IMPORTS FROM AUSTRALIA

Otago Witness, Issue 4039, 11 August 1931, Page 11

IMPORTS FROM AUSTRALIA

NEW ZEALAND’S DISADVANTAGES

DEPUTATION TO PRIME MINISTER. WELLINGTON, August 7. The disadvantages suffered by New Zealand trade through the importation of Australian goods, both in agricultural and secondary industries, was brought to the notice of the Prime Minister by the group of Canterbury members of Parliament this afternoon, when the Government was urged to treat all goods coining into the Dominion upon the depreciated exchange as dumped goods and to make them bear a dumping duty. Those who attended were: Messrs 15. Jones (MidCanterbury), R. W. Hawke (Kaiapoi), T. D Burnett (Temuka), J. M’Combs (Lyttelton), D. G. Sullivan (Avon), 11. Holland (Christchurch North), and H. S. S. Kyle (Riccarton). The present position is that where the wholesaler imports goods from Australia, if he signs a declaration that he will not pass on the depreciated exchange, amounting to about ISA per cent., to the retailer, he is not charged duty, but if the retailer or the individual imports goods from the same country, and receives the advantage of the deprecated exchange, he is charged a dumping duty. The result of this practice is held to be that if there are no evasions of the law by the wholesalers an advantage is given to Australian goods and the sale of New Zealand goods is discouraged. “ As one member of the deputation explained to the Prime Minister (Mr G. W. Forbes) the action of the Customs Department in imposing this condition made the Government the best commercial traveller and agent Australia has ever had. It was explained that the intention of the Government was recognised to l>e clear, because the Prime Minister had already expressed his dsire to find a remedy for the situation. Members expressed the opinion, however, that the deprecated exchange operated in a similar way to dumping, and it was asked in fairness to all importers that a duty of 18 4 per cent, should be imposed immediately upon Australian importations. It had been suggested that because of the treaty with Australia this might be held to be a breach the agreement, but it was pointed out that when this agreement was entered into no such conditions were anticipated. The deputation reminded the Prime Minister that a somewhat similar position arose in connection with tlie Paterson butter duties in Australia, when the Canadian Government treated these duties as equal to dumping, and charged a dumping duty accordingly. The case for wheat, flour, barley, and other agricultural products was strongly represented by some members of the deputation, and others urged that action be taken because of the secondary industries. Intensive efforts were being made at the present time to stimulate the use of woollen goods, New Zealand boots, groceries, and tinned fruits, all of which suffered as a result of the position now existing between Australia and New Zealand.

1 he Prime Minister expressed his desire to reach a solution. He recognised the importance of the subject from the viewpoint of New Zealand trade, and assured the deputation that he was keen to reach a satisfactory solution of it.