TOBACCO PRICES

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

TOBACCO PRICES

CIGARETTES MAY NOT BE AFFECTED BY TAX NO CUT PRICES It is not likely that tobacconists will raise the price of cigarettes owing to the new tax on tobacco, but grocers and other firms who have been “cutting” on these articles will he forced to bring their prices up. This opinion was expressed by several of the leading tobacconists in Auckland this morning. It is held, however, that fine-cut tobacco used for rolling cigarettes will he increased In price by fivepence or sixpence a 2oz packet. There will probably be no increase in pipe tobaccos, and only on the cheaper brands of cigars, of which there are large stocks In Auckland. It Is also expected that there will he no increase in the price of pipe tobacco sold in tins, although in this case, as with cigarettes, those who have been trading on cut prices will he forced to make an increase. Cigarettes made of New Zealandgrown tobacco will probably be subject to a rise in price. ■ CANADA PLEASED TIMBER PREFERENCE WELCOME Reed. 9.35 a.m. VANCOUVER, Wed. New Zealand preference to Canadian lumber has greatly pleased lumbermen in British Columbia, who declare this action will materially assist the negotiations of a new trade agreement at Ottawa which the Prime Minister, the Rt. Hon. W. L. Mackenzie King, in his election campaign, has made one of the leading issues. The preference to manufactured doors and sashes is particularly welcome. TAR BY-PRODUCTS TAX CAUSES SETBACK TO INDUSTRY That the new tariff proposals would provide a distinct setback to the tar by-products industry, is the opinion of Mr. J. F. Holloway, general manager to the firm of Restar, Ltd., manufacturers of tar by-products. “Although designed for revenue purposes only, the effect of the new tariff will be beneficial to quite a number of the important local industries,” said .Mr. Holloway, “but, as far as the tar by-products industry is concerned, in the place of any help, we are going to have a distinct setback. “Nearly all tar by-products, including disinfectants, creosotes, etc., while being admitted duty-free, have been subject to a primage of 2 per cent. This has now been wiped out. Therefore, the last state is worse than the first.” continued Mr. Holloway. GREAT ODDS He said that his firm had been battling against great odds to establish in New Zealand what is regarded in other countries as a valuable industry. A certain degree of success had been accomplished, in spite of the periodical flooding of the market with the surplus production of other countries, especially Australia, which imposed heavy import duties on such goods. ‘There was ample evidence in the form of reports by Government analysts and other experts that the goods produced by his firm were equal to the best of the imported grades, and given reasonable protection, there was no apparent reason why the industry should not find employment for at least three times the number of men at present engaged. When questioned concerning the Prime Minister’s fear that protection might lead to increased prices to the public, Mr. Holloway said that so far as his company was concerned the reverse would apply. If assured of a larger output, prices would be substantially reduced. He expressed surprise that such an opportunity to raise revenue from imported coal-tar byproducts was overlooked, especially in

view of the two-sided advantages, namely, revenue on the one hand from a new source, and failing the revenue, the encouragement and fostering of an important New Zealand industry. “The wage bill of my firm is about £IO.OOO a year, and this could be trebled if all the tar products now admitted to New Zealand free were manufactured in this country, and at a lower general price to the consumer than at present,” said Mr. Holloway.