PREFERENTIAL TARIFF.

New Zealand Herald, Volume XLV, Issue 13709, 27 March 1908, Page 5

PREFERENTIAL TARIFF.

EFFECT ON THE DRUG TRADE

WELLINGTON MERCHANT'S VIEWS

[BY TELEGRAPH. OWN" CORRESPONDENT.]

Wklli NGTON, Thursday. Most of the provisions of the new preferential tariff will take effect from April 1, and a huge number of articles of all descriptions which can be manufactured locally or obtained through British channels will be subjected to an extra duty if imported from foreign parts. Generally speaking, the private consumer will not be greatly affected bv the alteration.. Some of the most serious results of the new tariff are likely to occur in connection with the drug trade. A leading local authority on the importation and sale of drugs expressed himself as follows on this subject to a Herald representative : —

"The coming into operation of the preferential tariff will, in my opinion, be a matter of considerable moment to the members of the drug trade, and will have a more far-reaching effect upon prices than those who have not gone into the matter can have any idea of. I have taken the trouble to inquire into the scope of its operations, and have been astonished at the number of lines that will be affected by it. Not only drugs, but druggists' sundries, proprietary medicines, toilet soaps and toilet preparations, will have to face an additional duty |of half as much again as formerly. For | instance, drugs and druggists' sundries of other than British manufacture, which under the old tariff paid 22 per cent, duty, i will under the preferential tariff pay 32; per cent., and toilet soaps and toilet preparations 11 per cent, instead of 27-i per cent. as hitherto. You must understand that the term 'toilet preparation' does not apply to lines of perfumery, which 'pay a fixed duty of 30s per liquid gallon and are not to be further penalised by a preferential rate. Local selling rates, both wholesale and retail, must •necessarily advance, but outside of soaps and toilet, lines the increase will only be felt appreciably on the high-priced goods, numbers of which are established in public favour, and are in everyday demand. Consequently the consumer will have to face the additional cost. "In my opinion the tariff will not, as far as the drug trade is concerned, prove of any appreciable benefit to British manufacturers. By far the greater portion of the good 'quality lines in soaps and toilet preparations on this market arc supplied by Americin and Continental makers. A great number of drugs and chemicals used in England and exported to the Dominion by English houses are of Continental manufacture, although numbers of traders here believe them to be British because they come out bearing the house label of a British firm. The preferential duty will not keep these out, as it gives an insufficient margin to enable the Britisher to compete in such lines. Then, again, numerous drugs and chemicals which are only obtainable on the Continent and in America enter into the practice of almost every medical man, and the same remarks apply to several valuable proprietary medicines. You will gather from my remarks that as far as the drug trade is concerned 1 believe that the tariff will not "achieve the object which the Government had in view, but will prove a. revenue-producing one, and consequently the public will suffer."