PREFERENCE TO BRITAIN

Hokitika Guardian, 2 October 1924, Page 1

PREFERENCE TO BRITAIN

AMENDED CONDITIONS. 7,j RKR CENT HU TITSH .MAX UFA Cl UltK. WKLLIXOTON, Sc; tember TO. In tlm House ol Representatives this afternoon the lion. W. Dowitie Stewart, .Minister of Customs, read a statement on the subject of Itritish | referential trade, durin" Hie eon roe of wbiclt be said: 'file Oovernineiit has had under consideration for some time the. conditions under whit It prcfereiHc is "ranted by the Xew Zealand Customs tariff to omuls*manufactured or produced in the British Empire. An article initially manufa: lured in a lure ion country is entitled to Infill' prefeieme if oncfourfli of the factory or works cost of the finished article represents expenditure in Empire material and labour. It is IT.-!t Hint this -condition is 100 easily complied with and articles of essentially foreign character are treated as Ilritish for tarilf purposes when only a. comparatively small part of the manufacture lias taken (late within the Kmpii’e. Wh.oi arti.eleis thus • liialif.v too easily for tarilf preference the result Is likely to be prejudicial, not only to manufm tillers in other Ilritish countries, hut also to those in the Dominion itself. So far as Umpire industries outside New Zealand are concerned an illustration < f tin* possible working of the present regulations may he seen in the ease of motor-cars. The clmsis, which may he considered as the really important part of the car, may le made in a foreign country. Suppose it costs £I.~iO. by the addition to it in England cr Canada of a elieap body, costing as little as Cofl. making a total cost of £2OO. the complete cor qualifies for tariff preference. So far as .Vow Zealand Industries are comerned the fact that our own manufacturers are prejudiced by the case of the manufacturer of motor-i nr bodies referred to above and by many similar instances of width the following will serve as an example. Xew Zealand manufacturers have tn pay duty on foreign writing paper which they use in making envelopes, writing pads. etc. 'file British manufacturer obtain the same foreign material without liavimr fo ] ay any duly, and envelopes, pads, etc., made therefrom qualify under pie.sent conditions for tariff preference, 'flic finished article in mauv cases is thus admitted to Xew Zealand at a rale little higher than that ehai"ed to the local manufacturer on file raw material. In cif w of all those circumstances the (inventniellt has lieen in close ciiusiillation with the Australian Government-. which is anxious to adopt 7.A per cent as the basis ol ptvlerenro. and looking to (lie interests of Xew Zealand. and with a view to uniformity of .-Ktioii no the part of both Governments it lies been decided to amend the

present basis of Ho )or cent and provide that "noils shall not he entitled to he admilled under tin* British pro. fernd ini Infill' unless at least 7-1 per lent of factory or winks costs is accounted for by llriti-h material, and nr. labour, with tin* exception that where "cods are made in Ilritish possessions wholly from unmanufactured raw materia!, of lorei;'n 01 ieiti. tan li ■ •noils will If logo rile I as qualilying be i Il c, j o ,d.!c that ai t mil cx|n I n il' c • I the i.i-w ;.\.si"ln may slo w that the 7o per lent basis i.s 100 high, and in such ca.se the matter wil lie reviewed hut not until it has been in lorn.' a sulfcicnt length of time to judge its dl'ects. I! th Australia and Xew Zealand Lave a "feed to de'eto a condition which in the o; ininn of the Governnicnt.s is somewhat, contrary to the | rim iples niule! ly in" the J I defence policy. The provision is as under: - “In the case of "no's which have at sonic stage entered into the commerce of, or itiuiergno a pro css of manufacture in. a. foreign country only that labour and material which is expended on- or added to the go. (Is after their return to ilritish j ussessions shall he regarded as the produce or manufacture of Ilritish possessions in calculating the propm lion of Ilritish labour and material in the lie. lory or works ecst (■■!’ the finished article.’’

U is proposed tu bring tin* new iiiiiditinus into fori i> in Now Zealand with respect to goods imporU'd or entered lor home nisumption on mill after April 1, I 'l'he a Herat ion can he made by Ordcr-in-Counril without any amendment of the existing law. and then lore no alteration to the Customs Acts will he require 1. The amending regulations cannot, however, he issued until a now form of lerliliiate of origin has heen agreed upon. The Commonwealth eannot see its way to adopt, in every way the policy set mil above, and hefore a uniform certificate can he anived at it will he necessary for the Customs Department of the two countries to nerve upon details. It may. therefore, lie some little time before regulations can he gaxel led. hut it will he arranged that until O' tel or I. I'd do, the form of eertitiinto gazetted oil December 7. I Odd. will lie a'cepted provided that the word “oiie-fonrtli” in paragraph ,'i (Ii) is amended to read ‘■threefourths'’. The High Commissioner for Xew Zealand, the oflicial represenlalive of the Customs Department in New Volk, and the Government agents i Sydney and Melbourne will he immediately advised as to the proposed alterations.