THE NEW TARIFF

Otago Daily Times, Issue 22328, 31 July 1934, Page 10

THE NEW TARIFF

MANUFACTURERS' REPRESENTATIONS THE FEDERATION'S ARGUMENTS The Minister of Customs last week considered a number of points submitted to him bv Mr A. E. Mander, representing the 'New Zealand Manufacturers Federation. "If the Government were prepared, even at this stage, to reverse its tariff policv," said Mr Mander, "and to increase, instead of decreasing, all protective duties, then — (a) Every affected Now Zealand manufacturer would give a guarantee to reduce the selling price of his goods. He would be enabled to do this as a result of enjoying a larger share of the market—increasing the industry's output —and thus lowering production costs: We do not want a higher tariff to enable us to raise prices, but to give us a larger turnover. (b) Within three months there would be at least 9000 move workers employed in New Zealand factories, and within nine months at least 15,000 (according to a careful estimate made by the New Zealand Manufacturers' Federation). This would mean direct and indirect employment for 30,000 more people; and even this number could be doubled if the degree of protection were further increased. It may be noted that in New South Wales alone the number of industrial workers was increased by over 50.000 in one year." On the subject of " Empire Content," Mr Mander said: "In view of the enormous preference now given to British manufacturers over their foreign competitors, it seems reasonable to expect that the goods admitted under such preference should be something more than 'half British.'" At present an " Empire content" of only 50 per cent, of the value of the imported goods is required to enable those goods to qualify as British. He urged that this proportion should be raised to 75 per cent., which means that, to enjoy the benefits of British preference, the goods should be at least " threequarters British." Referring to the danger of crippling New Zealand industries for the benefit, not of Great Britain, but of Australia, Mr Mander urged that it was quite unjustifiable to reduce the tariff against Australian goods at the same time as 'reducing it on goods from Great Britain The Manufacturers' Federation was much concerned about this aspect of the position, and earnestly hoped that the Government would safeguard it. The question of primage was then raised, and also the matter of the valua tion of imports in terms of sterling. Mr Coates and Dr Craig (Comptroller of Customs') discussed these various points at some length with the manufacturers' representative, and promised to give them further consideration. DUTY ON CHINAWARE ABOLITION OF REDUCTION REQUESTED (Peb United Press Association.) WELLINGTON, July 30. A request that the Government should give immediate effect to the Tariff Commission's recommendation that the duty on chinaware and earthenware be abolished, or, alternatively, that it be halved from 20 to 10 per cent., and that the country of origin be branded on all pieces of pottery, was made to the Minister of Customs (Mr J. G. Coates) to-day by representatives of British pottery manufacturers. Mr Coates promised to consider the matter. The deputation argued that British potterymakers urgently needed assistance against foreign competition. CATTLE CAKES RESTORATION OF DUTY SOUGHT (Pei United Press Association.) WELLINGTON, July 30. A request for the restoration of duties on linseed oil and cattle cakes was made to Mr Coates to-day by the New Zealand Cattle Cake and Oil Company. Under the old tariff there was a duty of 20 per cent, on cattle cakes, 9d a gallon on raw linseed oil, and 6d a gallon on refined, but under the new'schedule these duties were aholished. On behalf of the company Mr A. W. Smith said the abolition of the duties would, definitely mean the closing down of the works, entailing the sacrifice of buildings, plant and machinery, in addition to throwing more men out of work. The removal of the duties did not mean that linseed meal, which was admitted by the commission to be a very valuable stock food, would be procurable from England at a cheaper price. It simply meant that the door would be opened to Australia against whom it would be impossible for New Zealand manufacturers to compete without protection. England really had no need to export linseed oil, as for a number of years her imports exceeded her exports. The bulk of English oil was manufactured from foreign linseed and was therefore entitled to pay a general rate instead of a British preferential rate. ZIPP FASTENERS UNFAIR FOREIGN COMPETITION (Peb United Press Association.) WELLINGTON, July 30. Slider placket fasteners (zipp) were the subject of representations to Mr Coates to-day by Mr A. D. Guthrie, representing Guthrie, Bowron and Co., and L. H. Labone, agent for Imperial Chemical Industries. Mr Labone said that under the new tariff fasteners from all sources were admitted free, and as a result the English manufacturer was not able to compete with foreign manufacturers, who produced their product und<>r conditions which did not apply in the United Kingdom. They asked that n duty of 5d a foot be placed on foreign products. Mr Coates said he would consider the representations. THE PRINTING TRADE INDUSTRY SEVERELY HANDICAPPED ♦ (Special to Daily 'Limes.) WELLINGTON, July 30. The restoration of the previous rafvs of Customs duties on cardboard boxus, paper or cellophane wrappers, showcarls and calendars and manufactured stationery was sought to-day by a deputation to the Minister of Customs by the Federation of Master Printers of New Zealand. It was explained that in -nich of the groups the British preferential rate of duty had been reduced from 25 per cent, to 20 per cont. As compared with the conditions obtaining at the time of the Ottawa Conference British manufacturers were enjoying a much improved and more buoyant local market, reduced taxation, and the reinstatement of the

civil service and other salary reductions, reflecting in greater purchasing power and cheaper money, all of which was in marked contrast with the position in .New Zealand, where the conditions still were generally more difficult than in 1931. A reduction of 5 per cent, in duty, it was explained, meant that the industry was really £7 14s per cent, worse off than it was in 1.027. It was to be remembered that prior to the Ottawa Conference the industry expressed its willingness to assist the British paper maker by suggesting the reimposition of a duty of 10 per cent, ad valorem on papers of foreign origin, which duty still obtained, plus ninefortieths surtax. In that measure the industry had voluntarily undertaken to forgo in favour of Great Britain an advantage which was of some moment, particularly as some classes of essential papers were obtainable only from foreign sources. Under the encouragement extended by the Customs tariff duties of past years several United Kingdom manufacturing establishments had laid down considerable plants in N«w Zealand, and these, together with N?w Zealand-owned establishments, would suffer a severe handicap through the increased imports of goods of a type wire!) already were economically manufactured in the Dominion.