TARIFF COMMISSION

Otago Daily Times, Issue 21975, 9 June 1933, Page 10

TARIFF COMMISSION

, CASE FOR THE IMPORTERS . CURRENCY DIFFICULTIES OBJECTION TO HIGH EXCHANGE (Per United Press Association.) WELLINGTON, June 8. The effect of the high exchange rate was raised by representatives of importing firms who gave evidence before the Tariff Commission to-day. The Comptroller of Customs (Dr G. Craig) presided, and associated with him were Professor S. E. Murphy and Messrs J. B. Gow and G. A. Pascoe. Arthur William Clarke, representing Messrs Arthur Clarke, Ltd., importers of watchmakers’ tools, said that the Customs duties on watchmakers’ tools were excessive and their contention was that, those tools which could not be produced in the British Empire, should be admitted free. Difficulties had been experienced as the result of the raising of the exchange rate. In reply to Dr Craig witness said that he was not aware that under the existing law there was power to exempt these g °Edmund Charles Issae said that no watch or clockmaking lathes were made within the British Empire, and it was impossible for trade to be carried on without these lathes. Claude B. Willis, representing Messrs John Duthie and Co., Ltd., asked for the removal of the duty of 20 per cent, on electrically welded wire fabric made m England. So far as he knew, he said, there was no firm in New Zealand competing with this product, although woven fabrics of a lighter nature were made in the Dominion. The only real competitor came from Australia. Wire was used for concrete reinforcing. In answer to Dr Craig witness said that at the present time no firm importing English welded steel fabrics could compete with the Australian product. Mr Pascoe asked whether they could compete with the Australian manufacturers if the exchange was at par.

Witness: Yea. ' . . Professor Murphy: Your trouble is really currency and not tariff? Witness: Yes. Mr Pascoe said that he could appreciate the point because, as a result of the higher exchange the steel trade was coins to Australia. . , , Professor Murphy asked whether, if the currency were stabilised, they would be content to pay duty. Mr Willis: Yes. . Professor Murphy: You are asking for incremental tariff adjustments to meet the currency difficulties. Witness: It has been done. Professor Murphy said that he wanted to get the point clearly as this might he the basis of the contentions of a number of businessmen coming before the commission. It would be difficult to have a concertina tariff to meet the variations in the value of currency. Embarrassments of this kind were the price the community paid for a variable monetary standard. 4 Mr Willis said the object of the Ottawa Conference was to foster trade with Professor Murphy said they would a nice inter-Empire kettle of fish n thev commenced making preferential tariffs for different parts of the Em- ** Francis Joseph Miller, managing director of Messrs Miller and Ahearn, said that he was seeking a reduction from 20 per cent, to 5 per cent, m the duty on woollen piece goods imported from the United Kingdom, He said that the landing charges, which included duty, exchange rate, insurance, etc., amounted to 57i per cent., which severely curtailed the volume of imports. New Zealand manufacturers were unable to supply all the needs of New Zealand tailors, who, were thus handicapped, in their business. Mr A. E. Mander, representing the New Zealand Manufacturers’ Federation, asked whether the New Zealand mills could supply all that was required Mr Miller replied that certain lines were not procurable in New Zealand. Captain Colbeck, representing the New Zealand Farmers’ Union, asked whether he should ask questions as to the protective effect of the exchange rate. Professor Murphy said the matter was one of economic theory* and it was not likely that a layman would bo able to give a satisfactory answer. While an exchange was depreciating there was a protective effect, but once it had depreciated internal adjustments took place. Some of these adjustments, such as interest rates, took time, but when there was a readjustment the effect of the rate was lost, the time it took for adjustments- to take place was a question of fact; Professor Murphy asked whether the English goods mentioned were high grade luxury lines which were suitable for revenue tariff. Mr Miller: Yes. Professor Murphy: Your real objection is more against a high exchange than a high tariff? • Mr Miller: Of course. We have to include the exchange rate, in our landing charges. - Professor Murphy: If the exchange rate was lifted would you have any objection to the duty being replaced? Mr Miller: No. Professor Murphy: You will realise that exchange is phenomenon. If we had a concertina tariff it would be difficult to administer. Don’t you think one of the essentials of a tariff is its certainty? , , . Mr Miller: Yes, 1 suppose that is so. Ernest Alfred Little, director of Messrs Joseph Nathan and Co., made representations regarding British vegetable parchment paper, the agency for which was held by his firm. He asked if a tariff would be imposed on a foreign article at such a rate as to protect British paper from undercutting by foreigners. - - Representations for a reduction ot the duties on concertina and band instruments were made by James Emery, trade secretary of the Salvation Army. The concertina is practically the official of the Salvation Army,” said Mr Emery. “It is used almost exclusively by our organisation.” Professor Murphy: I expect they use it in some places of which you do not altogether approve. I refer to jazz dances. — (Laughter.) The hearing was adjourned.