BRITISH INTERESTS

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

BRITISH INTERESTS

LOWERING OF DUTIES A FIRST INSTALMENT GENEROSITY TO DOMINION The view that widespread tariff reductions under the Ottawa agreement could not be expected at so early a date was expressed yesterday by Mr. J. Hislop, chairman of the United Manufacturers' Association, in expressing appreciation of tho tariff changes announced on Thursday. "I can offer my congratulations to the primary producers of New Zealand on the most generous treatment extended to them by Great Britain through the preferences given to the exports of this country in the British market," said Mr. Hislop. "So far as New Zealand's duty to Great Britain is concerned, it was impossible for a revision of tho tariff to take place at Ottawa, on account of the shortness of time and tho immenso amount of material that has to be investigated before a just decision can be arrived at on various items in the tariff. Wo are glad to know that the surtax is definitely lifted and that when tho finance of the Dominion will permit it, the 3 per cent primage will also be removed. "British manufacturers have been schooled and have developed their industries without the assistance of tariff walls during the past hundred years, and it is our desire to see industries developed and extended in every part of the British Empire, provided this development can take place on sound, economic lines, because it is only on such lines that industries can add to the true wealth and the wellbeing of the country in which they are established, and of all countries with whom they may trade. For these reasons wo wclcomn the attitude adopted by New Zealand, that 6he definitely commits herself to a thorough overhaul of the protective duties, and tho position could not, he more clearly stated than in the remarks on this aspect of the Ottawa agreement by the Rt. Hon. J. G. Coates before the House of Representatives last evening. "Tho duties on confectionery, apparel, hosiery and silk, which have been removed, look a very small list, and all that lias occurred here is that they are going to be removed a few months earlier than was originally intended. We would not like to think, however, that these reductions are any criterion of what will take place in tlid reduction of other duties. "I think that at Ottawa the countries should have agreed that the tariffs as now applied in the various parts of the Empire should not be subjected to a fluctuation of exchange. Tho uncertainty of tho landed costs of goods is a greater hindrance to trade than any definite tariff. "I would appeal to all concerned, therefore, to approach tho Ottawa agreement in tho spirit of reasonableness, and to show their appreciation of what has been dono for New Zealand by assisting in every way a steady exchange of goods between Great Britain and New Zealand." AUSTRALIA FAVOURED NEED FOR INVESTIGATION [IIY TELEGRAPH —OWN CORRESPONDENT] WELLINGTON, Friday "While it is early to say just what effect tho Ottawa agreement will have on tho manufacturing industries, I think New Zealand as a whole will be well satisfied," said Mr. F. Campbell, president of the New Zealand Manufacturers' Association. '-'Tho proposed inquiry into New Zealand manufacturing industries is one which manufacturers do not view with great alarm. I am satisfied our industries will be able to produce information that will convince an Imperial tribunal that, they are efficiently conducted and are not in any way over-protected. "There is, however, great danger that any increased trade will not go to Great Britain, but to Australia. Australia, with a currency advantage of 24 to 25 per cent over Great Britain, is in a very favoured position. Tho New Zealand manufacturer urges very strongly an immediate investigation into the customs arrangements between Australia and New Zealand, and the scrapping of the present agreement should be taken in hand at once. "One other aspect seems to have been ovorlooked —the percentage of British material required in manufactured goods to enable an importer to claim the British rate of duty. The present percentage required is only 50 per cent. An increase in the proportion necessary to obtain the British preference to 75 per cent would bo a decided and legitimate advantage to tho genuine British manufacturers who desire to use in manufacture of their goods as much British raw material as possible."