NEW TARIFF PROPOSALS

Taranaki Daily News, 24 July 1930, Page 13

NEW TARIFF PROPOSALS

BUSINESS MEN’S DISCUSSION

ATTITUDE TN NEW PLYMOUTH.

SURTAX NOT A POPULAR CHARGE.

The new tar iff proposal were the subject of iis 'u s sif» at. a sjeCal meeting ef the Taranaki Chamber of Commerce last night, when Jie various articles affected by the proposed changes were discussed in turn. Finally it was decided to take no further action at present beyond pas: ing the following resolution;''’ “That while recognising that the Government is forced by the presentstate • f the country’s finalces to obtain additional revenue through Cus-

toms duties, the Taranaki Chamber of Commerce hopes that the imposttion of a surcharge is entirely a temporary measure, and will be removed at the earliest opportunity.” 1 Those present were the president (Air. J. AlcLeod) and Messrs. S. E. Shaw, J.' McNeill, A. F. Sandford, W. F. Short, E. C. Hayton, G. Champion and Brinsley. ‘ The chairman explained that the meeting had been called as the result of comments on the new tariff proposals made by a number of New Plymouth importers yesterday morning. Some of the merchants had been very loud in their condemnation of the new schedule, ax i it was rather unfortunate that those who had been loudest ifi their complaints had not put in an appearance at the meeJng. It was suggested that the meeting should discuss what appeared to be anomalies in the new tariff and suggest any aiue-la-ments that might bo considered mure equitable. The fact was that the. Government found it had to find an additional sum of approximately £BOO,OOO, and the new schedule of tariffs was its way of getting it. Nothing that the meeting could do in the way of passing rjs-du-. tions would be of any use unless alternate means of obtaining the money were suggested. He was sorry that one or two men, who had been most active in discussing the matter yesterday morning had not attended the meeting in the evening. HEAVY TAX ON SPIRITS. Introducing discussion by reference to spirits Air. AlcLeod said that the total duty now payable on a bottle of whisky was about 6s 3d.

As far as onions were concerned Mr. McLeod pointed out that the new duties were £3 a ton against Canada. Mr. McNeill said there were a lot of onions from ’Frisco on the water at present, and these would be affected, but onions were only a small detail in comparison with the other commodities. It was explained that the duty on cigarettes, which used to be 25s 6d a thousand,' was now 33s 9d a thousand plus a surcharge of approximately 22J per cent. Mr. McNeill pointed but that the duty on each packet of cigarettes was now over 4d, so that if the public paid 9d a packet they were really paying only 5d for the actual packet of cigarettes.

Fine cut tobacco for cigarette making, it was shown, had increased by no less than 60 per cent., or 9d a 2oz tin. The result would be that New Zealand tobacco would now be practically the recent price of imported tobacco. Cigarettes made by machinery from imported leaf had had their duty increased from 5s 6d to Ils.

DUTY ON MOTOR VEIIICCLES.

With reference to importations of motor vehicles Mr. Shaw said the increase was 5 per cent, on foreign and 1J per cent on British. Mr. McNeill assessed this as an increase of £3O on a £4OO American car. Mr. Sandford said the Government would probably have to reduce a lot of the increases before long.

Mr. Short: They are out of all reason.

Mr. McLeod pointed out that generally speaking they could criticise the new tar ill’s, but it was no.use doing this unless the chamber could criticise constructive-, ly and offer alternative methods of obtaining the money. He pointed out that the schedule was specially arranged so that the cost of living should not be increased if possible 'J he pm age md been abolished and had been replaced by a sur-tax, so that goods that were now “free”- were absolutely free. The trader who was most to be pitied was the man who was handling petrol and foreign motor-cars. It was assumed that if gcod times were experienced say, for the next two years, the surcharge would gradually disappear. On the motion of Mr. McLeod a resolution was passed as stated. AUCKLAND COMMERCIAL VIEWS. WILL PETROL TAX BE PASSED ON. Auckland, July 23. The general opinion among petrol retailers is that the wholesale companies are unlikely to absorb the increased tax. Retailers have not increased their prices, but are awaiting action by the wholesalers. , . . Tobacconists express the opinion that even if cigarettes are raised by only a penny a packet they will be selling at a loss. This applies both to local and imported cigarettes. A unanimous opinion is expressed that the new duty should not apply to cigarettes of New Zealand manufacture. The increased rates on cigars would kill the cheap cigar trade. °Mr. J. A. C. Allum, chairman of the Transport Board, commenting on the preference to British goods, said there was more necessity than ever to be absolutely certain that they really were British and not foreign goods supplied through a British channel. That could only be done by the Government insisting that the percentage of British labour and material in such goods should be at least 75 instead of 50, as at present. Mr. Allum added that it seemed to him that the new tariffs would seriously aff ?t foreign imports, from which a large amount of Customs revenue was derived, and, in the case of foreign goods which were essential, an undue burden would be placed on users. Mr. G. Finn, president of the New Zealand Manufacturers’ Association, said the new tariff would not increase the cost of goods. It would probably emphasise the preference for Dominionmade articles. He commended the clause providing that if manufacturers did raise prices the Government might reduce the protection. Obviously the tariff would benefit local manufacturers,

some being singled out for preferential treatment, but he thought the choice just. The weakness of the measure wasthat if preference was given to local manufacturers the quantity of imports would be less and there was a possibility of it being a vicious circle. This latter view was expressed also by Mr. M. Stewart, president of the Chamber’ of Commerce, who said if imports fell the measures might defeat their own . ends. .

The first vessel arriving at Auckland who..e cargo’comes .under the new tar*’ iff is -the Paki Paid,' due from Liverpool late to-day. The steamer was due here a week ago, but apparently was de- . layed by Pacific storms. Her cargo includes whisky, machinery, Manchester* goods and general manufactures. “It may be a little premature to comment on the increased petrol tax, in view of the fact that the matter has just come before the House,” said Mr. Batt, chairman of the Wellington Automobile Club, when asked at Wellington his opinion of the • effect of the tariff on. motorists. “Apparently there is going to be a certain amount of opposition to it, but in view of the fact that the ' gros-> motor taxation in New. Zealand to--day is already £3,994,975, as compared with the total income tax of £3,319,877,y a good deal might be said for the motorists. As a class they are contributing in special taxation almost the. same amount as the total income tax collect-• ed. There is every reason to believe that commercial motor owners and the motor trade will join forces in opposing what can only bo regarded as a most inequitable tax.” Petrol retail prices were increased in Christchurch this morning. First grade is 2s Id per gallon instead of Is lOd, and second grade 2s instead of Is 9d. Mr. A. H. Allen, president Of the Dunedin Chamber of Commerce, commenting on tho tariff, said that while he felt that preference should always be given to tho products of the Empire, the foreign manufacturer was now so heavily penalised by Customs taxation as to suggest that the manufacturers costs of the Empire manufacturers required, serious overhauling to ascertain why in the face of such handicap the foreigner could continue to deliver his goods to the New Zealand consumer at a price not in excess of, and frequently below, that of the British manufacturer. He was pleased to note the displace ment of the primage duty by the surtax, for it would make more equitable taxation among all. Importers considered that instead of further taxing the people and primary producers the cost of Government to the country should ba substantially reduced by greatly diminishing the huge numbers of civil servants now administering State departments.