The Gisborne Times PUBLISHED EVERY MORNING. TUESDAY, SEPTEMBER 17, 1907. THE DUTY ON BICYCLES.

Gisborne Times, Volume XXV, Issue 2187, 17 September 1907, Page 2

The Gisborne Times PUBLISHED EVERY MORNING. TUESDAY, SEPTEMBER 17, 1907. THE DUTY ON BICYCLES.

A few days ago, in discussing the proposal of certain persons interested in tho cycle trade that the duty on imported bicycles should bo raised to £2 per machine, wo protested strongly against such a suggestion. Our objection was based on the belief that such a duty would impose a very heavy tax on tho public without creating a local industry or substantially increasing an oxisting one. For our temerity in taking up such a stand we were taken to task by the representative of a "Wellington cycle firm - who happened to be in Gisborne, and who appeared to labor under the delusion that he possessed the whole of the .available knowledge on the cyclo trade. His repeated charge of ignorance on our part left no.other impression. Tho head of one of the largest cyclo firms in the colony lias now written us from Wellington, and tho tenor of his letter, published in another column, suggests that we were not so ill-informed as Mr "White-Parsons would have our readers believe. There were, in round figures, 13,800 bicycles imported into New Zealand last year. Assuming that a prohibitive duty had been imposed, the whole of these would have been imported in parts and assembled locally. One pound’s worth of labor spent on each is a liberal estimate, and under these circumstances 108 persons could have been employed at an average wage of £2 10s per week. Yet Mr.. WhiteParsons assured our readers that with a £2 duty the industry would in a couple of years engage at least oouO persons. It is rather suggestive that immediately following this extraordinary statement of our correspondent came the illuminating remark that we might obtain enlightenment by further investigation of the cyclemaking industry. This investigation has been made, but the result has been to thoroughly confirm our previous conclusions. Had imported bicycles been barred from entering New Zealand last year tho Customs revenuo would have suffered to the tune of £23,000 in order that 108 persons might ho employed at an average wage of £2 10s per week. We believe in protecting local (industries as far as possible, but there must be an economic basis for the adjustment of tariff rates. This fact, wo are glad to note, was recognised by the Minister of Customs, who refused to accede to the request that ho should increase tho present duty of 20 per cent. He has, however, agreed to allow all parts required by local assemblers to come, in free of duty, and, as pointed out before, this concession to the local industry has our cordial approval.