CUSTOMS ANOMALIES

Taranaki Daily News, 5 December 1930, Page 16

CUSTOMS ANOMALIES

DUTY ON RAW MATERIALS.

MANUFACTURERS’ COMPLAINT.

The position of local manufacturers - who imported their raw-.materials under a heavy tariff and whose finished product was sold in competition with tliat ot British makers whose materials were imported into the United Kingdom free of tax, and whoso product came into New Zealand at a low preferential rate, \vas discussed at a meeting of the council of the Auckland Manufacturers’ Association.' The question was raised by a letter from a hat-making firm in Auckland, \yhieh forwarded correspondence which had been sent to the Hon. J. G. Cob be on November 27.. “We regret that we have to inform you that we are closing down our factory on November 28,” stated the letter to ‘the Minister. “We are reluctantly compelled to take this course, on account of the anomalies which exist as. regards.the customs duties we have to pay on our importations and the unfair competition from England and the Contiient. These matters have been pointed out to you *on many occasions and have been just ignored, so that we have now reached a-climax.” . - After referring to a previous communication, sent on September 14, 1928, the letter states: “The people's and the country’s welfare seems to be no ones business. We make a definite statement that the customs point a revolver at the worker’s head and say to him that ‘You shall not have a job until your employer pays 52‘/ 3 per cent, duty on his raw material.’ This very raw material goes into England duty free and comes here made nito hats, oil which there is only 27 per cent, duty., “On top of this, all hats made in England‘are 'made of foreign raw ifiaterial and come out here as British inanufactu’es under a preferential duty. In many cases these hats cost 60s a dozen to produce and are invoiced at’l2s a dozen. New Zealand is the dumping ground of the universe. Italy is paying a bounty of 15 per cent, on all hats exported.” .“There is a lot of truth in what the 1 firm Jias written,” reniarked Mr. J. A. U. Allum. j . “There are certain anomalies nr the : tariff,” said Mr. ,U. B. Plummer. “There ’ is one class of|raw material on which 1 the duty is 52J per cent., but I think [ that that duty was designed to apply * to foreign goods. Taking 25 per cent. ■ as a basis., the' English manufacturer ’ gets his materials in free and sends E them out here under a 25 per, cent > duty. Dumping comes into the question 5 also. At the end of the winter or sum- * me- season at Home a quantity of goods ’ is sent here, and that does not help our ' manufacturers. The position is really '. rather serious.” > “The question of the British prefereii--3 tial tariff and the duty on'raw materials ' id a very serious one,” reniarked Mr. W. ’» Parkinson. • “I have no doubt that this z ha« 'been affecting all our industries.” * The president, Mr. George Finn, suggested that the matter of tariffs should be referred to the executive with a view to approaching the Government, and this was agreed to. . , > ,