Italian gold 'dumping' into local market sparks probe

A row is threatening to tarnish the local jewellery industry after the Ministry of Economic Development yesterday said it was investigating alleged dumping of Italian pieces onto the local market.

The investigation centres on hollow nine-carat-gold chains, necklaces and bracelets, which can sell for from less than $100 to as much as $10,000.

Local manufacturers have claimed that Italian products are being sold to importers at prices lower than they would fetch on the Italian domestic market.

Although dumping itself is not illegal, action can be taken if goods threaten to cause injury to a domestic industry.

Christchurch-based manufacturer Marc Bendall, one of the complainants, said the alleged dumping had reduced his local sales by 30 per cent.

He now exported more than half of his product range to Australia, because the local market had become "saturated" with imports.

Ministry figures show that the value of imports of the jewellery under investigation increased from $1.5 million in the year to March last year, to $1.9 million this year.

Spokesman Martin Garcia said ministry investigators might have to travel to Italy to speak to producers.

If dumping was found to be harming local businesses, the Minister of Commerce could impose new duties as a deterrent.

The attention on imports has attracted mixed reactions within the local jewellery industry.

Some members of the tightly knit group are understood to be upset that the complainants have pursued their right to ask for an investigation.

One has refused to support the complaint.

Mr Bendall said he first became concerned about import levels six years ago, but it was too difficult to get his complaint examined.

Now he has the support of two fellow jewellery makers, Auckland-based Capro Three and Aztec Gold. The investigation will take six months.