BRITISH—N.Z. TRADING

Greymouth Evening Star, 15 July 1933, Page 7

BRITISH—N.Z. TRADING

DRASTIC DECISION REPORTED TARIFF INQUIRY FUTILE ? [PER PRESS ASSOCIATION.] WELLINGTON, July 14. An unexpected development took place at to-day’s sitting of the Tariff Commission, when the New Zealand Manufacturers’ Federation applied for permission to suspend all arrangements for the taking of further evidence on its behalf. This action was taken as the result of an interpretation placed upon the reported statements made by a British Cabinet Minister, from which it is inferred that if the Dominion did not pursue a policy of reducing Customs duties, its products would be subject to preferential duty and to a quota. In the crcumstances, the Federation believed it futile to continue with its representations. r The request was granted. A. E. Mander, General Secretary of

the New Zealand Manufacturers’ Federation, said, he desired to bring under the notice of the Commissioner, the following extract from a newspaper report of an address by Mr W. J. Polson, M.P., President, to the Conference of the New Zealand Farmers’ Union. “A definite statement had been made by a British Minister that if New Zealand did not reduce its tariffs, the Dominion would be subject first to a preferential duty and second to the restriction of New Zealand imports.into Great Britain.” “In our view,” Mr Mander said,

“This statement, if authentic, constitutes a direct threat to the New Zealand Government, if it does not.pursue a particular line of policy, namely

reduction of tariff duties, on the presumption that this is correct, it appears that a continuation of the present inquiry is rendered futile, and there would appear to be little use in New Zealand manufacturers continuing to come forward and give evidence. We view the matter in a. very grave light, and application is now made to the Commission to suspend for a few days all arrangements for taking of manufacturers’ further evidence, allowing us these few days in which to reconsider our position. Professor Murphy: I don’t know that we can take any cognisance of a report in newspapers of a hearsay remark made at some Conference. What evidence is there that any British Minister said this? Who said it, and when and where did he say it? We are not committed by . remarks of speakers at the Farmers’ Union Conferences. I don’t think we can allow that to affect our work. Mr Mander: This statement was made by a responsible public man in a presidential address. Professor Murphy: What business is that of ours? Mr Mander: It is no business of yours, sir, but a great deal of business of ours.

Professor Murphy: Surely it is a matter between you and him? There is no evidence that any responsible Minister ever said this. Mr Gow: In any case we have our order of reference laid down by the Ottawa Conference to deal with. Any remarks made about the country are no concern of ours. Mr Craig: The position is that certain appointments have been made by your organisation, and if you don’t wish to bring forwards witnesses during the next few days you can apply to have the matter postponed. Mr Mander: Yes, sir, that is the whole substance of the application. . Mr Craig: We have no’ objection to that. Will you indicate when you wish to resume? Mr Mander: Yes, we will do that, if we want to resume. EXCHANGE RATE AND DUMPING. WELLINGTON, July 14. Placing the views of the Importers’ Federation before the Tariff Commission, Mr Salmond said: “It is realised New Zealand is almost entirely dependent on the United Kingdom market for an outlet for itsprimary products, and it is necessary that a local market should be open to the United Kingdom manufacturers as far as possible. The Federation is satisfied that the present duties are too high on some items, and wishes to stress'the fact that it is entirely necessary when considering protection to take into account all items which go to swell the landed cost of imported goods. That is, freight insurance, lauding charges, and customs duties. Freight alone, on quite a variety, of imports from the United Kingdom is a very" heavy item. “In making our suggestions, we leave exchange out of calculation, realising that the present rate must be temporary in character, though it lias greatly added to the difficulties of trading with the United Kingdom. The federation urges the conversion rate should bo the par rate of exchange. Under the present method, invoices for goods imported from foreign countries are converted for duty purposes at the ruling rate of exchange at the date of shipment. This makes for confusion as it is impossible for an importer accurately io calculate landed costs when placing an order and we cannot see the advantage of the present system. The Association considered a dumping duty should not apply to shipments from the United Kingdom.” Replying to Professor Murphy Mr Salmond said that many British manufacturers were undoubtedly dumping on the New Zealand market, owing to the depreciation of New Zealand’s currency. They had either to do this or lose the market, and bad reduced prices in order to meet, the exchange. Professor Murphy: They are absorbing some of the exchange? Mr Salmond: They are absorbing the whole of the exchange in some cases, and selling in New Zealand at below Home consumption values.