To Protect Local Industry

Evening Star, Issue 22895, 1 March 1938, Page 5

To Protect Local Industry

Extensive . Tariff Changes

Duty On Footwear Increased

In a special Gazette issued this evening, notice is given of Orders in Council bringing into force on and from March 1, modified duties in respect of an extensive list of items. “ There are,” said the Minister of Customs (the Hon. W. Nash), in an, explanatory statement, “ large quantities of goods at present being imported into New Zealand which could satisfactorily be manufactured within the Dominion'. The proportion of such goods now being made here, even though in a number of cases the industries are very extensive ones, is not as large as it should be. The increasing volume of imports has • made it apparent to the Government that some further measure ■of protection is necessary if industries in New Zealand are to develop, as it is felt they should do.

“ Although the duties have been increased, it does not necessarily follow that internal prices will rise,” Mr Nash said. ”On the contrary, as a result of the increased production and. .the consequent greater efficiency in industry New Zealand manufacturers should be in a position to reduce prices, and internal competition should ensure that prices are kept at their lowest level.

,l Before effect could ho given to increased duties, it was necessary, in view of the trade agreements with Canada and Australia, to enter into negotiations with the Governments of each of those countries. An agreement was finally reached on Friday last, so that it will be evident that no time has been lost by the Government in implementing the proposals.

” No increases have been made in duty under the British preferential tariff,, except in respect of tariff item 196, footwear, in which case the duty bn boots and shoes other than of rubber has been increased from 20 per cent, to 25 per cent, ad valorem, or 3s per pair, whichever is the higher, and that on slippers from 20 per cent, to 25 per cent, ad valorem. The duties on footwear imported from Australia, Canada, and foreign countries have also been increased.

“The duty on South African wine has been increased from 3s Cd to 5s fid per gallon, and that on Australian wine from 4s to os Gd per gallon. Other increases apply only to Australian, Canadian, and foreign goods, and in a number of cases, only Australian goods are affected. The items concerned are given below in extenso.” “ Following representations during the negotiations, the Commonwealth Government has signified its willingness to admit into Australia from New Zealand iree of duty fruit, grading and also the infant foods, Karilac, Karil. and Kariol.” ■Mr Nash said the formalities in this connection are being proceeded with and should roach finality at an early date. The question whether certain other diasses of goods can bo admitted from New Zealand on a more favourable basis is being considered by the Commonwealth Government.” It would be evident from the nature of the proposals, which had been given effect to, that the negotiations with

Agreement' With Nations Concerned

WELCOME INSTALMENT

Australia presented a problem of some magnitude, and the task of the Hon. T. W. White, Australian Minister of Trade and Customs, with whom the negotiations had been conducted, had been very difficult, Mr Nash said. He felt that the fact that an agreement had been reached on practically all points' was attributable largely to the friendly manner in which the proposals made on behalf of New Zealand had been accepted and discussed by the Commonwealth Government, which recognised the right of the Dominion to safeguard and develop her industries. He had no reason to think that the action now taken would in any way prejudice the trade relationships between the Commonwealth and New Zealand, but, on the other hand, he was definitely of the opinion that the negotiations had gone a long way to cement the evident goodwill which existed between the two countries. A similar position obtained, he said, regarding the ' trade relations with Canada.

The Minister said that his last word must be one of appreciation of the courtesy and consideration given to the Government’s proposals by the Government of Canada.

EVIDENCE QF GOVERNMENT'S INTENTION [Pub. United Press Association.] WELLINGTON, February 28. “ The gazetting of the tariff adjustments is a very welcome first instalment of the fulfilment of the Government’s promise to safeguard the New Zealand manufacturing industries,” said Mr Ilocke O’Shea, general secretary of the New Zealand Manufacturers’ Federation, in an-interview tonight. “It is impossible, however, without detailed consideration to state, first, whether all the industries have been covered; and, secondly, whether in the case of each of them the protection is sufficient to balance the increased burdens which local industry is carrying. “These tariff adjustments,” Mr O’Shea continued, “ will give the manufacturing industries and their workers new hope for the future, as constituting tangible evidence of the Government’s intention to see that many hundreds of thousands of workers and their dependents are not sacrificed the benefit of the overseas operative. These adjustments are gazetted after a series of negotiations in which Mr Nash and Mr Sullivan have worked hard in the interests of the Dominion as a whole, and of the manufacturing industries and their workers. The Department of Industries and Commerce has spared no effort to assist industry. “We' are greatly indebted,” Mr O’Shea concluded. “ to the Comptroller of Customs and his staff, who carried out an amount of work which those not connected with the actual negotiations would find it difficult to realise. Throughout the whole period they have co-operated with the New Zealand Manufacturers’ Federation in a manner which has been most acceptable indeed.”