CUSTOMS DUTIES.

Otago Daily Times, Issue 21198, 2 December 1930, Page 13

CUSTOMS DUTIES.

ANOMALIES IN THE TARIFF. COMPLAINTS BY MANUFACTURERS. (Special to Daily Teuco.i December 1. The position of local manufacturers who imported their raw materials under a heavy tariff and whose finished proTf as , 80ld , in competition with that 01 British makers whose materials were imported into the United Kingdom free of tax and whose product came into New Zealand at a low preferential rate, was discussed at a meeting of the Council of the Auckland Manufacturers’ Associatmn. The question was raised by a letter from a hat making firm in Auckland which forwarded correspondence" which had been sent to Mr J. G. Cobbe on November 27: “We regret that we have to inform you that we are closing down our faetory on November 28,” stated the letter to the Minister. “We are reluctantly compelled to take this course on account of anomalies which exist as regards customs duties we have to pay on our importations and the unfair competition from England and the Continent. These matters have been pointed out to you on many occasions and have been lust ignored, so that we have now reached a climax.”

After referring to a previous communication sent on September 14, 1928 the letter states: “ The people’s and the country’s welfare seems to be no one’s business. We make the definite statement that the Customs point a revolver at the worker’s head and say to him that ‘You shall not have d job until your employer pays 524 per cent, duty on his raw material.’ This very raw material goes into England duty free and comes here made into hats on which there is only a 27 per cent. duty. On top of this all hats made in England are made of foreign raw material and come out here as British manufactures under preferential duty. New Zealand is the dumping ground of the universe. Italy is paying a bounty of 15 per cent, on all hats exported.” “ There is a lot of truth in what this firm has written,” remarked Mr J. A. C. Allum.

“ There are certain anomalies in the tariff,” said Mr C. B. Plummer. “ There is one class of raw material on which the duty is 524 per cent., -but I think that that duty was designed to apply to foreign goods. Taking 25 per cent, as the basis the English manufacturer gets his raw materials in free and sends them out here under a 25 per cent, duty. Dumping comes‘into the question also. At Hie end of the winter or summer season at Home a quantity of goods is sent here and that does not help our manufacturers. The position is really rather serious.”

“ The question of British preferential tariff and duty on raw materials is a very serious one,” remarked Mr W. Parkinson. “ I have no doubt that this has been effecting all our industries.” The president (Mr George Finn) suggested that the matter of tariffs should be referred to the executive with a view to approaching the Government, and this was agreed to.