THE NEW TARIFF

Taranaki Daily News, 14 September 1927, Page 7

THE NEW TARIFF

PROPOSALS EXPLAINED INCREASES AND DECREASES HELPING LOCAL INDUSTRY PREFERENCE TO BRITAIN , (By Telegraph.) Wellington, Last Sight. In the House of Representatives tonight, the Hon. W. Downie Stewart, Minister of Customs, made the following statement upon the introduction of the resolutions amending the Customs tariff: — The objects which the Government has had in view in considering its proposals have been as follows: (1) To reduce the cost of living and the cost of production, both in the primary and secondary industries; (2) to assist local industries (both farming and manufacturing), either by increasing the protection already afforded to a certain number of such industries or by reducing the duty on the raw materials, machinery and plant used by them; (3) to encourage still further trade in goods produced in the British Empire instead of in those of foreign origin; (4) to remove the protection at present afforded to the very limited number of ■what are regarded as uneconomic industries, or to the one or two industries which have ceased to operate in the Dominion; (5) to provide further negotiating power to secure new and increased markets for New Zealand products. The reductions in duties which affect the cost of living and the cost of production are of a twofold nature. They consist partly of concessions which appear in the tariff schedules and of others the nature of which will be explained later. Reductions of duty are not, as a rule, made to operate immediately, but are postponed so that traders who have imported the goods affected and paid the old duty thereon may not have to meet unfair competition with other merchants who have obtained their g -„ds at the lower rate. Time is therefore given to enable, as far as possible, stocks of goods already cleared to be disposed of. On this occasion the date has been fixed at June 30, 1928, but with regard to items which are not affected by this consideration the reduction takes effect immediately. CONCESSIONS IN DUTY. Son., of the items upon which it is p- posed that concessions in duty should be made are cotton piecegoods, so woven or marked as to indicate that they are to be cut up, plain tablecloths, table napkins, towels, quilts, sheets and similar articles. These goods, whether in the form of pieeegoods or of separate articles, now pay a duty of 20 per cent., if British. It is proposed to admit them free, if of British origin, thus making the goods described, which are an use in every New Zealand home,* available at the lowest cost to all classes of the community. Other items upon which remissions of duty are to be made are table chinaware and earthenware, linoleum and similar floorcloths, mats, matting and floor rugs of rubber or similar materials These are used in practically every household and should be admitted free, if of British make. The above articles have hitherto been very important re-venue-producing items. Tpe manufacture-of cement and asbestos building sheets is not, I am advised, now carried on in the Dominion, and it is proposed that such sheets should be exempt, when produced within the Empire. The Government also proposes to take the duty off galvanised corrugated iron of British origin. The industry, as at present carried on in New Zealand, is not regarded as one suited for the conditions prevailing here. It is intended also to reduce the duty on Tritish-grown maize, while retaining the present rate on the foreign article. This concession in duty should benefit the poultry and pig-raising industries. USE OF RAW MATERIALS. It is obvious that effective assistance ean be given to the manufacturing industries in the Dominion by reducing ,the duties on such raw materials, machinery and plant as are of necessity imported for their use. Wherever possible the Government has adopted this course and in several cases important ’concessions have been made on such imported goods. Some of the industries to which further assistance is proposed to be given by the reduction or abolition of duty on raw materials, etc., are the textile industry, by the exemption of raw cotton, and the admission free o’ Britishmade cotton yarns, the stationery manufacturing industry by the abolition of th duty on foreign paper in sheets, motor-ear assembling by reducing the duty on unassembled motor-car ..bodies, apparel manufacturing by the exemption, of silk piece goods of British origin, and industries generally by the exemption of Empire-made machinery required bv them when such machinery cannot be economically made in the Dominion. Certain British-made machinery to be used for industrial purposes was admitted free of duty, provided that it was of a class not economically made in the Dominion. At the same time certain other machines and appliances were specially mentioned as liable to duty at various rates. The effect of this was that none of the machines or appliances so specially mentioned could be admitted as for industrial purposes, and this was the ease whether the machines and appliances could or eould not be manufactur ’ in New Zealand. For example, Diesel oil engines are not at present made in New Zealand, but owing to the existence of a tariff item imposing duty on bi engines having less than 190 brake horse-power, there was no option but to charge duty on such .11 engines of that horse-power. It will therefore be seen that the new proposals provide the mean . for admitting ffee from British sources many machines and appliances which are required for the development of cur industries and which are nnt, as yet, economically made in New Zealand. CONCESSION OF £lBO,OOO. It is estimated that if the House adopts the proposals I have already dealt with in some detail, it will mean a Accession of about £180,030 per annum'; after allowing for any increases in <Stics to further protect local in-

dustries. As will appear later, there are further proposals which, if carried out, will result iu an additional amount of £150,000 being remitted, making a total of £330,000. “It must be understood that this estimate of the reduction in taxation, does not take into account the effect which the alterations ii the prefe'ence granted on Empire goods may .have upon'the revenue. If the changes to which I now refer give effect to the policy cf the Government, and thus divert to British countries any considerable portion of the trade now held by foreign nations, the result will be a further decrease in Customs duties. If, however, such a transfer does not take plat -, the decrease may be less. The Government has still further developed its policy of according preference to goods of Empire origin. During the last few years the importation of foreign goods has increased considerably, -and it is hoped that the proposals nowmade will result -in transferring a substantiaUproportion of this trade to those British countries which arc >ur best customers. It is not possible to forecast how far these alterations will achieve the objects in view. It is believed that in several eases the alterations made in the general tariff will have the dual effect of increasing Empire trade and the equally important result of affording assistance to local industries against foreign competition. The Government finds that, in a few eases, industries are being carried on which are not suited to New Zealand conditions, and that one or twe have been discontinued. In these eases it is proposed that the protective duties at present imposed be ab dished. Dealing with the individual retjlutions, I may state that the first abolishes the old tariff and substitutes the new rates. On this occasion it has been decided to allow the provisions f section 143 of the Customs Act, 1913, to operate. This means that if goods (not being warehoused goods) are imported into New Zealand before the coming Into force of the resolutions, but not entered for home consumption till after that time, -he importer is entitled to enter the goods either at the or the new rates, whichever is mott favourable to him. All warehoused goods entered for home constimplion after today will be subject to the new. rates. It is proposed to lay on the table of the House at an early date the port of the Tariff Commission in order that honourable member may have time to study it before the Tariff Bill comes down.