TARIFF INQUIRY

New Zealand Herald, Volume LXX, Issue 21562, 5 August 1933, Page 12

TARIFF INQUIRY

POLICY STATEMENT Chamber of commerce REPEAL OF SURTAX URGED SPECIFIC DUTIES ATTACKED Questions of a general nature affecting the tariff were brought before the Tariff Commission at its sitting yesterday by the Auckland Chamber of Commerce. The commission also heard evidence regarding tho duty on floor rugs and carpets and on radio receiving sets and preserved cherries. The discussion regarding radio sets resolved its6lf into a contest between representatives of the larger New Zealand manufacturers of sets and the importers of sets manufactured abroad. The Comptroller of Customs, Dr. G. Craig, presided, and with him were Professor B. E. Murphy, Mr. J. B. Cow and Mr. G. A. Pascoe. The Auckland Chamber of Commerce, represented by Dr. E. P. Neale and Mr. >, G. Jackson, urged the repeal of the portion of the Customs Amendment Act, 1930, imposing a surtax upon all dutiable goods not the produce of Australia. It was urged that the Ottawa agreement and the trade agreement with Canada had so affected the operalion of the surtax in regard to Empire goods that it had become inequitable. Its effects had been to widen the differentiation between British and nonBritish goods to an unreasonable extent and to place some parts of the Empire in an unfair position as compared with others Tho cliambor considered that differential rates of duty Bhould be expressed in the tariff rates themselves and not in penalising surtaxes. The Ad Valorem Basis A further request by tho chamber was that the whole schedule of specific duties be revised with a view to bringing them more into line with presentday world prices, and that where feasible, specific duties should be replaced with duties on an ad valorem basis. The general objection to specific duties was that they were inelastic and became excessive when values fell. A case in point was the duties on electric lamps. The price of these had decreased very considerably by reason of improved manufacturing processes, and the duties to-day were equal to from 60 per cent to as much as 1000 per cent ad valorem. It was recognised, however, that ad valorem duties could ttot be applied to certain primary commodities such as potatoes and onions, which were subject to temporary and violent price fluctuations. The chamber asked for the abolition of dual duties, whereby specific and nd valorem duties were provided, the higher to be imposed in any particular instance. It also entered an objection to the sliding-scale duties oil wheat and flour and presented a summary of th*» arguments against them, as adduced on Various occasions within the past year end more. The Duty on Cherries Mr. D. L. Ewen, on behalf of Aladdin Products, Limited, Auckland, asked ■ /for the removal of the present allfround duty of lsd a pound on "cherries . preserved in sulphurous acid or in brine." Tho witness stated that his firm imported cherries in sulphurous acid for the manufacture of drained and ct-ystallised cherries. The only sources were Italy and France, from Which United Kingdom manufacturers, .With whom his firm competed in tho New Zealand market, imported the fruit free of duty. He asked that his firm be placed on the same footing as ' British competitors in regard to the duty on similar foreign materials used by both. The commission will not sit to-day, but will pay visits to various factories in Auckland this morning. RADIO INDUSTRY TARIFF ON RECEIVERS ,( _____ CONTRARY CLAIMS HEARD 'The rival merits of the New Zealand hnd British radio set manufacturing industries found tho subject of a spirited contest before the Tariff Commission yesterday between representatives of | both interests. \ The New Zealand manufacturers fesked that the duty on sets ftnd sets complete in cabinets be 15 per cent if made in the United Kingdom, 55 per cent if made in other Empiro "■Countries and 40 per cent if foreign, ■ 'with' the alternative of 7s 6d, 12s 6d I and'2os a valvp-holder, respectively. On behalf of the' importers it was asked that sets, mounted or in cabinets, be admitted free if made in the Empire fend charged 25 per cent if foreign. At .present the duties are: Unmounted sets, •Empire free, foreign, 25 per cent; „ seta •iu cabinets. Empire, 10 per cent, "foreign, 35 per cent. Mr. E. R. Boucher, who appeared on behalf of five Auckland manufacturing concerns, said the industry in New Zealand dated from 1922. It was one of the largest secondary industries in the Country. With adequate protection the New Zealand industry could produce at a reasonable price sets which entirely teuited the market. There were 11 large manufacturers in Now Zealand and many smaller. It was estimated that oyer 500 persons were directly employed fend a further 500 indirectly: Mr. H. I. Forde, on behalf of the importers, said the English manufacturer had enormous advantages, especially in regard to invention and research, upon which enormous sums were being spent. The New Zealand industry was flourishing because it was free from direct patent royalty payments and was getting a number of important patents practically free of charge, and also admittedly because it was in the happy position of being able to' sell at a lower price than its competitors. Most of tho raw material and parts of the sets were imported, and ho could not see why tho oversea manufacturers should bo penalised because people in New Zealand wanted to assemble parts under 'Jess favourable conditions.