peak times, 1920 to 1925, some 400 men were employed in this industry throughout Now Zealand,” said Mr Bridgeman. ‘‘ The introduction of electric ranges came quite suddenly, and with the spread of facilities for electric energy considerable inroads were made into the established coal range business. As power boards rapidly opened up various districts heavy demands were made for electric ranges, which were procured from overseas, as local manufacturers were unable to supply the quantities needed, having neither the material nor the facilities to cope with the initial rush; and so during the past ten years some 17,000 to 20,000 electric ranges have been imported; approximate capital value £375,000, and estimated wages value £70,000.” During the past three and a-half years 7,500 electric ranges were installed, selling value £150,000, estimated wages value £30,000, or sufficient to employ 40 men at £4 per week, to say nothing of those engaged in the production and carriage of some 300 tons of New Zealand pig iron necessary for manufacturing purposes. Now that the initial rush was over and the demand henceforward would bo that of the natural growth, the manufacturers of the dominion wore well able to take care of the business quite satisfactorily and at a price not exceeding that of the imported article. They did not ask for_ further duty, but simply that existing conditions —the conditions of the past forty years —bo loft alone. The range industry had been ' an important one in the dominion, and had amply justified its existence. They were simply fighting for their own existence, for if the tariff bo reduced to admit electric ranges free of duty the same concession would bo asked for gas and probably for coal fire ranges. .Somewhat unfairly, the various power boards, whose capital had been subscribed by the people of the dominion,

now claimed that the duty had to be taken off to allow of extension of the business. The plain fact was that the power boards had had the cream of the enormous and abnormal demand at tho expense of the manufacturer and the taxpayer, and found their present organisation too heavy and too expensive for tho natural demand. Now that the call was for normal supplies only the power boards raised the plea that the duty made the cost of installation excessive and injured their business. The obvious reply was that it was not so much the cost of installation as tho running costs that influenced the prospective customer, and nothing would be gained if the £4 or £5 that_ was saved in duty and lessened cost of installation be lost in the cost of the current before the first year was. out. A better inducement for people to install electric ranges, etc., would be to reduce the cost of current, a factor which at once made its influence felt. Although power boards and importers ask for a remission of duty, as if this were an imposition of recent years levelled at tho overseas manufacturer, the position was that there had been no change for the past forty years in the duty on British manufactures of metals, under which heading those goods naturally fell. Local manufacturers, therefore, felt very strongly in the matter, as any alteration must necessarily affect their business, and make it still more difficult to find employment for those brought up in and dependent npon the industry. New Zealand manufacturers have put time and money into the venture, and were entitled to some consideration in attempting to supply the needs of their own country Then there was the larger question, the establishment of important secondary industries and the employment of many artisans. Such industries were absolutely necessary in this country, and if tho coal-fire range was to take second place, then the makers felt that they should have the right to make good with electric and gas ranges, for both of which there were establishments ready to turn the goods out. Practically the whole of the material came from the United Kingdom or from within the Empire, and New Zealand supplied the labour. This seemed to them to be a very fair distribution and apportionment among.the various interests. They associated themselves with the dominion engineering case presented in Wellington, and claimed that the degree of protection now afforded to this industry was below the limit allowed by the Ottawa Agreement. Mr Mander: It has been stated in evidence before the commission by a representative of an importing firm that he believed the number of electric ranges which had been made in the dominion to be approximately 500. Is that figure anywhere near the correct figure? Mr Shacklock: It is obviously quite wrong. The serial numbers are up to the 2,000 mark now. The figure was very greatly understated. Mr Mander: Evidence was given in Auckland by associated power boards suggesting that the prices of ranges had been kept up by the duty militating against the selling of electric ranges. Have you knowledge of any of the schemes under which the power boards are selling ranges to tho public and bearing on the price? Mr Shacklock: The outstanding example of power board trading is that of the Poverty Bay Board, and I have seen a printed circular to the effect that hire of ranges could bo obtained at fid a month. Obviously that cannot pay for the range or interest on it. Obviously they are adding to the Current to pay for the range. You cannot expect anyone to purchase a range when they can hire for fid a month.