NEW ZEALAND HIT.

Hawera Star, Volume XLVIII, 1 October 1924, Page 3

NEW ZEALAND HIT.

ENGLAND’S FREE TRADE POLICY. DISCUSSION IN THE HOUSE. (BY TELEGRAPH —PRESS ASSOCIATION.) WELLINGTON, Sept, 30. , . e House of Representatives this afternoon the Hon. W. Downie Stewart (Minister for Customs), read a statement on the subject of British preferential trade, during the course of which he said: The Government has had the conditions under which preference is granted by the New Zealand customs tariff to, goods manufactured or produced in the British Ehipire. An article partially manufactured in a foreign country is entitled to tariff prefeience if one-fourth of the factory or uoiks cost of the finished material lepiesents expenditure in Empire material and labour.

It is felt that this condition is too easily complied with and articles of an essential foreign character are treated as British for tariff purposes, when only a comparatively small part of the manufacture has taken place within the Empire. When articles thus qualify too easily for tariff preference the result is likely to be prejudicial, not only to manufacturers in other British countries, but also to, tiio.se in the Dominion itself. So far as Empire industries outside New Zealand are concerned, an illustration of the possible working of the present regulations may be seen in the case of motor cars. The chassis, which may be considered as a, really important part of a car, may be made in a, foreign country, and suppose it costs £l5O by the addition to it in England or Canada of a, cheap body costing as little as £SO, making the total cost £2OO, the complete car qualifies for tariff preference. So far as New Zealand industries are concerned the fact that our own manufacturers are prejudiced by the present regulation is illustrated by the case of the manufacturer of motor car bodies referred to above and by many similar instances, of which, the" follow? ing will serve as an example. 'New Zealand manufacturers have to pay a duty on foreign writing paper which they use in making envelopes, writing pads, etc. The Brutish manufacturer obtains the same foreign material without having any duty and envelopes, pads, etc., made therefrom qualify under present conditions for preference tariff. The. finished article in many cases is thus admitted to New Zealand at a rate little higher than that charged to the local manufacturer on raw material. In view of all these circumstances the Government has been in close consultation with the Australian Government, which is anxious to adopt 75 per cent, as the basis of preference, and looking to the interests of New Zealand, and with a view to uniformity of action on the part of both Governments, it has been decided’ to amend the present basis of 25 per cent, and provide that goods shall not be entitled to be admitted under the British preferential, tariff unless at least 75 per cent, of the factory or works cost is accounted for by British material and labour, with the exception that where goods are made in British possessions wholly from unmanufactured raw materials of foreign origin such goods will be regarded as qualifying for preference. It is possible that actual experience of the new system may show that a 75 per cent, basis is too high and. in such case the matter will be reviewed, but not until it has been in force a sufficient length of tiirie to, judge its effects.

Both Australia, and New Zealand have agreed to delete a condition which, in the opinion of the Government, is somewhat contrary to the principles underlying the preference policy. The provision is as follows : “In the case of goods which have at some stage entered into the commerce of or undergone a process of manufacture in a foreign country, only that labour and material which is expended on or added to the goods after their return to British possessions shall be regarded as the produce or manufacture of British possessions in calculating the proportion of British labour and material in the factory or article.”

It is proposed to bring the new conditions into force in New Zealand with respect to goods imported or entered for home consumption on and after April 1, 1925. The alteration can be made by Order-in-Couneil without any amendment of the existing law and therefore no alteration to the Customs Act will be required. The; amending regulations cannot 1 , however, be issued until a new form of the certificate of origin has been agre.ed upon. The Commonwealth cannot see its way to adopt in every detail the policy set out above; and before a uniform certificate can be arrived at it will be necessary for the Customs De-| partments of the two countries to agree upon details. It may, therefore, be some little time before the regulations, can be gazetted, but it will be arranged that until October 1, 1925. the form of certificate gazetted on December 7, 1922, will be accepted, provided that the word “one-fourtli” in paragraph 6 (b) is amended to read “three-fourths.”

The High Commissioner for New Zealand, the official representative of the Customs Department in New York and the Government agents in Sydney and Melbourne will be immediately advised as to the proposed alterations.

INTERNATIONAL CONFERENCE. LONDON, Sept, 29. Representatives of Britain, Australia, Austria, Germany, France, Holland, Italy, Sweden and Switzerland are attending the International Free Trade Conference, which is being held in London. Upon the motion by Sir George Paish, seconded by Herr Dernburg (Germany), a resolution was adopted declaring the removal of the existing barriers in the restriction of trade, such as high tariffs, embargoes, socalled recovery acts and passports, was essential to a great expansion of international trade, ami was needed to maintain the world’s solvency and permit of the liquidation of the vast international debts.