WOOLLEN TRADE

New Zealand Herald, Volume LXX, Issue 21555, 28 July 1933, Page 11

WOOLLEN TRADE

VIEWS ON TARIFF ISSUE // RETENTION OF SCALE URGED 't PROTECTION FROM SHODDY /STATEMENT TO COMMISSION ' telegraph OWN correspondent] A\ ELLINGTON, Thursday / The maintenance of the present duties on textiles over a certain value, and on underwear, hosiery and yarns, and an increase in the duties on i materials made from shoddy, were urged in a statement submitted to the Tariff Commission to-day by the NewZealand "Woollen Mill Owners' Association. It was contended that internal competition gave the greatest protection to the buying public. Stress was laid on the value of the industry to the Dominion. "Although it is not generally recognised by the said the statement, "the competition of tho New Zealand mills plays a very important part in the , prices realised for all classes of wool / grown in New Zealand, particularly Merino, halfbred and fine crossbred. If the competition of the local mills was eliminated wo affirm that the tendency Would bo toward lowered prices, especially for finer wools." Reference was made to tho fact that / the firm establishment of the industry in 1914 made New Zealand self-con-tained in the matter of clothing its people, including the 100,000 soldiers who -were fully clothed and equipped 'with uniforms and woollen underclothing made in New Zealand mills. The value of the industry in its support of subsidiary industries and transport ser- ' vices also was emphasised. Tariff Changes Traced An analysis of the output of nine mills showed that the wholesale value of production in the past three years was as follows:—1930, £1,162,026; *1931, £1,018,628; 1932, £1,007,467. Producjj tive wages paid during those three years totalled £595,136 and salaries £245,350, a total of £1,143,516. "The New Zealand woollen industry cannot be described as a highly-pro-tected industry, as protection is known in some of the other Dominions," proceeded the statement. "From 1871 to 1888, as far as we can learn, the pro/'tection granted to all woollen productions was 15 per cent. In ISBB the protection was increased to 20 per cent. /The protection on textiles has remained at 20 per cent from 1888 to 1933. "The protection on hosiery and underj wear was increased to 20 per cent in 1888 and remained at this figure- until 1907, when it was increased to 25 per cent. The latter duty remained in /operation until 1930, when it was in- / creased to 27 J per cent. It was increased to 32J per cent in 1931 and reduced, as I a result of the Ottawa Conference in 1932, to 27$ per cent. The increases in ' 1930 and 1931 were made purely for revenue purposes, and no Tequcst for any increases was made by this association in those years." I Exchange Not Added to Prices The association said it was not seeking any increase in the duties on hosiery, underwear or yarns, but it / Btrongly advocated the imposition of a special duty, varying from Jd to 2£d a yard, with respect to shoddy or materials made from re-made wool. If those duties were imposed on all imported shoddy materials, the industry could employ 300 or 400 extra workers in the New Zealand mills. "Contrary to statements made by cer- j

tain organisations," continued the / statement, "the New Zealand woollen manufacturers have not taken advantage of the 25 per cent exchange rate, as prices have not been advanced by them since the exchange rate was raised to 25 per cent, notwithstanding the fact .p that the New Zealand mills, as compared with the British manufacturers, are paying this exchange on all their wool and other raw materials. The /added cost on the finished goods in this 1 respect would be approximately 8 per cent. "Statements have been made on numerous occasions to the effect that the New Zealand woollen manufacturers base their factory selling prices on British prices, plus duty, exchange and landing charges. We give these statements an absolute denial. In many cases, particularly as against competi- // tion with imported textiles made from fihoddy, we are compelled to cut our prices unduly to meet this unfair competition. In regular lines our prices arc based entirely on the actual cost of production, irrespective of the landed cost of similar goods. Local competition compels this." Against Rationalisation Concluding a dissertation on the suggested rationalisation of the woollen industry, the statement read: —"The point we wish to make is, that under the individual mill system prices to the Sew Zealand market are regulated by the mill which has bought on the best f terms, and, therefore, the consuming public gets tho benefit. Although we do not disparage <£ the arguments put 'forward for rationalisation of industry, we firmly believe that on the whole the well-managed individual mill is in the best interests of the industry and the buying public." The statement concludes with the following summarj of the association's case: — ... * . (1) We submit that it is imperative I to (a) maintain the present duties on textiles (over a certain value) on underwear hosiery and yarns, and (b) increase tho duties (by other means or in combination with ad valorem) on materials made from shoddy or mnngo. (2) That the New Zealand woollen industry and all its ramifications and ' close association with allied trades is or considerable value to the revenuo of New Zealand. (3) That New Zealand money wages, /after allowing for all wago reductions, are approximately 54 per cent higher than wages in the United Kingdom. (4) That the cost of land, buildings and plant and machinery is probably on an average 25 per cent higher in New Zealand than in the United Kingdom

Effect on Unemployment (5) That in the event of such ft reduction being made in the tariff as will lead to reduced output in the New Zealand mills, the obvious tendency will be to create further unemployment. (6) That the New Zealand woollen industry is a "key" industry and is adding to the natural wealth of the countrv. (7) That the New Zealand woollen industry is complementary to British industries. XT (8) That the individual mill ill Now Zealand, as opposed to rationalised mills, in the circumstances in which we are placed, is the best unit to conduct the manufacture of woollen goods on economic and efficient lines. (9) That internal competition will afford the greatest protection to the buving public. (10) That the general tariff on foreign woollen goods should ho increased with the object of diverting our surplus requirements in woollen goods to the United Kingdom. I! (11) That any of the mills associated in this statement will be pleased to submit further information and supply samples and costings of representative lines, which will go to prove that we are an efficient industry and that our businesses are run on economical lines, not only in the interests of the shareholders in the various companies, but plso in the interests of the Dominion.