INTER-EMPIRE TRADE.

Auckland Star, Volume LXII, Issue 118, 21 May 1931, Page 9

INTER-EMPIRE TRADE.

BRITAIN'S FISCAL POLICY.

CHAKGE URGENTLY NEEDED

DOMINION'S MAIN MAKKET

The need for an alteration in Great Britain's fiscal policy that will conserve New Zealand's main oversea market was emphasised by the Prime Minister, the Rt. Hon. G. W. Forbes, in his Otahuhu address last night. Tkn briefly reviewing the results of the Imperial Conference. Mr. Forbes observed that there appeared to be an impression in some quarters thai because the Imperial Conference could not come to an agreement in regard to a system of preferential duties for the Empire it had been a failure. To a certain extent that vras, of course, true, but a great deal of useful work had been accomplished in directing public attention to the matter. Each of the Dominions was in favour of a system of tariff protection combined with effective preference for British goods, but the British Government found itself unable to reciprocate. Other alternative proposals were discussed, and the proposed conference to be held at Ottawa in a few months' time would give further consideration to such questions as quotas, import boards, bulk purchase schemes and the organisation of channels of trade.

Increasing the Volume. "I am strongly of opinion."' said the Prime Minister, "'.hat the future (economic welfare of the Empire will depend on an increased and increasing volume of inter-Imperial trade, and any measures to this end will have the hearty support of the Government. I should like to make it clear that there was no question of Dominion Prime Ministers endeavouring to influence either the British Government or the people of the United Kingdom for the benefit of the Dominions. It was rather in the earnest hope that our proposals would help in providing a solution of the important fiscal pro'blems confronting the Empire as a whole that our suggestions were made."

Mr. Forbes declared that unless there was a change in the fiscal policy of the Imperial Government, nothing could be expected from discussions, because when a Free Trade policy was adhered to it was futile to expect the provision of a measure of preferential tariff for Dominion goods. One could not say what change would come, but nothing could be hoped for unless a new Government favouring preferential tariffs were returned to power.

Security Needed. The preferential tariff was a question of outstanding public importance in the Old Country at present, and it was of great moment to Xew Zealand to have some feeling of security regarding its main oversea market, because practicallv everything depended upon the sale of the Dominion's primary products in Great Britain. It was therefore of the utmost importance to see that the market was not swamped with goods from foreign countries. The position had been made clear to the Imperial Government, and Mr. Forbes was hopeful that a change in public opinion would influence the Home authorities, or that during the next election they would come to recognise that a change in policy was necessary. It was to be hoped that there would be an alteration in that respect that would enable New Zealand to make an arrangement that would be thoroughly satisfactory to both countries. (Applause.)