Boatbuilding Industry

Australia May Lose

PLANTERS and traders in the Southwest Pacific are affected by a new decision of the Aus tralian Department of Customs which now insists that overseas motors, installed in small vessels built for the Islands trade, shall pay duty, at the rate of from 15 to 20 per cent, ad valorem, as if they were imported for use in Australia.

Hitherto, Australian boatbuilders would instal overseas motors, if re quested. If the boats remained in Australia, the duty on the motors was paid. If they went overseas the motors were not taxed. But bureaucrats somewhere considered the position, and the ukase went forth; “Motors of foreign manufac ture shall be taxed, if there is a comparable motor of Australian manufacture available for instal lation.”

There are three firms in Aus tralia making motors suitable for boats —Southern Cross (Queens land) , and Ronaldson & Tippett and Kelly and Lewis (Victoria). But boatbuilders want a free choice— they say some clients prefer certain overseas makes; and operations in other yards are standardised to particular motors.

But officialdom is adamant. Aus tralian manufacturers cannot stand up to overseas competition and want protection. Result (inevitable) ; A section of the valuable Islands boat building industry will be removed from Australia to Islands centres, like Suva and Rabaul—but more probably to places like Singapore and Hongkong.