PREFERENTIAL TARIFF

Sun (Auckland), Volume I, Issue 209, 23 November 1927, Page 2

PREFERENTIAL TARIFF

SLIDING SCALE PROPOSED MANUFACTURERS’ HANDICAP By moving that the ratio of British value in British goods qualifying for preferential tariffs should be increased to 75 per cent., Mr. G. Finn, Auckland, opened up an interesting discussion at the conference of the New Zealand Manufacturers’ Federation yesterday. FINN explained that he was seeking an exchange of opinions. When the Auckland Chamber of Commerce was discussing the point recently it found that more information as to the effect an increase would have was necessary before it expressed an opinion. He suggested surmounting the difficulties of a hard and fast duty by the promulgation of a sliding scale of duties rising as the British proportion in the goods decreased. Preferential tariffs, said a delegate, failed in their object when British manufacturers using foreign raw material imported duty free were able to sell their products under a preferential tariff in New Zealand. New Zealand industrialists could not import their raw materials duty free, so that the competition was not on an equal footing. SLIDING SCALE FAIR Mr. L. B. Beale, British Trade Commissioner, who was present during the discussion said that in actual practice it would be difficult to go beyond the limit of 50 per cent. British witn any benefit to the Dominion. Too high a rate would divert trade to foreign countries. In theory the proposed sliding scale would be fairest, but it would be difficult to apply. . The conference expressed the wj that further information was before it made representations for an increase. It* was decided that the executive. with Mr. Beale, should interview the Minister of Customs and me Minister of Industries and Commerce.