Govt hammers China nail imports
In a rare move, New Zealand authorities have placed a trade barrier on imports of Chinese wire nails following an investigation that found they were having a negative impact on a local manufacturer.
The Ministry of Economic Development (MED) began investigating the issue late last year after Wireplus, which has manufacturing operations in Auckland and Christchurch, complained about anti-competitive pricing of nails arriving from China.
Robin Hill, a chief adviser at the MED, said the department established that a "significant proportion" of the nails were being dumped - meaning they were being sold at prices lower than what they were selling for on the Chinese market.
The ruling and duties were announced in a notice signed by Commerce Minister Simon Power.
"[The duties] are designed to essentially increase the imported price of the nails up to a non-dumped level," said Hill.
But Richard Anyon, director of planning and strategy at Wireplus' parent company United Industries Group, said the duties could have been higher.
However, he said the action taken by the MED would at least show other local manufacturers that they could take action against underpriced imports.
"We don't have an issue with competing on a like-for-like basis, but we do have an issue with a non-level playing field," Anyon said.
"There is life left in New Zealand manufacturing as long as there is a level playing field."
He said the dumping of Chinese goods had resulted in a decline in Wireplus' nail sales, and the new duties would help ease the problem.
Hill said instances of anti-dumping duties being applied to imports in New Zealand were rare.
"There haven't been many cases in recent years," Hill said. "This is the first new investigation that we've done since 2007."
An investigation is currently taking place into preserved peaches from Spain.
Business Roundtable executive director Roger Kerr said the remaining import tariffs in New Zealand were "basically a nuisance".
"There's no protectionist sentiment to speak of left in the country ..." he said.
"We've got back into the mindset thinking that [duties] are a negotiating coin for free trade agreements but you don't need tariffs for those purposes - countries like Hong Kong and Singapore are into agreements and they've got no tariffs."
Kerr said the only way dumping could be harmful was if a foreign firm was able to drive a New Zealand company out of business and then raise prices through a monopoly.
* A Ministry of Economic Development investigation resulted in seven Chinese manufacturers of wire nails facing import duties in New Zealand ranging from 6pc to 110pc.
* The duties will expire in five years.
* Anti-dumping duties are already applied to a number of imports into this country, including diaries from Malaysia and China and canned peaches from South Africa and Greece.
By Christopher Adams | NZ Hearld
Buy New Zealand Made
Wireplus Ltd are proud to be members of the Buy New Zealand Made campaign.
Our Reinforcing Mesh and Nails are manufactured right here in New Zealand
We purchase our wire from Pacific Steel whose products are made from 100% locally sourced recycled steel and metal including discarded car bodies
When you buy a New Zealand produced product or service, you’re helping to create jobs, promote growth. As every cricketer knows, a run saved equals a run scored – so you’re giving our country a double whammy benefit when you buy New Zealand rather than from another country or an importer. We can be proud of the quality of our products.
The Buy New Zealand campaign began in 1988. Its emphasis has shifted over the years, but the basic aim of encouraging consumers and organisations to buy New Zealand goods and services wherever possible has not changed.
Management Changes at Wireplus
Wireplus are pleased to announce the appointment of our new manager Ryk Kleynhans. Ryk has an extensive management background in manufacturing businesses and officially took over the role on the 1st November 2010. Over the next few months Ryk will endeavour to meet with customers and suppliers to become familiar with your business and understand how Wireplus can continue to work with you. We also farewell Bob Jacobson who has been involved with the business for 17 years. Bob will be mixing retirement with a bit of project work across the United Group companies.
Colleen Dicks Rebuild
Wireplus Ltd became a sponsor of Colleen Dicks Rebuild, Supplying Reinforcing Mesh, Bar Chairs, Reinforcing Rod and Black Polythene for the concrete slab.
In mid 2009 Colleen Dicks home was demolished by Gabo Demolition. It had suffered from serious moisture ingress and the resulting damage had got to a point where the only viable option was to bowl the house and start again. Although Colleen was successful in her legal claim against various parties, after she paid all her lawyers and expert fees she did not have enough money to rebuild her home.