WITHDRAWALS FROM BOND

Nelson Evening Mail, Volume LXIV, 14 June 1930, Page 7

WITHDRAWALS FROM BOND

PRIME MINISTER’S WARNING AUCKLAND COMMENT (By Telegraph—Special to “The Mail”) <( AUCKLAND, This Day. “It is an extraordinary statement to come front, the Minister of Finance as it conveys the suggestion that increases in Customs duties are contemplated, and the effect of the statement will probably be that heavy withdrawals from bond will take place in an effort to escape extra levies,” said Mr Malcolm Stewart, president of the Auckland Chamber of Commerce, yesterday, in commenting on the announcement made by the Hon. G. W. Forbes regarding possible tariff increases. “Mr Forbes further stated that in connection with any increases in Customs duties which might be approved by Parliament, the Government would seriously consider making such increases in duties retrospective, if it were satisfied that abnormal clearances of the goods affected had been made in anticipation of parliamentary action. That will probably present many difficulties, as in the interim some goods arc likely to pass through many hands,” commented Mr Stewart. “It looks like an invitation to clear luxury lines from bond as quickly as possible,” said a city importer: ' It would seem a good gamble to do so. If goods are subjected to a higher levy little will be lost bv drawing them out now, for it means only payment of interest at say 7 per cent, on overdraft for a month. Parliament will not meet for almost a fortnight", and it will apparently be a fortnight after that before the budget is presented.” Another man said that it had been suggested that the Government’s recent action in advancing the interest rate to per cent, was to raise “ready cash.” Possibly the Prime Minister was animated by the same motive in giving such a clear indication of the increases in Customs duties.

Meanwhile importers are frankly “guessing” as to what goods the higher levies will touch. There is a natural disposition to anticipate that luxury lines will be the most likely ones, while it was suggested in several quarters that increased duties on spirits and petrol might furnish the Government with the readiest means of collecting more revenue. However, there has not been so far any apparent move in Auckland to withdraw goods from bond in more than ordinary volume. The Collector of Customs, Mr J. McIntosh, said that he had examined books and had found nothing to suggest that Auckland importers were apprehensive of being “caught”. Mr Mclntosh said that he had not heard of retrospective Customs duty being levied in New Zealand, although he believed such authority existed in Canada. Possibly Mr Forbes’s announcement was based on unusual withdrawals from bond in the south, but certainly such a movement was not yet manifest in Auckland.