VIEWS CONFLICT

New Zealand Herald, Volume LXXV, Issue 22976, 2 March 1938, Page 16

VIEWS CONFLICT

■{EFFECT OF NEW EATES T' - ■ DOMINION'S INDUSTRIES | SHIFTING OF MARKETS ■ 4 | AUSTRALIA PENALISED £ Sharp conflicts of opinion were shown importers, manufacturers and in comment yesterday on tho .-.increases in tariff duties announced by >.the Government. Importers and restressed tho idea that higher prices would be tho inevitable consequence, and, while manufacturers wero 'in accord with tho principle of higher Z protection to offset increased costs of '/manufacture, the feeling among tham was that some industries had been s* helped more than others, if! Views expressed were that the Gov't eminent, by placing a relatively heavy v duty on the cheaper classes of imported footwear, hoped to divert the manufacture of this type to the New Zealand factories, which hitherto had been able :' to make no very effective reply to this "overseas competition. This policy was largely directed against the English manufacturer working on mass production methods. Penal Effect of Duties JsJ In various types o'f clothing, it was £ thought the effect of the tariffs would be to shift a market from Australia, .'."and to a much lesser extent from ■I. Canada, to some extent to the New tl Zealand manufacturer, and more par--2 ticularly to the British exporter. Some i) comment was made on the fact that no U real attempt had been made to check an inflow of Japanese goods. Australia has been very definitely penalised over ■»> a wide range of hardware, electrical Sf- goods and building materials. In most *;• instances trade in such classes of goods J" was expected practically to cease. Canadian and foreign exports of such goods have been affected in much the "i same way. Some New Zealand industries would be given a strong fillip by the situation, and English importations £ also would increase. Appreciation of what the Govern- ** ment had done to recognise tangibly % the needs of industry was expressed :-Cby Mr. H. W. Shove, president of the r.riAuckland- Manufacturer;}' Association and chairman of the Boot Manufacturers' Committee. New Machinery Ordered "The action of the Government has

given new hope to manufacturers," Mr. Shove said.' "Already one big footwear manufacturing firm has lodged an order ' for new machinery in order to cope with the expected improvement in business. Manufacturers feel that the Government has recognised that, as manufacturers' costs have gone up, extra protection is necessary. The increases are possibly not, as inuch as was ■wanted by manufacturers and, although there has been a delay, the alterations in the tariff are accepted as an indication that the Government intends . to look after secondary industries. "It seems to be assured th'pt the protective tariff should have the 1 : effect of reducing overhead manufacturing coats because of increased output, and this fact, together with keener internal competition, should serve to safeguard the public in the matter of prices." Effect in England

Mr. Shore continued that the raising of the British duty tp 26 per. cent on footwear really meant that the 5 per cent cut in the tariff made following the Ottawa agreement had been restored. No serious reaction was anticipated as a result in England, it being recognised by both the British and New Zealand Governments that the industry had to be looked, after. The experience -in Australia, where the industry was .well protected*: was that the actual cost of footwear was very low. Mr. Shove said manufacturers appreciated the painstaking attention the Minister of "Industries and Commerce, the Hon. D. G. Sullivan, and the Minister of Customs, the Hon. W. Natih, had given to the intricate question of the revision, of the tariff. GAINS EXPECTED DOMINION MANUFACTURES AUSTRALIAN TRADE LOSSES " 1 - '► ' J 1 PREDICTIONS OF MERCHANTS' As a result of increases in duties on hardware and electrical supplies and building materials, English and New Zealand manufacturers are expected to take much of that trade from Australia, Canada and foreign sources, Auckland merchants predict that in many instances the Australian trade with New Zealand will be wiped out. Australia is expected to lose to New Zealand industry the market in paint and paint removers. American trade is also likely to suffer, in the opinion of merchants, a severe blow in paints, enamels, varnishes and motor enamels, ■uch trade largely going to England. Australia supplies very little builders' hardware, but it is said she will lose most bf that in favour-of New Zealand and English manufacturers. Although .then? has b<;en a rise from 20 to 25 per cent in electroplate ware from Australia, it is not expected that importationi will be affected. Canada is likely to lose most of her market in rubber hose goods, etc. England-will take over much of this trade. The New Zealand manufacturer is expected to.capture the market in tinware hitherto enjoyed by Australia, Most of the trade in Australian toilet goods and perfumes will probably go to England. New Zealand aluminium manufacturers, together with England, should take away most of the trade in this ware from Australia and Canada. / It is thought that New Zealand manufacturers will take the supply of electric lamps from Australia, which has been heavily penalised by an increase in duty from 10 to 30 per cent. The increase in d(ity on Australian electric cookers and heaters should, it is also thought, put New Zealand suppliers in a favourable'position in the market again. The imposition of a tariff of 20 per cent on Australian storage batteries was obviously calculated to give this trade to New Zealand manufacturers. Canadian and foreign batteries are also expected practically to disappear from the market. New Zealand manufacturers and England are thought likely to largely enjoy the market for electric irons. Australia will suffer. Increases in duties on Australian, Canadian and foreign hand-pushed lawnmowers will assist a new industry it} New Zealand, and give further trade M England, Q& a good quality American Jawnmowe? priceitoro.&ieadjr been increased by £1