LOWER PRICES

New Zealand Herald, Volume LXXV, Issue 22975, 1 March 1938, Page 12

LOWER PRICES

MB. RASH'S OPIISIUJN j DOMINION-MADE goods j f industrial EFFICIENCY j ' REVIEW OF NEGOTIATIONS ( [BY TELEGRAPH! —SPECIAL KCTOBTEB] WELLINGTON, Monday Full details of the new trade agree- ( ment between New Zealand and Aus- J iralia, together with a schedule of tariff increases on specified imports j from Australia and Canada, were given . in a statement issued this evening by the Minister of Gnstoma, the Hon. \>. Nash. Special interest attaches to the new scale of duties for footwear, increases having bsen mad© in tho case of all imported footwear, including that of British manufacture. The general tariff on many other items has been increased in order to maintain the present preferential margin. A special Gazette was issued this evening, giving notice of an Order-in-Council _ which will hring the new customs duties into operation as from to-morrow. • "There aro large quantities of goods at present being imported into New Zealand which could satisfactorily bo manufactured within the Dominion, said Mr. Nash in his statement. "The proportion of such goods now being made here, even though in a number of cases the industries are very extensive,,'is not an large as it should be. The increasing volume of imports has made it apparent to the Government that some further measure of protection is necessary if industries in New Zealand are to develop as it is felt they should. Encouraging: Development "It is the Government's policy," added Mr. Nash, "to encourage the development of suitable industries in New Zealand as far as that is reasonably possible. Such a development is a necessary part of tho Government's policy. It is necessary from the point of view employment. It is necessary for the purpose ox utilising our own resources in the shape of raw materials, for the purpose of maintaining efficient production and in the national interest generally. "Tho action now being taken is accordingly designed to afford the industries concerned a measure of protection which it is considered should enable them to capture a large proportion of tho trade in the goods now imported from the countries to which the increased duties hare been applied, thus leading to the expansion of industry along the lines desired. ' Effect 011 Prices "Although duties have been increased it does not necessarily follow that internal prices will rise," said Mr. Nash. "On the contrary, as a result of increased oroduction and consequent greater efficiency in industry, New Zealand manufacturers should be in a position to reduce prices, and internal competition should ensure that prices are kept at their lowest level." Before effect could bo given to the increased duties, the Minister continued, it was necessary, in view of tho trade agreements, with Canada and Australia, to enter into negotiations with the Governments of each of thoso countries. Agreement was finally reached last Friday, bo it would be evident that no time had been lost by the Government in implementing the 'proposals. The Footwear Trade "No increases have been made in tho duty under tho British preferential > tariff," said Mr. Nash, "except in respect of tariff item 196, footwear, in which case tho duty on boots and shoes other than of rubber has been increased from 20 per cent to 25 per cent ad'valorem, or 3s a pair, whichever is the higher, and that on slippers from 20 per cent to 25 per cent ad. valorem. The duties on footwear imported from Australia, Canada and foreign countries have also been increased." In reference to the increase iji duty on British footwear, Mr. Nash stated that opportunity had been given to the. United Kingdom manufacturers to make representations, and full consideration had beep given to a case presented on their behalf. The duty on South African wine has been increased from 3 a Bd to 5s 6d a

gallon, and that on Australian wine from 4s to 5s 6d a call on. " Following upon representations niado during tlio negotiations," Mr. Nash continued, "the Commonwealth Government has > signified its willingness to admit into Australia from New Zealand, freo of duty, fruit grading machines and also the infants' feeds Karilac, Karil and Kariol. Tlio necessary formalities in this connection are being proceeded with, and should bo finalised at an early date. The question as to whether certain other classes of goods can bo admitted from New Zealand on a more favourable basis is being considered by the Commonwealth Government. Mr. Nash said he was sure that the decision to admit the infants' foods referred to free of duty was one which would be highly appreciated by Australian mothers, who should in future be in a position to obtain these products at lower cost. Magnitude of Problem It would be evident that the negotiations with Australia had presented a problem of some magnitude, and the task of the Hon. T. W. White, Australian .Minister of Trade and Customs, with whom the negotiations had been conducted, had been very difficult. ! Mr. Nash said he felt that the fact that agreement had been reached on practically all points was attributable largely to the friendly manner in which the proposals made on behalf of New Zealand had been accepted and discussed by the Commonwealth Government, which recognised the right of the Dominion to safeguard and develop her industries. He had no reason to think that the action now taken would in any way prejudice trade relationships between the Commonwealth and New Zealand, but, on the other hand, he was definitely of opinion that the negotiations had gone a long way to cement the evident goodwill which existed between the two countries. A similar position obtained regarding trade relations with Canada. Amicable Arrangement The Minister said his last word must be- one of appreciation of the courtesy and consideration given to the Government's proposals by the Government of Canada. Following on his disctissions at Ottawa in July of last year and communications during the East three months, the amended duties ad been amicably arranged. "Given the co-operation of the manufacturers in connection with competent organisation of their plants and business administration," Mr. Nash added, "the new arrangements will extend employment in the Dominion and provide the products at no greater price than is being charged to-day." MOVE WELCOMED "THE FIRST INSTALMENT" FULFILMENT OF PROMISE MR. M. R. O'SHEA'S COMMENT [Bl* TELEGRAPH —PRESS ASSOCIATION] WELLINGTON, Monday "The gazetting of the tariff adjustments is a very, welcome first instalment of the fulfilment of the Government's promise to safeguard tho New Zealand manufacturing industries," said Mr. M. It. O'Shea, general secretary of tho New Zealand Manufacturers' Federation, to-night. "It is impossible, however, without detailed consideration, to state, firstly, whether all industries have been covered, and, secondly, whether in the case of each of them, the protection is sufficient to balance the increased burdens which tho local industry is carrying. "These tariff adjustments will give manufacturing industries and their workers new hope for tho future as constituting tangiblo evidence of tho Government's intention to see that many hundreds of thousands of workers and their dependants are not sacrificed for the benefit of overseas operatives. These adjustments are gazetted after a series of negotiations if 1 which Mr. Nash and Mr. Sullivan have worked hard in tlinterests of tho Dominion as a whole and of the manufacturing industries and their workers. Tho Department of Industries and Commerce has spared no effort to assist industry. We are greatly indebted to tho Comptroller of Customs and his staff, who carried out an amount of work which those not connected with the actual negotiations would find it difficult to realise. Throughout the whole period they have co-operated with tho New Zealand Manufacturers' Federation in a manner which has been most acceptablo indeed." Details of tho new tariff schedules appear on page 14.