TARIFF REVISION

Otago Daily Times, Issue 22058, 14 September 1933, Page 2

TARIFF REVISION

SITTING OF COMMISSION THE MANUFACTURERS’ CASE 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. Johnsen). Mr A. E. Mander appeared for the New Zealand Manufacturers’ Federation. MALT EXTBACT. Charles Andrew Wilson, managing director of the Dunedin Brewery and Wilson Malt Extract Co., Ltd., and J. D. Dempster, secretary of the company, appeared to ask for the retention of the duty of 20 per cent., or 2d per lb, on malt extract.

'•'As the dairy factory owners claim their right to be regarded practically as a primary industry, so do we claim a similar right,” said Mr Wilson. “ The dairy factory company buys its milk from the farmer, takes it to the factory, and converts it into either butter or cheese. Similarly do we buy direct on contract from the farmer, take the barley into our factory, and turn it out as malt extract. We therefore hold that we are on the same footing as the dairy industry.” Any damage done to the company would have a serious effect on those farmers who had been contracting with them for very many years. They had been, undoubtedly, of great material assistance to the farmers of New Zealand. While supplies were limited purely to New Zealand barley, the British manufacturer bought in any part of the world in which he cqpld purchase the cheapest _ barley— Mediterranean countries, India, South America, Australia, Canada, .and bo on. Furthermore, in all overseas purchases they expressly stipulate British goods—that is, goods from the Homeland. Even at the present time they were negotiating for some English machinery and also purchasing an English car for one of the travellers in preference to a foreign one. That was their attitude in all buying, and they thought that the New Zealand manufacturer generally was now doing all ha could to place his orders in the British market. He thought the British manufacturer in his demands on New Zealand to lower tariffs would create a decidedly unfriendly tendency and might in the long run alienate the sympathetic feeling which had been engendered and cause the New Zealand manufacturer to seek around for cheaper markets for his importations. It seemed to them unwise on the part of the New Zealand farmer to demand a reduction of the duty on malt extract which was going to penalise the New Zealand barley grower in favour of foreign-grown grain. Major Elliot was reported as urging the Home barley user to use more of the Home-grown barley, and they had their authentic information as to the use of foreign barleys by the Home manufacturer. The company, at this time, took exception to the suggestion of Messrs Potter and Birks that the New Zealand extracts were lower in quality than the imported. They quoted the standard required by the Health Department, but they surely knew that their standard was a minimum one, and that it was very greatly exceeded by the New Zealand manufacturer of malt extract. Cases had arisen even of late of British malt extract being sold in the New Zealand market of quality inferior to the requirements of the New Zealand Health Department. “To say that we are taking any advantage of the tariff protection would' be incorrect, as our prices to-day are below pre-war, and we can only sell at these prices on account of increased trade,” said Mr Wilson. “ Any reduction of sales will mean a rise in our costs, and consequently increased prices. Notwithstanding the very high quality of our goods there is still a prejudice against them to a certain extent by people from the Homeland. This, of course, is by no means general, but it obtains to a greater extent than is generally thought. Before we started business malt extracts were very highly priced. Now it is possible for poor people to avail themselves of this extremely beneficial food, and we again stress the fact that any crippling of our business will certainly result in higher prices having to be paid by the public. The British manufacturer certainly ex ploited the New Zealand public to his tremendous advantage before we appeared in the market.” In reply to Mr Mander, witness said tbe company made its extracts of high quality, quite irrespective of the standard set out iu the Pure Foods Act, which standard, he considered, was rather low. He was willing to submit the company’s extracts for analysis with the imported article. The company was at present returning a reasonable dividend to its shareholders. It could not have built up its present business without the present duty, and it could not possibly carry on without the duty: it would have to close down. Wages wore higher in New Zealand than in England. As for the local price, his company reduced its prices when barley fell in price, and ’Jie importers followed its example. INKS AND PASTES.

W. F. Meek, director of Stephens Inks (N.Z.), Ltd., made n request for the maintenance of the present duty of 20 per cent British and 45 per cent, foreign on ink powders: 20 per cent. British, or 2s a gallon, and ,45 per cent, foreign, or 4s n gallon, on writing, drawing. and marking inks. He also asked that ticketing inks be included under this heading; 20 per cent. British and 40 per foreign on adhesive pastes for household and office use, in packages of less than one gallon. As regards the last-named an application was made that the definition be reworded as follows: “ In packages of one gallon or less,” and that the item “ household and office pastes and adhesives ” be substituted for the term ” Gloy,” which was a registered trade name.

To Mr Mander: The firm used as containers the bottles made in Auckland, and was satisfied with them.

ELECTRIC AND COAL RANGES. John Bradley Shncklock. managing director of H. E. Shacklock, Ltd., asked for the maintenance of the present duties of 25 per cent. British and 50 per cent, foreign on electric ranges, and 20 per cent. British and 40 per cent, foreign on coal ranges. Messrs J. R. Shncklock and S. P. Bridgemnn appeared in support of the applications. The following statement, which was handed to the commissioner, was rend:— “For well over 50 years the kitchen range industry has been established in New Zealand, and its progress has been such that there is now practically no importation of coal-burning ranges. In the peak times, 1020 to 1025. some 400 men were employed in this industry throughout New Zealand. The introduction of electric ranges came quite suddenly, and with the spread of facilities for electric energy considerable inroads were made into the established coal range business. As power boards rapidly opened up various districts heavy demands were made for electric ranges, which were procured from overseas, as local manufacturers were unable to supply the quantities needed, having neither the material nor the facilities to cope with the initial rush; and so during the past ten years some 17,000 to 20,000 electric ranges have

been imported; approximate capital value £375,000, and estimated wages value £70,000. During the past three and a-half years 7500 electric ranges were installed, selling value £150,000, estimated wages value £30,000, or sufficient to employ 40 men at £4 per week, to say nothing of those engaged in the production and carriage of some 300 tons of New Zealand pig iron necessary for manufacturing purposes. Now that the initial rush was over and the demand henceforward would be that of the natural growth, the manufacturers of the Dominion were well able to take care of the business quite satisfactorily and at a price not exceeding that of the imported article. They did not ask for further duty, but simply that existing conditions —the conditions of the past 40 years—be left alone. 'I he range industry had been an important one in the Dominion, and had amply justified its existence. They were simply fighting for their own existence, for if

the tariff be reduced to admit electric ranges free of duty the same concession would be asked for gas and probably for coal fire ranges. Somewhat unfairly, the various power boards, whose capital had been subscribed by the people of the Dominion, now claimed that the duty had to be taken off to allow of extension of the business. The plain fact was that the power boards had had the cream of the enormous and abnormal demand at the expense of the manufacturer and the taxpayer, and found their present organisation too heavy and too expensive for the natural demand. Now that the call was for normal supplies only the power boards raised the pica that the duty made the cost of installation excessive and injured their business. The obvious reply was that it was not so much the cost of installation as the running costs that influenced the prospective customer, and nothing would be gained if the £4 or £5 that was saved in duty and lessened cost of installation be lost in the cost of the current before the first year was out. A better inducement for people to install electric ranges, etc., would be to reduce the cost of current, a factor which at once made its influence felt. Although power boards and importers ask for a remission of duty, as if this were an imposition of recent years levelled at the overseas manufacturer, the position was that there had been no change for the past 40 years in the duty on British manufactures of metals, under which heading these goods naturally fell. Local manufacturers, therefore, felt very strongly in the matter, as any alteration must necessarily affect their business, and make it still more difficult to find employment for those brought up in and dependent upon the industry. New Zealand manufacturers have put time and money into the venture, and were entitled to some consideration in attempting to supply the needs of their own country, men there was the larger question, the establishment of important secondary industries and the employment of many artisans. Such industries were absolutely necessary in this country, and if the coal-fire range was to take second place, then the makers felt that they should have the right to make good with electric and gas ranges, for both of which there were establishments ready to turn the goods out. Practically the whole of the material came from the United Kingdom or from within the Empire, and New Zealand supplied the labour. This seemed to them to be a very fair distribution and apportionment among the various interests. They associated themselves with the. Dominion engineering case presented in Wellington, and claimed that the degree of protection now afforded to this industry was below the limit allowed by the Ottawa agreement. To Mr Mander: Witness said it was quite incorrect to state, as had been stated in the north, that only 500 electric ranges had been made in the Dominion. That figure had been greatly exceeded. LEATHER. Mr H. L. Longbottora, manager of Glendermid, Ltd., tanners, said it was desired to associate Glendermid with the case presented in Auckland by the New Zealand Tanneries Association. The company desired the maintenance of the present duties on leather. To Mr Mander: Witness said that' tanneries paid more for hides when it was known that at the source from which they came some care was taken in their preparation—that was that they were without marks, such as brands, horn marks, and so on, and that they were properly cured. A hide should be treated at once. It should not be allowed to lie for 24 hours, or its quality would be impaired. Many of the hides were bought from meat works. Hides without marks would command 30 per cent, more than hides that ■were marked.

MANUFACTURING CHEMISTS. Kempthorne, Prosser and Co.’s New Zealand Drug Co., Ltd., were represented by James Stark, manager, and W, B. Seymour, factory manager and chemist. Representations were made to the commission that the present duties be maintained on lines they manufactured, including salines, fluid magnesia, milk of magnesia, pills, tablets and ointments, also extract of malt, all of which they produced in large quantities for the trade generally and for hospitals. The requests of the witnesses also included reference to the excise duties payable on medicinal spirituous preparations, lavender water, and other lines.' In reply to Mr Mander, Mr Stark said that bottles and jars purchased from the Auckland factory were quite satisfactory for the general run of the trade. It appeared to him that the fact that excellent bottles were made in New Zealand was not widely enough known. TO-DAY’S EVIDENCE. To-day evidence will be heard respecting condensed milk, cocoa, confectionery, bar iron and steel, hawsers and cordage rope and twine.