IMPORTERS' INTERESTS.

New Zealand Herald, Volume LXVII, Issue 20650, 23 August 1930, Page 13

IMPORTERS' INTERESTS.

PROTEST TO MR. FORBES. EXTENSION OF TIME SOUGHT. HOPES FOR TEMPORARY DUTY. [BY TELEGRAPH. —SPECIAL REPOKTEI!.] WELLINGTON, Friday. "Wo do not want a tariff war -with a sister Dominion and it is hoped the duty will only be temporary," said the Prinio Minister, the Hon. G. W. Forbes, in replying to a deputation representing the motor trade, which waited on him to-day in connection with the increased duty announced yesterday on Canadian motor vehicles and accessories. The deputation asked that cars under order and exported from Canada before October 1 should be? allowed .to enter at the old rate. "The Government action in imposing a special duty on Canadian cars naturally comes to us as a big shock," said Mr. B. Hope Gibbons, the principal spokesman.: "We think we understand the situation und the reason for your action and we appreciate the necessity for your move. More particularly we wish to thank you for the consideration expressed in not applying the increased rates to goods already exported from Canada. As citizens of New Zealand, and realising our dependence on the primary products, -we assure you of our desire to co-operate in assisting you to achieve your object, even .it some temporary cost to our personal interests.

Irrevocable Commitments. "Your announcement of yesterday mada it necessary for us to cable our factory immediately, endeavouring to cancel all Canadian orders not yet exported, but these Canadian factory commitments are irrevocable byHfs, because Canadian cars produced for New Zealand are not divertible. Cars for tho Canadian domestic market have a left-hand drive, whereas those for New Zealand are right-hand drive with other fabrications specially for this market. "In respect of these orders, irrevocable letters of credit or similar financial commitments have already been established. Cancellation may be impossible, and in such an event, we ask that such orders exported before October 1 shall be allowed to be entered under the old rate. We -•ingest that you investigate the facts while in Canada. We propose to lodge immediately with the Customs, schedules of these outstanding, orders, and we are prepared to supply all documentary evidence of their bona fides." . • Sir. Charles Todd described the new duties as a bombshell. It would be of great assistance to the importers if the Prime Minister would agree to the request made by Mr. Gibbons. The motor trade was a most tantalising one, and tlia changes in the tariff did not lessen the difficulties under which they were working. The motor trade had been taxed in every possible way and he could not understand why petrol was the oijly spirit that was heavily taxed when the (last readjustments were made. (Laughter.) Position of Local Firms. England could not meet the modest demands of New Zealand so far as motorcars were concerned and in fact she could not meet her own requirements. Last year, England exported £4,000,000 worth of motor-cars and imported £3,000,000 worth. Mr. Todd said he made no secret of the fact that his firm was losing money to-day, and during the next 12 months would contribute no income tax to the Government. His firm would be forced, as a result of the changed circumstances, to reduce its staff. That was rather distressing at the present time. He was not holding that out as a threat. It was an absolute cold fact. Mr. Forbes said it was realised that tariff changes such as were proposed would cause a good deal of inconvenience and difficulty to those who were importing Canadian cars. However, the' only way New Zealand had of expressing its feelings toward Canada in the matter of the increased butter duties was to increase the duty on goods imported from Canada. It was hoped that as a result of tho Government's action it would be possible to come to a more satisfactory arrangement with Canada. » Reply to Criticism.

Mr. Forbes said his attention had. been drawn to an article in a Wellington paper iu which the Government was charged with a sinister motivo. It was suggested that the Government, by making the concession in regard to cars already on the water, had favoured certain interests.' That was not what might be termed docent journalism. If h$ granted further concessions, it might be asked what firms he was favouring. As a matter of fact the Government had no knowledge of tha number of cars on the water and the concession was granted in tho belief that it would be only a fair thing. Mr. Todd said he could say definitely that, so far as they knew, no one was getting any special benefit from the con* cession. Mr. Forbes: The suggestion is realljJ too paltry to take any notice of. Mr. Forbes added that he would ba pleased to go into the whole matter with tho Comptroller of Customs, Dr. G.Craig. They did not want any tariff war with a sister Dominion and it was hoped that the duty would be only temporary. The matter would be discussed when ha was passing through Canada and it was possible that concessions would be made on both sides. DEPUTATION'S CRITICISM. COMMENT BY COMMISSIONER. Regarding tho criticism of the Canadian motor industry offered by a deputation to the Prime Minister, the Hon, G. W.Forbes, on Thursday, the Canadian Trada Commissioner, Mr. C. M. Croft, slated yesterday that ho would like to withdraw a comment lie had made in an interview published yesterday morning. His remark that a reflection had been cast on tho New Zealand Customs Department was mada under the impression that the deputation had suggested that Canadian manufacturers were in some way evading the requirement that their product should contain at least 50 per cent, of " British " value. Reference to tho text of the deputation's criticism removed that impression."' He wished to make the matter clear in fairness to the deputation and to himself.