DUTY CONCESSIONS

Poverty Bay Herald, Volume LXIV, Issue 19373, 10 July 1937, Page 14

DUTY CONCESSIONS

FOREIGN MACHINERY MIN IST ER’ S EXJ ’ LAN ATI ON REPLY TO CRITICISM (Special to tliu Herald.) WELLINGTON, this day. A statement regarding the application of Section 3 1 of the Customs Amendment Act 1927, in connection with remarks attributed to Mr. J. Hargest, M.P., in an address given at Lower Hutt, in relation to the purchase of certain road-making machinery by the Government, was made by the Hon. M. Fagan, acting-Minister of Customs, to-day.

“I have read Mr. Hargest’s remarks with interest and I may say, some surprise, and as the matter of granting concessions by way of duty on imported foreign-made machinery falls within my jurisdiction, it would appear desirable, in order that an incorrect inference will not be drawn from certain of his observations, that the actual position should be stated/’ said the Minister.

“Mr. Hargest does not appear to understand the necessity of giving preference by legislative action to certain makes of American machinery. The authority for granting concessions in respect of the importation of certain foreign-made machinery and other goods is contained in Section 11 of the Customs Amendment Act, 1927, which provides that if it can be shown to the satisfaction of the Minister of Customs that goods suitable, or intended for use in manufacturing, industrial, agricultural, scientific, therapeutic or similar purposes, are of a kind not economically produced- or manufactured in British Dominions, the Minister ,in his discretion, may direct that such goods be admitted as if they were the produce or manufacture of some part of the British Dominions, or, in the alternative, that they be admitted at a rate of duty intermediate between the rate specified in the British preferential tariff and the rate specified in the general tariff. Provosion Not Novel “This provision was incorporated in the legislature by a previous Government, but it is not novel in character. Ollier units of the British Commonwealth, notably the United Kingdom and Australia, have a similar provision in their legislation. “In considering applications for admission of foreign-made goods under the provisions of Section 11 of the Customs Amendment Act 1927, it is the practice to invite His Majesty’s Trade Commissioner in New Zealand

' to have investigations made through his Department in London, as to whether suitable goods or apparatus of the kind in question are economically obtainable of British manufacture. So far as the foreign-made road-making machinery enumerated in the published list of the Minister's decisions referred to by Mr. Hargest is concerned, Ilis Majesty's Trade Commissioner was afforded and availed himself of the opportunity to make full investigations and no action lias been taken either by the Government or by me that would conflict with the evidence obtained. As a result of those investigations, His Majesty’s Trade Commissioner is aware of and understands the position and furthermore, has not disputed the action that has been taken. Conditions for Concession “Briefly, the position with regard to the concession that lias been granted in respect of foreign-made roadmaking machinery, and in respect of all other industrial appliances covered by Section 11, is either that comparable apparatus is not obtainable of

British manufacture, or that if obtainable the selling prices are such that it l would not be economical to purchase the British-made appliances, even when the full dutv payable on the foreignmade plant is taken into account. In the former event there is no point in maintaining tariff preference in re- ■ spect of non-existent British goods, and in the latter insistence on the pay-1 ment of duty on the foreign-made I goods can only have the effect of increasing the price to local bodies, and the taxpayers, without any commensurate benefit to inter-Empire trade. Identical Threatmcnt “Each application for admission of goods under the provisions of the section is considered solely in relation to the evidence obtained, and goods of any specific class are accorded identical treatment. In point of fact, there are several firms in New Zealand who have been granted concessions in respect of certain similar types of the road-making machinery which they are able to supply, and the utmost are has been taken to ensure that all are placed on an equitable fooling. No action has been , taken that would prejudice New Zealand of Empire industries. "New Zealand manufacturers are Tilly aware that any decision granting a concession under the provisions of the section would immediately be cancelled upon their demonstrating the fact that they were conomically manufacturing in New Zealand a similar, appliance to that in question.” I