CUSTOMS BILL.

Taranaki Daily News, 1 December 1921, Page 5

CUSTOMS BILL.

DEBATE IN THE HOUSE. TAX ON MOTOR xRADE. VARIOUS ITEMS DISCUSSED. By Telegraph—Press Association. Wellington, Last Night. The House went into committee tonight on the Customs Amendment Bill. On the first clause (the short title) Mr. T. K. Sidey (Dunedin South) put in a plea for a concession in the case of iron rolling mills to keep the industry alive and save it from destruction by outside competition, after which the country would find itself forced to pay higher prices for iron. Sir John Luke (Wellington North) supported Mr. Sidey’s contention and considered it might be beneficial if a subsidy was paid for the production of iron. Mr. W. A. Veitch (Wanganui) referred to the taxation affecting the motor trade under this and other Bills, which he was informed amounted to 250 per cent., and he asked if the Minister had fully considered this subject. He also asked if the full effect of the transfer of Australia to the general schedule had been fully investigated. Replying to points raised the Minister (the Hon. W. D. Stewart) said he agreed with the desirableness of protecting iron rolling mills, but inquiry had not resulted in finding any equitable manner of doing so to any extent. He hoped, however, as the result of a later conference with the interested, i parties that some measure of assistance might be evolved. Referring to the complaints of taxation on the motor trade Mr. Stewart pointed out that petrol had been made free and it was not intended to levy all the taxes proposed in the various measures before the House. A flat rate on tyres would probably furnish the money required for road maintenance. TEA AND SUGAR. Mr. J. Horn (Wakatipu) asked for a remission of duties on tea and sugar, and suggested the readjustment of imports on such items as tobacco, from which alone he considered an additional £300,000 per annum in revenue could be derived. Mr. J. A. Young (Waikato) stressed the need for putting local bodes using locomotives for development purposes on the same , footing as the Government, which paid no duty on locomotives imported for the Railway Department. Mr. 0. Hawken (Egmont) objected to the proposed duty of 35 per cent, on foreign manufactured woollen goods, compared w’ith 20 per cent, on British. New Zealand wished to extend her markets for raw wool ayd this dieermination might have a prejudicial effect on the chance of selling New Zealand wool in foreign countries.

Mr. J. Bitchener (Waitaki) advocated the remission of duties on children's boots, as a practical step towards reducing the cost of living.

Mr. H. E. Holland (Leader of the Labor Party), referring to the claims for the reimposition of the tax on hatmakers’ goods, said that whether the duty was replaced or not it appeared from the arguments adduced th t hardship was going to be inflicted on some- . one. A way out he suggested was for j the Government to take over the existi ing mill producing these materials. At 10.50 p.m. the first clause was passled. i At clause four Mr. Holland tried to ! move an amendment affirming that wages should not be lowered except with a reduction in the cost of living, but it . was ruled out as being irrelevant to the Bill. The same fate befel an amendment which Mr. P. Fraser (Wellington Central) sought to move, the effect of which would have been to nationalise industries which could not succeed without the imposition of high protective duties. CONTROL OF TAXATION. At clause five Mr. Wilford objected to the powers given to the Government to operate the intermedate tariff by Order-in-Council, and suggested that the provision in the Commonwealth Customs Act be incorporated that no such duties shall become effective until ratified by Parliament. The Minister admitted there was something in the contention, but he thought the position was met by clause ten. Mr. Massey read clause ten, contending that it met the position raised by the Leader of the Opposition. It was* certainly the intention of the Government that it should do so; if not he would have it altered in another place, as he was just as strong as anyone that Parliament should control taxation. Continuing, Mr. Massey said his idea was that there should be a conference between Ministers and legal authorities, and that they should endeavor to give expression to the wishes of the House. Mr. Wilford said they evidently all wanted to do something and it was only a question of how it was to be done. He would be satisfied for the present with the arrangement suggested by the Premier.

The clause was agreed to. At clause twelve Mr. Holland moved that no Order-in-Council referred to in sub-clause three should have any effect until ratified by Parliament. On a division the amendment was lost by 39 votes to 23.

At clause 32 the Premier, in reply to Mr. Veitch, said he had given instructions to supply members with a. copy of the 'tariff commission’s report before the schedules would be considered.

The Minister moved a new clause, but it had not been circulated and progress was reported, and the House rose at 1’2.5 a.in.