MINISTER'S STATEMENT

Hokitika Guardian, 14 September 1927, Page 3

MINISTER'S STATEMENT

(liy Telegraph—Per Press Association

WKLUNGTOX, Kepi. i;i. lu tile House ul' llepresentatives tonight, lion. .Mr Downie Klewart (.Minister of Customs) made the following statement upon the infrodueiion of the n solutions amending the Customs tariff: The objects which the Government lias had in view when considering proposals. have been as follows:—(1) to reduce the tost of living and the cost of production, both the primary anti secondary industries : (2) To assist local industries (both farming and manufacturing) either h.v increasing the protection already aflorded to a certain number of sudi industries, or by reducing the duty on the raw materials, machinery and pi'ant used by them : (.'!) lo encourage still further Unde in the goods produced in the liritish Kmpire. instead of in those of foreign origin; (4) To remove the protection afforded to the very limited number of what are regarded as uneconomic industries, or to the one or two industries which have ceased to operate in the .Dominion ; (o) To provide further negotiating power to secure new and increased markets for Xew Zealand products, reduction or remissions id' duty. The reductions in duties which affect the cost of living and the cost of production are of a two-fold nature. They consist partly of concessions which appear in the tariff schedules, and of others the nature cT which will he explained later. As honourable members are aware, reductions of duty are not, as a rule, made to operate immediately but are postponed so that traders who have imported the goods affected and paid the old duly thereon may not have to meet unfair competition with other merchants who have obtained their goods at the lower rate. Time is therefore given to enable, n.s far as possible, the stocks of goods aheadv ci'eared to be disposed of. On this occasion the date has been fixed at June :30th. I bits, hut. with regard to items which are not affected by this consideration, the reduction takes effect

immedia tc*l,v. Tli K roxcicssioxs. Some ol' the items upon which il is proposed that concessions in duty should he mod” are:—Cotton piece goods -o woven or marked as to indirate that they are to lie cut up. plain tablecloths, la'le napkins. towels, quill.', sheet--, and similar articles. These good-. whether in the form of piece ootids or of separate articles, now pay a duty of 20 per cent, if British. It is proposed to admit them free if of British origin, thus making file goods described. which are in use in every New Zealand home, available at the lowest cost lo all efas-.es of the community. Other items upon which remissions of duty are to he made are tahle chinaware. and earthenware, linoleum. and similar floorcloths, mats, matting end floor rue- of rubber or similar materials. These are used in nearly every household, and should. I feel, lie admit! \l free if of British make. The above articles have hitherto been very important revenue producing items.

The manufacture of cement and asestos lniii'ding sheet is not. f am adised. now carried on in the Dominion, ltd it is proposed that such sheets lould lie exempt when produced withi the Empire. The Government also iopuses to take the duty off galvnnis-

el and corrugated iron of British origin. The industry, ns at present carried on in New Zealand, is not regarded as one suited for the conditions prevailing here. Some other artieles upon which reductions and remissions of duty are proposed are cash registers, adding and book-keeping machines, electric locoino. tives, spray pump outfits (other than motive power), tractors suited for wharves or pavements, screwed wrought iron pipes of whatever dinmeter. certain drugs and chemicals suited for use as culture media, etc., in siren title investigation and hospital work. It is intended also to reduce

the duty on British grown maize, while retaining the present rate on the foreign article. This concession in duty should benefit the > poultry and pig-raising industries. WHEAT AND FLOUR.

To ensure New Zealand producing enough wheat for itself, there is to ho a sliding scale of duties, decreasing when the prices of wheat and flour rise outside New Zealand, but increasing when the prices of those commodities fall. The basis upon which the duties are proposed to he levied depends on the current domestic value at the port of export to New Zealand. When these values are os (id per bushel and £l3 per ton for wheat and flour respectively, the duty is to ho at the rate of Is Id nor bushel and £3 10s per ton. Those duties decrease and increase in inverse relation to the prices of wheat and flour. It will thus he seen that if the current domestic value of wheat and flour outside New Zealand increase above the figures I have mentioned by (say) (id per bushel and £1 per ton respectively, the duty will he reduced to 7d per bushel and £2 10s per ton on wheat and flour. On the other hand, if the current domestic vni'ues of the commodities decreased hv the same amounts, the duty will he similarly inoreased. ESTIMATE OF DUTY REMITTED. It is estimated that if the House adopts the proposals I already have dealt with in some detail, it will mean a concession of about £IBO,OOO per annum, after allowing for any increases in duties to further protect local industries. As will appear Inter, there are further proposals which, if carried out, will result in an additional amount of £150,000 being remitted, making a total •• it' '.£330,030. It must he understood that this estimate of reduction in taxation does not take into account the effect which alterations in the preference granted on Empire goods may have upon the revenue. If the changes to which I now refer give effect to the policy of the Government, and thus divert to British countries any considerable portion of the trade now held by foreign nations, the result will he a further decrease in Customs duties. If, however. such transfer does not take place, the decrease may he less. IRON INDUSTRY.

A company has been carrying on this industry at Onakaka for a num-J her of years. Tt is found, however, that the success of the undertaking has been prejudiced to a considerable extent by the importation of Indian pigiron, and the Government has l>een making inquiries, and satisfactory evidence has now been received to show that this iron is sold to New Zealand purchasers under conditions which amount to dumping. It is, therefore, proposed to charge a dumping duty on shipments of such pig-iron, where its imposition is warranted, equal to the difference between the current domestic value as defined by the Customs Act and the actual selling price as set out in Section 11 of the Customs Amendment Act, 1921. So far as the information in my possession enabi'es me to form a conclusion, the dumping duty will, as a rule, be an amount exceeding £1 per ton, and in some cases even reaching £2. If the iron is invoiced in future at prices which have been shown in recent months, importers will be required to ensure that the correct particulars as to current domestic values, actual selling prices, etc., are shown upon their invoices, and that the goods are properly entered. It is considered reasonable, however, that

merchants should receive notice ot the imposition of this duty, and accordingly the action indicated above will bo token with respect to all such shipments imported after the 31st December next. If, however, an endeavour is made to defeat the objects of the dumping provisions of the Customs Act by the importation of pig-iron in what arc regarded as large quantities, the Government reserves the right to immediately impose the duty. It is believed that this action will. with the assistance already given to the industry, enable it to lie successfully carried on. X.Z. INDUSTRIES

Among the items from which increased duties are proposed to assist: local industries are the following: Lin-

seed oil, paints anti varnishes (which use a considerable quantity of such oil), woollen lloor rugs, glass bottles, and jars, plaster pulp sheets, cabinets for wireless sets, timber, electric insulators. oil engines, hydro-extractors, brass pipe fittings, metal window frames, and gelatine and glue. In the manufacture of many of these articles local materials are used. The Government also proposes to abolish the embargo on the importation of egg pulp and to substitute

rates of duty sufficient to afford protection to the poultry industry. It is considered that prohibition of importation, though it may he necessitated by abnormal conditions, is not a- satisfactory means of affording continued

assistance to industries. | Members will no doubt he interested to learn the Government’s proposals with respect to iho duty on timber. Large quantities of timber are now being imported in New Zealand and the Government is of the opinion that the present, position requires a revision of the customs duties The rates at present charged have, in general', been in force for many years. This, of itself, is of course not a reason why duties should he increased. It should he remembered. however, that during tlio past twenty years the value of timber (as of most other commodities) has increased considerably, while the duty has remained at practically the same level, viz., 2s and 4s per one hundred super, lot t for rough sawn and dressed timber respectively. The government desires to encourage the utilisation of its own indigenous timbers, and it believes that if the duties proposed are aieepted by the House, it will assist in bringing about this result. The Minister said it must not, how-

ever. he thought that the government is of opinion that the present: position of the timber industry is due entirely to importations. This is a factor, hut only one of the factors, in bringing this about. Decreased demand for timber generally, decreased exports, relatively high production of timber in recent years, and other causes have all had their influences on producing the present state of the industry. The government proposes that the duty on rough sawn and dressed timber should gone rally lie at the rate of os and 7s fid per one hundred It. and a lower rate of 3s per one hundred super. It. is provided for hulk timber exceeding 25 feet in length and 150 .square inches in minimum cross-sectional area.