OTTAWA PACT.

Auckland Star, Volume LXIII, Issue 261, 3 November 1932, Page 10

OTTAWA PACT.

CHANGES IN TARIFF. W' COATES' EXPLANATION. OTHER EMPIRE COTJNTRIES. BARGAINING POWER RETAINED. '{By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day. Power to extend, by Order-in-Council, to Canada, South Africa, the Irish Free State, Newfoundland and .India, the eame tariff concessions as New Zealand lias accorded to Great Britain under the Ottawa agreement is contained in the Customs Amendment Bill, introduced into the House last night. The measure also confirms the lowering of the duties on confeetionecv, apparel, hosiery and 6ilke manufactured in the United Kingdom, and the changes made by the original resolutions affecting imports from Crown Colonies. It also authorises the abolition of the surtax on imports from the United Kingdom and in addition empowere the Governor-General, by Order-in-Council, to exempt from payment of surtax any goods imported from Canada, South. Africa, the Irish Free State, Newfoundland and India. The abolition of the primage duty respecting Australian goods is endorsed. Power is given the Governor-General to reduce :the excise duty on New Zealandmanufactured tobacco to compensate for the removal of the surtax on United Kingdom manufactures. Simplification of Tariffs. A fnll explanation of the bill was given by the Bight Hon.' J. G. Coates •when moving the second Teading. He referred to the special power given to reduce the duties on confectionery, apparel, hosiery and silks from Canada, South Africa, Irish Free State, .Newfoundland and India to the same level ae those on similar goods / from the United Kingdom. "Thie is proposed," said Mr. Coates, "with the dual object of keeping the tariff as simple as possible, and at the same time endeavouring to obtain concessions for our products from the Dominions mentioned. Dealing with the latter point, I may eay that, in connection with the Ottawa Conference, discussions took place between the Canadian and NeW. Zealand delegations with a view to.the arrangement of a new trade agreement when the present one expires next May. There was insufficient time to bring the negotiations to a conclusion, but it was arranged that the matter should be further gone into by correspondence. ' > Negotiations With Australia. "With respect to the agreement with Australia, the'position is that in both countries there is a strong feeling that the time hae arrived for a complete revision of _ the existing arrangement Preliminary conversations have taken place between representatives of the two countries, and. it ■Iβ intended that, if possible, -there should be a further meeting as soon as practicable to go into the' whole question. "Discission also took 'place between the New Zealand delegation and the representatives of South Africa, India and the Irish Free State. It was arranged thai these were to be continued by. cocreepondence. . .;:- <"Witih respect to the question of tariff simplicity, the mercantile community will, I feel eure, agree with me that daring recent years changes in Customs duties due to economic' Conditions have rendered the tariff more, and more complicated, and, in the interests of both importers and the Department, it is desirable that further complications should not, if possible, continue. ,. Trade, With India. Discussing New Zealand's trade with India, Mr. Coates said the latter country was a potential customer for a lar&e proportion of our exports. He said potential advisedly, because it was difficult at this distance to visualise offhand the possible consumption in India of New Zealand produce. Power was given ty Order-in-Council mentioned merely to enable the Government to carry out negotiations with, other Dominions, and it was valuable that the Government-should have this authority, but it should be explained that whatever agreements might be reached as a result of these negotiations would have to receive Parliament's confirmation. The InriiiTE Government, lie was assured, would readily co-operate with New Zealand in endeavouring to arrange for mutual trade. Apart from dairy products, whole milk and meat, the * Dominion could trade extensively with * India in fruit. There were also further trading prospects with Canada and South Africa, which tad to be kept in mind, and which could, under the bill, be made the subject of negotiations. Australian Position Unsatisfactory. Discussing the Dominion's agreement witih Australia, Mir. Coates said it -was anything but satisfactory, mainly on account of several bounty schemes existing in Australia and the difference in exchange rates between the two countries, which undoubtedly gave Australian manufacturers an important advantage over New Zealand manufacturers.

There were other aspects of the question which would require the attention of the Government at an early date. Some consideration had already been given to the'difficulties on both sides, in order that a satisfactory arrangement could be made as early as possible. It would be agreed that simplification of the tariff wag urgently necessary, for it was essential that traders should have confidence in the stability of tariff rates. The Australian agreement was overdue for overhaul, and it could be ended with eix months* notice by either side. The Australian Government realised the position and it was anxious to discuss the questions at issue. Power was given to the GovernorGeneral to reduce by Order-in-Council the duties on English and Irish beer and stont from 3/ to 2/ per gallon. An endeavour was being made to increase the sales of New Zealand hops in England and the Irish Free State. The understanding was that if satisfactory contracts for the disposal of New Zealand hops could be made, the Dominion Government would aek Parliament to reduce the duty on English and Irish beer and etout as stated, Market for Hops. Certain contracts had already been made for the sale of New Zealand hops I>y Mr. Hamilton, the representative at the Ottawa Conference of this country's hop-growers. He was at present in England endeavouring to arrange fur-

ment power to reduce the duties as soon as it was satisfied that this course was justified. He was convinced this move would, not in any way prejudice the local brewing of beer and stout. It would be of great importance to New Zealand if it could guarantee the sale of its eurplus hops. It should not be overlooked that the hope grown in ths Nelson district were of the quality required by the industry in England and Ireland. Replying to an interjection, Sir. Coates agreed that any changes in duties brought about by an Order-in-Council would become effective. In the meantime, at any rate, it remained for Parliament to ratify them. "A New Principle." Replying to the debate early this morning, Mr. Coates admitted that the clause giving power to extend concessions T>y Onler-in-Councll introduced a new principle, making it possible for the agreements to be in existence until Parliament was able to approve them. As soon as the investigation of the present tariff was completed any such alterations effected in that manner would be absorbed in the revised tariff schedules. He observed that in Australia's case the Commonwealth was tied down to a Tariff Board, which had been consistently reducing tariffs, and whose recommendations Parliament was bound to accept. It wpuldjbe seen that duties had been consistently reduced all along the line.