NEW ZEALAND TARIFF.

New Zealand Herald, Volume LXI, Issue 18879, 29 November 1924, Page 11

NEW ZEALAND TARIFF.

EFFECTS IN CANADA. MOTOR-CAR INDUSTRY. CONTROVERSY IN PROGRESS. By Telegraph—Press Association—Copyright. (Received 8.5 p.m.) A. and N.Z. OTTAWA. Not. 28. The Canadian Government is satisfied with the progress of negotiations concerning the change in the New Zealand tariff. Certain manufacturers, however, take occasion to deny the accuracy of the assertion that the majority of the Canadian motor-car plants would be adversely affected by the 75 per cent, duty and the Canadian labour requirement. The manufacturers Bay that eight makes of Canadian cars would be able to meet the proposed conditions. The Government, however, replies that only one make of car would strictly qualify under them. To this the manufacturers retort that the remainder would also qualify if they adopted the policy of the company referred to by the Government. Nevertheless New Zealand's proposal is generally regarded as extreme, but it is the opinion that a maximum duty of 50 per cent, would actually be beneficial to certain manufacturers. It is suggested that this ratio would benefit the paper and the fish industries, and would not impose excessive hardships on other branches of commerce.

A cablegram from Ottawa published in last Saturday's-Herald said :—The New Zealand and Canadian Governments are exchanging messages regarding the proposed change in the New Zealand tariff, which hitherto has allowed preferential treatment on Canadian manufactures if one-quarter of their total value were created by Canadian labour. New Zealand is now seeking to increase the proportion to 75 per cent., which motor-car manufacturers here assert would adversely affect Canadian preferential trade. They declare that the majority of Canadian motor-car factories are merely assembling plants, which import much manufactured steel from the United States. Similar protests are being lodged by manufacturers of steel products, notably agricultural implements, which would also be handicapped. The Canadian Government regards hopefully the prospect of securing the desired modification.