TRADE WITH INDIA.

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

TRADE WITH INDIA.

WISDOM QUESTIONED. ((LOW-STANDARD COUNTRIES." FUTURE OF N.Z. INDUSTRIES. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day. Opposition to the negotiation of trade agreements with low-standard countries was expressed by the deputy-Leader of the Opposition, Mr. Savage,' in the House last night, "when he indicated that the Labour party's attitude remained unaltered towards the Customs changes consequent on the Ottawa Conference. Mr. Savage 6aid it was proposed to reduce the tariff against Indian manufactures, which were the product of surplus British capital invested in that country. That was the problem—the investment of British capital in countries of low labour standard and' poor conditions. It was impossible for New Zealand manufacturers to compete with -such countries without reducing their own people to the eame standard. "I do not see how we can avoid that," he said. "It helps to dampen one's enthusiasm for preferential trade when one finds eome of the parties to preferential agreements representing low-stan-dard parts of the Empire. We cannot afford to neglect the standards of our .own people, and it eeems ae if the clauses dealing" with the agreements with the Irish Free State, India, and so forth are aiming directly-r-I do not say consciously—at the reduction of the standards of bur own" people. That must be the "ultimate result." Mr. Savage said he wondered bow New Zealand brewers would be able to compete with'the products of the Irish Free State. Instead of trying to allow other parts'of the Empire to compete against New Zealand manufacturers, would it not be better to induce Britain to invest in New Zealand industries and to manufacture here instead of in Britain ? That was the real alternative. The people of New Zealand would get no benefit from reductions in the tariff, and the State would lose a certain amount of revenue. Taking all the factors into consideration, he could not help feeling a good deal of anxiety for of industry in New Zealand. Concentrate on Britain? India had been .referred to as a potential customer for New Zealand products. "In view of Indian standards," said Mr. Savage, "it looks to me tff be very nearly hopeless. Ido not expect to see any great market there in our time. It seems as if we put our eggs in too many baskets, and it would 'be better for ue to increase the standards that are, comparatively speaking, high now. It would be better to turn our whole attention to Britain than to try to enter into agreements with countries like India, which must ultimately land us in disaster. It is not a question of sentiment but of hard economic fact. However we look at the proposals, we must be alarmed to a certain extent by the policy of the Government and the agreements arrived at. The schedule show's the tendency there is to take away that measure of protection that has 'been provided for a nuniber of important: industries."

Labour's Tariff Policy. Mr. Savage assailed the provision enabling the Government to negotiate trade' agreements by Order-in-Council, concerning the meaning of which there could be no doubt. He said the attitude of the Labour party remained as it was when the resolutions -were previously before the House. The alternative was to encourage industries which were capable of economic development, and to give absolute freedom of access to our markets to such British products as could not be produced in New Zealand. There was no reason, except that of revenue, justifying the imposition of Customs taxation on motor chassis. There was no reason why they should not be admitted free, in order to. encourage the motor-body building industry and put artisans to work in that line instead of keeping them on relief work. "A schedule of goods to be placed on the free list , might easily be prepared by Ministers, and, having done that, they could provide a schedule of the goods that could be produced in NewZealand. "We ought to go to any length to improve our standards, rather than reduce them," Mr. Savage added. "I defy any member to show me a trade agreement with low-standard countries which would not tend to reduce our living standard in New, Zealand." Mr. Coates , Reply. Replying to Mr. Savage early this morning, Mr. Coates said high tariffs were no guarantee of the maintenance of standards. Trading with India did not make one an Indian, and did not lower the standard in New Zealand. After all, Britain, had traded with India for years, Mr. Coates said that in the years 1929-30-31 the value of apparel imported from India amounted respectively to £366, £265 and £224. No hosiery was imported and no confectionery. Silks were represented by £144, £334 and £55, and the imports of pig iron, which was on the same tariff preference jagut-Tw^jPrn^ i> fli n f*^ ATi vyerj> nii» .l <