LABOUR ATTACK.

Auckland Star, Volume LXV, Issue 162, 11 July 1934, Page 10

LABOUR ATTACK.

"SACRIFICE" FEARED.

SECONDARY INDUSTRIES.

"ENTITLED TO PROTECTION." (By Telegraph.—Parliamentary Reporter.) WELLINGTON, this. day. In tlio view of tlic Opposition the tariff proposals moan the sacrifice of New Zealand's manufacturing industries and Hie creation of more unemployment. Loading tlic attack in tlic House last night, the Leader of the Opposition, Mr. M. J. Savage, said the Ottawa agreement had one basis for- New Zealand and another for Australia. Looking at the Australian tariff, one found that in various instances the Australian tariff was double the New Zealand tariff. "Thero, is no foundation about the whole business," .said Mr. .Savage. "We are simply swinging between heaven and earth." It was difficult to find any logic in the present position of the tariff. He could only see one reason for the New Zealand tariff, and that was to protect Now Zealand industries. The Minister had spoken about getting revenue, but to his way of thinking there was only one way to get revenue, and that was from those who had the most money to pay it. A revenue-producing tariff could not. be defended at all. Any form of indirect taxation generally found a resting place on the shoulders of those least able to bear it. System of Agreements. Mr. Savage said he agreed with the Minister that it would be necessary to go in for some system of trade agreements, for when one got down to realities one found it diflicult to find a reason for any form of tariff. They should bs masters of what was to come into New Zealand and of what was to go out of the country. They should simply take in what was necessary into the country and send out what was necessary in payment. They talked about exporting commodities, but there was only one season why they exported goods, and that was to bring in something which they could not economically produce in the Dominion. He was one of those who thought the time had come for an appeal -to reason. Mr. Coatcs spoke about expanding trade, said Mr. Savage, but it was obvious they could not expand trade until they expanded the buying power of New Zealand citizens. "We can't expand trade either at home or abroad unless wo do that," he said. "That is the basis of all trade, and I want some Minister who follows me to knock that statement down." At this point Mr. Ravage was called to order by the Chairman of Committees. Mr. Savage: If I am not able to make a reply to the Minister I might as well go home. I say that the Minister's statement is ridiculous. Mr. Coates: I think I can blow you out. Mr. Savage: The Minister couldn't blow it out. It is a statement of fact. T will meet the Minister in any hall and I will undertake to blow his statement out. Revenue Tariff Opposed. "This thing," Mr. Savage went on to say, "is a direct attack on the secondary industries of the Dominion. The secondary industries have to lje sacrificed. The manufacturer in New Zealand is entitled to protection, and he is entitled to expect the Government to insist on conditions that will make it possible for him to carry out reasonable conditions of trade. I agree at once that there arc certain things that should come into New Zealand free, but there is no reason for the imposition of tariff on things we can't produce in New Zealand. That brings me to the point that we should go in for agreements with other countries, and when I say that I mean countries within the British commonwealth. There is amphs opportunity for the development of trade in the British commonwealth. We can't develop our trade with any foreign country unless at the expense of Britain; that is, unless we are prepared to raise our own buying power. That is another statement for the Minister to knock over."

Mr. Savage added that the most important secondary industries of the Dominion had nothing to be ashamed of. There was not an item in the tariff schedules that was not produced in New Zealand to some extent. He was not going to say that all articles could bo produced in New Zealand, but he did say that the new tariff proposals covered a lot of articles that were being produced economically in New Zealand. Restriction of Employment; The assertion that the tariff proposals meant throwing the secondary industries to the wolves was made by Mr. D. G. Sullivan (Labour, Avon), who predicted the proposals would arouse a storm of protest and indignation from the great industrial population of New Zealand, as their effect would be moro unemployment. The manufacturing industries were being used as a pawn in the game of bargaining, because the Minister's statement made it clear that what was left was to be available for negotiation with foreign countries, such as Japan and Germany. The reductions announced would further reduce the amount of employment available for girls and young women in New Zealand. It was incomprehensible that the problem should be so accentuated and that the secondary industries should be left to continue their struggle. A strong objection to the reduction of the duty on glassware was raised by Mr. W. J. Jordan (Labour, Manukau), who said the development of the local industry had brought prices down. It was using local material and employing a large staff.