NEW TARIFF CHANGES

Sun (Auckland), Volume IV, Issue 1032, 24 July 1930, Page 7

NEW TARIFF CHANGES

OPINION IN WELLINGTON ANXIETY ABOUT BUDGET Presa Aasociation WELLINGTON, Today. Th© feeling of New Zealand manufacturers, generally speaking, seems to be that the new tariff will not help local industry as was suggested by the Prime Minister. Manufacturers and commercial men are more anxious about what the Budget will bring forth than they are about the tariff’, Mr. F. Campbell, ex-president of the New Zealand Manufacturers’ Federation, stressed how valuable would have been the assistance of an industries board, had one been in existence, In dealing with tariff matters. “Today I can speak only as an ordinary manufacturer.” he said, “and not in any official capacity. My opinion is that tinkering with the tariff will not be of much material benefit to manufacturers. The alterations are purely of a revenue character. The Minister of Finance canot have it botli ways—either £ 800.000 will be forthcoming or local industry will be stimulated. If the revenue is forthcoming then local industry will not be stimulated.” ‘The uncertainty of the Government’s proposals in regard to the Budget taxation is giving business men more anxiety than the tariff,” said Mr. J. T. Spears, president of the Wellington Manufacturers’ Association. ‘‘We cannot say the tariff changes are harmful. They only have the appearance of being revenue-producing, but on the other hand we cannot see anything that is of advantage to the manufacturers. Our raw materials, which are subject to duty, will carry the tariff increase in parallel with the imported finished product, so that the position from this angle is unchanged, and it may mean that prices will have to go up. So far as manufacturers are concerned the existence of a development of industries board would have brought about a better balance in the change of tariffs. Perhaps our greatest concern should be, not how the Government is going to raise the £BOO,OOO, but how it is going to spend it.” “Personally, I think the Government is not aggressive enough in increasing the tariff on imported manufactured woodwork,” said a director of a manufacturing concern engaged in cabinet and office furniture work There might well have been a substantial increase because the increase which nas been made is hardly appreciable. In New Zealand we cannot manufacture in the quantities that are manufaclured abroad, so that we cannot get down to lower production costs. The tariff on imported timbers does not offer protection to New Zealand sawmillers, as its increase is so small that it is not appreciable in the cost of the article when made.” . . The same director mentioned the question of freights, suggesting that freights from England or Vancouvei are little, If any more, than the ir fight charges from the source of supply In New Zealand to the main cities. “Owing to the operation of the reciprocal tariff Australia will be better off under the new tariff than Great Britain ” said the director of a leading firm importing largely from Great Britain and Canada. “The reciprocal tariff with New Zealand cannot he altered in less than six months and, meanwhile, Australia will be approximately 5 per cent better off than Great Britain The primage duty has been removed, hut the new surtax is worse than the primage. On our particular line the increase in goods imported from Great Britain and Canada is from 25 per cent, to 311 per cent., after allowing for the lifting of the primage duty. Where the tariff is higher the disparity is greater still.” The following statement was made by W. D. and H. O. Wills (New Zealand), Limited: — , , , “The position is one which requires extremely careful examination. The effects of the tariff in various directions are more far-reaching than would appear from the reports published todaiiiquiries among retail tobacconists revealed that manufacturers and wholesalers were not accepting any orders yesterday except subject to the new prices. Mr. R. W. Arnott, president of the Wellington Retail Tobacconists’ Association, said: “It is rather early yet to say what the effect of tho new duties will be, as no new prico lists are out yet and the manufacturers and wholesalers have given no indication of what they Intend to do. Doubtless cigarettes will be raised a penny a

packet, which will bring them back to the original 9d.” A meeting of the association was held at which Mr. Arnott presided, but in the absence of any informatin from the manufacturers or wholesalers It was decided to meet again on Friday with a view to framing a new price list. In the meantime the prices will not bo altered.