FEDERATION COMMISSION

Auckland Star, Volume XXXII, Issue 48, 26 February 1901, Page 5

FEDERATION COMMISSION

(By Telegraph—Special to "Star.")

WELLINGTON, this day

The evidence taken before the Federation Commission yesterday was strongiy adverse to federation.

Nicholas Reid (Turnbull and Co.), President of the Chamber of Commerce, declared that on the abolition of the sugar duties alone New Zealand would lose £108,000 in Customs revenue, and that tlie Colonial Sugar Company, dominating the sugar industry in Queensland and Fiji, would be secured in a gigantic monopoly. Victorian tobacco, on which excise duty was paid in Australia, would probably come largely into New Zealand markets, causing the loss of another £100.000 of revenue now derived from that source. The importation of Australian spirits and wines would further reduce the New Zealand Customs' revenues. He estimated the Customs' loss from the abolition of the intercolonial duties at about £550,000.' He. believed that the Federal Government will use the whole of the fourth of the Customs revenue, which it is entitled to take, so that, irrespective of Cus- , toms losses, which may arise from ! Federal tariff being framed on lower scale than the present New Zealand tariff, New Zealand would have to make up a loss to the amount of a million sterling by direct taxation in order to carry on its State duties and obligations. In the flour market the. North Island would probably draw a large part of it supplies from Australia, and one-half of the New Zealand flour mills would have to close. Boot and shoe manufacturers, and the jam making, confectionery, biscuit, soap and candle industries would be ruined. He said that the area in oats in Victoria had increased by 70,000 acres within in a year, and ns these oat?; | were dow grown for export and not for local consumption, he feared that NewZealand had no hope of obtaining a market there under intercolonial free trade. He saw nothing to compensate New Zealand for the commercial and industrial losses it would sustain under federation. Samuel Brown, President of tbq Wellington Industrial Association, considered that tho workers of New Zealand would be affected not so much by Australian competition as from that of Germany and America. From the industrial aspect New Zealand needed Australia more than Australia needed New Zealand, and in the not distant future we might want the help of Australia if our workmen were to maintain their present state of comfortable living. He thought an Arbitration Act would be passed in Australia, and that the tendency would be to raise wages on the other side. Given anything like equal terms hethought New Zealand workmen would produce more than Australian workmen. New Zealand manufacturers raight suffer from the effects of federation at first. .Measured by our New Zealand Parliament, he thought New Zealand would suffer as regards the expenditure of public money. It would depend on whether we could send better "log-rollers" than other States.

The Chairman: Are you in favour of New Zealand federating or not?

Mr Brow-n: 1 have no opinion. 1 am perfectly indifferent. Martin Kennedy said it would be better for New Zealand not to federate. Our present Constitution was sufficiently elastic to develop our resources, and our federation with Great Britain, wa.s sufficient. What we wanted was population, land settlement and manufacture, and he failed to sen how federation could promote any oj those. Any increase in our exports of cenVls* arising from federation would be neutralised by the flour imported from Australia. He believed federation would have a most disastrous effect on our manufactures, because manufactures are more de* veloped in Australia, and New Zealand would become a dumping gTOiind for their surplus. If more revenue had to be raised owing to the reduction of revenue from Customs matters might be balanced by doing away with old age pensions, but this would be a calamity. By federation New Zealand would be parting with a good deal of her liberty, and history showed that, the smaller party would suffer. Australia would gain all the fat billets, for instance, and as the interests of Australia were not . identical with those of New Zealand any legislation would be adverse to New Zealand. The labour conditions in New Zealand were more in favour of labourers thitn in Australia, but the conditions in Australia Avere improving. Labour would be affected by federation through the increase of manufactures from Australia, wliich would be sent over to New Zealand. He was of opinion that the progressive labour legislation of New Zealand had greatly enhanced the country's prosperity, but that with federation we would not be able to continue that legislation, and not having an elastic finance would be hampered in developing our resources.

T. G. Macarthy said that until the question of free trade or protection and racial difficulties in Northern Australia were settled the question ol federation did not present itself very favourably to his mind. If the tariff was made about similar to that of New Zealand we would be. injuriously affected, and probably some of our superior working men might be attracted to Australia. He preferred to remain as at present, and his vote would be against federation.

The Commission then adjourned until to-morrow morning.