N.Z. INDUSTRIES.

Auckland Star, Volume LXIII, Issue 224, 21 September 1932, Page 7

N.Z. INDUSTRIES.

INQUIRY INTENDED. OTTAWA AGREEMENT. BRITISH MANUFACTURERS. "EIGHT TO PRESENT VIEWS.* (By Telegraph.—Special to " Star.") WELLINGTON, this day. "We are keen to build up industries in New Zealand, but they must be built on an economic basis, and there must be some basis of competition. We cannot have it both ways. We cannot ask Great Britain to accept our exports, no matter what their volume, and prevent, per medium of tariffs, British, manufactures from coming here." ,

This declaration of policy was made by Mr. Coates when concluding his references to tariff reciprocity in the course of his address at the Town Hall last night. He added that all such questions must be handled with reason and full knowledge of all the circumstances surrounding the industry. In the present circumstances and times it was essential that as far as possible costs should be reduced to the consumer,, whose purchasing power was greatly reduced. Revised Tariff ..Rates, Dealing with the concessions New Zealand had agreed to give Great Britain, Mr. Coates repeated his earlier statement that these comprised revised tariff rates on a number of articles imported into New Zealand from the United Kingdom and the Crown Colonies, and undertaking to exempt United Kingdom goods from the surtax and to abolish the 3 per cent primage duty as soon as financial circumstances permitted. He again emphasised that the new tariff rates could not, of course, be made public until resolutions were before ■ Parliament. As soon as possible the schedules would be drafted and submitted to the House, because he knew the business community desired to know the worst or best, whichever it might be.

"Generally, in regard to tariff protection," Mr. Coates continued, "New Zealand agrees to protect only those industries which are reasonably assured- of sound opportunities for success, to institute an inquiry into the existing protective duties, and, where necessary, to reduce them to a level which will give the United Kingdom producer full opportunity of reasonable competition on the basis of relative costs of economical and efficient production,' and to allow the United Kingdom producers to put forward their views in connection with any of these inquiries. That means that Great Britain has a right to record her views regarding any industry that may be brought under review, as to whether a tariff is necessary. New Zealand has also agreed to maintain in favour of the United Kingdom, the existing preferential margins at 20 per cent or the less figure now enjoyed. Tariff Board Not Decided. "In regard to further tariff changes, and an inquiry into existing tariff rates, nothing in the nature of a tariff board to decide our tariff rates is agreed to.. That is the responsibility of the Government, but we will have, an inquiry made with a view to seeing whether unreasonable and costly protection is being given by tariffs against the United Kingdom. The manufacturers of the United Kingdom will have the right, as they have always had when tariff changes in New Zealand were under way, to present their views. This general provision, bearing on protection to local industries, was inserted in the New Zealand agreement in the same language as in other agreements for the Dominions jwhicii have tariffs far higher than ours. It has no special reference to us, but we could not object to its being repeated in our agreement; in fact it is desirable that we should have a review of tariff rates and should ensure that only those industries which can show that they have economical and efficient production will continue to enjoy protection."