MOSTLY LUXURIES.

Waikato Times, Volume 110, Issue 18395, 31 July 1931, Page 8

MOSTLY LUXURIES.

CUSTOMS RESOLUTIONS. LIMITED TERM PROPOSED. . ESTIMATED RETURNS. (By Telegraph.—Press Association.) WELLINGTON, Thursday. Explaining the effect of the proposed customs resolutions, the Prime Minister, the Rt. Hon. G. W. Forbes, said when he had last year asked Parliament to increase the duties, he had hoped it would not be necessary so soon to ask the people to contribute extra taxation through the Customs. He thought, however, it would be agreed that the Government had adopted this method only as* a last resort. He pointed out that the duties would take effect subject to section 143 of the Customs Act, 1913, that was, that goods (other than warehoused goods) which had been imported at any port in New Zealand, would be liable to the old rates. This was in accordance with the procedure adopted last year. It was intended that the increased duties should cease to have effect at the end of 1932, and It would be seen that the resolutions made definite provision for reverting after the end of next year to the duties hitherto charged. This course was proposed with the object of relieving the public from additional duties at the earliest possible date, and at the same time leaving it to the next Parliament to determine whether any of the duties now proposed should be continued for a further period. Tea and Sugar Values. The main object of the proposals was to obtain increased revenue, and in framing them the Government, had endeavoured as far as possible to limit the number of items affected and to select, as far as was consistent with the object in view, those articles which were generally regarded as more or less luxury items. Any classes of goods which did not fall within this category . were chosen for special reasons. The Government regretted the necessity to Impose a duty on tea and sugar. Regarding the former, he said the average value in countries of export had fallen since 1928, and the cost to the. consumer, even with the proposed duty added, should be less than last year.,,. . . So.far as sugar was concerned, he said it should be remembered that the-proposed duty was less than that In force in certain other countries.

Referring to tobacco, Mr Forbes said whereas the duty <on cigarettes had increased during the last 15 years by nearly 'TOO per cent., that on 'pipe tobacco had, up to the present, been advanced just under 20 per cent. Even with, the proposed increase, the. duty on tobacco would be much less than in some other countries, for example, Britain. It was considered that the reimposition of the duty on silk, artificial silk and imitation silk might give some temporary assistance to New Zealand woolgrowers. It was proposed to increase the duty on apparel and hosiery in order that manufacturers in the Dominion of articles made from silk might not be prejudiced by the duty on their raw material. It was not considered that the reimposition of the duty on chinaware, floor coverings and gramophone records would inflict any real hardship on any section of the community. It was intended to insert in the bill, which would have to be Introduced later, a clause providing that whenever practicable and desirable, tho Minister might, under prescribed conditions, admit certain goods- at the rates hitherto in force when he was satisfied they were to be used only for manufacturing, industrial or similar purposes. Wheat Duty Alteration. It was with reluctance that the Government was compelled to ask Parliament to impose a 3 per cent, primage duty. Mr Forbes stated the estimated revenue from the customs and excise duty (excluding beer duty) under the new scales would, for the next financial year, total £7,410,000, made up as follows: —

Amount to be collected from duties hitherto in force, £6,500,000; amount expected from the new duties on the undermentional articles, including the surtax: Tea, £02,000; sugar, £220,000; tobacco, £180,000; silk, etc., £42,500; apparel and hosiery, £86,000; chinaware, etc., £62,000; other items, £47,500; primage duty, £180,000; amount expected from beer duty, £650,000. Referring to the wheat duties, Mr Forbes said the object of the proposed alteration was, vvnile giving the wheat grower reasonable protection lor the product, to bring down substantially the prices of flour, bread and other wheat products, and by reducing the price of wheat to assist the poultry farmer and other users of that commodity.

It was expected the price of flour would be reduced by £2 18s a ton when the new duties became effective, and if this was not done, the Government would, unless unanswerable reasons could be advanced, take steps to ensure that such reduction was made.

It had been decided to bring the amended duties into force after Hie end of February next, as indications wore that the current harvest would yield a larger quantity than was expected some time ago.