TARIFF REVISION

Otago Daily Times, Issue 22057, 13 September 1933, Page 2

TARIFF REVISION

SITTING OF COMMISSION MANUFACTURERS AND IMPORTERS FURTHER EVIDENCE HEARD Yesterday morning the Customs Tariff Commission resumed its sittings, all the members being present—viz., Dr Craig (chairman), Professor Murphy, Mr J. B. Gow, Mr D. A. Pascoe, and the secretary (Mr J. P. D. Johnson). Mr A. E. Mander appeared for the New Zealand Manufacturers’ Association. GAS AND COAL RANGES. William Richard Brinsley, managing director of Radiation (New Zealand), Ltd., in his evidence, asked for the maintenance of the present duties on gas and coal ranges. The existing duties were; Gas ranges, 25 per cent. British preferential, 35 per cent, Australian, 50 per cent, general; coal fire ranges, 30 per cent. British preferential, 45 per cent, general. The company was at first engaged in the manufacture of coal ranges and as general ironfounders, but with the increase hi popularity of gas-cooking the company developed the manufacture of gas ranges. The output of gas ranges increased steadily until in 1930 the company was supplying approximately 50 per cent, of the requirements of the Dominion, and was employing 150 hands. The design and method of construction of the company’s products were developed entirely in its own factory. The other 50 per cent, of the requirements of the Dominion was imported almost entirely from England, and the rates of duty operating at that time were the same as the present rates. In October, 1930, the interests of the business were merged with those of Radiation, Ltd.. England, the largest gas stove manufacturers in the world. The firm now had the benefit of the special research laboratones i maintained in England, thereby ensuring the highest efficiency in the products of its factory, and also enabling it to otter promptly to the New Zealand public the very latest models of gas appliances, the original patterns of which were supplied to it from England for production in the New Zealand factory. On completion of this amalgamation of interests, extensions were made to the factory, additional machinery was installed, and a considerably increased area of land was procured to provide for the manufacture of increased numbers and models of gas stoves. Unfortunately the drastic effects of the depression and the consequent slump in the building trade had adversely affected the output of the factory since the merger, but it was confidently anticipated that when business returned to normal employment would be provided for approximately 2oU people. From personal observations he had made in England and America he knew definitely that all the firm a machinery, which included the most modern tvpe of porcelain enamelling and moulding plant, compared favourably with the machinery installed in the most up-to-date stove factories in other parts of the world. It was a most important point that Radiation, Ltd., England, invested their capital in the New Zealand business in the belief that the existing duties would be continued. Substantially, the whole of the imported material and plant used in the manufacture of the firm s products came from England, so that the maintenance of the industry m Jew Z - land meant a substantial amount of bum ness to British suppliers. Witness sum mitted a comparison between the basic rates of wages paid m the specified branches of the industry in Britain and the wages paid in New Zealand. The English rates were much tower than the New Zealand rates. Witness added that he felt sure that the commission would recognise the importance to the Dominion of an industry which had developed into a strong position on its own resources and which was now associated with the largest British manufacturers of similar products. The company as at present constituted would offer a steadily increasing field of employment in the what, were recognised as the most efhcie gas cooking appliances, available to the public. Witness submitted the following facts, published in Board and Council:— “Since 1929 the number of fias cookers in use has increased from 114,634 to 132,550. By comparison electric langes in use have increased m number for the same period from 20,„64 to 29,480. In the year 1929-1930, for every 100 electric ranges installed there were 168 gas rang«s The year 1930-31 showed a still greater comparative gain for gas ranges, the proportionate increases being 237 gas ®acn 100 electric.” These figures, witness added, were particularly significant in view of the fact that, whereas the avaijabihty of gas in New- Zealand was restricted to a limited number of cities and towns possessing gas works, electricity w;a ß available throughout extensive country areas as well as in the cities and towns. . Mr Mander, addressing witness, said the trade journal showed a.decline in the importations from the United . Kingdom. Gas ranges and smfilar things had fallen from £50,000 in 1930 to £7600 in 1932. The inference might be that the imported ranges were unable to compete on a reasonable basis. _ .... Witness said that the Radiation products were not manufactured in the Dominion in 1930. , Mr Pascoe: Are there many manufactories in England outside those connected with Radiation, Ltd.? —Radiation, Ltd., controls the largest and the majority of Professor Murphy: Do the people embracing the Radiation combine dictate prices on this market, or. are there other people in England sufficiently strong to act as a competitive safety valve?—Other people act independently, and they nave been effective competitors. Mr Mander: They would under-cut you if they could?—Yes, they are competitors, but they have never done a great deal of business in this market. , There is no agreement or restriction' — No; they are competitors. Professor Murphy: You say that Radiation, Ltd., invested capital in New Zealand in the belief that the existing duties would be maintained. Has any undertaking to that effect been given by the Government? —No. As the Government gave no undertaking, you could have no substantial grievance’ if the tariff were altered. You took the trading risk?—That is so. . Mr Mander: Although no undertaking could be given to Radiation, it would be felt that the low' tariff of New Zealand was not likely to be altered?—That was the impression. , People invested money on the strength of the existing tariff?—Yes. If a reduction were made in the duty on gas ranges it would prejudice your business? —Yes, We have a plant that is capable of doing three times what it is d6ing to-day. Mr G. W. Reid (secretary of the Dunedin Manufacturers’ Association), who appeared with Mr Brinsley, said he was substantially concerned in the investigations before the merger, and the conclusion had been reached that it would be fairly safe to gamble on the maintenance of the duty. . . . Further evidence was given in private. QUILTS. Robert Cephas Burgess and Roland Ellis, on behalf of Arthur Ellis and Co., Ltd., asked that the present duty of 20 per cent, on quilts he retained. While they were not seeking an increase in the rate of duty on imported down quilts, they submitted that the present rate of duty more than permitted the English manufacturer to compete on an economical basis in this country. It was absolutely necessary that the present rate of 20 per cent, be maintained if they w-ere to be in a position to hold the trade they had secured by dint of hard work and perseverance during the last five years. It seemed to them that if anything, the position rather called for an increase in the rate of duty than any suggestion, of it being lowered. The Australian rate was 40 per cent. They would not have started the industry if the present revenue tariff of 20 per cent, had not been there. It was only during the last three years that their productions had attracted universal demand throughout the country, and this had resulted in being able to reduce prices and at the same time improve the quality to about that of the imported quilt landing at about the same value. They differed from other New Zealand competitors in that where they import their requirements of down from England and Australia, Ellis and Co. purchased all available feathers in New Zealand ami treated these as giving economic value to what previously W'as a • waste product. The balance of requirements was imported from China, which waa the

greatest feather-exporting country in the world. Ellis and Co, had the only complete installation of feather machinery in New Zealand and as much as possible used only the produce of their own labours, though at times they were compelled to import certain grades of finished feathers and downs to augment supplies. This had been particularly noticeable last season owing to the greatly increased demand for medium to lower grades of quilts. Their keenest competition was not from within New Zealand, as working under similar conditions, they were able to more than hold their own. It was from English manufacturers and was more especially noticeable in absolute novelty qualities and in the lowest grades of down quilts. The workmanship in the low English production was extremely poor, which led them to believe that they were made by young apprentices earning very low rates of wages, or else under piece-work. Ellis’s competing line 'was infinitely better in both quality and finish, and whilst they might be advised to lower their standard to the line of its competitive line, there are difficulties in the wav. This line was the cheapest down quilt on the market and as such, had a tremendous sale, running into thousands in normal years. Because of the long distance the English manufacturers are from their customers, they took liberties that would not be tolerated if tried by a local manufacturer. It was necessary that they should have a good proportion of this class of quilt, even if they had to work for next to nothing, because the quantity gave them the output so necessary _ to keep overhead costs low. Their distance from the raw material market was a disadvantage ns it forced them to keep larger stocks than was the case of English manufacturers who could work on monthly terms with their suppliers, whereas Ellis had to pay cash on delivery in London. At the height of the season they had stocks amounting to a considerable sum. The English manufacturer had two seasons — the winter of the northern hemisphere and of the southern. The latter was very useful, as any cloth that had not sold in the earlier northern season could be offered in the southern, and if the position were acute, as it sometimes was, the cloth could be offered at cost, whereas -with New Zealand manufacturers, who had no such exporting season after the home season, the cloth must be discounted, held for 12 months, and then offered at a low price to clear. In the matter of waggs, to the best of their knowledge wages are much higher here. Under the furniture trade award they paid best female employees 42s 9d per week for 44 hours, and those showing greater ability more. The proportion of apprentices to journeywomen was one to three. In England there was no award, and the rate of wages varied in the various industrial areas from 25s to 35s per week of 48 hours. There was no limit regarding apprentices, so that in some factories no doubt the proportion would be very much freater than here, especially in those actories competing for the lower qualities. There were no provisions for thepayment of holidays in England, but her.e they were compelled to pay wages for nine holidays. There were approximately 278 full working days per year, and these holidays meant in the case of journeywomen an additional wage value of Is 4d per week for work not done. This was apart from loss due to salaried officers, plant, buildings, machinery, and stock standing idle. There were another eight days’ holidays, but for these the employees did not have to be paid, so they were not a contributing wage cost. lONISED lODINE. Charles Albert Elsey, manager of the Molson lonised lodine Company, of Australasia, Ltd., asked for the removal of the duty of 20 per cent, on imported ionised iodine. This iodine, he said, was iodine chemically treated to take away the poisonous elements. . It could then be used for the treatment of ailments, and for that reason ought to be allowed into the Dominion duty free. The product was made in England, imported in bulk to New Zealand, and bottled here. He had no written testimonials from medical men. but he was meeting orders from hospitals, and two Dunedin doctors regularly prescribed the product. BILLHOOKS. ETC. Joseph Irving, representing J. and <J. Irving, of Kenningtqn, Invercargill, asked that the present tariff of 20 per, cent, on billhooks, slashers, bush knives, and hedge knives be maintained, and, if possible, increased. If the duty were taken off their business would have to close down, as they could not compete against the English market. They had made as many as 350 dozen knives of all kinds in a season, employing five hands, and sometimes more. On account of the slump there had not been the same sale tor their goods. They also made hay knives and flax knives in any quantity and any shape. They supplied their manufactures to Otago. Southland, Canterbury, and parts of the North Island. Later in the afternoon the members of the commission visited several factories. . . , The choice of a word in the report ot the remarks made by Mr Charles Baker, managing director of W, Gregg and Co., Ltd., before the Tariff Commission made some difference to the significance of his statement. Speaking for his firm, Mr Baker said “their” prices (not local prices as reported) appeared to be lower than imported lines.