TARIFF CHANGES

Taranaki Daily News, 13 August 1930, Page 11

TARIFF CHANGES

PETROL TAXES TO REMAIN higher duties on timber SOME TOBACCO AFFECTED ■ OTHER ALTERATIONS MADE By Telegraph.—Press Association. Wellington, Last Night. Following are the alterations in the Customs tariff made by resolutions passed by Parliament to become effective to-day, but subject to Section 143 of the Customs Act: — Tobacco (manufactured) has been increased from one to three shillings per pound. Spirits are now 40s. per liquid or proof gallon, according to kind. The proposal to abolish the allowance for under-proof spirits has been abandoned. The duty on spirituous culinary flavouring essences has been increased to 40s. per gallon.

Plain glass bottles and jars over one ounce have been increased by 15 and 20 per cent, to 25 per cent, for British, and from 40 per cent, and 45 per cent, to 50 per cent, for foreign. Others, if British, are free, while.those of foreign origin pay 25 per cent. < For watches the foreign rate has been reduced from 45 to 35 per cent.

OilSj ;except vegetable oils in vessels of lesS than' one gallon will now pay 40 per cent, if foreign. Round, unworked logs pay 255. per 100 cubic feet. Laths and shingles now pay 205.. Rough, sawn or hewn timber in large sizes pays 7s. 6d. per 100 superficial feet, and small sizes 9s. 6d. per 100 superficial feet. Sawn dressed timber pays 19s. per 100. .superficial feet. .'The' 1 following alterations have been made in excise duties: —Cut tobacco and cigarette and other tobacco has been, reduced by Is. per |b. Cigars have been rbdii&ed by 2s. ■fid. per’ lb. The duty on alcohol used in toilet preparations and culinary and flavouring essences has been increased .by 4s. per gallon. PREMIER REVIEWS CHANGES. Urgency was accorded the passage of the nevf Customs resolutions and the Customs Bill in the House of Representatives to-night. In reply to a request from Mr. W. D. Stewart, the Hon. G. W. Forbes made a statement outlining the effect of the new resolutions. He said many representations had been made to the Government concerning the proposals,' and where it had been shown that any hardship might be inflicted on any section of the community or that any industry or trade might be prejudiced by the new duties, relief had been given insofar as the objects the Government had in view would allow. Referring to tobacco duties, Mr. Forbes said it .was’’proposed to revert to the former excise rates and increase the duty oh leaf tobacco to 3s.' per lb. This could not prejudice local tobacco growers. The abolition of the allowance for underproof spirits would disorganise the trade, and bottling would not in general take place unless the Government made special provisions involving a loss of revenue. Therefore it had been decided to restore the allowance for underproof spirits, but to increase all round the rate on spirits from 365. to 40s. per* gallon. Wines containing over 40 per cent of proof spirit, also spirituous culinary and flavouring essences, .had been increased to 40s. per gallon.-

Increased proteetion had been given to New Zealand glass bottle and jar manufacturers by raising the rate on all bottles and jars to 25 per cent. ad. valorem, plus surtax, while the duty on foreign articles was now 50 per cent, plus surtax. In view of the increased duty from spirits it was possible to reduce the rate on foreign watches from 45 to 35 per cent.

TIMBER TRADE DEPRESSION. In view of the severe depression in the New Zealand timber industry it had been-,' decided to further increase the duty on', rough sawn timber to the extent of 2s. per 100 super feet, 9s.'6d. per 100 super feet on such timber in small sizes, and 7s. 6d. on bulk timber. The.duty on sawn- dressed timber was now’:, fixed at 19s. per 100 super feet, while unwork d logs and hewn timber would be. placed on the same footing as rough sawn timber. The duty on laths and.', shingles had been increased from JLflj?'-to 2o per cent. 4 In view of the necessity to secure revenue, no alterations were proposed in the petrol duty. The Government regretted having to increase the Customs duties at the present time, but the alterations had been so made as not to place any undue hardship on any section of the community. . Answering questions raised by several members, Mr. Forbes said the new resolutions would result in a slight increase in revenue. Mr. D. Jones gave; notice that he would later move for the removal of the duty of £1 a ton on British cement. Mr. C. A. Wilkinson complained of the extent to which the timber duty had been increased, and intimated that he would vote against this proposal.

Mr. W. J. Polson, said there must be something very far wrong- with the New Zealand timber industry if it needed altogether 200 per cent, protection on dressed timber. He added that the duty on rough sawn timber amounted to over 100 per cent. This was a much greater increase in duty than Canada had imposed on New Zealand butter, and he questioned whether it was right to raise such a wall against one of the principal exports of a sister Dominion.

SAFEGUARD TO PEOPLE. Mr. F. Langstonc said it was the desire of New Zealand timber millers to capture the local market to the extent that the mills would bo able to work full time. More people would be employed and the capital invested in the industry would be used to the full extent. It might then follow that there would be a decrease in the price of New Zealand timber. He believed the people could in the' meantime be safeguarded against increased prices. Mr. Forbes said there, would, be a clause in the Customs Bill to empower the Minister to take off thy duty if it was found that the local industry was using it for Mr. A. Harris pre,dieted t&tt ’the new 1

timber duties would raise the cost of building throughout the Dominion. Mr. Semple submitted that New Zealand companies had not adopted the latest methods of dealing with timber. He urged the Government to set up a board to investigate the possibilities of the more scientific development of all industries.

Mr. H. T. Armstrong said he was going to vote for protection that would enable a decent standard of living for New Zealand workers, even if it did mean 200 per cent. duty. Mr. W. E. Barnard said that an important factor to his mind was that the duty would be instrumental in providing employment for 1000 to 3000 men.

Mr. C. Carr suggested there might be some differentiation between the British preferential and general tariff on timber. He could not agree with Mr. Semple that the industry was not being conducted effectively in New Zealand.

Mr. C. H. Clinkard said it was unlikely that there would be any material increase in the cost of building as a result of the duty. Mr. H. M. Rushworth questioned whether it would be possible to secure an effective arrangement to prevent increased prices for local timber. He mentioned that on a former occasion timber had been regraded and had thereby defeated the object of the arrangement.

The Prime Minister said he thought the industry should be given a chance. The millers had indicated that as a result of protection they would be able to employ more men and probably reduce prices. Replying to Mr. Polson Mr. Forbes said the Industries and Commerce Department would be called on to decide whether. there was any exploitation as a result of the tariff. .. The resolutions were then adopted. The Customs Amendment Bill was introduced by Governor-General’s message and read a first time. The Prime Minister, moving the second reading, said the Bill gave statutory effect to the resolutions that had been passed by the House. Since the original resolutions had been adopted there had been very little opportunity to check the avenue with the estimates, but the returns for that short period indicated that the revenue would fall short of the estimate. It did not follow, however, that there would be a shortage. The amounts collected from July 23 to August 12 were: Customs duties, £415,132; petrol, tax, £95,753; tyre tax, £49GB; beer duty, £25,515; total, £541,373. • Mr. Coates said it had to be remembered that the primary producer was up against severe world competition. It was essential that his costs should be kept as low as possible to enable him to meet his competitors on a fair basis and at the same time maintain a reasonable standard of life. Mr. Coates added ho would have preferred the Government .to have, extended the policy of Empire preference rather than increase the tariffs all round. It would have been desirable, for instance, to have reduced the duty on British cars and trucks while increased duty on American cars would not have been out of place. He did not, however, favour placing a heavy tariff on foreign goods which could not be produced locally or in the Empire, and which were necessities. He asked the Prime Minister what he intended to do in consequence of the Gmadian tariffs against New Zealand produce. He suggested the duties on motor-cars exported from Canada but largely manufactured (in partsin the United States, might Ire reviewed. It might be feasible at the present day to impose more stringent condjtions as to the Canadian content in the capital, labour and material employed in the manufacture of motorcars.

Referring to the petrol tax, Mr. Coates said he was certain there was no need to 'adopt the attitude that the course accepted by the Government was the only possible one. Before the Government rejected the scheme embodied in the Highways Act it should produce a better pnej-buii it, had not done. so. (.Toft