The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News, The Echo and The Sun. MONDAY, JANUARY 23, 1933. GOVERNMENT'S HARD TASK.

Auckland Star, Volume LXIV, Issue 18, 23 January 1933, Page 6

The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News, The Echo and The Sun.

MONDAY, JANUARY 23, 1933. GOVERNMENT'S HARD TASK.

For the cause that lacTcs asststancc, For the tcrong that needs resistance, For the fixture in ihe distance, And the good t?«it toe can do.

In the effort to reconcile a high exchange rate with an effective policy of tariff reform, the Government will be called upon to undertake what will be found a task of exceptional difficulty. The rise of .15 per cent in the rate affects not only goods which were formerly dutiable, but also a wide range of commodities, amounting in 1931 to almost half the total imports, which were formerly free. But this is no reason why the tariff on English manufactures should not be rebated at once 15 per cent. The larger question of tariff charges will require the most careful consideration. The starting-point for tariff reform will be a level of duties in New Zealand against important groups of English "goods of 40 per cent and upwards. For cotton and silk piece goods, indeed, the landed cost has risen in.two years from 15 to 40 pet cent; for wool-piece goods, from 40 to 75 per cent, and for apparel to over 80 per cent. Foreign imports, in the two 1 Sitter groups, are subject to duties of well .over 100 per cent, and this indicates the trend against foreign trade in general. Depreciation .of sterling in relation to the dollar has added to the weight of the forces checking trade, particularly with the United States, and has reduced foreign importations to a small range of goods which cannot be obtained ■elsewhere. The flow of trade within the Empire has been maintained in a substantially better condition than that with foreign countries, but England expects Zealand, as well as the other Dominions, to initiate a free* import policy, giving the British manufacturer the opportunity to compete on reasonably even terms with local firms. This is an -essential part of the Ottawa agreement, and New Zealand may be reminded by Britain that the raising of the exchange is. directly opposed to the terms and spirit of v that agreement. Apart from the external problems, the Government will have others concerned with the internal affairs of the country. By its action it. has upset the Budget position of leading local bodies and has ■ compelled them to.meet heavy increases in their overhead. The Auckland City Council, the Power Board, the Transport Board and the Harbour Board all have to face the need- of finding large additional sums for/interest, and. this in a time of dwindling revenues. How serious is the effect upon the finances of the city is shown by the fact that exchange charges alone are now estimated at eightpence in the pound on the annual ratable value, and may involve an increase of sixpence in the city's rates. Wellington is-hit similarly by the increased , burden of overseas payments, and I the effect throughout New Zealand gives rise to a far-reaching national issue. The, local bodies, being in no better position than -the banks to avoid a loss eff the exchanges, are entitled similarly to be ! indemnified against that loss, and the Government will have to assume some responsibility and assist them in their present., plight.