DUMPING CHARGE

Southland Times, Issue 22433, 21 September 1934, Page 6

DUMPING CHARGE

RENNET INDUSTRY INVESTIGATION ASKED BY MEMBER NEED FOR PROTECTION (From Our Parliamentary Reporter.) Wellington, September 20. An appeal to the Government to stop the unfair competition in the rennet market in the interests of New Zealand manufacturers and dairy farmers was made by Mr C. A. Wilkinson in the House of Representatives to-day during the debate on the schedule of the Customs Act Amendment Bill. Mr Wilkinson said there were allegations of dumping of rennet in New Zealand, and he had invoices in his possession that appeared to support those allegations. He asked the Government to investigate the position. Rennet that could be purchased in London for 92/- was being sold in New Zealand for 94/- in spite of the freight, duty, exchange and sales tax charges. The rennet industry was being built up in New Zealand and those concerned in it should be protected against dumping. They were certainly under an obligation to the Government for prohibiting the export of veils as the industry could not carry on if it could not get veils from New Zealand calves. The action taken by the Government was appreciated, but the Govermcnt still had a duty to perform—to investigate allegations of dumping. Satirical comment on Mr Wilkinson’s attitude as compared with his attitude to the wheat duties was made by Mr J. A. Lee, who said he congratulated the hon. member on having at last become a protectionist. “I wonder what attitude would be if rennt were produced in Canterbury,” he said. “It almost appears as if a member's electorate may determine his attitude on tariff points. However, he is right and the Labour Party will sup; port protection for any local industry'.” Mr H. S. S. Kyle said he hoped the Government would listen to the member for Egmont who was asking for the suppression of dumping. Members who supported the wheat duties had asked for protection against the dumping of wheat and flour for the same reason. Tire New Zealand manufacturers had made representations to the Tariff Commission and the United Kingdom manufacturers had asked for free admission for their rennet. The commission evidently considered that a 10 per cent. British and a 20 per cent, foreign duty was sufficient protection and had endorsed that tariff. New Zealand should be able to supply her oto demands for rennet, as she was able to supply her own demands for flour. Lowering Prices. Mr F. Langstone said that rennet was one of the outstanding instances of how the development of an industry in New Zealand had brought prices down. Before the industry was started in New Zealand rennet had cost £35 a keg, but when it was manufactured and sold in New Zealand for about £3 15/- a keg the companies that had supplied from abroad had brought their price down to the same level, although at the same time they were selling rennet in London for over £6 a keg. The industry was a necessary one and if it were cast to the wolves the price would go up again. Mr C. A. Wilkinson said he was not asking for any increase in duty and had no personal interest in the matter. He was simply asking for fair play. No one could object to fair business competition, but dumping did not come under that heading. The item was agreed to.