TARIFF REVISION

New Zealand Herald, Volume LXX, Issue 21561, 4 August 1933, Page 10

TARIFF REVISION

INQUIRY IN AUCKLAND CLAIMS FOR LOWER DUTIES OTTAWA AGREEMENT CITED COMMISSION'S VARIED DAY Samples of polished granite, a model of a differential and lengths of curtain netting were among the exhibits displayed before tho TarifF Commission yesterday in support of claims for reduced duties. Many cases were based on the contention that no similar industries were conducted in New Zealand, while some witnesses also emphasised tho terms of an article in the Ottawa agreement, to the effect that tariff protection against British goods should bo given only to local industries reasonably assured of sound opportunities for success. The members of the commission are Dr. G. Craig, chairman, Professor B. E. Murphy, Mr. J. B. Gow and Mr. G. A. Pascoe. Most of the witnesses, after making general statements, were examined privately on points relating to costs of production of their own and competitive lines. A request that granite or other stone in the rough should bo admitted free ■under both British and general tariffs was mado by Mr. William Parkinson, managing director of William Parkinson and Company, Limited, monumental guilders and general masons. At present tho British stone is admitted free, while the general tariff is 10 per cent. "If both are mado duty free," gaid. Mr. Parkinson, "that will place us on tho same footing, as regards duty on raw material, as our United Kingdom competitors. Imported. Foreign Granite

"W® import in the rough red, black and pearl granite, which is not procurable in the Dominion, from Finland and Scandinavia. Tho (Jnited Kingdom also imports her monumental and decorative granite in the rough from the 6ame foreign countries. This material is obfained duty free by Great Britain and it can then be exported to New Zealand as dressed or polished granite

to dompete with our product, which is prepared from granite upon which we have been obliged to pay 10 per cent duty." The removal or substantial reduction of the duties on Meccano and Hornby train products was sought by Mr. A. J. Lewis, on behalf of Models, Limited, agents for the manufacturers. It was argued that the question of competition- did not arise, becauso the firm's turnover consisted of sales of very small quantities of a large range of parts, the production of which would be economically impossible in the Dominion. There were a few overseas competitive lines, having an extremely smaH range of accessories, but the sales were smalllf the tariff were removed, a reduction ■would'immediately be passed on to the general public. Questioned by Professor Murphy, Mr. Lewis said it was true that retailers were required to sell at a fixed price. Basis of Retail Price < Professor Murphy: I put it to you that, although your goods are excellent, your principals are maintaining a retail price which is unreasonable. I do not say 1 am right, but would you comment on that? Mr. Lewis: It is based on a very fixed and reasonable percentage of profit right through. I can give you the ' figures. We would not ask you that at a public sitting. However, you rebut the suggestion that your fixed price is excessive, having regard to the cost of production?— Yes. "We are working on a small margin. We have a monopoly but we have made a loss for the past four years. So the retailer has no option regarding the price?— No.

; "Well," said Professor Murphy, "I know I was not ablo to beat one retailer down."

A' request for the free admission of condensed milk, now subject to a duty of 25 per cent ad valorem, was made by Mr A. C. Norden on behalf of United Dairies, Limited, London. "We want it free," he said, "because it is Bolely an infants' food." Dumping Duty on Fig Iron

A request for the removal of the dumping duty on Indian pig iron was made by Mr. W. H. Burton, on behalf of J. 13. Macfarlane, Limited. Mr. Burton said the dumping duty was extended to Indian pig iron to give added protection to the operations of the Onakaka iron works. That company had. gone into liquidation. The result v-as ' that all manufacturing concerns using pig iron were being penalised by the prohibition of the importation of cheaper iron from India. Mr. Burton said if there were no dumping duty tho Indian iron could be landed at £5 4s Id, but the dumping duty of £1 6s 6d (the difference between the f.o.b. price of £2 9s 9d and the current domestic valuo of £3 16s 3d) increased the landed cost to £7 Os 7d, which made importation impossible. Australian iron could be landed at £5 18s 9d, so that, were it not for tho clumping duty, Indian iron could compete with Australian, in spite of the present abnormal exchange rate of 25$ per cent. Mr. Burton said he was informed, "however, that the price of Australian iron in Australia was £5 ss, in which case it was evident the Aus-

tralian iron should bo subjected to a dumping duty of £1 43. It was desirable, he contended, to reduce, rather than increase, the price of raw materials to manufacturers in New Zealand. For that reason the exemption of Indian iron from the dumping duty -was sought. Bequests lor Abolition Reductions in duties on several classes of British manufactures were urged by Mr. 11. W. Cooke. On belinlt of Hathaway Brothers, of Chip- ] lham, ho asked that the duty of 25 per cent on British carpet sweepers bo removed. A similar application was made, on behalf of John Round and Son, of Sheffield, with respect to cutlory, which also is dutiable at 25 per cent. "We desire a substantial reduction in the duty of 25 per cent on sports goods," continued Air. Cooke, on behalf of "William Sykes, Limited, of Horbur.v "I do not think there are more than 30 persons manufacturing sports goods in New Zealand. Wo want something done to counteract Australian competition." On behalf of W. H. Grindlcy, of Tinstill, and Reid and Company, of liongton, Mr. Cooke also stated a case for the abolition of the duty of 20 per rent on crockery. He mentioned that {Japanese competition had caused the •.returns of his firms to drop by half. An assortment of curtains and curtain nets was displayed by Mr. H. P. (Congdon, manufacturers' agent, in support of a request for the removal of the duty of 20 per cent on those goods. He said Britain alone supplied the JNew Zealand market, but the duties had diminished sales because of their (effect on prices. At to-day's sitting a statement will

too made on behalf of the Auckland (Chamber of Commerce, and evidence

;will be given by other witnesses with respect to cherries in brine, carpets £na radio sets'.