The Daily News TUESDAY, JULY 5, 1904. DUTY ON DAIRY MACHINERY.

Taranaki Daily News, Volume XLVI, Issue 155, 5 July 1904, Page 2

The Daily News TUESDAY, JULY 5, 1904. DUTY ON DAIRY MACHINERY.

Tlie deputation that waited on the Hon. 0. 11. Mills, Minister for Customs, last weok brought to light a curious state of -affairs existing as regards the duty on imported dairy machinery. It appears that for some years a 'duty of five per cent, was levied upon machinery for dairy purposes, hut some clever official discovered that there had been Borne evasion of the Act,.and that to get. the 'benefit of the lower duty all machinery must tie specially ordered for dairy purposes, aod all engines and boilers not so oi<dered had to pay 20 per cent. Inasmuch as engines and boilers form a very essential part of the dairy factory u "way out" was immediately sought. The modus operandi was explained byMr J. Chambers, of Auckland, who said that the old system was to import machinery and put it into bond until it was actually sold for dairying purposes. "Since the new regulations came in force his firm had sent twelve engines and four boilers to Australia out of bond and brought them back. The freight and other charges amounted to 3} to 5 percent., which they had to charge to the dairy Industry, but by this means they saved the additional IS per cent. duty. The present system gave Australian firms an advantage over New Zealand firms in that the Australian firms sent travellers to Now Zealand to take orders which they could execute in a week. They bad just heard of a representative of another firm having landed in Auckland on Monday last tor the express purpose of cultivating the New Zealand trade. His firm, acting on legal advice, had order some machinery ahead, marking their order "for dairying purposes only." These engines and boilers had been invoiced for 'dairying purposes only, and the words "for use for dairying purposes only" painted on them. The first shipment has just arrived in Auckland, and another would reach Puuedin in a few days. Their solicitors thought that could be done, but he might point out that it opened the way for rascality, because it would be almost impossible for the Customs Department to prove what became of these boilers and engines." Mr Harkness, the secretary of the Dairy Association, pointed out that if the new system of charging was continued importers would have de|>ots in Australia, import from England to there, and thin bring the engines and boilers to New Zealand when they have been sold for dairying purposes. The present system was inducing business with America as against Great Britain, as farmers could not be got to order their machinery ahead, una it took six months to get orders executed from England, as against about twenty-one days from America. It Beems therefore that the deputation were quite justified in asking that the old system should be reverted to, and also that a more liberal interpretation should be g|iven to the word "machinery" ue applied to dairy factories. We are glad co see that the Hon. C. H. Mills has promised to again bring the matter before Cabinet for re-consideration. The position at present is not satisfactory, for while it was shown that the major portion of the high duty can be evaded this proceeding must ultimately prove detrimental to the trade of the colony by diverting orders to Australian merchants. Bofore existing anomalies can be removed it may be necessary to amend the law, and if so it should be done at once. At the present time it is unwise to hamper or handicap the dairying industry by any vexatious regulations. ON TIIK r'OCKTII PACK. Literature. Warea News. Compensation Court. F.gmont Koad Board. Barrett Koad Board. Heartless Lover's Masquerade.