CUSTOMS DUTIES

Dominion, Volume 10, Issue 3163, 15 August 1917, Page 6

CUSTOMS DUTIES

FURTHER AMENDMENTS PREFERENTIAL SURTAX ON FOREIGN GOODS TEA AND TOBACCO Certain amendments to the Customs tariff were made by resolutions introduced in tho House of Representatives yesterday. The Minister of finance (Sir Joseph Ward) explained that their effect was put to new preferential surtax duties on goods imported from foreign countries. The charges would promote inter-Imperial trade, and at the 6ame time would provido additional revenue to cover the cost of increases in old-age and widows pensions. The operative schedule of 'the regulations was as follows:— New or Amended Tariff Heading. All articles _ n.0.e., made of textile, felt, ■ or otTier piece-goods, or of any combination of tho same, wholly or partly made up or manufactured, and not being apparel or clothing either wholly or partly made up Drapery n.o.e Flags Haberdashery n.o.e Lace, and laces, n.o.e Ribbons, and crape, all tinds Rugs, woollen, cotton, opossum, or other Textile piece-goods n.0.e., including silks, satins, velvets, plushes, n.0.e., composed of pure sillc, or of silk mixed with any other material, in the piece, and including also imitation silks, composed pf any material or substance whatsoever .' Umbrellas, parasols, and sunshades Tarns n.o.e Apparel, and ready-made clothing, n.o.e. Feathers, ornamental (including ostrich); artificial flowers, leaves, and sprays Furs, and fur trimmings Hats of nil kinds (including straw hats), also caps Hosiery n.o.e Millinery of all kinds, including trimmed hats, caps, and bonnets Apparel made to the order, or measurement, of residents in New Zealand, and intended for the individual use of such residents, whether imported by the residents themselves or otherwise Apparel—viz., Volunteer clothing made to measurements sent from Now Zealand...

Sir Joseph Ward said that the effect of the amendment was to place a surtax upon goods that were noE the productions of the Britisli Empire. The result would bo increased revenue, since many of the articles in the schedule were imported from foreign countries. The extra money would be used to pay increased pensions. The term 'British Dominions" included tho United Kingdom. Locally-Manufactured Tobacco. The Minister added that one of the resolutions related to tobacco manufactured in New Zealand. Ho had been satisfied from reports that had reached him that tho new duties as originally proposed would have extinguished a local industry. In order to obviate that ho proposed that, tho duty payable on cigars, snuif, and cigarettes manufactured in flew Zealand, if so manufactured and entered for homo consumption aftor August 1, 1917, should be as follows :—(a) On cigars and snuff, is. the pound; (b) on cigarettes, if manufactured by machinery, 3s. Gd. the pound; on cigarettes, if made by hand, 2s. tho pound. There was a proviso that if the manufacture of cigars and snuff containing less than 75 per cent, .of tobacco grown in Mw Zealand became, in the opinion of the Minister, at any tirao hereafter detrimental to tho revenue, the GovernorGeneral may, by Ordcr-in-Councu, fix the maximum quantity of such- cigars and snuff that might be made annually by any manufacturer at the aforesaid rate of Is. the pound, and might prescribe a rate of duty not exceeding Gs. bd. the pound upon all cigars afld snuff made m excess of such maximum quantity. The Proposals Discussed,

Mr. C. A. Wilkinson (Egmont) said that the House would be glad to support tho proposed increase in preference to British goods. He would like to see the list extended. There was a great increase in importations of many lines from foreign countries. Big sums of money were being sent abroad tor hosieiy and motor tyres, to mention two lines. Stoglass was coming mainly from Amelica, and paid no duty at all. No pefcmice was given to tho British article. Much of the spirits came from the foreigners, that tho Federal Government had prohibited the importation into Australia Qf certain luxuries, including sprits and motor-bodies, during the war PWJ commended the Australian example to the Mow Zealand Government. Mr. A. Harris (Wmtemata) said if 'the purpose of the amendments was tor provide increased revenue, the result should be good. But if the amendments were designed to give preference to British -roods, they would not serve their puipose in all cases. The duties were being increased on articles that Britain was not producing, and the effect be to increase prices without benefiting tne British manufacturers. Mr J. Payne (Grey Lynn) said-that the Customs duties should be the very last resource of a Government in need of revenue. The workers 'of New Zealand were already too heavi y taxed, and they should not be required to bear additional burdens. The preference _to Britain would not operate freely during the war period, owing to the enforced limitation of British exports, and the preferential surtax would simply raise local prices. Tlj£ tax on tea should not be supported by the House. The Government was b?ing pressed to deal with the burning question of the cost ot living, and its sole effort in that direction was i- to put a duty on tqa._ The tax would increase the cost of liyinS; Mr. J. A. Young (Waikato) said lie agreed with the principle of preference to British goods. But it often suited forei"n manufacturers to ship manufactured goods to British territories, assemble them there, and then- sell them. The law demanded allowed 75 per cent, of the manufacturing to be done in n. foreign country without imposing the preferential surtax. He felt that foreign manufacturers should not be allowed to creep in under the preferential duties unless at least 50 per cent, of the value represented British industry.

Mr. P. C. Webb (Grey) said that New Zealand collected too much revenue through the Customs tariff. All taxes were paid eventually by the workers, since only the wealth-producers could pay. Increased Customs duties meant neiv burdons for the workers. He protested 'against the high . prices charged for foodstuffs in New Zealand at a time when the stores were full of meat, butter. and cheese, that could not bo shipped. The land of New Zealand, which was increasing by many millions of pounds each year, ought to be made to bear its fair share of taxation. Mr. W. Nosworthy (Ashburton): What will you do when the price of land comes down ? ' Mr. We.bb: When the price of land comes down the prosperity of New Zealand will so.up. The people who want land will be able to get it. Minister's Reply.. * Sir Joseph Ward, in rejily, said that the meat and chrcse held in store were owned by the Imperial Government, which had bought it for Imperial purnoees. The traduce was tiw Bobitct of

a definite contract, and the Government could not disregard the contract.

Mr. Webb: What about your State meat shops? Sir Joseph Ward: "Portions of the meat liavo been taken out." It was very easy for any member to talk loosely of what tho Government might do, l-ut as a matter of fact tho. Government must abide by the contracts. The resolutions did not increaso duties 011 any ]3n;.i»b goods. They simply put extra charges on certain foreign importations, wiiL. the double object of encouraging British trade and providing money for increased pensions. Members who had complained about high Customs taxation would not know of the position in other countries. Canada derived one-third of its revenue from Customs duties. The resolutions were adopted bv the House.

THE TEA DUTY TRADERS TO MAKE BE F r J\OS. An amendment to the Trade aiid Com merce Act was introduced ay Message from tlu Governor-General. Sir Joseph ward said that the object New preferential surtax 011 goods not being the produce or 'rescue duties manufacture of on all goods. British Dominions.

of the Bill was to provide that traders who had raised the price of -tea on which they had not paid l the new Customs duties should be liable to mako Tefunds. He could not deal with cigarettes in the same way. There were some difficulties in connection with cigarettes. The refund in the case of tea would be payable on either wholesale or retail transactions. Provision was made- tfiat in the case of tea imported after August 1, on which duty had been paid, tho onus of proving that the duty had been paid would rest 011 the importer. The whole purpose of the Bill was to prevent the exploitation of the public by traders who had taken advantage of the"" newduty on tea to raise the price of stocks imoorted beforo tho imposition of the duty.

Tho Regulation of TraiTo and Commerce Amendment Bill was put through all its stages .and passed.

20 per cent. 10 per cent, ad valorem. ad vakrem. 20 per cent. 10 per cent, ad valorem. ad rabrem. 20 per cent. 10 per cent, ad valorem. ad <°nloi-?m. 20 per cent. 10 per cent, ad valorem. ad rahrem. 20 per cent. • 10 per cent, ad valorem. .id valorem. 20 per cent. 10 per cent, ad valorem. 'ad-alorem. 20 per cont. 10 per cent, ad valorem, ad valorem. 20 per cent.- 10 per cent, ad valorem. ad valorem. 20 per cent. 10 per cent, ad valorem. ad valorem. 20 per cent. 10 per cent, ad valorem. ad valorem. 20 per cent. 10 per cent, ad valorem. ad valorem. 25 per cent. 121 per cent, ad valorem. ad valorem. 25 per cent. 12i- per cent, ad valorem. ad valorem. 25 per cent. 121 per cent, ad valorem. ad valorem. .25 percent. , ' 121-per cent, ad valorem. ad v alorem. 25 per cent. 12!-per cent, ad valorem. ad valorem. 40 per cent.. 20 per cent, ad valorem. ad valorem. 40 per cent. ,20 per cont. ad valorem. ' ad valorem. .