FREE IMPORTS.

Auckland Star, Volume LXIV, Issue 247, 19 October 1933, Page 18

FREE IMPORTS.

GOODS FROM BRITAIN. MEAT BOARD'S ADVOCACY. DUTY ABOLITION IN FOUR YEARS. (By Telegraph.—Own Corrcsnoudent.) WELLINGTON, Wednesday. Perhaps the most elaborate and exhaustive of all the statements received by the Tariff Commission as evidence was that submitted to-day by Sir William Hunt on behalf of the New Zealand Meat Producers' Board. With a wealth of facts and figures the board put forward its "case for closer trade with Britain." The board's summary of its conclusions follows: — (a) The growth of New Zealand's farms is one of the greatest romances in farming history, and the New Zealand farmers in their initiative, industry and skill are unsurpassed by the farmers of any other country. (b) Farming is the basic industry of New Zealand, providing almost the whole of the country's exports and the only means of financial communication with the outer world. (c) No secondary industry, other than thoso putting farm products into a. marketable condition, has yet placed itself on to an export basis. (d) The purchasing power of New Zealand's farm products is now at the lowest point in the history of the Dominion. (e) The exchange parity of the goods and services that the farmers and the rest of the community render each other has got completely out of line. Major Cause of Depression. (f) This lack of farm purchasing power is filtering through the whole community and is the major cause of our unemployment problem and general economic difficulties. (g) The only way in which to bring back prosperity to the Dominion is the return or the bringing about of conditions that will restore profit to industry. (h) Other industries cannot prosper until the basic industry of the country, which is primary production, is restored to a profit-earning basis. (i) The raising of the exchange rate was necessary and in the interests of tho whole community. It enabled the farming industry to carry on and thus continuo to support tho Dominion's other industries. It was purely an internal matter and not equivalent to an addition to the tariff.

(j) In raising the exchange rate, New Zealand is doing just the same as Britain, and' that is keeping the value of its currency at a level to suit itself with the country's money and at the country's expense. (k) Every other country in the world except Holland and Switzerland has recently done or is doing what is equivalent to the same thing. British Market Vital. (1) New Zealand depends, more upon the British market for the sale of its exports than any other country, and very much more than any other British Dominion. New Zealand's position is, therefore, entirely different from that of any of the other Dominions. (m) Britain being the only market for about 70 per cent of New Zealand's exports the loss of free and unlimited entry to that market will seriously impair New Zealand's solvency and thus injure every section of the community. (n) The speeches of British Cabinet Ministers and other public men, together with the statements of the British Press, show that Britain is adopting a policy of restricting imports and fixing quotas with all countries, including British Dominions. This policy is fraught with very much greater danger to Zealand than to any other Dominion. (o) The only way to be sure of securing free and unlimited entry for New Zealand products into Britain is to give similar entry to New Zealand of British goods. (p) In accordance with the provisions of the Ottawa agreement an immediate substaiitial reduction should be made in the duties on British goods. Under our proposals the balance of the duty then remaining should bo removed at the rate of 25 per cent a year. (q) No change should be made in the tariff on goods from other countries, including British Dominions, except upon a reciprocal basis and in arranging any such changes British interests should be considered as well as those of New Zealand.

Secondary Industries. (r) The commonly accepted idea that free entry of British goods into New Zealand will largely destroy New Zealand's secondary industries", is wrong. Free entry of British goods into New Zealand will either help or leave unimpaired secondary industries employing 79 per cent of the employees and paying 84.8 per cent of the wages. (s) The remaining secondary industies employing 21 per cent of the employees and paying 15.2 per cent of the wages would in the first instance suli'er from free.entry of British good-. These could in a large measure meet the situation by reorganisation and should receive assistance by way of bonuses for a limited period while doing so. (t) Free entry of British goods into New Zealand will reduce costs to all New Zealand industries, both primary and secondary.