FOREIGN BUTTER BOX DUTY

Hokitika Guardian, 4 March 1929, Page 7

FOREIGN BUTTER BOX DUTY

AL LEG ED UN FA J R TREAT} lENT

(Auckland Star)

Butter boxes, made of Baltic pine, arc brought to Now Zealand from Norway, Sweden, or Finland, through A,ntwo>rp and London. They arrive, her in pieces cut to the required sizes, done up in “shooks,” some of which contain sides, others ends, and others again, tops and bottoms. They are already stamped with the names of the dairy companies to which they are cornsigned. On these importations there is a duty of 7s Cd pr 100 superficial feet. When assembled and filled with butter, casein or dried milk, the cases are exported, and the duty of 7s Gd. is refunded by way of “drawback” through tiie Customs.

There have been protests raised fr< itimber merchants and butter box makers from time to time, on the ground that the local trade is being treated unfairly the argument being urged that protection is only a pretence. Mr A. E. Odlin, timber merchant, lias very definite views on the subject, and informed a “Star” representative that in his opinion the Customs regulations allowing the “drawback’’ was never intended to operate fts it has done, “It is an anomaly,” lie said. “It would be quite all right if these boxes arrived and were not, wanted here, and reexported to some other country, but to protect local industry by way of duty and give back the protection when the cases are filled defeats the object of the charge, which was put on fo protect local manufacturers. lam a firm believer in protection when it is going to help the local manufacturer, hut it should he an effective protection, and ’not a sham, as in the butter box industry.”

LOCAL TRADE AFFECTED

Mr H. Grange, a local lx>x-makcr, said as far as butter boxes were concerned Auckland was not affected to any extent, as very few butter lx>xes were made- here, but the importation o! Swedish boxes affected box-making generally. “It has certainly made a difference to my business.” he said. “Boxes come in for other purposes than to contain hutter, and all the firms have to do is nail them up. I know of a shipment for one firm that had to be reprinted here, as the foreign company had placed the wrong brands and spelling on the cases. There is very little differences in the prices of boxes imported—it might by lsd or 2d per case —but the average farmer cares nothing for the local trade. All he wants is to save every farthing he can. These importations are unfair to New Zealand timber merchants and box-makers. It does seem silly to say to an industry, “we will give you protection against the foreigner,” and then, when it fills the boxes with good New Zealand produce, give back the money. It’s too stupid for words. It the duty were :ept on and not refunded, as at p -, < •sent, it would go a long way to assist local industry and practically sto these Swedish importations. Unfair competition must be stopped. An effective duty will do tin’s.” “The industry would he helped considerably if the present duty of 7s 6 were not given hack,” said Mr W. Casey, timber merchant. “There have been several had shipments, which have caused importers to think the matter over, and it may he that that sort o' thing will go a' long way towards stopping importations. All I can add is that to me it is a shocking thing to take duty'on an article, and then hand it hack when the article has performed the work for which it was imported.”

LTTTLE SAVING

Mr Seed, secretary of the Dominion Federation Sawniillers’ Association, stated it an interview in the “Star” sonic time ago, when the question was raised, that there was little saving to . -e purchaser of the imported container. “In respect to duty,” he said “there is a ‘drawback’ allowed on reexportation which makes these foreign boxes f<> rexport virtually free. This state of affairs is a rank injustice to New Zealand timber workers and boxmakers. The Sawmillers’ Federation admits that it is impossible to produce white pine boxes at the prices at which these articles are made in Sweden, bin the conditions in the two countries are very different. The wages paid in Sweden are materially lower than those paid to timber workers in New Zealand and the hours worked are much longer in the former country. Moreover, the freight on timber from Sweden to Australia and New Zealand is very much lower than the freight between timber ports in New Zealand. Two large factors in the present cost of white pine are the greatly increased royalties demanded by the Government for this class of timber and the increased costs of production, duo to bushes now operated being further and further back from the seat of consumption.”