DOMINION TARIFFS.

Otago Daily Times, Issue 19373, 8 January 1925, Page 11

DOMINION TARIFFS.

PREFERENCE AT/TEEfcATTONS PROTEST FROM BRITISH INDUSTRIES. A PLEA FOR IHICONSI DE R ATI ON. (From Due Own Correspondent.) LONDON, November 27. Tbo Federation of British Industries have sent a letter to the president of the Board of Trade on the question of the changes iu tho British preferential tariffs in Australia and Now Zealand, which are to come into force in April. In this, it is contended, as the result of a detailed analysis by th© federation of the position of trado as affected by those changes, that they will very seriously affect a wide range c£ Hritia.i industries trading with the common wealth market. . , Tho letter is signed by Mr R. I. Nugent, director of the federation, and is in the following terms: —“Broadly speaking, the effect of the new regulations will bo to limit the advantages of tho British preferential tariff to goods exported from this country, of which 75 per cent, of the cost is represented by British labour and/or material, instead of 25 per cent, as at present. “The intention of those new regulations is doubtless to ensure that tho advantages of tho British preferential tariff shall only bo extended to goods which are subsnantially of British manufacture or origin, and to prevent people in this country importing semi-manufactured goods from adding 25 per cent, to thou- valtte by British labour, and exporting them under tho British preferential tariff, although 75 per cent of the value is duo to foreign labour or origin. “In' so far as tho intention of the new regulations is to restrict tho_ advantages of the British preferential tariff to goods really of British manufacture _or origin, tho federation have no objection to the now legislation, nnd, indeed, it is we 1 known that many trades in this country welcome it. “On the other hand, tho regulations as they stand at present will seriously prejudice certain British industries, since, although they may take every possible stop to comply with tho spirit of tho rogulaiionn, it will bo impossible for thorn to comply with tho letter, and the result will bo that they will lose tho advantage of tho British preferential tariff and bn placed, through no fault of their own, on an equality with their foreign competitors. Tho federation feel sure that such was not tho intention of the framers of the regulations, and would urge that both tho Australian and Now Zealand Governments should be requested by his Majesty’s Government to give special consideration to cases of this nature. MEANING OF BRITISH MATKRTAL. “Tho first point to which tho federation would draw attention is the case of an article manufactured from- imported raw material, on which every possible process of manufacturo has been carried out in tho United Kingdom. In such a case the federation maintain that the manufactured article should receive the ‘benefit of tbo British Preferential Tariff, irrespective or tho source of origin of tho raw material nnd irrespective of tho percentage of the cost of the finished article represented bv tho raw materia!. “Secondly, in tho case of articles winch, while the final process of manufacture has taken place in ihe United Kingdom, have undergone some process of manufacturo in a country ether than tho United Kingdom, the federation would suggest that_ if the Australian and New Zealand authorities require 75 per cent, of (ho cost of the finished article to bo represented by British labour, and/or material, tho definition ‘British material’ should be bold to ctrver raw material produced anywhere (within tho British Umpire, and not only within tho United Kingdom. “In the third place, some definition a® to the meaning of tho expression ‘raw material’ .should lie given, in view of the fact that many industries uso ns their raw material a substance, such ns copper, on which n certain process of manufacture in tho shape of refining has necessarily token place before shipment to this country. It is clear that materials of this nature, such as clectrolylic copper, should Iki allowed to bo considered as raw materials for the purposes of tho regulations. Other examples of the same nature nro provided by cotton, wood-pulp. etc. IMPORTED RAW MATERIAL. “Finally, in tho Australian regulation® ns they stand at present it is laid down that if every process of manufacturo of a given article made from imported raw material, which is not available of United Kingdom origin, is carried out in Great Britain tho British preferential tariff will not apply if similar manufactured goods ore produced in Australia, unless tho proportion of United Kingdom labour and/or material in tho British article is at least 60 tier cent. This will mean that n manufacturer who imports raw material not available in this country, which represents in the particular case 61 iH>r cent, of tho finished value of tho goods, will not enjoy the British preferential tariff, if a similar article is produced in Australia, oven although every possible process of manufacturo has been carried out in Groat Britain. This oaso would not arise if tho proposals under I to 3 above were adopted, but in tho event of the Australian regulations not being altered in the manner suggested the federation would strongly urge tho deletion of lids stipulation, which would have the result of abolishing the British preference altogether in such cases.” A DEPUTATION. Yesterday a deputation of tho Federation of British Industries was received by tho President of the Board of Trado. The following trades and associations were represented: Brass and Copper Association, Cotlon Textiles. British Electrical and Allied Manufacturing Association, Wallpaper Manufacturers, Silk Association, Chemical Manufacturing Association, British Engineers’ Association, Tanners’ Association, Hosiery Trades, and tho Woollen Trades. It was agreed to regard the proceedings as private. It is understood, however, that tho question was fully discussed in detail, and that the federation will continue its oitorts to induce tho Australian and New Zealand Governments to alter tho regulations on the linos submitted in their communication to tho President of tho Board oi Trade.