NEW TARIFF.

Star (Christchurch), Volume LXVI, Issue 20362, 20 July 1934, Page 14

NEW TARIFF.

“ Will Have Se rious Effect on Industries.” MANUFACTURERS’ VIEWS. The serious effect of the new tariff proposals on New Zealand’s secondary industries was commented upon at a special meeting of the Canterbury Manufacturers’ Association last evening. It was stated that dislocation and in some cases the annihilation of industries was threatened as a result of the tariff resolutions. Ihe effect on various industries was reported upon by sectional committees which had been set up at a meeting of the association last Friday night.' Some of the committees have already made representations to the Prime Minister (the Right lion G. W. Forbes) and the Minister of Finance (the Right lion J. G. Coates), while others are contemplating action in that direction. The president of the association (Mr F. W. J. Belton) presided over an attendance of about fifty, which included two representatives from the Trades Hall (Alessrs G. T. Thurston and J. Roberts). The meeting decided that a public meeting, as previously decided upon, would not be held. Unemployment would be intensified by the new tariff, declared many speakers. To exist, manufacturers would have to reduce their staffs, and probably also wages, and in cases force the employment of boys instead of men. In the clothing trade stress was laid on the precarious position of 800 women workers whose employment was threatened.

It was made clear that though certain articles in the schedule of the trade agreement between Australia and New Zealand were not altered, a large number of articles in the agreement were coming in from Australia under the British preferential tariff. When the preferential tariff was altered, as was proposed, it would be to the advantage of Australia. Incidence of Exchange Rate.

Though speaker declared that the higher rate of exchange was of no benefit to manufacturers' from a protective point of view, the president of the New Zealand Manufacturers’ Federation (Mr F. L. Hutchinson) said that if the exchange came off various industries would be subject to heavy dumping of England’s end-of-season’s goods. Another speaker believed that many English firms manufacturing in New Zealand would close down their branches.

Dealing with the effects of the tariff on the manufacture of electrical goods Mr C. S. Peate said that it was apparent that all allied industries would be affected and that at least some of the firms would not be able successfully to compete with British manufacturers if there were no tariff. It was estimated that about 70 men would be thrown out of employment Cessation of the manufacture of many electrical lines would be forced on local firms, declared Afrr H. C. Urlwin. Fierce competition with Australia would have to be met, compelling the use of boy labour in place of men. Air D. Wilson said that the president and secretary of the trades union concerned had been invited to attend the meeting of boot manufacturers. The workers in the industry had interviewed the Alinister, on whom a deputation from the employers would wait shortly. Women in Clothing Trade. The clothing trades were dealt with by Air A. AI. Hollander, who said that the rate of exchange was no protection to manufacturers. The speaker complained of the dumping of goods from overseas, and declared' that, quality for quality, New' Zealand manufacturers could compete with British firms. Unfair competition through the dumping into New Zealand, at prices below production costs, of English stocks which were opened up here as. new season’s goods, continued Air Hollander, would continue to militate against local industries until the dumping duties were made effective. In Australia the tariff against low-priced goods was sufficient to prevent dumping. It was estimated that the detrimental effect of the tariff on the trade would be 10 per cent, meaning that about 800 workers, mostly women, would probably lose their employment. The committee recommended that on account of the unemployment position imports should be regulated. Air 11. E. Otlev dealt with the sawmilling and allied industries. He said that the new proposals meant an average reduction of 33 1-3 per cent ; n the duty. The door industry had, since being given protection in 1930, grown to such an extent that now it was in a position to supply the New Zealand demand.

If the tariff proposals went through, 300 men would be affected, and the reductions would bear heavily on the small garages and importers, stated a representative of the motor-body building trade. The reductions in the furniture manufacturing trade was of 10 per cent, stated Air E. Archbold. At a meeting of employers and employees it was decided to take no action except in the case of radio cabinets and the manufacture and upholstering of chairs that could be knocked down. With the tariff reduced those articles would be imported under the British preferential tariff from Australia and Canada, to the detriment of the British manufacturer.