COST OF RADIO GOODS

New Zealand Herald, Volume LXIX, Issue 21279, 5 September 1932, Page 10

COST OF RADIO GOODS

LOWER DUTY ADVOCATED CASE OF AMERICAN SETS ' The contention that the public are forced to pay excessive prices for radio goods under present conditions, and that tho incidence of customs duty should be altered, was made on Saturday by a business man, in replying to remarks made by Mr. E. R. Boucher, president of tho Auckland Provincial Radio Traders' Association. "Mr. Boucher is managing director of Radio, Limited, the local assemblers, and as such is naturally opposed to tho importation of sets," lie said. "We do not feel that his statement correctly represents the point of view of radio merchants. "A set which sold in America under normal conditions for the equivalent of £2O (i.e., 97.32 dollars), used to cost in Auckland, after adding forwarding charges, exchange and duty, etc., approximately £35, so that the local assembler had a protection of approximately 75 per cent over the American home consumption value. This protection was, of course, excessive; yet owing to the alteration in conversion rates, and exchange, and the increase in duty, including its levy on a lower conversion basis, this same set, cost'ng in America 97.32 dollars, would now cost in Auckland approximately £SO, so that the local assemblers' protection has doublec 1 fro/n £ls to £3O. In other words, his protection has increased from 75 per cent to 150 per cent. Instead of the duty being £6 4s (or 31 per cent on a 4.86 dollars conversion basis), it is now £l3 6s (or 42£ per cent on a 3.50 dollars conversion basis). "Leading economists, such as Mr. Keyues, have pointed out that where currency depreciates so as to increase the cost of goods, duties should be lowered to an equivalent extent so as not to penalise the buyers or give excessive protection to local industries. Yet in New Zealand, not only has this logical argument for a reduction in duty been ignored, but tho Customs Department has actually increased the duty by altering the basis of conversion. For instance, a duty of 25 per cent on 4.86 dollars at the old conversion rato would have been £25, but now at tho rate for the Wairuna (3.48 dollars) it would be just on £35, or an increase of 40 poteen t."