LOCAL INDUSTRIES.

New Zealand Herald, Volume LXVII, Issue 20623, 23 July 1930, Page 15

LOCAL INDUSTRIES.

FURTHER PROTECTION.

HIGHER DUTIES ON TIMBER.

ASSISTANCE TO MANUFACTURERS [nr TELKGRArn. —special reporter.*] "WELLINGTON, Tuesday. "The state of the timber industry has for some time been engaging the attention of the Government," said the Priino Minister. "The duties on timber were increased in 1927, but the increased protection lias not bad the desired effect of limiting the importation of timber and increasing the uso of the local product. "It is proposed to increase the present duty on rough-sawn timber in ordinary sizes from 5s to 7s 6d per 100 superficial feet-, and to fix the rates on timber in long lengths and large cross sectional area and on sawn dressed timber at 2s less and 4s greater respectively than this rate. Jn view of these alterations, section 13 of the Customs Amendment Act, 1927, which authorised the Minister of Customs to increase the measurement for duty purposes of sawn dressed timber by 20 per cent., will no longer bo necessary. Fruit and Onion Growers. "It is also proposed to grant further protection to the fruit and onion growers. The duty on small fruits such as apricots, cherries, grapes, passion fruit, peaches, plums and a few others lias been increased by Id per lb. An increase has also been made in the duty on foreigngrown onions. During the last three years the importations of British and foreigngrown onions have been ns under: — 1927. TO'#. 1929. Tons. Tons. Tons. British-grown onions . 2,355 1,229 607 Foreign-grown onions , 810 1,895 2,291 Total* .. .. 2,956 3,121 2,901 "It, will, I think, be agreed that some steps should be taken to protect the local onion growers. "The Government has also decided to grant further assistance to the clothing manufacturing and motor-body building industries. These industries employ a considerable number of hands. The total importations of apparel and hosiery during the last five years are as follows: — 1925, £2.801.167; 1926, £2,709 1 456; 1927, £2,458,105; 1928, £2,675,728; 1929, £2,743,724. Increased Rate on Apparel.

"Those figures show the extont to which the New Zealand-manufactured article is displaced by the imported product. It will be noticed that in the schodule attached Jo the resolutions, the increased rato on apparel is set out at 2 j per cent, on British goods and 5 per cent, on foreign articles. It is, however, necessary to consider the effect of the surtax before the full effect of the Government's proposals can be appreciated. The result of the combined surtax and increased rates of duty is to grant a further protection to iho clothing and hosiery manufacturing industries of over 6£ per cent., on Britishmade clothing, etc., and of 14* per cent, on the foreign article. "With respect to th» motor-building industry, it. will be seen that the increase in body duty is set down at. 1j per cent. It must be remembered that the, body duty is payable, on the -whole motor-car, and according to the generally accepted view, the increased duty represents an additional 5 per rent, on the valne of the bodv." The effect of the alteration now proposed on motor vehicles will be clear from the following table:— Old rate. New rate. (Including (Including primage). surtax). Motor vehicle ehassis. including trucks: British pref. tariff .. 12 p.r. 12ir.fi. (ieneral lariff . . . . oi p.c. 49 p.c. Motor passenger cars not. exceeding £'2W> in value: British pref. tariff .. 22 p.r. 24.8 p.c. (ien'iral tariff .. .• 52 p.c. 69 p.c.

EMPIRE PREFERENCE.

FOREIGN TARIFF BARRIERS. QUESTION OF RETALIATION. [BY TELEGRAPH. —SPECIAL REPORTER.'] WELLINGTON, Tuesday. " It, is part of the Government's policy to increase tho preference granted to goods manufactured or produced in the British Empire," said tho Prime Minister. "During recent years there has been a decrease in the proportion of British-made goods imported into the Dominion and it is pioposcd to make increases in the preference on ]53 items of the tariff. The total number of items is 449 and the number of items upon which preference is granted is 295. Hence tho Government proposes to inereiso the rate on about one-half of (he items on which preference is now accorded. 'The advantage which should accrue to British Empire trade through tho action now taken will be better appreciated when it is remembered that no increase in tho piefcrence has as a rule been made in the items where the great bulk of trade is supplied from Empire sources.

"There is another aspect of this matter which desjrves cgnsideration. It has frequently been urged that owing to tho high tariffs which are being imposed by certain foreign countries on New Zealand products w» should go in for a policy of retaliation. The Government is greatly concerned regarding the tariff and other barriers which are being erected against our products. Ido not think that as a general rule retaliation is a satisfactory method to adopt in dealing with such matters, although I recognise that there may be .instances in which retaliation is tho only satisfactory way left. I think that it is far better to proceed by way of negotiation. Tn pursuance of this policy tho Government does not regard all the increased duties which have been imposed ori foreign goods as necessarily permanent " It is noticed that during recent years there has been a tendency on the part of some foreign countries to provido in their tariffs for niinimum and maximum rates of duty, and the Government is quite willing to enter into negotiations with any foreign country which treats or is prepared to treat New Zealand goods fairly in tariff matters. If agreements of the kind indicated could be made the Government would bo willing to consider a reduction of certain of those foreign duties. It is believed that such a, course would result in an extension of tho markets for our products, which is so important lot: the jvcllaie the Dominion.'-'