CUSTOMS DUTIES

Wairarapa Age, 22 August 1934, Page 5

CUSTOMS DUTIES

Important Changes Made In Resolutions SAFEGUARDING DOMINION INDUSTRIES. MODIFICATION OF BRITISH PREFERENCES. STATEMENT BY MR. COATES. (By Telegraph.—“ The Age” Special.) WELLINGTON, August 21. Important changes in the Customs Resolutions introduced in July were included in the resolutions presented to Parliament tonight and to be passed before the sitting ends. The main .principle followed has been to alter British preferences along lines which will safeguard certain New Zealand industries capable of effective development, including the assembling of motor cars and lorries in New Zealand. Tobacco growers are also to be safeguarded by increased import duties and the production <tf~fr>baceo in New Zealand will be controlled by a supervisory body. Introducing the Customs amendments, the Rt. Hon. J. G. Coates (Minister of Customs) said it would be remembered that when he introduced the resolutions on July 10, he stated that it was proposed to afford those affected an opportunity of making representations concerning any items. A large number of such representations had been made. Many inquiries had as a result been instituted and much important information had been received. The Government now proposed to make certain alterations in the schedules. These were set out in the amending resolutions now before the House. A number of industries had failed to present their cases to the Tariff Commission. It had been urged that in such cases representations should not now be considered by the Government, the Minister stated, but his view was that the Government must have regard to the welfare of the community as a whole There were, apart from the proprietors ot industries, many others vitally interested therein, and it would not be right that merely because necessary steps were not taken, the interests of employees and of others affected should be je?P“’ dlsed - In addition to cases in wnicfc no evidence was supplied to the commission there were others in which further information to that submitted had come to hand since the report was hIS also had been considered by the Government in coming to its conclusions. An illustration of this ine d »ZT ‘V* foUnd in elw>fcric he atInfo^i- < ’° <>klnß a PP ]ian c® industries, information now available to the Government showed that there were at"t therein and TOs d^^‘° n WaS very consid ®table. Gon Breat l y from th ® informsa axlable to the commission. The SSnTb’? C ° m r gtO its a " d gX set ont COmf f ied with the principtes set out m the Ottawa Agreement and had fully earned out its obligations thereunder. ■ Minister explained that under with Australia and “ e ™ tes of dnty ’ except for «pee»J»j enumerated items, were those chargeable under the British preferGem s’ With res P ect certain items, for instance, wireless sets, it was BrirT' 1 ‘? at exemption under the l h P referent ‘ a ,- tariff should not take effect until May 31, 1935. This would enable the Government to take . r a ”w tt T Up Wi ‘ h Aastralia aad Can X “ VICW tO mak W a satisfacioM aj+angement witb those DominTOBAOOO DUTIES ALTERED Referring to some of the more' important items, Mr. Coates said the Government had decided to modify the titles on tobacco. Ender the original resolutions the rate on leaf tolmcco Je’r lb “ per lb ’ "> ls 6d per lb., and the excise duties were increased to approximately the same extent In addition duties of IJd and 1H for every 60 cigarette, papers were imposed under the British preferential and general tariffs. The Government had received a largo amount of informes a 1 the or’Pnal resolutions enme down and had decided to modify 2, Jr lh° n n af *° fcaceo and fix it at Wheil Was to be “sed in the manufacture of tobacco, cigars and »nnff. and at 3s per lb. in manufacture of cigarettes. The excise duties on those products had New 7 dj V Ste l d accordingly. The use of Aew Zealand grown leaf in the manufacture of tobacco had assumed, large proportions and unless some unforeseen development occurred it was difficult of S to2° W ltS ra V" the m anufacture of tobacco could be'increased to anv .very considerable extent. There an peared, however, to be a possibility of leaf T the large . f l aantities of local WHh » h manufacture of cigarettes. Ne_ v V I ICTT . oocooraging the use of n,7j± aland ' caf f “r this purpose, it a I been decided to increase the duty on imported leaf for making cigarettes to 3s per lb. The Minister said that in OIS view the proposals now made should be Mtjsfactory to local tobacco growers. Whough he was aware that thev were apprehensive as to the effect of any reduction in the duty on imported leaf. That there was no real warrant for this view was evident from the fact that one of the large local manufacturers had, since the resolutions came down, placed contracts for the purchase of local leaf to the extent that they would have done under the old tariff, and at substantially the same prices.

PROPOSED REGULATION. It had .become apparent, the Minister added, that some system of regulation was required if the tobacco industries were to bejconducted on a satisfactory basis in New Zealand, having regard to the interests of growers, manufacturers and the general communitv. It had been suggested by the growers that a committee or board to act as a supervisory body should be set up, consisting of representatives of growers and manufacturers and. presided over by a Government official. The functions, of such a body would be to consider regulation in respect of the following: . (a) (Jfcrntity and quality of leaf to be grown* (b) quantity to be purchased from time to time; (c) grading of leaf• and (d) price to be paid for such leaf. The committee could also deal with other relevant matters that might be referred to it. Manufacturers had in

general terms expressed their approval of the proposal and the Government intended to proceed with the matter, which would .be dealt with by the Minister of Industries and Commerce. He would go fully into the question and arrange for legislation with this end in view to be introduced later this session. , CIGARETTE’ PAPERS. With respect to cigarette papers, the Government had decided to reduce the duties to jd .per packet of 60 papers under the British preferential tariff and to Jd per packet under the general tariff. He was advised that this would enable cigarette papers in packets of 60 of good quality to be sold at 2d per packet. MOTOR VEHICLES. The Government felt that if there was any possibility of a satisfactory secondary industry arising in. the Dominion in connection with motor cars it . would be. along the lines of assembling cars imported in a knocked-down condition. At the same time this would enable New Zealand labour and materials to be utilised. “To show the extent. to which such an industry is possibly, capable of expansion,” said the. Minister, “I might mention that of registrations of motor cars during the last seven months about 80 per cent, were those of eight manufactured abroad. I am glad to be able to state that, generally speaking and subject to certain details which require to be gone into, English manufacturers are prepared to ship unassembled cars to New Zealand for completion here. If this can be achieved it will afford employment to a comddera'ble number of workers directly in the completion of the vehicles and indirectly in the utilisation of local materials. Further information obtained by the Government indicates that the concession already made on unassembled ears is not sufficient to encourage manufacturers abroad to have their vehicles assembled in New Zealand. It has, therefore, been decided ultimately to fix the duty on completed and unassembled vehicles at the following rates:—

British Preferential General r i . r. , Tariff - Tariff. Complete vehicles ... — 15% Inassembled 5% 50% these rates, the Minister stated, would not come into force until January 1 next. Under the (British preferential tariff the rate on both complete and unassembled cars up to December oil would be 10 per cent., and under the general tariff, up to December 31, the rate on complete and unassembled cars would be 55 per cent. Another modification proposed was that the concession at present restricted to unassembled cars should be applicable also to trucks and Chassis. This action would have the effect of reducing transport costs and at the same time would facilitate administration. It was proposed when the principle of admitting unassembled cars at a reduced rate had been confirmed by Parliament, to consult the trade with a view to arriving at a satisfactory definition of what was to be understood as unassembled or completely knockeddown vehicles. It was recognised that m the initial stages it would not be advisable, as a condition of admission at the lower rate, .to insist upon tho maximum amount of assembly work that could possibly be performed here The policy should rather be to insist at the commencement upon a minimum of work which must be carried on in the Vo minion and by degrees to modify the definition of unassembled or completely knocked-down cars, so that an increasing amount of local labour and material might be utilised.

WIRELESS SETS. It was proposed in the meantime to reinstate the old duties on wireless receiving sets, but to make the exemption under British preferential tariff apply after May 3! next. This d n, affOrd -,.. a ' 1 °PP Or tanity to deal with the position with respect to Australian and Canadian sets. As regard-

ed foreign sets, it was proposed to revert to the rates of duty in force before the original resolutions were brought down.

NAILS AND PAINT With respect to iron nails, it was proposed to maintain the existing duties tor a period of two years, when the duty under the British preferential tariff was to bo abolished. The matter could be again reviewed before the expiry of that time. It was proposed, hou ei er, to abolish the duty under the British preferential tariff on dog spikes, deck spikes and horse-shoe nails, wuiak were not made in New Zealand. With, respect to white lead in oil, it had been decided to postpone tne exemption for two' years. HOPS AND BEER. It was believed that if a reduction eould be made in the duty on imported beer, further contracts for the sale of our hops could ,bo placed in the United Kingdom. The duty on imported beer could not, however, be reduced without a corresponding - modification of the rate of excise duty on local beer, which from a revenue-producing point of view was for this country too high. .Resolutions now before the House provide, for a reduction of threepence a gallon both in import and excise duties. After May 31 next oak timbers in rough were to be admitted free of duty under the British preferential tariff and at <is per 100 sup. feet under the general tariff. A final decision as to the duty on English chinaware had been postponed.

In addition to those already mentioned, alterations are proposed with re-

spect to a number of other items, including the following duties increased pnder the British preferential tariff (rates proposed in the original resolutions shown in parentheses): —Confectionery, 25 per cent. (29 pep cent.); jams, jellies and preserves, 2d per lb. (Id per lb); waterproof 'clothing and corsets, 25 per cent. (20 per cent); tarpaulins, tents, sails, rick and wagon covers, 15 per cent. (10 per cent.); dry electric batteries and cells, 15 per cent, (free), (general tariff rate has a.’ o been increased by 15 per cent ad val.); electric cooking and heating appliances 20 per cent, (free); cast and wrought iron pipes not less than 4in. in internal diameter and not exceeding 12in. in internal diameter, 20 per cent, (free); tinware and tin manufactures, 20' per cent. (15 per cent.); wooden doors, 25 per cent, or 4s per door, whichever rate is (higher (25 per cent), (general tariff rate on doors has also been altered to 55 per cent, or 7s (id per door whichever is higher). It is proposed to abolish the duty under the Brit..- preferential tariff on musical instruments, including pianos. LABOUR LEADER’S COMMENT. Commenting on the resolutions, Ithe Leader of the Opposition, Mr. M. J. Savage, stated that he regarded them as a creditable move forward in the development of New Zealand’s secondary industries, but he deplored the Government’s lack of a detailed policy in, this respect.