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Tuesday, 19 December 1911

Mr TUDOR (Yarra) (Minister of Trade and Customs) . - The Senate has remitted thirty-one requests, of which I propose to ask honorable members to agree to twenty-nine.

Mr Fenton - Are there any serious points involved?

Mr TUDOR - I do not know of any.

Mr Thomas Brown - Are there anysuggested increases of taxation?

Mr TUDOR - Yes, and I shall point them out. The first request relates to brewers'" pitch, which the Senate desires shall be allowed to remain as before, namely, free ; and the second and third requests are purelyverbal.. The fourth request relates to1ginger n.e.i. in brine for the manufacture' of crystallized preserved ginger, and the Senate desire that the duty should be made i£d., instead of id. This is one of the amendments to which I invite honorable members to disagree. It was held that this commodity would compete with green ginger, and that, on that account, thereshould be a difference in the duty; but if it is brought here in brine, and duty ischarged on the latter, there is sufficient difference. This commodity is largely used in manufacture of crystallized ginger, and about 130 tons were made ' here last year. If is stated that unless the duty is put back to id., the industry will be seriously affected. Request No. 5 relates to linen handkerchiefs and serviettes. This House agreed that the duty should? be 25 and 20 per cent. Piece-goods have, all been made free in the Tariff, and the Senate suggests that instead of 25 and 20. per cent, the duty should be 35 and 30 per. cent. I do not ask the House to go back to the duty suggested by me in the new. Tariff, but, as a compromise, to adopt a duty of 30 and 25 per cent., which will, I consider, give protection amounting practically, to prohibition. These are the only two-, items on which I propose to ask honorable members to disagree with the Senate's requests. No. - 6 is a formal request, and. No. 7 refers to an increase in the width of . braid from 2 inches to 3 inches. Request No. 8 is to strike out " gimp n.e.i." This, gimp is not manufactured for any othercountry in the world except Australia. It is a fancy trimming, and because there wasprovision for gimp n.e.i. in the Tariff, importers are calling fancy trimmings by that name, and thereby avoid paying a proper amount of duty. The amendment will make gimp dutiable as trimmings.

Sir Robert Best - This is really a departmental amendment.

Mr TUDOR - It is to assist in the administration of the Department. It is now difficult to define what is gimp and what is a trimming, and nowhere else in the world is gimp sold but as a trimming. It is a raw material, like many other articles in the same item in the Tariff. Request No. 9 relates to cutlery, which, "includling silver ferrules or plated articles " was made dutiable by this House at 15 per cent. and 10 per cent. The Senate request that the quoted words shall be left out, and " including the articles named when plated or silver ferruled " inserted. Request No. 10 has to do with electrical machines and appliances, and provides that preference shall be given to generators for direct couplings to steam turbines. There was previously a preference of 5 per cent., but as the item was removed from 5 per cent, and free to other items which carry a duty of 20 per cent. or12½ per cent. but with no preference, the Senate request that a 5 per cent. preference be maintained. The duty will therefore be 25 per cent. and 20 per cent., and17½ per cent. and12½ per cent. Request No. 11 relates to dextrine, which has given rise to much trouble. I suppose that every honorable member has been interviewed more than once on this subject.

Mr Mathews - Dextrine ought to pay a duty !

Mr TUDOR - I quite agree with the honorable member. We have to recollect, however, that the Senate decided on this request by a vote of more than two to one, and I do not think it wise at this period of the session to insist. Manufacturers who obtain the advantage of a protective Tariff do not show much patriotism when they are not prepared to pay their fair share of Protection, so that some of their raw material may be manufactured here. I propose to ask the House to agree to the request of the Senate, and leave dextrine free. The next amendment asked for is consequential. Then comes a request for an amendment of the marble and granite duties, which will give a preference of 5 per cent. to the stone coming from Great Britain, most of the granite imported being Aberdeen granite. The Senate asks us to amend , the timber duties in such a way that kauri will be dutiable according to size at the ordinary rates, and white pine and rimu at 6d. per 100 super feet. We fixed the duty on gramaphones at 10 and 5 per cent, so that, making allowance for the free portions, the rates on the cabinets would be equivalent to the furniture duties of 35 and . 30 per cent. ; but the Senate asks us to make the duties 5 per cent., if the imports are from foreign countries, allowing imports from the United Kingdom to come here free. The same Tariff will apply to records. Buggy saddles the Senate asks us to make dutiable at the same rates as harness saddles, because it is held that a distinction cannot be drawn between them ; and the rates will therefore be 6s. and 5s., or 36 and 25 per cent. ad valorem. The next amendment which we are asked to make will leave hides dutiable at 3s., as from the day of the introduction of the Tariff.

Sir Robert Best - Duties may have been paid in accordance with the altered scale.

Mr TUDOR - I think that all payments have been made under protest, under section 164 of the Customs Act, with a view to securing refunds. The Senate asks us to permit the importation free of paper-felt or carpet felt for the manufacture of roofing felt, and like substances, subjectto the departmental by-laws. It is desired that we shall increase the duty on vehicles from 35 and 30 to 40 and 35 per cent, because we are taxing some of the raw material at the rate of 10 per cent., and it was thought necessary to have a wider margin. The honorable member for Wentworth pointed out that our proposals regarding motor car bodies being made dutiable at £24 10s. and £21, or 35 and 30 per cent., whichever rate returns the higher duty, were unfair, because no distinction was made between the various kinds of bodies. The Senate asks us to make single-seated bodies dutiable at £17 and £15, doubleseated bodies dutiable at £24 10s. and £21, and bodies with fixed or movable canopy tops, such as landaulettes:, limousines, and taxi-cabs, dutiable at £42 and £36.

Mr Deakin - That is a Government proposal ?

Mr TUDOR - Yes.

Sir Robert Best - It obviates having alternate rates.

Mr TUDOR - Yes. The original rates pressed heavily on single-seated bodies, amounting, in some cases, to 80 or even 100 per cent. ad valorem.

Sir John Quick - Is a concession made in regard to second-hand motor cars?

Mr TUDOR - I do not know of any.

Sir John Quick - Was a concession allowed previously?

Mr TUDOR - Previously, the duty was charged ad valorem. It is not likely that second-hand motor cars will now be imported. Most of the motor car bodies are now made in Australia, and members have told me that the Australian bodies are equal to the best made abroad. Only to-day, a fine of £2,800 was imposed in Sydney on an importer who had not been paying the proper rates of duty ; but had the rates been fixed as proposed by the Senate, there could have been no evasion. The Senate asks us to increase the gross tonnage of dutiable imported vessels from 400 to 500 tons, and suggests an amendment which should meet the point of the honorable member for Ballarat, that it is not now clear that vessels which were ordered before 1st December, and provided it can be proved that the contract was signed before that date may come in free of duty. We decided that the duties should operate from 1st July next ; but the amendment requested by the Senate will enable such vessels as were ordered prior to the introduction of the schedule to come in free if imported within twelve months. To meet an objection raised by the honorable member for Coolgardie, the Senate requests us to allow the importation of pictures for cathedrals and churches free. I propose to ask the Committee to make all the requested amendments, with the exception df those relating to items 54 and 117.

Sir John Quick - What will be the new duty on springs?

Mr TUDOR - They will be dutiable at 5 per cent, more than previously.

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