GOODS IN TRANSIT.

New Zealand Herald, Volume LXVIII, Issue 20891, 5 June 1931, Page 12

GOODS IN TRANSIT.

HARDSHIP ON IMPORTERS. ARBITRARY IMPOSITION. PROTESTS BY BUSINESS MEN. Serious concern is felt by New Zealand chambers of commerce (hat "goods in transit" from Canada will bo subject to tho increased tariff charges. The following letter was sent to tho Prime Minister yesterday by tho president of the associated chambers, Mr. H. T. Merritt:— "May 1 draw your attention to the grave injustice which tho recent increase in th-j Canadian tariff imposes upon a largo section of tho trading community. There nro quantities of goods in course of transit from the manufacturer for which the importer in New Zealand cannot possibly evado responsibility. Tho arbitrary imposition of a tariff without taking into account shipments which have to be landed is manifestly unfair to the importer, inasmuch that his goods aro loaded with a charge which could have been avoided if purchases had been made elsewhere. " I am sure it was not the intention of your Government to be unfair to an important section of vour fellow citizens, but unless tho date when tho now tariff becomes opcrativo is altered to cover 'goods in transit' I am afraid tho charge of injustice could easily be sustained. Furthermore, the present action penalises our own community and not the Canadian manufacturer for whom the tariff was intended. Need for Security. "It will, I think, be generally conceded that, these sudden and arbitrary shocks to trado should be strenuously avoided, particularly at the present time. Few will criticise your recognition of the fact that strong action on your part had become inevitable as far as Canada was concernad, but many will agree that what you have done, without making reasonable allowances, is unnecessarily harsh on your own people. The commercial community to-day needs security and confidence, and when changes of customs duties are contemplated some notice should bo given in order that traders may bo in a .position to placo their requirements in the best market." Friendly Spirit Urged. Representations on similar lines were also made by the Auckland Chamber of Commerco yesterday. " There is a very strong feeling of regret that the position should havo developed to the state in which it now is," wrote tho council to the Prime Minister, " and wo suggest that tho Government should approach tho Canadian Government in the most friendly spirit possiblo, asking for an immediate conference between representatives of the two Dominions with the object of an early rearrangement of tariffs on a reciprocal basis. We are confident that although, in your judgment, the extreme step has been necessary, you will be as anxious as we are that harmonious trade relations should be resumed at an early date." Impossible to Pass On Duty. The Prime Minister is informed further that as goods already on tho water will have to meet competition of goods from other quarters, it will be impossible for the advance in duty to be passed on to tho consumer. The Government's chango of policy, therefore, will have the effect of inflicting a hardship on New. Zealand importers without any detrimental effect on tho Canadian exporter. Tho chamber points out that if the increase in duty can bo passed on to the consumer the loss will be spread over a greator number of people, but will still be borne by New Zealanders. Importers will only be protected in respect of delivery under contracts. Tho chamber therefore urges that a safeguarding clause be drafted in respect of goods in transit similar to that, which was provided when additional duties were imposed on certain classes of Canadian goods last year.