BRITISH PREFERENTIAL TARIFF.

Otago Daily Times, Issue 19350, 10 December 1924, Page 5

BRITISH PREFERENTIAL TARIFF.

THE 75 PER CENT. ALLOWANCE

(Fhom Our Own Correspondent.) WELLINGTON, December 9

From articles which have appeared in the Auckland newspapers there seems to be some misunderstanding with respect to a decision which has been made to admit under the British preferential tariff until April 1, 1926, paper made wholly in Great Britain and other British possessions from foreign pulp, even though 75 per cent, of the factory or works costs is not represented. It is. in effect, alleged that this decision means that the new basis has already broken down. “Those who are familiar with the administration of the preferential tariff regulations,” says the Minister of Customs, “state that similar questions arosp under the 25 per cent, basis, and they are bound to arise in a greater degree with every increase in the percentage. They will also know that the quoted decision regarding paper is merely a continuance of the policy hitherto followed. When such questions arose many years ago it was that goods made wholly in Great Britain or other British possessions from such foreign materials as ingots of gold or of zinc, rough hewn timber, and fibres of various kinds, were entitled to preference even if the expenditure in British materials or Labour was less than 25 per cent. It could not have been reasonably argued that this was evidence that the 25 per cent, basis was too high. Yet to-day it is claimed that the recent decision in respect of paper proves that the percentage should be reduced. Exactly similar difficulties will arise whether the percentage is 50 per cent, or 75 per cent. A decision as to the future policy with respect to paper has been postponed until a later date ending receipt or certain information not obtainable in New Zealand.

“A similar point has been raised with respect to bar and other iron made in Great Britain from foreign billets and blooms,. and without doubt many similar questions will arise in other directions. The Government agreed to give a trial to the 75 per cent, proposal in view of the great importance of maintaining a uniform practice both in Australia and New Zealand, as otherwise exporters would be put to grave inconvenience. Recently the Government has received representations from Canada with respect to the adoption of a 50 per cent, basis in lieu of a 75 per cent, basis, and is at present communicating with the Governments of that country and of Australia. It should, however, be recognised that in coming to a decision it is necessary to view the matter from many angles. Consideration has to be given, amongst other things, to the interests of our own manufacturers and of those in other parts of the Bri tish Empire, and also to the difficulties which are created for exporters if each dominion adopts an independent system involving different forms of certified invoices, with the consequent delay and inconvenience caused to importers in New Zealand and elsewhere through the documents not being in order when the goods arrive.”