TARIFF REVISION

Otago Daily Times, Issue 21992, 29 June 1933, Page 8

TARIFF REVISION

SITTING OF COMMISSION CASE FOR SILK INDUSTRY (Per United Press Association.) WELLINGTON, June 28. A joint case on behalf of the silk and art. silk hosiery industry was presented to the Tariff Commission to-day. The parties ask for the maintenance of the present duty of 27-J per cent, on imports from the United Kingdom, 40 per cent, on importg from other, parts of the Em'pire, and 55 per cent, on foreign. Dr Craig said that Empire hosiery was the subject of a duty of 27J per cent., with the exception of Canada, which was subject to 32A per cent. The foreign duty was 50 per cent., plus surtax. Mr A. E. Mander, for the manufacturers, said that the industry was especially suitable to Dominion production. The list was not a long one, and all the advantages of mass production methods were, therefore, to be obtained in any well-organised factory of moderate size. The material used was partly of Dominion origin and partly imported, but there was no economic reason for importing finished goods, since they could be produced efficiently and economically by New Zealand factories, provided sufficient protection-was granted to compensate for the difference between the United Kingdom and New Zealand general values and costs, and to secure for the New Zealand industry a sufficient share of the market to enable it to continue producing on an economic basis. During the past few years the prices of New Zealand hosiery had been repeatedly and heavily reduced, and it was now being sold at a price definitely lower than the import parity. The industry employed 714 workers, and last year had paid- £86,000 in wages. The (wtimated capital involved was £202,160. It was asked that special consideration be given to the rapid increase of impt'i ts from Japan. "All this talk about dumping is silly nonsense," declared Mr L. J. Du Flou, representative for the products of the Soviet Union. Russia, he said, was not out to compete unfairly, and unless the articles exported could show a profit to the factory there was " nothing doing." He mentioned that recently his principals had sent out samples of rubber footwear, but owing to the high landing charge, duty, surtax, and sales tax, the ship was returning with* the goods. Mr Du Flou asked for a redtiction of the duty on safety matches. It had been stated that the manufacture of wooden safety matches wag to be commenced in New Zealand, but the director of Bryant and May investigated the position two or three years ago, and found there was no timber in New Zealand of suitable quality for making safety matches. They would have to import their timber. At the present time the duty on British matches was Is Der gross, and that on foreign matches 2s per gross, plus 9-40ths surtax, which made the total duty of 2s sjd gross. "If we had to pay the surtax only the British manufacturer would still have a margin of 50 per cent., which should be sufficient," he said. So far as he could see the advantage of the high tariff on matches went to the shareholders of Bryant and May, which some months ago declared a dividend of 25 per cent. Surely there was no need for such enormous protection considering that the labour costs were not very large, as most of the em'ployees of the local match factories were boy s and girls. Mr Du Flou 'urged a reduction of the duty on dried apricots, which, he said, were not produced in New Zealand. At the present time Russia could not compete with South Africa, which was admitted free. If placed on the same basis as Australia he would be able to compete. The Australian product was subject to a duty of 2d per pound and Russian 4d per pound, plus 9-40ths surtax. Mr Du Flou also made representations regarding ■■ santonin, plywood, seaoak, salmon, and sturgeon.