LOCAL INDUSTRY

Hokitika Guardian, 22 August 1930, Page 7

LOCAL INDUSTRY

EFFECT OF NEW TARIFF. COMMENT OF WOOL COAIPANY CHAIRMAN. WELLINGTON, August 19. Interesting comments on the new Customs tariff and the importance olr supporting local industry were made by Air W. H. P. Barber, chairman of the Wellington Woollen Manufactu.lng Company, Ltd., at tlio annual meeting of the company to-day. After a lapse of twenty-two years' Parliament has advanced tlie tariff on two items of interest to us, hoisery and apparel,” said Air Barber. “I. am sorry it has not been done through a desire to develop the industry, but because fortuitous happenings seem to have made it imperative to obtain further revenue for the State. The 2.} per increase, with surtax, less primage duty removed, will be about (5-i m>' cent. This help we are, of course pleased to get, but we are afraid its advantage will be completely destroyed by the removal of tlie S per cent, al lowance on the capital value of plant and buildings, with the extra 10 pel' cent put - on income tax. To meet the loss of this allowable deduction and the added income tax will require an increased turnover of, say £20,000 nt a net profit of 5 per cent. The power taken by tlie Government, by special provision in the Customs Amendment Bui, enabling the Ministers of Customs to remit new duties should manufacturers raise their prices in that be calf does not trouble us, as our endeavour is to secure a larger output, which obviously gives reduced production costs, and, therefore, lower selling prices. It is to he regretted that, in altering the tariff, the request of the clothing employees, put before the Government last session for a specific impost on low, shoddy clothing, of which so much comes here, was hot granted. The ad valorem duty on these cheap lines is negligible, having no deterrent effect. That class of clothing is unprofitable to the consumer and to the country, as it has no pure wool content, and so completes unfairly with all-wool goods. “It is difficult to understand why so many New Zealand people prefer to support overseas factories—and not even British—when it is vital to the well-being of Great Britain, this country, and, therefore, to themselves individually, that industries should be built up to find work for those already here, and for the large population the Dominion is destined to carry.

“The shareholders know that I have/ for jrearS, ritrditgiy advocated the tvifr. dom of buying NeW Zen land-made goods as a preventive of what, is at present the serious trouble of unemployment and increased taxation, “X regret exceedingly that it should be thought necesary to introduce legislation here, such as the Unemployment Bill now before Parliament, New Zealand has the reputation of being a prosperous country, and so it still would be and its repute maintained if the bulk of the money for exports were applied to the employment of our own people, instead of being used to support other countries. Our farming friends should remember that every manufacturing industry established in New Zealand represents a definite n<nv market for primary products. Every industrial area provides the best possible protection for primary producer* returning them better prices than they get by export. We had an inspiring message on the .subject from our ex-Governor-General, Sir Charles Fergusson, on the eve of his return Home, and another from his successor in office, Lord Blodisloe, who lost no time on his arrival in .stressing in no uncertain tone the importance of first supporting local industry and then British. The people of New Zealand generally, and the manufacturers specially, have good cause to be grateful for the interest taken by these distinguished advocates, whose unbiassed advice, with practical demonstration, Is worth infinitely more than all partisan exhortations. I should like to mention that some consumers seem to be afraid that local patriotism in buying means antiquated styles or inferior quality. That is one of those absurd prejudices New Zealand industries have had to combat for years, and it is hard to defeat.”