UNECONOMIC INDUSTRY

Evening Post, Volume CXVI, Issue 49, 26 August 1933, Page 15

UNECONOMIC INDUSTRY

GROWTH UNDER TARIFF

EXCISE DUTIES SUGGESTED

(By Telegraph.—Press Association.) AUCKLAND, August 24. The suggestion that the Tariff Commission should consider the imposition of excise duties to prevent uneconomic industries commencing in New Zealand and being developed under the shelter of a. revenue tariff imposed on overseas competitors was made at a sitting of the Tariff Commission today by Mr. W. J. Truscott, director of Spedding, Ltd. Professor Murphy, a member of the commission, had stated that the interpretation of Article XII of the Ottawa Agreement, which implied that revenue tariffs could not be imposed by New Zealand unless industries similar to those affected existed in the Dominion, ] was not subscribed to by the eomniis- j sion. It was contended by Mr. Truscott, when the imposition of revenue tariffs was being considered, that excise duties should be imposed to prevent the creation in New Zealand of uneconomic secondary industries. They should apply to lines upon which the tariff had been imposed for revenue purposes only. His idea was to prevent a purely revenue tariff from becoming a protective tariff by balancing internal production with equivalent excise. Professon Murphy: Do you want the commission definitely to consider the point? Mr. Truscott: Yes, I would like.the commission to consider it. Professor Murphy said that his own view' was that it would be competent for the commission to consider the matter, although he did not know the viewpoint of other members. He had often heard is said that a purely revenue tariff should not be permitted to become a protective tariff, and that this should bo done by imposing equivalentexcise duties. . He w-as of the opinion that this was economically sound, though difficult, and probably impracticable to .administer, but he . did not know whether consideration of it came within their order of reference,