H. —28

ANHYDROUS AMMONIA. This commodity is manufactured in the Dominion by the Christchurch Gas, Coal, and Coke Co., Ltd., the raw material consisting of crude liquor resulting from the production of coal-gas. The plant now used by the company is stated to be of modern type, and the cost of production indicates a satisfactory standard of efficiency. The company has produced evidence to show that its product is of a quality equal to that of the best standard imported ammonia. Anhydrous ammonia is used in the various freezing-works of the Dominion, and according to reliable evidence the cost of ammonia represents 0-03 d. per carcase of mutton frozen. In the dairyproduce industry 1 lb. of ammonia (priced at about Is. 6d. per pound) is used to an average of about 8J tons of butter. Imported ammonia comes mainly from Australia, and to a lesser extent from foreign sources. The local product is apparently able to compete satisfactorily in price with Australian ammonia ; but, although Dominion-made product maintains a high standard of purity, difficulty of sale apparently arises from established trade connections in favour of the imported article. It does not appear, therefore, that any protective tariff is necessary in relation to ammonia of British origin, and the local product may for price reasons well be expected to increasingly displace the Australian article. So far as foreign ammonia is concerned, however, there appears to be some likelihood of the importation and sale of a synthetic product of Continental origin. The Commission considers that the use of what is (with most New Zealand gasworks) now a waste product should be encouraged. The Christchurch plant, by the use of liquor from other gasworks, could produce a very large proportion, if not the whole, of the Dominion's requirements, and by so doing could reduce materially the overhead costs of operation. The local plant is at present producing approximately one-third of the total used in the Dominion, the raw material being wholly from the Christchurch Gas Co.'s own works. We therefore recommend that this commodity continue to be admitted free of duty when of British origin, but that a duty of 4d. per pound be imposed on ammonia from foreign sources-. CHURNS. Applications have been made for the imposition of duties on churns. Under the present tariff these articles are free of duty if of British origin. A suspended duty of 10 per cent, ad valorem is provided for in respect of foreign churns. Dairy-factory churns have been made in New Zealand for many years past, and, so far as can be judged, these churns have met most of the local market demand. Satisfactory evidence has been produced to show that the local product is of good quality, and that improvements in design have been made from time to time, and, moreover, that reductions in price have been made effective. Local makers are able to meet competition from British sources, but during the last year or two foreign churns have been offering keener competition. The Commission considers that, in view of the satisfactory service given by the local industry in the past, some measure of protection is warranted against foreign churns. We have accordingly recommended that, in lieu of the suspended duty of 10 per cent, provided under the present general tariff, there be levied a duty of 20 per cent, ad, valorem on foreign churns. EGG-PULP AND SIMILAR PRODUCTS. Egg-pulp and similar products are at present dutiable (as provisions n.e.i.) at 20 per cent, ad valorem under the British preferential tariff, and at 35 per cent, ad valorem. under the general tariff. For some years past, however, the importation of these goods has, save with the consent of the Minister of Customs, been prohibited. The Commission considers that, as a general rule, protection should not be granted by way of prohibition of importation, and that in this instance the circumstances do not now justify a continuance of the embargo. We believe that the position should be met by the imposition of such rates of duty as will ensure a reasonable return to the Dominion poultry-farming industry, the products of which are estimated to have an annual value of £3,000,000. Owing to the fact that importations have been prohibited, some difficulty has been met with in determining the rates of duty necessary in this case. Certain information regarding overseas values has, however, been secured, and the Commission, after taking into consideration prices in recent years on the Dominion market, recommends that duties of 25 per cent, ad valorem and 45 per cent, ad valorem under the British preferential and general tariffs respectively be imposed, and that consideration be given to the question of removing the prohibition of importation. GLASS-MANUFACTURING INDUSTRY. A request was made for increased tariff protection in respect of certain glass containers. The existing tariff items are as under : —

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! British Preferential I General Tarifi Tariff. Bottles, empty, plain stone; infants' feeding-bottles with or Free 10% ad val. without attachments ; jars, plain glass ; and plain eart.hern jars, up to 3 in. in diameter at the mouth, whether wickered or not Empty plain glass bottles, not being cut or ground, having a Free 10% ad val. capacity not exceeding 8 fluid ounces Empty plain glass bottles, not being cut or ground, n.e.i. .. 10% ad val. 25% ad val.