THE TARIFF

New Zealand Times, Volume XXIX, Issue 6314, 14 September 1907, Page 8

THE TARIFF

FINAL STAGES. RAW COTTON. OUR WOOLLEN INDUSTRY. The House of Representatives l«*t night "ave consideration to tho final stages oi the Tariff Bill. The amended resolutions prepared by the Minister for Customs wore considered in Committee of Ways and Means. A now item was proposed to lie Inserted in the tariff-” Cotton, raw, 4d the lb/'” Mr James Allen pointed out that undor tho old tariff, raw cotton was allowed, as a raw material, to come in tree of duty. The first set of resolutions in connection with tho present tariff pioposed a duty of Is per lb, but now it was proposed to charge Id. Cotton was undoubtedly a raw material, and he did not think it could ho grown in the colony. The Premier: Cannot wo grow it m our own islands? , Mr Allen, continuing, said it nan been tried in tho Cook Mauds, but without success, if there was a market for tlie mixed goods, why should tho Now /.calami mills do it. A ha.oyei was done, tho trade would go on, hut a duty of »u per lb would squeeze out the smaller mills, which was. no doubt, what tho larger ones wanted. The lion. Mr Millar said this duty had been imposed as tho result of representations made by tho representatives of 80 per cent, of the woollen mills of the colony. There were tfix mills in tire colony that did not desire to use cotton, and the reason nicy gave was tkat the mills were goins£ to bo ruined h~ the action of a low mills using cotton. If this were permitted to go on, the representatives of these six nulls declared that in self-defence they would have to use it, and the industry in .Now Zealand would be ruined, as had been done in Victoria. He was informed oy those who knew that if this cotton was continued to bo used to the extent it .was beinf* used at present, every mill in the colony would have to start using it. Would tho lion, member believe him when ho said that in wine woollens sold as pure colonial there was as much as 35' per cent, of cotton? So long as wool kept at its present mice, cotton, at 4A per lb, even with tho 4d per lb duty proposed, making 8£ per lb, as against Is 9d per lb for wool, would continue to be largely used. Woo lion rugs now made in New Zealand were sold on tho London market, and he hoped, in the interests of the woollen industry of New Zoaiand, one of our primary industries, the duty proposed on cotton would be retained. This duty would not prevent the us© of cotton, but only limit it. Exports said that a certain amount of cotton in tweed improved it, that was why ho had not prohibited? it. He hoped that the committee would stick to the duty. Mr Ell said that there were people who could not buy the highest quality of woollen goods, and tho duty would add to tho cost of the article to tho working classes. This cry of shoddy ought to bo dismissed. There was no shoddy about these woollen goods.

Mr Barber reminded the House that the Minister had declared his policy fo be to help the workmen, but how was he carrying out this object when he proposed to put a tax of 100 per cent, on a raw material? He accused the Minister of keeping his latest proposal quiet, in consequence of which he had not

given one side a chance. This was grossly unfair. Cotton was grown at the Cook Islands, and a largo quantity was imported from Jfiji. There was nothing bad in cotton. Tweeds wen* imported on a 20 per cent, duty, which contained no pure wool, the warp being cotton; and the woof "shoddy/' but when the local manufacturer tried to turn out a cheap tweed, using clean materials, they were charged a duty of 100 per cent, on their cotton. There was no consistency in charging 100 per cent, on raw cotton, but only 20 per cent, upon cotton yarn, which was cotton in a half manufactured state.

The Hon. J. A. Millar stated that though for many yeans our mills had. been carrying on without cotton, the use of that material had suddenly increased from 13201 b in 1904 to 00,2341 b in 1905, and 87,1321 bin 1906. Ninety per cent, of the .raw cotton imported was put into flannel and blankets. It was not used in tweeds worth having, and Mr Barber knew it.

Mr Hanan remarked that some mills seemed to be fighting each other, but the House had to concern itself not with the mills, but with the interest of the colony. Every man who represented fanners and wool growers would vote with the Minister. In all- our manufactures we should seek to turn out an honest article. It could be done, and the honest mills should be encouraged to do so.

Mr Laurenson was rather surprised at the speeches of the member for Christchurch South and the member for Newtown. It seemed to him “much cry and very, little wool/' Analysed, this duty meant 5d on a suit of clothes and 2d on a pair of pants. So far as possible, they ought to keep cotton out of New Zealand,' and retain for New Zealand the reputation for producing "all wool" goods, and nothing but "all wool" goods: Mr Ell regarded Mr Laurenson as tho "champion of tlio wool kings." (Laughter.) vVhere did this demand come from for tho exclusion of cotton? Not from the working man, but from the men who had besieged the Cabinet room that they might have the exclusive use of the wool grown in our own land. Mr Hardy warned the House that New Zealand mills would lose their reputation if raw cotton was allowed to come in free. Until two years ago the woollen mills paid good dividends and made big reserve funds.

Mr Grey said he had forty years' experience of the trade. Fifteen years ago the woollen mills paid good dividends, and turned out a good article, but at last th3*e was an excess of competition, which led to deleterious practices, such as the introduction of cotton. Thirty years ago “Geelong tweeds” were a brand to be conjured with, but some of the "smart" men sent 'samples to Belgium and secured a spurious “Geelong tweed,” which soon ruined the Victorian woollen Industry, Mr Barber said tho importing millers did more importing than manufacturing, and they brought in thousands of yards of tweed which should have been made in tho colony. If tho local mills were to bo i given a chance of competing against these cheap tweeds, they should bo allowed to get cotton free from duty. Those who used cotton did not wish to do so secretly, and they would not object to tho proposal of the Minister that mixtures should bo marked as such every 1 three yards. Tho public wanted cheap tweeds, and they should bo given them made from clean material, rather than tho dirty “shoddy” made from ragpickings in tho Old Country. If the ilinister wanted to protect local industry. why had he not put an extra duty upon, textile materials? Mr Hogg suggested that members should exercise a little patriotism by supporting a New Zealand product. The Premier stated that the Government had conceded ,£55,000 upon tho tariff on cotton piece goods. The strongest representations had been made by woollen manufacturers in favour of a duty on cotton. The public at present had not discovered that the output from some New Zealand mills contained a large proportion of cotton, and if the svstom of cotton adulteration was allowed to grow there would bo an increased importation of adulterated material from the Old Country, because this class of material could bo turned out more cheaply in the Old Country. It should

bo tho aim of Parliament to seo consumed in the eolo.iy a large pjs/p„nu>n o i a .now Zealand produce. The uoverninent was animated uy a aiiic.-ro dfsiro lu help tho industry by ensuring that when purchasers wanted pme woollen articles they would get pure wool, inert. ,d of u combination ot wool and cotton

.iir Massey said no argument had been (nought forward to justify this duty. The .Minister had stated that the duty had been asked for by a majority of the mill owners. lii-s experience was that majorities were generally wrong. He did not think it was .iglit to allow one set of men, such as those millers, to interfere with any class of people through trade jealousies, and ior the bigger men to crush their smaller competitors. Jt was absurd to impose a duly on raw cotton and vet allow a mixture of cotton and woollen goods free. The proper remedy was to have the material stamped showing the proportion of cotton and wool in it and to prevent the importation of shoddy. Then, a man who wanted a cheaper class of goods could get it and would know what lie wae paying for. The Hon. J. McGowan said the very effect of this duty would bo to give the Cook Islanders encouragement to grow cotton, and thus wo would aid in helping th? peonle within our own borders. Mr Poole’ said he would vote for free cotton, for it was used by the people. If the people desired to buy cotton they nliould have it. The Minister, by making provision for the stamping of the goods wouhl safeguard the woollen nulls and at the same time aid in the development of an industry equally as essential as the woollen mills. A vote was taken at 11.10 p.m. on an amendment by Mr Ell, to strike out the duty. The amendment was lost by 33 votes to 21. MINING MACHINERY.

The difficulty over mining machinery was settled bv the Minister placing it on the 5 per cent, list (where it was formerly before Mr Hornes’ amendment, with a view to placing it on the free list, put it on the 20 per cent, scale). Xlie definition reads" Engines and machines for mining purposes— namely. Capstan engines for mining shafts; windin# engines, steam, air, or electrically driven, including bod plates, foundation bolts, and friction clutches, when imported with the engines: drums tor winding engines, 5 per cent, ad valorem. MILKING MACHINES.

Vacuum pumps for milking machines, when imported along with the machines to which they belong, were placed on the free list. PRIOR CONTRACTS.

A new clause was added, on the Minister’s motion, providing that where any contract has been -made before July 17tli, 1907, between an importer carrying on business in New Zealand and a purchaser in New Zealand tor the sale of any goods at a price which includes the duty payable on such goods in accoidonce with the tariff in force at the date of such contract, the following provisions shall apply:—

If the said goods have been entered before the passing of this Act, and duty has been paid thereon in excess of the duty in force at the date of such contract, the collector, if satisfied that the goods have been delivered to the purchaser in pursuance of such contract, may allow a refund of such ex cess to the importer. If the said goods have not been so entered before the passing of this Act, but are entered before IvDumber Ist, 1907 the collector, if satisfied that they have been imported and are to bo delivered by the importer undoi such a contract as aforesaid, may allow such goods to be admitted at the rate of duty in force in respect thei cof on the date on which the said tract was made. THE COOK ISLANDS.

The following new clause was proposed h- the Minister: On and after the coming into force of this Act in the said there shall, notwithstanding anything to toe contrary in this Act, be levied and collected in the said islands, in to all other duties imposed by this Act, the duties of Customs following, that is to say: ' . ■ , * On sugar, whether imported from New Zealand or elsewhere, if entered in the said islands on or after November Ist, 1807, a duty of on© halfpenny for every pound: ~ On cotton piece-goods (except calico), linen piece-goods, piecegoods of mixed cotton and linen, whether imported from New Zealand or elsewhere, if entered in the said islands after December 31st, 1907, a dut- of 10 per centum ad valorem: Provided that it shall bo lawful for the Governor by Order-in-CounciP at any time to reduce or remit tho duties ©o imposed upon the said goods or upon any clasfe of the same, and so long as such Order-in-Council remains in force the said duties shall be reduced or remitted accordingly.

Mr Massey said the power given by the Goseruor-in-Uouncil to alter or remit the duties was absolutely improper. Xho minister ot Customs explained that the two taxes were to bo imposed to make up tor a loss ot dllooo per annum to the revenue of the Cook Islands through the operation of tho new tariff. - Mr Hcrries said • hat the Cook Islands were just as much a part of the co.ony as Canterbury, and there should be no differentiation of duties. Mr Laurensou replied that there was no analogy. The Cook Islands had their own balance-sheet, and were quite distinct finacially from New Zealand. A division was called for by Mr Massey, but the clause was adopted by 42 votes to 13. INDENT AGENTS. Clause 28 roads; —'" Every person making an entry in respect of goods to no delivered by such person shall at the time of entry deliver to the Collector a correct list of the persons to whom andthe places at which the goods are to be delivered, and shall declare to such list, and such declaration shall form part of the entry." „ , To this, after debate, was added the following new clause; ••Nothing in the three last preceding sections shall apply to goods delivered in pursuance of a bona fide contract of sale made in New Zealand between the purchaser and an importer carrying on business in New Zealand, unless such importer in so selling the goods acts as the agent of some other person. For the purposes of this section no person shall be deemed to carry on business in Now Zealand merely because ho has an agent in New Zealand. IT any dispute arises as to whether any person carries on business in New Zealand within the meaning of this section, euch dispute shall bo referred to the Minister of Customs, whose decision shall bo final." | COTTON CONTRACTS. The Minister moved to exempt from duty any raw cotton imported before January 31st, 1903, under a valid contract made before the passing of the tariff. Mr Allen moved to substitute June 30th, 1908, for the date in tho clause. , This was rejected by 33 to 17, and tho new clause adopted. ■ The amendments were reported from I committee at 1.15 a.m. The third reading of the Bill will be [ taken next sitting day.