UNECONOMIC INDUSTRIES

Hawera Star, Volume LIII, 26 August 1933, Page 5

UNECONOMIC INDUSTRIES

SHELTER OF REVENUE TARIFF. EXCISE DUTIES SUGGESTED. (By Telegraph—Fres3 Association.' AUCKLAND, Aiug. 25. The suggestion that the Tariff Commislsion should consider the imposition: of excise duties to prevent uneconomic industries commencing in Now Zealand an'd being developed under the shelter of the revenue tariff imposed on overseas competitors was made at the sitting of the Commission, ito-day liy Mr W. J. Truseott, dir oat or of Spedding, Ltd. Professor Murphy, a member of the commission, had stated that the interpretation of Article XII. of the Ottawa Agreement, which implied that revenue tariffs coul'd not be imposed by New Zealand unless similar industries existed in the Dominion, was not subscribed -to by the comniLssio’n. It was co.nltended bv Mr Truiseott that when the imposition, oif revenue tariffs was being considered excise duties should be imposed to prevent the creation in New Zealand of uneconomic secondary industries. They should apply to lines upon which a, tariff had bean imposed for revenue purposes only. His idea was to prevent a purely revenue tariff by balancing internal production with equivalent cxciiseProfessor Murphy: Do you want the commission definitely ito consider the point? Mr Truseott: Yes, 1 would like the commission to consider it.

Professor Murphy said li'i.s own view was that it would be competent for the commission to consider the mat t er, although he did not know the viewpoint of the other members. He had often heard it said a purely revenue tariff should not be permitted to become, a protective tariff, and that this ishoulel bo done by imposing equivalent excise duties. He was of the opinion that this- was economically sound, though difficult and probably impracticable to administer, buit lie did not know whether consideration of it ca/nie within the 'Commission's order of reference.