TARIFF INQUIRY

New Zealand Herald, Volume LXX, Issue 21546, 18 July 1933, Page 11

TARIFF INQUIRY

IRON AND STEEL IMPORTS FROM AUSTRALIA •i THE -MOTOR- INDUSTRY USE OF LOCAL MATERIAL [by telegraph—OWN correspondent] WELLINGTON, Monday The Tariff Commission continued its sittings to-day. Mr. C. B. Willis, representing John Duthie and Company, Limited, asked for a tariff of 20 per cent against Australian galvanised or plain black iron and unworked steel. He said that at present Australia was on the free list for these products, enjoying the same privilege as the United Kingdom. In view of the fact that the United .Kingdom gave free entry to New Zealand's products he contended that it was only right that Great Britain should enjoy preference over a country which did not extend this facility to the Dominion.

In answer to Mr. G. A. Pascoe Mr. Willis said that he would agree to Australian machinery beirig placed in the same category as iron and steel, although machinery did not concern his firm.

Mr. McHardy Forman, director -of General Motors (Iv.Z.). Limited, said that General Motors was purely an international public company, its shares being obtainable on the world's stock markets. It was international in outlook and operation. Policy of Company

"The definite instructions from my company are of its sincere desire to become an integral part of the country in which it operates, to purchase as much material locally as is economically sound, to do as much of the work on the product as local conditions will permit, and to employ as near 100 per cent local labour as is possible, said Mr. Forman. "Proof that this objective has matured, is our factory in New Zealand, where we have no other than Britishers on our staff. My object in stating these facts is to impress upon the commission that m suggestions we may make we are not fostering any particular country as a source, of supply. „ "In common with practically all other businesses, our own has been declining during the past three years, lo arrest this, all avenues possible ol analysis and correction by ourselves have been explored in the endeavour to keep the wheels moving. Factory costs, overhead charges, market distribution and list prices have been searchingly scrutinised. In this analysis one point has always been arrived at. It is this. Economic circumstances have made the cost of buying transportation in New Zealand for professional, pleasure and commercial uses far too high.

Use of Dominion Wool "Majiy companies and individuals, who definitely need to renew their present transportation hesitate and defer at present prices. Their need would make them" purchasers if retail prices were reduced. A large part of our business is in commercial vehicles, a necessity to all communities, especially a country in the stage of development < such as New Zealand. However economic circumstances may restrict the use of motor-cars for national and communal needs require commercial transport. "During the past five years of our operations at Petone we have considerably increased the amount of locallypurchased material in our products. For instance, we pioneered the use of New Zealand wool for upholstering the interior of cars. Our efforts in this direction have proved that profitable industrial development with such mater- . ials is possible. We have finished many hundreds of cars with the products of New Zealand woollen mills, which have given entire satisfaction, and. many thousands of yards of material have been used." Mr. Forman asked that the tariff be so framed as to take into consideration the amount of labour and material expended in assembling " knocked down " cars for the market as against' the amount of labour required to assemble a car which had been imported complete.

MANUFACTURERS' VIEW LETTER TO MR. COATES __ ■ " STAMPEDING GOVERNMENT** A protest against the criticism of the manufacturers' tariff policy was voiced at a meeting of the committee of the Auckland Manufacturers' Association yesterday, when the action of Sir. A. E. Mander, general secretary of the New Zealand Manufacturers' Federation, in temporarily withdrawing from the Tariff Commission was endorsed. It was decided to forward the following telegram to the acting-Prime Minister, the lit. Hon. J. G. Coates: —"This association is disturbed at the apparent endeavour of farming interests to stampede the Government into action in tariff matters and respectfully suegests that all interests should be reminded that at present the proper place for representations in such matter# is before the Royal Commission now sitting. We shall be glad of your assurance that the Government will take no action until it receives the report of the commission." In a statement' to-the meeting, tha president of the Auckland Manufacturers' Association, Mr. J. A. C. Allum, said the appointment of the Royal Commission was one of the best moves made for a long time. It _ was a good thing the evidence was being taken in public, and it was fair to point out the manufacturers desired, that procedure and urged its adoption. The attitude of the representatives of the farming and importing interests appeared to indicate they had little confidence in their cases. If that were not the correct interpretation of their attitude why did they not confine their activities to placing their i;leas and opinions before the commission, where they could be subjected to examination ? "It appears clear that certain interests are seeking to stampede the Government into action before the commission presents its findings," said Mr. Allum. "While I am sure is not the slightest possibility of the Government giving heed to such representations, the matter is beiiie referred to the acting-Prime Minister in order that the manufacturers may be reassured. , „ "It is clearly to be understood, added Mr. Allum. "that the New Zealand manufacturers are well able to deal with the various matters raised by the other interests, but they believe that in the present circumstances tne proper place to deal with these matters is before tho commission. lh& present is a time of extreme difficulty, and may I make the suggestion that although the various interests have conflicting ideas it should be. popsible to co-ordinate those ideM to the good, of the general public. i is better to pull together rather than to waste effort m useless strike and