IRON INDUSTRY PROTECTION

Hawera Star, Volume LIII, 19 June 1933, Page 5

IRON INDUSTRY PROTECTION

REQUEST BEFORE COMMISSION SAFEGUARD AGAINST DUMPING (By Telegraph—Press Association.; WELLINGTON, June IS. Tlie problems of the Onekaka Iron Company, in liquidation, were piacv before the Tariff Commission yesterday. Charles Gilbert Whyte, a receiver, on behalf or debenture holders said that pig iron was at present admitteu free. He suggested that, this shoum outinue to apply to the United Kingdom, but that a duty of 20 per cent, be placed on other Empire pig iron and 30 per cent, on all foreign sup plies. The. iron industry w>s a. key industry of the Dominion, and. in addition to the capital invested by shareholders and debentures, the' Government also had a financial interest in ■ the company. The Government also collected royalty on iron and the coal used. The whole of the material used was obtained in the Dominion. Before operations, were started at Onekaka imported pig iron was worth £l3 a ton. With the commencement at Onekaka it was lowered to £&.

Mr. Whyte, said that with the. depreciation of the Australan exchange they were subject to competition from the Commonwealth, which they con sidered amounted to dumping. If they, obtained the New Zealand market the, could cater for its .requirements. Professor Murphy , pointed out that the balance-sheet showed consistent losses, in spite of the fact that the company received the assistance o the Government, They felt some concern as to whether the iron industry should be protected. Mr. Whyte replied that if they were protected from unfair competition frorrAustralia they would be able to plac. the industry on a profitable basis. Professor Murphy said the Indian Tariff Commission and the Australia! Commission both pointed out that i. was not a wise practice to protect * single industry. He asked Mr Whyte whether he was of the opinion that a. single, industry should be protectee by tariff or bounty Mr Whyte replied that he did not think a bounty the correct way to dea. with the position when iron was being dumped into the country. He sa-d that if the company had not exreri merited with iron pipes it would have been in a better position to-day. At one stage it sent a shipment of ;ro. to Australia, hut while the. boat- wa; at the wharf- the Australians increased the duty to £2 a ton. He was con fklent that the company could suppe all tlie requirements of the New Zealand market. Professor Murphy said that if tin duty were raised high enough tlie: would be assured of a local market. Mr Whyte said they only wanted t< be safeguarded against dumping. A ore sent they \vt\re able to work t n blast furnace tor three months only If the furnace were working cent: nr. ously they would be able to red accosts. Replving to Mr Pascoe, witness «an that New Zealand iron compared fav wirablv with iron in. other parts o tlie world, and it could be made to am 'pacification. Two or three foundries preferred Australian Iron because-'T was cheaper. , . Mi* Pascoe: Are there any founcine* which sav it- is not suitable? Mr. Whyte .said two foundries saw they got better results from Seottisl iron. Representatives of the company wen further examined in camera.