VALUE OF IMPORTS

New Zealand Herald, Volume LXX, Issue 21401, 27 January 1933, Page 12

VALUE OF IMPORTS

PAR RATE FOR DUTY

BUSINESS MEN'S SUGGESTION

COMPETITION FROM JAPAN

The suggestion Mint the pur into should lie adopted for converting for duty purposes the value of goods from all countries was approved by 1 lie council of the Auckland Chamber of Commerce, following a discussion yesterday on trade between Japan and New Zealand.

A criticism of conditions which permitted Japanese competition in trade was made by Mr. 14.I 4 . N. Ambler, who said that, where the promotion of trade with Japan on the present basis was upheld, the purposes of the Ottawa Conference appeared to be overlooked. Britain, or no country with ordinary standards of living, could compete with Japan. New Zealand's adverse trade balance with Japan was above 50 per cent. Mr. Ambler quoted from information in his possession showing the cheap labour conditions obtaining in Japan, and permitting the export of goods at rates which could not be competed with by British manufacturers. ITe submitted the following comparison of hours and wages for workers engaged in the textile industry:— England: Average hours weekly, 48; average weekly wage, £1 7s 6d. New Zealand : 44, £1 17s 6d. Japan: 66, 9s. A report on the subject was received from the importers' section, which commented thai, next to tho United Kingdom, France and Germany, Japan was the largest buyer of New Zealand wool. Rubber shoes and gumboots were not manufactured in the Dominion, and there was no competition with local industry. A reason for the low landed cost of Japanese goods was that the, Customs Department adopted the bank conversion rate of exchange for duty purposed, instead of tho par rate. Landing at low prices was principally due to tho depreciated value of tho yen. Local industries were adequately protected by tariffs which were already too high, and the. Government should disregard the policy of those advocating further restrictions to trade.

In a statement the manufacturers' seclion said the present increase in importations of Japanese goods, njade possible by the low cost of labour, would affect New Zealand manufacturers' turnover. It was not possible for Dominion manufacturers to buy British raw materials, and, with the addition of labour costs, compete with Japanese goods. The Dominion aspect included the maintenance of a reasonable standard of living. Tho exporters' section stated that Japan was becoming a larger buyer of wool and other New Zealand produce, and in order to enable her to establish the necessary credits Japan should not. have her manufactures penalised on entry to New Zealand. It was considered that British manufacturers were adequately protected under the existing tariff. As against New Zealand manufacturers, the raising of the New Zealand-London exchange had decreased the advantages previously enjoyed by Japan'. A motion endorsing the exporters' section's opinions and recommending tho adoption of the importers' section's suggestion. that the par rate should be adopted for converting for duty purposes the value of goods from all countries, was carried.