HELPING NEW ZEALAND GOODS

Sun (Auckland), Volume IV, Issue 1031, 23 July 1930, Page 1

HELPING NEW ZEALAND GOODS

BENEFITS FROM THE NEW TARIFF "COST OF LIVING WILL INCREASE” AUCKLAND WAREHOUSEMEN’S OPINIONS Stt.tt stockings and good-quality men’s hats are the two articles of wearing apparel which have been hit hardest by the new tariff. British-made silk stockings will be increased by 7J per cent, on their present cost, and foreign stockings by 17$ per cent. There is a still heavier increase in the price of men’s hats of the best makes.

Managers of wholesale and retail houses were all of the same opinion this morning—that the new tariff will benefit New Zealand-made goods. They were also unanimous in the opinion that the cost of living in New Zealand must be increased by the new duties. The manager of one well-known Auckland warehouse stated that all new drapery is imported for the season which starts on August 1, consesequently all the new season’s goods are already on the water or Just landing. This means that there will have to be a revision in prices all round and the increases, or in a few instances the reductions, will be passed on to the public. SOME GOODS CHEAPER One of the curious features of the new tariff is that in some cases goods imported from England will be cheaper than they are at present. This is accounted for by the fact that there has been no increase in duty on these goods or on those at present allowed in duty-free, and the primage of 2 per cent, has been dropped. In the majority of cases, however, all goods will be 3 per cent, dearer. The primage of 2 per cent, has been abandoned, bat in its place there is the imposition of a surtax of 6 per cent. The British preference on certain goods was commended by several importers in the city. This will give the British manufacturers a decided advantage over Continental and American manufacturers, though one man pointed out that many American firms are now operating in Canada, anU were reaping the benefit of Dominion preference. "The new tariff will stop individuals from sending to England or the Continent for suits and clothes and dress materials,” said an Auckland warehouse manager this morning, "and It probably will have the efTect of curtailing altogether the importation of foreign dress goods. Of course, there ViU still be a few people able to afford to send to Paris and New York for exclusive clothes—but they will be very few.” FOREIGN WOOL MATERIALS

It was stated that foreign wool materials will be Increased from 11 to 12 per cent., and that the increase In foreign made-up garments will be approximately 17 per cent. New Zealand does not import a tremendous amount of foreign madeup goods at present, but the new tariff will reduce that amount still further. This, of course, will all help to increase the demand for the New Zealand-made article, as there is still a duty, in many Instances slightly Increased, on British-made goods. "Although it is all rather confusing at present, 1 do not predict any great disturbing element In the drapery trade,” was the comment ot one warehouse manager today. Another manager remarked, “The new tariff will halp tha manufacturer* of Dominion-made goods, but it will also send up tha coat of living in New Zealand. Extravagance is a difficult thing to combat. The slump after the war helped us to find our level again. The present tariff may teach people that they must save where they can. Several people this morning commented on the cost of the public Service to the people of New Zealand. This was now getting out of all proportion to the needs of such a small country. Instead of Increasing the cost of living by increasing tariffs there should be a reduction in the expenditure of Government departments, which were becoming worse instead of better. Another warehouse manager re marked that the present tariff was one of the most confusing he had ever known. It would take some days to straighten Itself out and until then the actual increases on the various articles of wearing apparel could not be stated.

Zealand producers could well be expected. Mr. J. B. Stevenson, of the Auckland firm of condiment manufacturer*. Whittome, Stevenson and Company, Limited, thought New Zealand manufacturers should certainly benefit from the heightened tariffs, in the lines his firm was concerned with, at least. He was not able, at the moment, to make a detailed statement on the expected effects of the new legislation, but it seemed that a certain amount of protection for New Zealand manufacturers was intended by the Government. "New Zealand manufacturers will not exploit the public because they are being granted a little more protection,” said Mr. Stevenson. “That point should be impressed on the public. As far as I can see, local manufacturers should be pleased, rather than otherwise, at the tariffs.” "How is that going to be done asked Mr. Stevenson, in referring to the statement of the Prime Minister, the Hon. G. W. Forbes, that it was proposed to ask Parliament to include in the Customs Bill a clause granting authority to reduce duties if producers or manufacturers, as a result of the increased protection, raised their prices without proper justification. Mr. Stevenson thought that such a position would not come about. The keen competition among grocers, for instance, was a sufficient safeguard for the public. IMPORTED PRICES RISE

The higher duties on pickles, sauces, chutney, and catsup would not affect the prices of the New Zealand goods, and there could be no reason for an increase. The tariffs would simply mean that the prices of the imported articles would rise, and New Zealand manufacturers would be in a better position. “I think the proposals are a step in the right direction,” proceeded Mr. Stevenson. "Prices of imported goods will rise and the sales of local manufactures should be stimulated. This should enable New Zealand manufacturers to employ more labour, and there would be a good effect, indirectly, on the employment market. In our lines, there does not seem to be anything against New Zealand.” BRITISH PREFERENCE SAME One informant closely associated with the manufacture of jams and preserves pointed out that the cost of importing foreign jams, jellies, marmalade and preserves had been increased Id a lb. This would be of advantage to New Zealand manufacturers. The British preferential rate had not been changed, however, and it was apparently not proposed to alter the agreement between South Africa and New Zealand. It was a fact that New Zealand manufacturers had to contend with the influence of South African jams and preserves sold on the markets of the Dominion in considerable quantities. "The onions brought into Auckland from overseas each year probably amount to between 20,000 and 30,000 crates and bags,” remarked Mr. H. Gladding, vegetable auctioneer of Turners and Growers, Limited, in Indicating the part played on the New Zealand market by importations of onions. Large quantities came from the United States and Canada and smaller consignments from Japan. New Zealand onions were off the markets when the importations were made. By the end of next month there would be few local onions offering, and the importations would begin. Mr. Gladding said the increase in the tariff on foreign importations, from £1 10s a ton to £4, represented a considerable rise, which would be reflected on the price. TEMPORARY SETBACK Commenting on the tariff proposals as a whole, a prominent Auckland produce merchant believed that the ultimate effect would be of advantage to New Zealand producers. "The tariffs will hit America and other countries which do not buy from us,” he said, "and local growers will be encouraged. “Our only complaint is that the proposals have been brought on without warning. Orders have already been placed overseas, and importers will be placed at a disadvantage for a time. Tor the perishable produce must bo cleared.” Australian producers, the merchant added, would be affected because the tariffs on apricots, cherries, grapes and other lines of fruit would be doubled. This would affect the fruit trade with Australia, but New Zealand growers should benefit. "Tomatoes grown in the Cook Islands may be affected,” he said, | “and the doubled tariff will knock l out tomatoes grown on Norfolk Island.” While the importers would suffer in the meantime, the proposals would not I concern them greatly eventually. The idea behind the tariffs was commendable but the immediate imposition was actually in the nature of a capital tax on the importers. (Continued on Page 1^)