TARIFF COMMISSION

Grey River Argus, 19 June 1933, Page 7

TARIFF COMMISSION

PROTECTION ASKED j On kaka Iron Industry AUSTRALIAN COMPETITION TOO STRONG. (Per Press Association). WELLINGTON, June 17. Problems of the Onekuka Iron Company (in liquidation) were placed before the Tariff Commission. to-day. Charles Gilbert Whyte, a receiver on behalf of the debenture, holders, said that pip iron was a-t present admitted free. 'He suggested that this should coiitinue to apply to the Hinted .Kingdom, but that a duty of 20 per eent. |,e placed on all other Empire pig iron, and a 30 per cent, duty on all foreign supplies. The iron industry was a kev industry of the Dominion, and. in addition to capital invested by shareholders ami debenture holders, the Government also had a financial interest in the company. The Government also collected a royalty on the iron tt-nd the coal used. The whole of the material used i obtained in the Dominion. Delore operations were started at Onekaka, the imported pig iron was thirteen pounds per ton. With the commencement at Onekaka, it was lowered to eight pounds. Mr. Whyte said that with the depreciation of the Australian exchange, they were subject to competition from the Commonwealth. which they considered, amounted to dumping. If they obtained the Xew Zealand market, they could eater for its reqtiirenients. They looked upon the industry a.s a primary industry. because all of the raw materials were obtained within the Dominion. Professor Murphy pointed out that the balance sheet had shown consistent losses in spite of the fact that the Company received the assisln-nce of the Government. They felt some concern as to whether the iron industry should be protected. Mr. Whyte replied that if they were protected from unfair competition from Australia they would be able to place the industry on a profitable basis. ]n farther discussion ol the aIIa irs of the Onekaka Iron Company. before | the Tariff Commission. Professor .Murphy said iha t the Indian Tariff | Com mission ami the Australian tom-

mission had both pointed out that it was not a "iso practice to protect a single industry, a.nd lie asked the witness, C. (I. Whyte, Receiver lor the Compaiiv. whether he alls ot that opinion that a single industry should lie protected by a tariff or bounty. Mr. Whyte replied that, he did not think a bounty the <-ori-e<-t wav Io deal with the position, when iron was being dumped into the country.- Tie said that if the Cwmpii-uy had not experimented with iron pipes, it would have been in a better position to-day. At one stage they sent a shipment of iron to Australia, but while the bout was at the wharf, the Australians lill-d increased the duty by £2 a ton. He was confident the Company could supply nil the le.plireini-nts of the local market. Professor Murphy said that if the duty were raised high enough, they would he assured of the local market. Mr. Whvte said they only wanted Io be safeguarded against dumping. At present, they were able Io work the blast furnace for three months only. If the furnace were working continuously, they would be a.ble to reduce the costs. Replying to Mr. Pascoe, witness said that the New Zealand ore compared favourably with the ores in other parts of the world, ami it could i’>e made to any specification. Two or three foundries preferred Australian iron, because it was cheaper. Mr. Pascoe: Are there any foundries which say it is not suitable? Mr. Whyte said that two foundries said they got better results from Scottish iron. Representatives of the Company were further examined in camera.