THE COST OF LIVING

Otago Witness, Issue 3148, 15 July 1914, Page 79

THE COST OF LIVING

INCIDENCE OF PROTECTION. DEMAND FOR HIGH DUTIES. (From Our Own Correspondent.) WELLINGTON, July 9. A knotty economic problem which has an important bearing on the question of reducing the cost of living, was raised by & deputation of timber workers during an interview with the Minister of Customs (the Hon. Mr Fisher) to-day. Mr O. F. Meyer (Canterbury) said there was a complaint, especially in Otago, at the large quantity of foreign doors and other joinery which was now coming into New Zealand, particularly to Dunedin, from certain countries, notably Sweden and Norway. He said that the importation of the foreign doors had recently doubled. This, he said, was unfair, alike to the employers and employees in New Zealand. Employers had expended large sums of money in installing machinery for the purpose of manufacturing joinery, but unless they got more protection they could not compete with the ioreign article, and consequently a number ot joinery machines were lying idle. The present duty on doors was 30 per cent., and it was desired that this should be increased to at least 50 per cent. The people to whom these doors were consigned were men who merely acted as middlemen and turned over the doors to the retailers. This was not fair competition with those who were endeavouring to build up a local industry. If this state of things continued a large number of New Zealand tradesmen would be turown out of work altogether. It was understood that the only immigrants who were assisted by the Government to come to the dominion were farm labourers and domestic servants. It was surprising how many of these people found their way into other industries. Mr Meyer, also said that patterns of- mouldings, etc., used in New Zealand had been sent to Sweden and Norway, and that this joinery was manufactured there by cheap labour and sent out here. He also repeated the request made to the Prime Minister yesterday that an extra duty should be placed on small sizes of imported timbers, such as Oregon pine. Mr E. Phelan (Auckland) said it was now becoming the practice to import Oregon pine in laths, and one employer had told him that he had been compelled to close down his machinery on this account, as he could not compete with these importations. He thought an extra duty should be imposed on all sizes under 12 by 12, or its equivalent. The workers did not object to Oregon coming in in bulk, as in dry weather, when kauri logs were not available it gave employment to workers. The concession allowed in regard to long lengths, however, should be reconsidered, as advantage was taken of it bv getting the timber out in these long lengths and then cutting them in half. NO INCREASE OF DUTIES THIS YEAR. Mr Fisher said that nothing could be done so far as the tariff was concerned without bringing it before the House, and the questions referred to were not likely to be dealt with this year. By asking the Government to grant increased protection to various industries, and at the same time reduce the cost of living, the workers—he was not referring to the timber workers more than any other—were putting the Government in a cleft stick. Each particular trade was asking for increased protection ap to and oyer 50 per cent., and in the case of the printing trade, for instance, to more than 100 per cent, on certain articles. They could not go on increasing the duty in this way and at the same time reduce the cost of living. “ The two things,” the Minister went on to say, “ are irreconcilable. You must make up your minds that if you are going to improve the condition of the industries in this country by increasing the Customs duties with a view to obtaining an increase in wages, you are going to boost up the cost of living. It may bo tho fortune of the Labour Party some day to get into power in this country, and, if so, it will find that it cannot put up protective duties and at the same time carry out its pledge to reduce tho cost of living.” The Cost of Living Commission, which sat in 1912, Air Fisher added, had even gone a long way in th r e direction of suggesting that we should gradually push our industries overboard.

Mr Meyer eaid that many articles imported were no better than the New Zealand article.

Mr Fisher: These imported goods you speak of have to come 13,000 miles, and when they get here they have to jump a barrier of a3O per cent. duty. Is that not a reasonable tariff?

Mr Meyer": It does not work out accordingly. Mr Fisher: Can you tell me why? Mr Phelan: Cheaper labour is the main cause.

Mr Fisher: The doors and sashes you speak of go into the ordinary homes, I suppose? Mr Meyer: Yes; if they are cheaper than ours.

In reply to another remark, Mr Fisher said that if they could got New Zealanders to buy New Zealand goods it would get over much of the difficulty. In some cases New Zealand manufacturers, in order to sell their goods, had to put a foreign brand on them. Mr Phelan: That should bo put a stop to. Mr Fisher: Yes, but many employers and employees ask that it should not be stopped. Mr Meyer said that the employers and employees in the boot trade had practically agreed as to the advisability of putting the Now Zealand on New Zealand boots. Mr Fisher repeated that nothing could be done this year in regard to the revision of the duty on the articles mentioned.