NATIONAL PROBLEMS

Ashburton Guardian, Volume 54, Issue 191, 26 May 1934, Page 2

NATIONAL PROBLEMS

TARIFFS AND EXCHANGE RATE.

REVIEW BY MR COATES. (Per Press Association). DUNEDIN, May 25. Some of the more important national problems perplexing the community at present formed the subject of an address given by the Minister for Finance, tile Rt. Hon/ J. G. Coates, at a luncheon given him to-day by the Dunedin Manufacturers’ Association. Mr Coates made only three briefest of references to the tariff question, and then dealt with the rate of 'exchange, the prospect of cheaper money in the near future, and the wider problem of quantitative restriction of exports, with special reference to the\ difficult situation that has arisen in the dairy industry. The president of the Manufacturers’ Association (Mr James Hogg) welcomed the Minister. While they, as business men, did not always approve of certain Government actions, they realised that prompt and difficult decisions had to be made by those in power, \ and it had been their- policy as manufacturers *to- support the Government in the difficult tasks it was called upon to face at .present. He recalled that, sneaking as Prime Minister at the New Zealand and South Seas Exhibition, Mr Coates quoted figures to show the increase in production of secondary industries of £15,000,000 over a period of 18 years from 1906 to 1924, and the increase of employees for the same period of 28,000. In presenting these figures he stated: “Our manufacturing industries are increasing in importance,' are becoming an appreciable factor in the economic life of our people, and are steadily developing hand .in hand with the growth of our great primary production.” f “Manufacturers believe,” Mr Hogg -added, “that if they interpreted the Minister’s recent public utterances correctly, he still advocated the development of secondary industries on sound lines as a means of .progress fof the Dominion.”

Undertaking tol England.

The Minister said he found it difficult to talk to manufacturers at present. They all knew that as a result of the Ottawa Conference the Tariff Commission had been set up in terms _ of the undertaking given to the United Kingdom at that gathering. Actually, it was time something of the sort was done in any case, as it was some years since any move in this direction had been made, but while he admitted that a definite undertaking to investigate tariff matters generally had been given, New Zealand was in no way committed by that undertaking, It was true that the Dominion had agreed that there should be an investigation into, its tariffs, and he thought that it was to New Zealand’s advantage that such an inquiry should be carried out. Ti there had been any delay in setting up of the commission, it • had been due .to reasons over which the Government had' had no control. Actually manufacturers in the United Kingdom had been responsible tor the delay. Referring to the exchange rate, Mr Coates said: “We now come, to ,tlie question of whether the Government was right in increasing the rate or exchange. It was not possible to biin» down wages and costs below the exis ing level, and the Government came denied that the Government in increasing the rate of exchange, had caused a divm sion of trade from Great Britain To Australia Australia had depreciated her currency first, and that had had the effect of reducing imports from the United Kingdom, and assisting internal conditions. It was natuia that New. Zealand should purchase from Australia if she could quote a cheaper price, but any that had occurred had taken place ueto , the rate of exchange had been raised in jSlew Zealand. /