FIJI'S NEW TARIFF

New Zealand Herald, Volume LXIX, Issue 21328, 1 November 1932, Page 12

FIJI'S NEW TARIFF

HIGHER BRITISH RATE NEW ZEALAND AFFECTED PROTEST FROM DOMINION • [FIIOSI OUR OWN . correspondent] SUVA, Oct,. 21 Tho belated discovery that the Government "f Fiji, in tho process of passing Ottawa legislation, has succeeded in raising customs duties is causing considerable concern in Suva. According to the Ottawa agreements preferences between British countries had to be removed, and this necessitated the removal of the special preference over and above the British preference which New Zealand, the United Kingdom, Hongkong and Canada enjoyed. Iri adjusting this the colony has reverted, not to the former British preferential rate, but to the rato which was recently increased, principally against Australia. in order to give a certain measure of preference to New Zealand and other countries. Tho result as far as Canada, tho United Kingdom and New Zealand are concerned is an increased tariff. From tho point of view of certain New Zealand impoiters this decision will have a serious effect upon their trade with Fiji, and in viow of tho fact that Now Zealand is Fiji's best customer for bananas this aspect of tho situation is causing some concern locally. Already protests have been made to the Governor by some of the elected members, who state quite frankly that they were under an'entire misapprehension regarding the effect of tho amendments. They point out that they were under the impression that in amending the tariffs they were merely removing the oxtra preference which New Zealand and certain other countries had been granted and wero reverting to. tho old system of two rates —British preference and foreign Exchange Position Accentuated Unfortunately ,tho members say they overlooked tho fact that when special preference was granted to New Zealand and other countries the British preference rate, which to all practical purposes then meant Australia, was raised in order to grant New Zealand a satisfactory margin of preference, over Australia, which for some years has levied a heavy protective duty against Fiji bananas. This was done specifically in order to bring about a better trade balance? between New Zealand and Fiji, which of late years has been very one-sided in Fiji's favour; the position being that Fiji sold all its bananas to New Zealand and purchased tho bulk of its requirements in return from Australia, this state of affairs being largely influenced by tho rate of exchange being so favourable between I'iji and the Commonwealth.' From the New Zealand point of view this exchange position is now accentuated, for not only is tho Dominion back on an equal tariff footing with Australia, as compelled by Ottawa agreements, but •at a higher rato, which, it is considered locally, is definitely against tho spirit of the Ottawa decisions. Opposition in Fiji Several lines in which New Zealand is particularly interested are quoted by local business men. On laundry soap Now Zealand formerly paid duty amounting to Id per lb., and Australia Hd lb. The British rate as now fixed is lid i' J . H is contended that Id a lb. would be ample protection for local soap, and at this rate New Zealand would have some chance of competing. At lid a lb., however, it is considered impossible. Toilet soap, tho duty on which was previously 20 per cent for New Zealand and 30 per cent for Australia, now carries 50 per cent for all British countries, while tho duty of 3d on New Zealand confectionery has now been raised to 44 d in common with all other parts of the Empire. Bacon, hams, lard, dripping, tallow, small goods and fresh fruit and vegetables are also affected. In an editorial article tho Fiji Times and Herald strongly criticises the Government for seeking this method of balancing the Budget at the expense, principally, of her best customer, referring at tho same time to the very fair treatment that had been accorded Fiji by New Zealand in allotting the banana quotas—which will shortly be reviewed. The Government was also reminded of the statement made by Mr. Neville Chamberlain in tho House of Commons on October when lie said that "tho general trend of the agreements reached was tho lowering of Imperial tariffs." "In making this statement," says tho newspaper, "the Chancellor had evidently not been aware of (lie fiction of the Fiji Government in increasing Imperial tariffs." Big Shipment of Soap It is undc:stood that the New Zealand Government has already made representations by cable to the Fiji Government, and it is expected here that the Dominion will also communicate with the Secretary of State for the Colonics in an attempt* to got tho position reviewed a 5 early as possible. The elected members express tho opinion that administrative economies would bo sufficient to balance the Budget without recourse to increased taxation as represented by the higher duties. A majority of these members say they are of opinion that the un position of higher duties against New Zealand and other countries is inadvis able, and that the old British rate should have been reverted to. It is stated that a big shipment of soap from a Southern firm is already on the water, this having been ordered prior to tlie amending of the duties under the di* tinet impression that, whatever happened, British tariffs would not be increased.

SERIOUS EFFECT LIKELY AUSTRALIA'S EXCHANGE "Since Australia lias an advantage over us in exchange, it. hardly seems that. Now Zealand firms can do business in the Fiji market without some preference on most, lines." said ar Auckland business man who does considerable trade with the Islands, when discussing the position last evening. "it looks very much as if the Fiji authorities have decided to give Australia equal treatment., if not under the compulsion of Ottawa, then because Australia, lias at last agreed to admit Fiji bananas," lie continued. "At the same time. New Zealand has given Fiji much more liberal treatment in the same matter. Australia will admit only 4000 cases a mon h and inipos's a duty. The New Zealand quota is much larger and there is no duty." It was learned that the change does not affect New Zealand tinned meats, which have been subject for some time to a special duty of 2d a pound, in common witli Australian, receiving no preference over the latter. Practically all other lines, however, arc affected. New Zealand exports to Fiji in 1931 wore valued at £89,245 and imports from Fiji at £108,950. The following were the principal export itemsßutter, £829; cheese, £761: frozen meat, £650; bacon. £1820; tinned moats. £5593; preserved milk and cream, £1605; confectionery. £1530; sugar, £2613; potatoes, £3893; tea, £7942; beer and stout, £702; sheep, £874; apparel, £1112; textile piece-goods. £448; rugs (other than floor rugs), £718; tallow, £2556; coal (cargo), £5846; mi.s cellaneous hardware and ironmongery. £1200; timber, £1003; cinematograph films, £7338; soap, £732; parcels-post articles, £1938.