NAIL MANUFACTURING

Evening Post, Volume CXVI, Issue 106, 1 November 1933, Page 20

NAIL MANUFACTURING

NEW ZEALAND INDUSTRY

DUTIES ON IMPORTS

* Alterations in the present duties on imported nails, tacks, and dog spikes were sought by the .Auto , Machine Manufacturing Co y .Ltd., before 'the Tariff Commission yesterday. A request was made for the specific duty of &2 per 'ton'on British nails to be altered to an ad valorem-duty of 20 per cent. It was also asked that a duty; of 30' per cent., or, alternatively, £3 per ton be imposed on imports from, other parts of the Empire, and that the foreign duty be either 40 per cent, ad valorem, or £4 per ton,,as at present.: A statement presented by Mr.1 W. G^ Harrison, sales manager of the applicant company/set out that the nailmaking industry had been established in New Zealand for twenty-two years. During tho last two or three years, mainly owing to the cessation of building activity, the industry had suffered severely, but, given the degree of protection - allowed by Article 8 of the Ottawa Agreement, the industry had sound prospects of continued success. It was claimed that the cost of nails to the consumer had not increased as a result of the tariff protection hitherto given to the local industry; on the contrary, the; New Zealand competir tion had repeatedly and directly forced down the price of imported nails. The higher costs of efficient and economical production in New Zealand considerably exceeded the duty sought against imports from the United Kingdom, and tho local freights more than offset the freights paid by competing imports. The New Zealand industry in no way conflicted with tho interests of the "United Kingdom, the .. position being that manufacturers at Home were still using a large amount of imported material while the New Zealand industry was using wholly British material. Two of the largest steel worka in England had written asking that the Commission should maintain the.duties on imported nails, / including imports from tho United Kingdom. Mr. Harrison stated that although tho English nail-making industry had expanded since 1930, under tho protee-i tion of the new United Kingdom tariff tho manufacturers were still unable to meet the requirements of the English markets, and about 20,000 tons of nails were being imported annually. It was therefore apparent that of nails from England to New Zealand must correspondingly reduce the quantity of nails available for tho English markets, resulting in an equivalent importation of nails into England from foreign gourccs. England was also importing a great portion of the material (wire rods) used for nail manufacture, and it was claimed that as the United Kingdom wire-nail manufacturers were unable to supply their domestic market fully, tho interests of English manufacturers of nail wire should be- preserved by the retention of the duty necessary to protect the New Zealand nail manufacturers.