WOOLLEN INDUSTRY

Taranaki Daily News, 21 August 1930, Page 7

WOOLLEN INDUSTRY

NEW CUSTOMS TARIFF. ■ “SHODDY” FROM OVERSEAS. Comments on the new customs tariff and the importance of supporting local industry were made by Mr. W. 11. P. Barber, chairman of the Wellington Woollen Manufacturing Company, Lun-' ited, at the annual meeting of tho company on Tuesday. “After a lapse of 22 years Parliament has advanced the tariff on two items ’of interest to us, hosiery, and apparel,” said Mr. Barber. “I am sorry it was not done through a desire to develop industry, but because fortuitous happenings seem to have made it imperative to obtain furthere revenue for the State.

“The 2| per cent, increase, with surtax, less primage duty removed, will be about 6J per cent. This help we are, of course, pleased to get, but we are afraid its advantage will be completely destroyed by the removal of the 5 per cent, allowance on capital value of plant and buildings, with the extra I'o per cent, put on income tax. To meet the loss of this allowable deduction and added income tax, will require an increased turnover of, say, £20,000, at a net profit of 5 per cent. “The power taken by • the Government, by special provision in the Customs Amendment Bill, , enabling the Minister of Customs toI’remit 1 ’remit the new duties should the manufacturer, raise the prices in that behalf, • does not

trouble us, as our endeavour is to so-, cure a larger output, which obviously gives reduced production hosts, and therefore, lower selling prices.

“It is to bo regretted that in alter* ing the tariff the request for a specific impost on low, shoddy clothing, of which so much comes here, was not granted. The ad valorem duty on these cheap lines is negligible, having no de* terrent effect. That class of clothing is unprofitable, to the consumer and to the country; as it has no pure wool con* tent and so compete unfairly with all* wool goods. “It is difficult to understand why so many New Zealand people prefer to sup*, port overseas factories, not even when it is vital to the well-being of Great Britain and this country, and, therefore, to themselves, that industries should be built up. New Zealand has the reputation of being a prosperous country, and so it still would be if the bulk of the money for exports were ap*. plied to the employment of our own people instead of being used,to support other countries.

“Farmers should remember that every manufacturing industry established itt New Zealand represents a definite new. , market for primary products; every in« dustrial area provides the best possible protection for the primary producers and returns them better prices than they get by export. Some consumers seem to be afraid of local patriotism in buying. They think it means anti* ■ quated styles or inferior is one of those absurd prejudices which. New Zealand industries have had to combat for years and it is hard to de*’ feat.” " -