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Friday, 1 May 1936

Senator GUTHRIE (Victoria) .- I cannot follow the arguments aduced by Senator Leckie, particularly concerning glucose manufactured in Australia from locally grown maize. The honorable senator quoted the Australian price of maize as 5s. 4d. a bushel, but according to the Sydney Morning Herald to-day the price is 4s. 4d. a bushel. The honorable senator also said that the Australian manufacturer who purchases Australian wool and manufactures it in this country pays the British price plus 25 per cent. Senator Leckie. - Of course he does.

Senator GUTHRIE - He purchases wool in the local market at say, ls per lb.

Senator Leckie - The Australian purchaser pays 14½d. and the British buyer 10½d.

Senator GUTHRIE - The Australian manufacturer has an advantage in that he does not pay a delivery charge, whereas the British manufacturer pays a delivery charge of one-eighth of1d. and 1¼d. per lb. freight over 12,000 miles, and he then has to pay freight and insurance on the finished products shipped to Australia. I do not suggest that the duty is too high, but I could not understand Senator Leckie's contention that an exchange advantage of 25 per cent. is equivalent to a duty of only7½ per cent. "We have always assumed that when the Australian pound is depreciated 25 per cent. in relation to sterling, the manufacturer has an additional advantage equivalent to a duty of 25 per cent.

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