BEER DUTY

Grey River Argus, 22 August 1934, Page 6

BEER DUTY

And Other Items WELLINGTON, August 21. Mr Coates said; AVith respect to iron rails, information in possession of the Government shows these articles an 1 not produced and marketed in New Zealand on the most economical basis, but that it is possible by a reduction of costs, to place the industry on a more satisfactory footing, having regard to protection enjoyed under th? tariff. It is therefore proposed to maintain the existing duties for a period of two years, when the duty undei the British preferential tariff is to be abolished. The matter can be again

reviewed before the expiry of that time. Tt is proposed, however, to abolish the duty under the British preferential tariff on dog spikes, deck spikes, and horse shoe nails, which, are not made in New Zealand. With respect to white lead in oil, there are special considerations apart from the tariff, affecting that item. In view of these it has been decided to postpone the exemption for two years. 'Phis will also enable local manufacturers to make the necessary adjustment. The question of the disposal of New Zealand hops abroad has, from time to time, occupied the attention of the Government. It is believed that if a reduction can be made in the duty on imported beer, further contracts for Ihe sale of our hops can be placed in the United Kingdom. The duty on imported beer cannot, however, be reduced without a corresponding modifi-

cation of the rate of excise duty on local beer, which, from a revenue-pro-ducing point of view, is for this country too high. The resolutions now before the House provide for a reduction of threepence per gallon, both in the import and excise duties. Representations were made that the duty on oak timber should be abolished. This timber is practically all imported from Japan. Ft is used in the manufacture of furniture and for other purposes. No oak timber is produced in New Zealand, and the imported product js not competitive in price with local timber. It is, therefore, that after 31st May next, oak timbers in the rough should be admitted free of duty under the British preferential tariff and at 6s per 100 sup. feet under the general tariff. This will synchronise with the date upon which the reduced duty on furniture takes effect. Representations were made with respect to a duty on English chinaware. Unfortunately, all the information required is not available, and a decision is postponed. RADIO SETS. WELLINGTON, August 21.

Mr Coates said in the House that in respect to wireless broadcast receiving sets; “Tt had been pointed out that, if the rates of duty as originally proposed stand, they 'will have a very* serious effect on the local cab-inet-making industry, which has assumed large proportions owing t- • the fact that sets will be imported in cabinets from Australia and the (’nitod States. The importation of complete sets in cabinets from Australia will a'so affect local radio manufacturers. As I have indicated, it is proposed. in the meantime, to reinstate the old duties, but to make the exemption under the British preferential t.‘iriff apply after 31st May next. This will afford an opportunity to deal with the position with respect to Australian and Canadian sets. As regards foreign sets, it is proposed to revert to the rates of duty in force before the original resolutions 'were brought down. ,The Government is to negotiate separately with Australia and Canada regarding items affected by the duty reductions on British goods, and the concession is not made yet fon those Dominions. Tn the case of electric heating and cooking appliance industries, information now available to the Government draws that there are about 300 employees engaged therein, and the production is very considenable. This differs greatly from the information that was available to the Commission, and* *on which it based its recommendation.

The tariff regulations are being made pursuant to the Ottawa Agreement, they may be said to be written into that agreement. Hence the question from the point of view of the New Zealand Government of extending these concessions to other dominions is a matter for consideration with respect to each item affected. Tt is found that, witli certain articles, if the concession proposed be granted on United Kingdom goods is extended to tralian or Canadian goods, the result will be that shipments will come to hand from those countries to the detriment of our own industries. This would defeat the purpose of the Government in making its decisions. It will be noticed, therefore, that, with respect to certain items —for example, wireless broadcast receiving sets—it is proposed that the exemption under the British preferential tariff should not take effect until 31st May, 1935. This will enable the Government to take

the matter up with Australia and Canada, with a view to making a satisfactory arrangement with those Dominions. On certain other items—jfor example, biscuits, fruit, rose trees, drainage pipes and furniture—the reductions will not take effect until the date mentioned.