TARIFF REVISION

New Zealand Herald, Volume LXIX, Issue 21314, 15 October 1932, Page 12

TARIFF REVISION

INQUIRY INTO DUTIES POSSIBLY EARLY NEXT YEAR THOROUGH INVESTIGATION NO PROPOSAL FOR BOARD [ lIY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Friday It is possible that the inquiry into existing protective duties to bo undertaken by New Zealand in terms of the agreement with Great Britain at Ottawa, will be made early next year, according to a statement made by tho Rt. Hon. J. G. Coates to-day. New Zealand has promised that, whore necessary, duties will be reduced as speedily as possible to such a level as will place the United Kingdom producer in tho position of a domestic competitor. Mr. Coates said the investigation would ho a thorough ov and would possibly take place during the next Parliamentary recess. It was not proposed to set up a tariff hoard, but a decision had yet to be made as to the exact form of tho inquiry. Tho agreement provides that tho protection afforded to tho New Zealand producer shall bo on a level which will give tho United Kingdom producer full opportunity of reasonablo competition on the basis of relative cost of economical and efficient production. Asked whether any standard had been devised by which that level would be ascertained, Mr. Coates said a basis could only be fixed after investigation into each individual industry. It has been suggested that the services of Dr. O. Craig, Comptroller of Customs, might be utilised to direct tho inquiry, in view of the fact that it is understood he will shortly retire from the head of the department, but, as indicated, no definite decision has yet been made. GOODS HELD IN BOND DELIVERY TAKEN YESTERDAY CARGO ON PORT GISBORNE Practically no cargo unloaded from overseas vessels at Auckland this week was taken delivery of until yesterday, many importers choosing to place their goods in bond pending the official announcement of details of the agreement reached between Great Britain and New Zealand at the Ottawa Conference. The most notable example was that of the Commonwealth and Dominion Line motor-ship Port Gisborne, which arrived from London on Wednesday afternoon with 20(30 tons of general cargo, a considerable percentage of which was held in storo until yesterday. With the removal of the special surtax on British goods and the preference given by New Zealand to products of tho United Kingdom and non-self-governing British colonies, it has proved profitable for importers to delay taking delivery of cargo and pay storage fees until the new tariff agreement became effective. VIEWS OF IMPORTERS NO GREAT SURPRISES PROTECTING MANUFACTURERS " The tariff changes aro much as anticipated by importers, who appreciate that the reversion to what aro practically the old rates of duty should be sufficient protection to manufacturers," said Mr. li. G. Thomson, chairman of the Auckland Importers' Association, in commenting yesterday on the agreement reached between Great Britain and New Zealand at the Ottawa Conference. In the past tho old rates were an adequate protection and the recent increases were imposed moro for revenue purposes than as ati additional protection for manufacturing. Speaking in respect to the effect of the tariff charges on trade, Mr. Thomson said that merchants should not be materially affected, as most of the seasonable lines were landed, with the result that no one trader should have an advantage over another. Trading had been considerably upset in the past through continual changes in the tariff, but the agreement with Great Britain should have tho effect of stabilising the tariff to tho benefit of steady trading. " There is much yet. to be done, however." added Mr. Thomson, "and no doubt the various commercial organisations. such as tho Importers' Association, will be of assistance, to the Government in an advisory capacity when the investigations committee that is indicated is set U l'" . . "Thoso closely associated with tho import business aro astonished at the concessions granted by Britain to our primary producers in return for which New Zealand appears to have given practically nothing," said a prominent importer of British goods yesterday. -"If tho present arrangement is to continue for tho benefit of the primary producer, the farmers of this country will havo to seo that some concession is given to Britain in return," he added. "This can only be dono by tho lowering of duties. The Government appears to have boon merely tinkering with tho matter of reductions so far. Tho foundation of satisfaction in any transaction is the mutual benefit derived. I cannot seo where tho British manufacturer is gaining any real advantages from tho agreement reached at Ottawa. It is up to the primary producers to see that the Government keeps its promiso made there to revise our tariffs downward and give the British manufacturer a fair chance." CHANGES TN DUTIES FOREIGN RATES LOWERED Tho position in regard to paper under the tariff revision is that, printing and writing paper, in rolls not less than lOin. wide, is liable to 3 per cent primage if manufactured in any British country, but to 20 per cent duty, plus surtax, if foreign. Such paper in sheets not less than 20in. by 15in., is liable to 3 per cent primage if manufactured in any British country, but to 10 per cent duty, plus surtax, if foreign. If in smaller rolls or sheets it bears a 20 per cent duty, without surtax, if of United Kingdom origin, but with the surtax of Canadian, and a 40 per cent duty, plus surtax, if foreign. The duty on foreign confectionery has been reduced from 55 per cent, to 50 per cent. Tho duty on British confectionery has been reduced from 32£ per cent to 27J per cont. Similarly, the duty on foreign apparel, rcady-mado clothing and hosiery, has been reduced from 55 per cent to 50 per cent. Under tho 1931 legislation this reduction would not have taken place until April 1, 1933. The duty on foreign silk and artificial silk piecegoods, formerly 25 per cent, has been reduced to 15 per cent. The duty on British goods in this clc.ss, formerly 10 per cent, has been abolished.