HELPING N.Z. GOODS

Sun (Auckland), Volume IV, Issue 1031, 23 July 1930, Page 12

HELPING N.Z. GOODS

(Continued from Page 1.) BUS FARES INCREASE EFFECT OF PETROL-TAX “WORKING CLASS WILL PAY” “It is a most serious position, for with any increase iu petrol prices the bus companies will be compelled to : make an increase in fares. And most of the people who travel by buses are the working class and consequently the tax on petrol is going to reflect upon those people who can least afford any extra costs for transport to and from their work." This opinion was expressed by Mr. Grey Campbell, secretary to the Motor Omnibus Proprietors’ Association, this morning. Anticipating a rise in petrol-tax, Mr. Campbell said that his association communicated with the Prime Minister and the Minister of Transport, pointing out that an increase in tax would mean an increase in fares and urged that some preference be given to passenger-carrying buses as they served a public utility. Replies were received from the Ministers to the effect that the request would receive consideration, but as yet there is no indication that any preference will be made to bus proprietors. “Taking two of the biggest bus companies in Auckland," said Mr. Campbell, “I find that the difference to one will be £1,762 a year and to the other, £I,OOO. The suburban railway services may benefit, but not a great deal, for there are those districts and roads which the railways cannot touch. In the Otahuhu and Papatoetoe districts the stations are about a mile apart and some distance from the main residential areas. MORE FREQUENT SERVICE “Furthermore," continued Mr. Campbell. “the buses give a more frequent service which the trains could never do. Otahuhu has a bus every quarter of an hour, while there are other shortinterval services in the Avondale and New Lynn districts, and the train could never be expected to compete with these services. “The bus companies are public utility concerns and it is as much to the interest of the public as the proprietors to keep the fares down.” The managers of the various oil companies in the City were reserved in discussing the question, but all were of the opinion that the new tax on petrol would mean less consumption, especially among the owners of private motor-cars. Carriers and such people would be seriously affected and charges would necessarily have to go up. When interviewed this morning, several business men were of the opinion that as the oil companies did not reduce the price of benzine this winter as was customary in the past, it was quite likely that the tax would only be passed on to bus proprietors and others to the extent of one penny a gallon. This, however, could not be confirmed by the oil companies this morning.

WELL GUARDED SECRET NO UNDUE CLEARANCES SMALL STOCKS IN BOND The Government's intentions regarding the new tariff arrangements were apparently well guarded, as no bonded store in Auckland experienced an undue rush yesterday. Perhaps it was that so many merchants had been put to unnecessary expense when rumours were current some weeks ago, and had determined not to be caught again. The value of goods held in bond in Auckland is difficult to estimate, but it would probably be close to £IOO,OOO. The stores are fairly empty, and have been so for months past. Wine and spirits make up the larger part of the stocks held, but there are also quantities of general merchandise and of tinned provisions, including fruits and vegetables. Most merchants here import on the principle of monthly shipments, and clear from bond on what one manager this morning described as a “hand-to-mouth” system. The normal demand for any season is known with fair accuracy, and little more is held than is necessary to satisfy the public’s needs. Should the demand increase suddenly in one city, there is usually a surplus elsewhere in the Dominion to be drawn on, and a cablegram will bring a further shipment with little delay. When questioned regarding recent clearances, the manager of one bonded store pointed out that there was little advantage in a hasty move in anticipation of a change in tariff. The amount involved in extra payment would often not pay even the interest on the sum necessary before a merchant could move stocks to his own store, and there were few in Auckland who could raise large sums at a moment's notice.

Few cigarettes are imported through the bonded stores now, as the manufacture of many brands by W. D. and H. O. Wills, Ltd., In the Dominion, has enabled the price to be brought lower than that of imported cigarettes. The tariff on cigars of 1921 has been doubled in the new schedule, and is considered by bond managers to spell the end- of importations. Cighrs are made in Auckland in sufficient quantities to supply the Dominion, and are at a competitive price, the leaf being admitted at a preferential rate. Formerly the value of this trade was several hundreds of pounds every year, hut last year imports were negligible. The original tax was intended to be revenue-producing, but actually the receipts fell, as many cigarsmokers decided to change their habits.

TIMBER MEN’S VIEWS NO GREAT ENTHUSIASM BUT JOINERS PLEASED Just how far the Government's proposals to assist the timber industry will help toward a revival, timber men cannot yet forsee. Though not enthusiastic, they feel that the proposed tariff is better than no increase. The duty to keep out American doors and sashes is regarded by a large manufacturer as valuable assistance. “In a moderate way I think the increases will be helpful,” remarked Mr. N. Clayton, general manager of the Kauri Timber Company, Limited, when asked what he thought. Mr. Clayton added that he never was

very optimistic about Government sistance. He understood the ri, T V ' ment intended to give preference /" Canadian and British rroducta, j* could not see much of that. ' present the mills were working fm* days a week and his firm was ,/ ploying about 450 men In the mill, n," bush and generally in ronnectlon *t«? timber. What effect on employing? the new- tariff, if put Into '-iperut!® would have, con Id not yet be a'-cumjS gauged. Would the proposed increases , ! greatly to the cost of building i lings? was a question Mr. Claytoa' was invited to answer. He raid ti» the timber in an awrage house ij. volved approximately 2-5 of the so that the added duty would not be/ heavily, if import rs passed on tke increase. Mr. Clayton made this important contribution: “I have no intentlej to increase our prices; I tell you tin; definitely.” Though pleased that the Government proposes a further measure of protection to the timber industry, a W. B. Leyland, of it- Leyland O'Briec Timber Company. Limited, was of opinion that the proposed increase from 5s to Ts 6d a 100 feet on staaEsize timber was not sufficient to j*. store prosperity to the industry, y, for giant timber, the company m. ported a good deal because it could not be obtained here in lengths long enough for certain classes of building. Further, a large quantity was cosverted in Auckland mills into smal> size stuff, and the workers had m objection to this, for it gave employ menu FRANKLY DISAPPOINTED Mr. E. J. Phelan, secretary of A. Timber Workers' Cnion, was frankly disappointed with the proposed it crease on small-size timber. "Tk» tariff could well have been raised ky 5s instead of 2s 6d. lly own ides was that all imported timber should be blocked. If that had been done It would have placed 4.000 men is work. There is no need for the importation of s-nail-length Americas timber. It would have helped had the Government excluded this say for two years, to give the indpstiy t chance to get on its feeu” Mr. Phelan added that his uniat; had no objection to 9 x 3 timber, er its equivalent coming into this country, not clear of duty, of course, because it offered considerable wort here. If the Government's proposals ts increase the duty on American sashes and doors are given effect to. Mr. H. H. Pollard, of Henderson and Pollard, Ltd., says his firm will be able to give work to 12 more men almost as soon as the duty becomes operative. “We think the Government has dow its best to encourage local induslij, and we are very pleased," said Mr. Pollard. “The effect will be to shut out the American-made door and give us a margin for profit, which th« present arrangement does not pemilt will be the means for encouraging the use of New Zealand timber.” Mr. Pollard said his firm did not mind the importation of Canadianmade doors, since they were brought in in very much smaller quantities, and were made by British subjects. The new tariff should stimulate the joinery industry throughout the Dominion and the effect would probably be to give employment to at least another 100 men. “MOST INEQUITABLE” OPINION OF INCREASED PETROL LEVY ALMOST EQUALS INCOME TAX Rress Association WELLINGTON, Today. “It may be a little premature to comment on the increased petrol tax." said Mr. Batt, chairman of the WdUHtti Automobile Club, when asked his opinion of the effect of the tariff on motorists. “in view of the fact that tb* question has just come before the House, and apparently there is yoinf to be a certain amount of opposition to it, but in view of the fact that the gross motor taxation in New Zealand today is already £ 3.094.965 as compared with a total income-tax «f £ 3.310.877 a rood deal mirht be said. “Motorists as a class are contributing in special taxation almost ibe same amount as the total income-tat collected. There is every reason to believe that commercial motor owners and the motor trade will join forces to opposing what can only be regarded as a most inequitable tax/’ SPIRITS TO COST MORE HOTELS MAY SHOULDER TAX In many a City hotel bar this morring the Government beer tax came ” for severe and not entirely criticism. but according to tor C. G. Mclndoe. one of the largest importers in Auckland, the general pubhneed have little fear of an increase » prices. ... The tariff on case spirits amount to about one shilling »..®®tt extra, but it is probable that this ** be absorbed by the various Most people spend only a l i®* amount l on liquor, and the cons “?*]Jr may decrease, defeating the the higher tax. Brinks may be dearer or smaller. Mr. Mclndoe considers that the proposals will lead to an increase the importation of bulk *P ir: ~*. _ over proof form. these then be _ broken down by the hotels. At pre he has in bond spirits worth a £ 20,000. x*— A supply of liquor for Auckland firm arrived in The duty will be passed on to tne retailer.

TARIFF ON CHOCOLATES BIG LUXURY TAX WANTED Surprise that the Government not gone a step farther in *n tariff proposals and had heipea Zealand’s largest manufacturing . dustry. that of chocolate ana t tionery making, was express©* city business man this morning* present tax is unchanged. -cse»* He pointed out that this was tially a luxury line and sh°u- tterbeen one of the first to recel , *ji tion. A higher duty would aiso the Dominion industry- import* Every vear the confectioner. * of New Zealand amounted £300,000. and this sum COUl 'f T J: dl r ia kept here, since the plant a. use could supply tne ****** to ** ments. This would also lea* increase in employment.

PETROL PRICES RISE Press Association CHRISTCHURCH. To** Petrol retail prices went O morning: in the city by "da S both first and second grade.