Duties on Many Items

Manawatu Times, Volume 59, Issue 221, 21 September 1934, Page 7

Duties on Many Items

Customs Bill Further J Debated in the House

POSITION OF*DOMINION

INDUSTRIES

Per Press Association. WELLINGTON, Last Night. Consideration of the schedules to tho Customs Acts Amendment Bill was resumed in the House of Koprcscntativcs this afternoon. Protests against the halving of the duty on baking powder were made by Opposition and Independent members, it being stated that New Zealand baking powder was ecjual to anything produced auywhcro else. Baking powder was sold cheaper in New Zealand than in Britain, Australia and America. The industry was an cfticiont and nourishing one and there was no reason for a reduction of tho duty. , Hon. J. G. Coates said that 10 per cent, gave the industry adequate protection. If a high duty was maintained, there was nothing to say that the price might not bo increased. As naphthalene was a by-product of coal and was manufactured in several gasworks in New Zealand, removal of the 10 per cent, duty was criticised. Hon. J. G. Cobbe said the duty was not required. Mr. C. A. Wilkinson urged that an inquiry should be made into tho rennet industry and allegations that dumping was going on. He said rennet costing 92s a case in London was sold at 9-ls in New Zealand, notwithstanding exchange and freight charges that had to be paid. Ho complimented the Government on prohibiting tho export of veils, as there was not an oversupply for New Zealand manufacturers. Exception was taken by Mr. W. E. Parry to a reduction of the duties on clothing and hosiery. He said the Government should recognise the fact that a large number of women and girls wero employed in that industry, and tho Government should be very careful not to do anything that would increase competition with that industry. End-of-season Dress Lots Mr. A. E. Ansell referred to the effect that the purchase of clothes left over in Britain at the end of the seasou at ;job .prices had on New Zealand manufacturers, and said he had been informed that goods purchased for a few shillings in London were sold in New Zealand at eleven guineas. The department said that trade was negligible, but his inquiries showed it was substantial. Mr. A. Harris said Mr. Ansell's statements were positively absurd. He said the purchasing of end-of-season job lots in London was tho only means of enabling the poor people of New Zealand to secure good clothes at a low price. He denied that excessive profits were made. Mr. Ansell asked tho Minister to give an assurance that he would investigate the statements made and if lie found that they were correct, to take steps to put an end to it. The dolling industry was an avenue for the employment of women and girls. The first division of the day was taken on Mr. Wilkinson’s amendment to admit linoleum, free of duty. The amendment was lost by 37 votes to 30. After the tea adjournment Mr. E. Jones moved to retain the duty of 25 per cent, on item 19(3—boots and shoes and other footwear above children’s sizes. Mr. Jones said the footwear industry had been hard hit. Many employees were out of work and a number of factories had gone out of existence. The workers were not receiving big wages. The profits ranged from one to four per cent, and the industry could not staud the live per cent, reduction proposed. • Mr. W. J. Poison contended that the industry had had too much protection. A number of small factories had sprung up in different parts of tho country and none of them were efficient. The New ( Zealand industry had a protection against the British boot of nearly 65 per cent. The Dominion was paying nearly £1,000,000 in excess of what it would pay if there were no duty. The reduction under the new schedule was small enough. Mr. R. McKcen said that, if tho test of maintaining an industry was efficiency, what about the dairy industry? In a few years the people of the Dominion had given the farmers £1,000,000 in the way of fertilisers. The boot industry employed a large number of people and all the materials used were produced in the Dominion. Australian Imports reared. / Mr. H. Holland said it was not tlic import of the British boot that the New Zealand manufacturers feared, but the import of the Australian boot.' Ho appealed to the Minister to restore the duty to 25 per cent. Mr. Wilkinson said the people of New Zealand were paying too much for their boots. The industry had been in existence for 25 years, and if it was not efficient now, it should be. He contended that the general British preference was a mistake, It should be confined to the United Kingdom and the other Dominions placed on a different footing. He thought tho reduction was timely. Mr. 11. T. Armstrong said that, if the New Zealand boot industry had had the same protection as the Australian industry, it would have been well on its feet. The industry was natural to Now Zealand and should receive the support of tho fanning community, Hon. J. G. Coates said be could not see that a reduction would affect the New Zealand boot industry. He thought the industry could remove many- of its own ■ difficulties. •• There was room for further rationalisation. Mr.- B, A. Wright contended that the reduction in the tariff • would not- be passed on, but would go into the.hands of Borne middleman Mr. ,D. G. Sullivan said he: thought the Government’s attitude was reckless in regard to that industry. They already had a large army of unemploy-

ed and the Government was going to add to it.

Mr. Jones said a large slipper-making industry had been built up. Surely the Minister could give an extra five per cent, tariff until things become normal. Mr. K. McKeen thought tho doer was being opened to dumping. After further discussion, the amendment was lost by 39 votes to 28. Mr. M. J. Savage protested against the reduction by five per cent, of the duty on leather laces, leggings, portmanteaux, trunks and leather bags. However, ho could do nothing; the Government must take the responsibility for the reduction.

Mr. W. J. Jordan made another appeal on behalf of the glass bottjo industry and said that the works in his district employed 130 males and were capable of expansion. Also, all New Zealand materials were used in the manufacture of bottles. He urged that the duty be 25 per cent, and moved accordingly. Mr. Wilkinson suggested that the duty on foreign bottles should bo increased to 50 uer cent. Mr. Jordan did not press his amendment. Progress was reported and the House rose at 1.15 arm.