IS AN INCREASE PENDING?

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

IS AN INCREASE PENDING?

CHRISTCHURCH OPINION (By Telegraph—Special to “The Mail”) CHRISTCHURCH, 13th June. • The statements hinting at a likely increase in Customs duties and the warning to merchants against trying to forestall the Government by clearing their stocks from bond issued by the Prime Minister (the Hon. G. W. Forbes) have come as a complete surprise to Christchurch merchants, who do not know in what direction, the increase in duties is likely to go. They suspect, however, that some of the luxury imports will have the duties on them increased, particularly liquor, tobacco and \ clothing. They have made no clearances from bond beyond the normal in Christchurch although they are awake and waiting for any- eventualities. The Customs Department report no undue clearance of goods in Christchurch and the month so far as regards shipping, is very quiet. Merchants state that if the I rime Minister intends to make any duties retrospective, it will be the first time that such a course has been followed in New Zealand. It is certain that such action will be resented by the commercial community all over the Dominion. Many merchants, however, regard the warning as a bluff and attempts probably will be made to call that bluff. There would be a tremendous amount of work and inquiry involved , m making the duties retrospective and it would be difficult to prove that any -importer made a big clearance simply to avoid the heavy duty. The importers have plenty of time to make their, clearance if they desire.to do so and it is thoughtaction in that respect would not be taken until Parliament meets or just before then when some definite information as to whom the increases would effect is obtained. About a year ago there was a scare among merchants about a possible increase in duties and they followed the normal procedure oi clearing as much stock as possible from bond, paying out many thousands of pounds in Customs duties. However, nothing further was heard and the mer- ' chants lost the use of the money that they had paid out. They are very careful until they obtain definite information now.