SECONDARY INDUSTRIES

New Zealand Herald, Volume LXIII, Issue 19415, 25 August 1926, Page 12

SECONDARY INDUSTRIES

PLEA for encouragement. IMPORTS CONTINUE TO GROW. CRITICISM OF THE ; TARIFF. [Br TELEGRAPH.—OWN CORRESPONDENT.] WELLINGTON, Tuesday. Tho question of the State giving more consideration to New Zealand industries was dealt with by Mr. W. H. P. Barber, chairman of tho Wellington Woollen Manufacturing Company, Limited, at the annual meeting of the company to-day. "It was expected the Government would in the near future give, cpnsideration to Dominion industries by a check on the flow of imports, but it would now appear that action will not be taken this session, as the reception given to a deputation to tho Prime Minister from the Industrial Association two weeks ago was not at all encouraging," said Mr. Barber. " Imports continue on a high scale, eo high, in fact, as to make it a perpetual source of wonder that so small a population can absorb them. For the six months of tho current year the returns show that last year's soft goods figures will be exceeded if the second half equals the first, as they are already close to tho £2,000,000 mark. In 1925 goods to a large exient competitive with those made by New Zealand mills to the value of >,783,083 were imported, being in excess of the 1924 total by £231,572. More Duty Suggested. " Several public men and journalists from,time to time have warned the. people of the financial danger of over-importing, but the buying of overseas products shows no abatement. It seems to me to be a proper conclusion that the necessary restriction should be applied by those having the power to do it, and an additional duty on goods that are being made, and made well, in New Zealand would assist. "The existing customs duty hero on woollens is 20 por cent. British and 30 per cent, foreign, against Australia's 35 per cent. British and 50 per cent, foreign. The Australian tariff also provides on piece goods containing wool, but not including flanfiel, women's dress fabrics nor cotton tweed, the selling . ice of which does not exceed 5s a yard, a specific duty of Is and 2s per square yard on British and foreign, as well as an ad valorem duty of 30 per cent, and 45 per cent, respectively. s Australia has also, a flat rate por garment, as well as a value rate on clothing, bathing costumes, etc., with a provision that the equivalent of 45 per cent, and 60 per cent. *at least shall be paid. Influence of High Duty., "The- matter of the importation of shoddy goods that* compete unfairly with unadulterated . goods was placed before the Customs Department here, with-the result that regulations of a mild nature (being a tentative covering of the position) were gazetted, but later were withdrawn. > A popular but fallacious argument is that an increased customs duty always .means higher soiling prices. That is not correct..when goods to. which the duty applies are made, locally. There is'no occasion to put extra" duty on those classes of textiles or garments that cannot be made in,,.the Dominion .unless such substitutes', compete.vunfairjy ; with r . : |he. better;.local .article.- ■ •• i "It -has been proved ■%. resultsv that, limitation of\thea9fiow of oyer-, seas vgpodsv.does,;not lca'd -raising I ''{he; 'local;, manufacturers' prices.'- The'larger output thereby,'.obtained lowers the ■ cost of production' and, with the' drawing of jincreased- capital into industries, enables manufacturing. costs, to be. reduced, for the buyers.'., benefit. 1, Obviously restricted output causes a,higher percentage of overhead and so frequently removes the power of successful . competition, . ' especially against overseas mass, production, with . 'often resultant over-production and consequential dumping at prices, only enough to cover raw material costs. Duties on Clothing. 1 "While the duty on ready-to-wear clothing is nominally '25 per cent.', actually, the protection is only 12£ per cent, to 15 per cent. The cloth is subject to a duty of 20 per cent. Therefore the clothing manufacturers' 'protection on the'portion represented by cloth is the difference between 20- per cent, and 25 per cent., so that a 5 per cent, duty on cloth value and 25 per cent, on the balance-gives the aggregate of 15 per cent; Surely that cannot be considered an adequate assistance to the clothing industry? As. you know, we are largely engaged in tho making up into clothing of our own tweeds and feel-the keen competition from overseas goods of tin equal quality.'. "What we want in- this Dominion is adequately paid - and continuous .employment for workers, with reasonably good, investment for capital, , Given those conditions we shall have general prosperity. Whether they depencl- on.so-called ' artificial' benefits 01: not: America seems'to thrive on such 'artificial' benefits, so much so as- to. call for an explanation as to why she is so rich." TARIFF AND COST OF LIVING. ATTITUDE OF DAIRY FARMERS. [BY TELEGRAPH.—OWN CORRESPONDENT.3 - ' HAMILTON, Tuesday. Reference to the agitation in certain quarters for higher tariff protection for secondary industries was made at a meeting to-day of the suppliers' Committees of the New Zealand Co-operative Dairy Company, The following recommendation from Hinuera was carried: That it is the considered opinion of this meeting of dairy farmers that in view of the present conditions of our industry a reduction is imperative in the cost of living, and hence the cost of production; and, as high protective duties on the necessities of life bear a direct relationship to the same, every opportunity should bo taken to reduce them; we further most emphatically protest against the creation of any new, or'the increase of any existing, protective duty. - A motion recommending -the directors t.» give.preference to British goods was also carried. < ~