The Tax on Tea.

Taranaki Daily News, Volume XXXXV, Issue XXXXV, 5 December 1903, Page 3

The Tax on Tea.

PROTEST BY THE TRADESMEN,

A representative meeting of tradesmen engagod in the importation of tea from India a*nd Ceylon, called lit the instance of the Tradesmen's Association, was held on Friday afternoon.

The object of the n.eeting, as explained by tho President (Mr H. Goodacre), who occupied the chair, was to review the effect of recent g\isla.t\ion on the tea importing trade. The duty of 3d per lb had been moved from bulk tea, but packet tea was not 'admitted free to the calony Therefore members, and those who were not but should be, of the Association had Ween called together to consider what should be done. Nothing apparently could be done to prevent the Act coming into force, Unt members could raise a protest legislation being introduced in such a manner. When a tariff change of such a far-reach-ing nature was contemplated the hea/ds of all o-rgganised trade institutions should have been consulted. In this case apparently only those enEfcKfd in Flacking, tea IraJci tfcen conSuited. In calling the meeting all jnterfested—either ih the admission Of bulk or packet tea—had been consulted.

In the general discussion . wiiifck followed it w-as stated that the true effect of the Act in its present foi-m bad only just been discovered. It was a strange thing, it was urged, that the position had to be "found out." The Bill (Preferential Tariff Bill) in its original form had appeared simple and innocent enough, Mlt a sligjit amendment of the wording effect wh«n members of the House were half asleep had transformed the meaning from the remission of the tax "on tea " to "on t*ilk tea." This was considered to be beneficial only to one or two large tea packing firms in the tolony, and derogatory to the interests of the other importers and the consumers. The packing houses had Tjt en endeavouring for some time to secure concessions, and an effort to "do so two years ago wes frustrated. This session the subject of remission was bracketed with th» fiscal question. A protest, though it migtit not have an immediate effect, migjit, if made generally by the tradesmen of the colony, inOuca the Cabinet to suspend the operation of tHe Act »ntil it could be discussed next session. Mr Carter said that under tho new 'Aet r«taißers "wioulri not Me aible to do as they had d«ne for years—get indents otf tea from growers. He was surprised that the Promier should lend Bdmsetf to a measure ol the nature of this one—which wae in th« direction of creating a monopoly contrary to his expressed policy of endeavouring to do away with trusts. Mr Carter then moved the following qpries of resolutions :

" That the retail importers of New Plymouth are astonished to And that the remission of the duty oil tea to take effect on March 31st only' applies to bulk tea, and that this will very predjudically affect the direct importation by retailers, as well as lower the standard of ■quality to the customer is to be regretted. "Teas packed in Ceylon tor other British dependencies) have the additional advantages of retaining the \v3iole of their aroma coming fresh from the drying rooms, and aro immediately hermetically sealed. " The facilities for dealing with, and the immediate packing of, the tea in Ceylon secure to the consumer a better quality of tea at a lower cost.

" That by restricting the direct importation by the retailors it will very prejudically affect their interest, inasmuch as it will force the retail trade into the hands of a few packers, resulting in a corresponding reduction of value to the consumers.

" This meeting of tea importers empiilnfticaJiy protests c\,>>inst such an interference with their right to import British teas, believing as they do that it would tend to foster a monopoly at the expense of the consumers, who under the circumstances would not participate in the reduction of duty as intended by the Legislature." This was seconded by Mr Clarke and, after some little discussion, carried unanimously. A committee consisting of Messra Goodralcre, Clark, CaAer, and Fraser. was set up to take further steps in the matter and lay a protest before the Premier.