SECONDARY INDUSTRIES

New Zealand Herald, Volume LXIV, Issue 19743, 16 September 1927, Page 14

SECONDARY INDUSTRIES

INADEQUATE PROTECTION.

PROTEST BY MANUFACTURERS. NUMEROUS COMPLAINTS VOICED. "Does the Government intend to display toward New Zealand manufactures that paternal interest which it evinces in British manufacturers?" asked Mr. J. A. C. Allum when presiding yesterday at a special meeting of the Auckland Manufacturers' Association to consider the new customs tariff. The trend of the discussion, which was highly critical of the new scale, constituted a negative answer, and it was decided to bring several matters, including the desirability of a tariff board for New Zealand, under the notice of the Government. Explaining that this was merely a preliminary meeting to bring the more urgent protests of manufacturers under the attention of the Government and individual members of Parliament, Mr. Allum said it had proved a great disappointment that the Government, without making adequate inquiries, should have increased British preference—however much all approved that in principle—without a corresponding increase in the protection of New Zealand's secondary industries. Glass Bottle Manufacture. The position of the glass-bottle manufacturing industry had been brought under his attention. On small bottles containing up to eight fluid ounces, the duty was 20 and 40 per cent., but on the larger bottles and jars for which there was a greater demand, the protection was only 15 per cent, on British and 35 per cent, on foreign makes. It was inadequate, and deterred New Zealand manufacturers from adding to their plant and extending operations and employment at a time when the last-named had never been more needed in the country. Electric insulators, bulky articles the freight on which alone was a fairly effective tariff wall, were dutied at 25 to 45 per cent. — why should not the larger glass bottles be taxed at least as heavily ? Mr. Allum read a draft letter to the Prime Minister and for circulation to all members of Parliament, outlining the case described. Through Mr. C. G. Macindoe, .he had been acquainted with the adverse position of the chocolate and confectionery manufacturers under the new tariff. The incidence of duty on sweets had been changed, but' the measure of protection in its new form was less than before, in spite of the fact that five large Dominion manufacturers had been forced, by over sea's competition, to close down. In view of that and the importance of this as a secondary industry, the attitude of the Government was difficult to comprehend.

Fighting Inequalities. The amount oi confectionery imported uito New Zealand, said Mr. Macindoe, was 40 per cent, ol the amount manu iactured in the Dominion, but in Australia importations were only 10 per cent. "We can no longer be content with polite phrases,' Mr. Allum continued, iiie Manufacturers' Association had been twitted for the quiet conduct of its aliairs, but the time had arrived for it to assume a more militant character and u 6 nt lor its members against the inequalities of the taritl it the Government was 'earnest in its desire to enforce patriotism by protecting British goods, it should remeniDerthat, like charity, patriotism began at home, and the New Zealand manufacturer should be equally protected. "We have many new arrivals from overseas w'no aie temperamentally unfitted to go on to farms —work must be found for them in secondary industries," said Mr. Allum. Arguments against the tariff on similar lines to those advanced on behalf of glassware and confectionery-makers, were submitted by representatives of other secondary industries.. Boots and Motor-Bodies. Mr. S. Parker referred to the plight of metal-working firms in competition with those overseas, aiyl Mr. (J. A. Whitney tu the unfavourable position of lead-pipe m anufacturers. When lead was dear, as it was now, the present duty per ton was so relatively little that it was really no protection at all. A higher protection on the ad valorem basis was certainly needed and merited. Mr. J. Tregaskis said that although the boot and shoe manufacturing industry was by no means flourishing, it had been left inadequately protected. Mr. Allum suggested that a duty of 25 per cent. British and 45 per cent, foreign seemed fairly substantial, and asked why the New Zealand factories were not in a 'better position. Other lepresentatives of the trade said it was due to "dumping" of surplus stocks from England and the fact that the minimum wage at Home was £2 10s, compared with £4 5s in New Zealand. Mr. W. J. Cousins said the effect of reducing the duty on imported unassembled motor-bodies was to aid the two large American assembling plants in New Zealand. For the past lo years motor-body builders ip New Zealand had been fight ing against outside competition. Last year they employed 1800 hands, but it appeared some contracts recently made would have to he cancelled, ff chassis were allowed in free from Britain the position would be different. In Adelaide, for instance, 46,000 motor-bodies were turned out last year and £56.000 a month was paid in wages. Desire for Tariff Board. After the meeting had approved of forwarding to the Prime Minister and individual members of Parliament statements on behalf of each of the dissatisfied indus tries, it was decided, on the suggestion of Mr. Allum, to convey to Mr. Coates and the Minister of Finance the meeting's regret that nothing in the new tariff indicated i s-uggestion for the formation of i tariff board such as obtained in Australia. and which was so greatly required m the Dominion in the interests of all those engaged in secondary industry. M". Allum spoke at some length on the definition governing the admission of Coods to the benefits of the British preferential rate of duty. He suggested and I the meeting agreed that, in order to be certain that coods under the preferential tariff really were British, the stipulation '.hat they must l:e 50 ner cent. British 1 material, and (or) labour, should be raised to 75 per cent That. too. is to be forwarded to the Government as a I resolution.