DUTIES TOO HEAVY.

Waikato Times, Volume 111, Issue 18641, 20 May 1932, Page 9

DUTIES TOO HEAVY.

A REVISION SOUGHT. ITEMS TO BE LISTED. I In the opinion of members of the Wellington Chamber of Commerce Council many of the existing New Zealand Customs duties have been unscientifically applied. At a meeting this week a move was set on foot to bring about a revision of the schedules. 'J’lie following resolution in tho form of a notice of motion was placed before members: —“That this council Is of opinion that tho Customs tarifl should at an early date be reviewed, and the incidences of recent increases exhaustively investigated. Increases in many cases have had the effect ot making' importation unprofitable, with resultant decreases in Customs revenues; a great many of the importations affected arc such that with a more scientillc ad.iuslmenl of duties the Government would ho assisted m relarding Hie serious decline in the revenues derivable from the Customs." Had tho Opposito Effect. Alt must he aware, said Mr M. G. C. McCaul, in introducing the motion, that revenue-producing Customs duties imposed on certain items had had tho opposite effect from I lie one intended. The articles in question had been replaced by others on which tho duties were lower, lie suggested that. I lie Customs I leparl meul’s oilieials should study Hie problem carefully, aud, if

' necessary, call evidence from the commercial community. Taking tne case of tobacco, lie said that in 1927 the imports of Hie oldstyle flne-cut cigarette tobacco amounted to IG,BBBIb. Because of Hie Increases in the duty on this class if tobacco the public had practically 1 given it up, and in 1931 only 2962ib was imported. Coarsc-cut tobacco, which had been substituted, to-day' paid a duty of 6s 52c1, as against 13s lid on the other line. In the old days, Mr McCaul proceeded, Manila cigars could be obtained at 5 for Is, while a good Havana could be bought for (Id. To-day the Customs duties had almost killed tho sale of cigars, the levy having risen from 7s lo 15s 9d a lb. As a resuit llie imports had fallen at the following approximate rate:— 1 927 31,00011) 1<)28 28,0001 b 1029 25,0001 b 1931 6,0001 b Such items, added Mr McCaul, showed how money was being lost. He suggested that, in these cases, if duties were reduced, revenue would he increased. Me W. Simm: Is it not a fact that coarse-out tobacco is New Zealand grown? Me McCaul said the duties affected both New Zealand and imported tobaccos. Perhaps Rather Premature. The chairman (Mr .T. Pearce Luke), president of 1 ho council, suggested that tlie chamber, before sending Hie resolution forward, should await Hie results of the Imperial Economic Conference at Utlawa. 11l view of the fact that the Customs Department was

working at high pressure preparing for the conference, he felt that the resolution was a little premature. Mr E. R. Render said that even if the only effect of the resolution was to bring about a distinction between protective and revenue-producing duties it would be worth while. In the opinion of Mr Simm the Customs authorities would welcome information as to the lines of merchandise on which duties should be revised. Mr \V. B. Matiieson said he felt sure that the Minister of Customs would hasten lo adjust the present duties if lie thought that such an action would bring about an increase in revenue. There had been too little scientlfio adjustment of duties. Mr C. J. B. Norwood said he did not think Hie resolution should go forward without being accompanied by a reasonable number of specific cases. “I agree with the chairman that we are moving a little too fa3t,” said Mr A. Seed. “The question of tariffs is lo be dealt with at Ottawa, and Customs duties subsequently must como up for revision. Then would he the lime to bring Hie matter forward.” The chairman suggested that Air McCaul should abandon his resolution in favour of one calling upon tho chamber to draw up a schedule of items typifying the need for a revision of duties. Mr McCaul agreed, but; after further discussion Hie question was referred to the joint importers' and exporters’ committee, pins the local industries committee, with a view to drawing up a list of items.