REDUCTION OF TAXATION

Feilding Star, Volume 5, Issue 1204, 14 September 1927, Page 5

REDUCTION OF TAXATION

NEW CUSTOMS SCHEDULE THE MINISTER EXPLAINS , (Per Press Association), Wellington, Sept. Ift. In the; House to-night, the Hon. W. Down-id Stewart, AEnister ol' Customs, made the toll owing statement upon the introduction ol; the- resolutions amending the Customs tariff’ (details of jivhieh appear on' page 6) : - ' The objects which the Government had in, view when/ eohskloring its pjo-pos-al.s have been as follows : - , (]) To reduce the cost of living and the cost of production, both in the primary and secondary industries ; (2) To assist local industries (both farming anti manufacturing), either by increasing the protection already afforded to a certain number of such industries, or hv reducing the duty mi the raw material, machinery, and plant used by them; (3) To encourage still further trade in .goods produced in the British Empire, instead of in those, of foreign origin;

(4) T'o remove the protection at present afforded to the very limited number of what arc regarded as uneconomic industries, and io the one dr two industries which have ceased to operate In the Dominion ; (o) To provide further negotiating power to secure now and increased markets for New Zealand products. .•REDUCTIONS OR, BEAITSSJONS The reduction in duties which affect the cost of living and the cost of prod uc ton. are of a two-fold nature. They consist partly of concessions which appear in the tariff schedules and of others, the- nature of which will lie explained later. Reductions of duty are not. as rale,, made to operate immediately, hut are postponed, so that traders vlio have imported the goods affected and paid the old duty thereon may not have to meet unfair competition; with other merchants "who have obtained their goods at the lower rate; l ime /' is, therefore, given # to enable, as far as possible, stocks of goods already cleared to be disposed of. On this occasion, the date lias been, fixed- at dune 30, 1028, but with regard io, items which are not affected by this consideration, the reduction .fakes; effect immediately. Some of the items on which it js proposed ' that Von ness i inis in duty ejinui;] be made ore cotton jticcie goods so woven or marked a-s to 7 indicate.' that- they are id he cut up, plain tablecloths, table napkins, towels, quilts, sheets and similar articles. These goods, whether in the form of. piece goods or of separate articles-, now pay a duty of 20 per cent. If British, it is proposed- to admit- them free if of British, origin thus making the goods described which arc in use in every New Zealand home available at the lowest cost to all classes of the community. . ASSISTING INDUSTRIES ; The view of the -Government is that the -Dominion cannot develop along progressive lines if it has to depend upon the primary industries ' alone. It will ’be -recognised that farming and manufacturing industries ate up to a point interdependent. Assistance has, therefore, been granted to certain of . such industries where the conditions just, referred to have been filled. It is recognised that at the present time some industries' are- not in a satisfactory finance! condition, but it is thought that this is probably due rather to the financial stringency from which we ate now happily emerging than to the operation of the. tariff'. A dumping duty,, varying from £1 to £2 per t-oiilfwould-be imposed op Indian pig iron after December ftl next, which would benefit the Onekaka iron industry. 1 NOR EASING OUR. MARKETS Honourable members are no doubtaware that certain, countries are adoptin'.' tariffs having maximum and minimum rates, with a- view of obtaining advantages for their goods in the markets of other nations. If other countries, do not accord favour, able tariff treatment, the maximum rates are charged on imports. On the other hand, if such favourable trea.tr mont is granted, the minimum rates are levied. Tn other words, sijch. tariffs are negotiating nr bargaining tariffs. •‘While the Government fully appreciates the wisdon of having a maximum and minimum tariff, and proposes to ask Parliament for authority which will, in effect provide, for this, I think that a more inllv effective means of negotiation is to possess the power to grant tariff concessions in. return for favourable Customs treatment of New Zealand products r.n. markets abroad.