THE TARIFF.

Press, Volume LVII, Issue 17316, 30 November 1921, Page 8

THE TARIFF.

SECOND READING OF BILLS. CABRIED BY HOUSE. (ABHIDGED PBfcSS ASSOCIATION TELEGRAM.) "WELLINGTON, November 29The House of Representatives tonight went into Committee of Wayß and Means to consider resolutions dealing with fnrther alterations to the schedules in the tariff. Mr Wilford asked for information regarding the alterations. The Hon. "W. Downie Stewart, Minister of Customs, explained the items. In the case of motor-cars, the alteration was found necessary to get over a difficulty in discriminating between American and British care owing to tho manner in which American values were set out. The change in the tariff on (heavy oils was made in the interest of settlers, fishermen, and,other users of these oils. Regarding agricultural machinery, it was found necessary to make concessions to Canada, who was our principal competitor, and whose tariff treated us on the same terms as England. The resolutions were adopted. In moving the second reading; of the Customs Act Amendment Bill, Mr Massey said he felt it necessary that in future the Customs tariff should be revised moro frequently. He suggested that it should be done every five years. That period was sufficient for changes in trade conditions to arise, and for monopolies to grow up. It was also necessary in view of One fact that the country's financial needs and resources were subject to fluctuations in that time- He thought that everything possible should be done to extend preference within the Empire, although, so far, New Zealand had not benefited mudh therefrom. The Bill contained very drastic provisions to deal with dumping. These were urgently needed to protect our industries from unfair competition from other countries. The question of depreciated currency had become very serious in recent years, causing difficulty to traders, so that something must T>e done to meet any attempt that could possibly be made to take advantage 'of & depreciated currency in foreign countries to do business to the.detriment of New Zealand industries. Referring t* Australia, Mr Massey said he hoped that it would be possible to come to a working arrangement satisfactory to that country and to: New Zealand. He thought everything possible* was being done for the encouragement of manufacturing industries in New Zealand. He had never believed hi tho practice of serding raw material awfly to'be manufactured and brought back in a made-up state! Thei Prime . Minister quoted at length; opinions, expressed by the Tariff Commission in its report dealing with the question of Protection. Mr Wilford eulogised the work of Mr Montgomery, head of the Customs Department, in connexion with the Bill. HeC urged the establishment of a .Tariff Board. If this was done on the lines followed in Victoria, it. would obviate the need for a five yearly revision of the tariff. Mr Wilford regretted that the Prime Minister had rot mentioned the Order-in-Council . which came into force on

January Ist next,- affecting Canada, Sweden, Norway , and other countries where the currency had appreciated. It was hoc included in the Bill, yet it Would have a very serious' effect-on importers of goods from these countries, because, tinder it goods , would be assessed for Customs duty on the banking rate' at the time. The importer would thus ibe unable to assess the Belling price of the goods. One of the draw- - backs of /the Bill under disoussion was t£e fact that this regulation made the . iriarkot valuq of imported goods an in-, determinate quantity. . He supported Imperial preference, but said there were; industries not worth bolstering up. Hfe had suggested a-tariff on yarn, but in view or the depreciated value and the qost of freights, he thought the proposal in the Bill 'was sufficient. Hg'm- , tended, tojnove for the remission of the doty< all: preference possible to English motor . oars, otherwise American cars would have, complete ran of "the country, i though 1 here was one American earth© Ford—which lie believed would: : some day have to' be admitted free, as it was. becoming the settlers tool of trade which he could not do without. Thp British manufacturer must, be in- ' duced to mako a light car with a good , cleajranceif he wished fo .get.a,'footing in New Zealand. . Mr Wilford urged consideration lor local candle manufacturers. He had- heen informed that the

■ /Neiw/Zeialand:' Candle. Company in fif'M m'We only £is3 profit. ;f in New' Zealand was at / the-mejOT of foreign companies. He advocated a revision of ibe tariff on bk>- ;; graph;machines and motor car fittings j;sf^luctt 7 » company, in: the Dominion, was ?!Uiritha position to supply if it was en'of. the> duties that had "teen remitied" were reintposed,\the could*be taken off. -The 'vdntieg on the .necessaries of life should :&- ; l»^;;ii^t«in'ea; r to the. greatest, possible; 0 amusement tax should b© cheap,seats,, out rey; Btricted to the dearer seats. HuE. HbllandTwpported the ap- *£ Vpeal ;for, the remission of the tea tax. ;££ K T was time that something was done industries here. ; -While duties which would sslisjffc# provision for' a ?H;|coiwnensurate■ ; rise in wages. He. reproposals forUritish -pre:fv ■ ference>'as-; simply in the interests of profit-seeking enterprises in :VW New 'Zealand; They were coldly ma:teiialistic and were not founded on

high .sentiments Mir Holland deprecated the continuance of the use of Ordcrs-in-Council as transferring too much power from the House to the Gq- ' vernment. Referring to the dumping * dujtyho caid ho considered that the > House should lay do+m a definite prin- •■ ciple on which it shduld be imposed , and not leave it to the Minister to make the law. "'lte debate ,wns continued T>y Mr Sidey, who said the Government did ' not {mow its own mind. The tariff was neither protection nor free trade.- Ini efficient protection was tho worst kind "■ of tariff we could have at present. * freights and charges were perhaps light - "enough to afford protection to our industries, but in a short time we might expect a reduction in these charges. Then oar industries would suffer. He thought more encouragement should at J least be given to the iron industry in "this country. Mr Veitch said the anti-dumping clauses in the 80l would do a great deal of good in assisting industries in ' -'- New Zealand. Reciprocity with Aus- ■ tralia was not as simple as it looked, and he* thonoht the new tariff would be responsible- for many anomalies. He gave' general support to the moderate, protection contained in the tariff, but be thought cheap power and industrial ; peace would do more for our industries than protection. * The Hon. W. Downle Stewart, in reply; said the Chambers of Commerce approved of the' steps taken by the Govermnentr to 'remedy the appreciation of American, currency, which was de- „ priving Britain of any preference we f giving her. The Government's position was extremely difficult, and people were making it more difficult by not making their representations in ? -'tune. Deputations were coming to him' ', every requests for protection: or remissions, which ought to have been J made to the Tariff Commission months ego. .''Ho defended the powers asked - for T»y *J» Government under Order-jn-Counoil, as being on similar lines to those .* fl kf n the Australian and Canadian Governments, who did so as J [ a resttlt of jexpepehoe. VThe people and

the House mast be prepared to tfnst the Government not to abuse the powers given, but without these powers the Government could not carry on under the worrying circumstances whish were bound to arise from day to day. The more members went into the tariff the more they would see that there was ,good and sufficient reason for every recommendation made. The second reading of the Bill was agreed to. The House rose at midnight. FURTHER ALTERATIONS. (PRESS ASSOCIATION TELWJRAH.j "WELLINGTON. November 29. Th e following are the further alterations in the tariff agreed to by the Houso to-night, to take effect on November 30th: — Sole leather bends—l4lb and over, 3d per lb British, od per lb foreign. No ad valorem duties. Rubber tyres, motor cars, and cycles, bicycles, gas and oil engines, up to 100 h.p.—British rate is reduced from 15 per cent to 10 per cent. Spring tine cultivators, disc harrows, seed and fertiliser sowers, seed cleaners and cellular seed separators—lo per cent British, 20 per cent foreign. Sheep shearing machines —10 per cent if foreign. They were formerly free from all countries. Turpentine, benzine, petrol, gasolene, j coal tar oils, motor fuels —free from all countries. Formerly lid per gallon. Mineral lubricating oils—Gd per gallon British, 8d per gallon foreign. Citrus fruit pulps, in bulk or otherwise—2o per cent British, 35 per cent foreign. Formerly free if in bulk and unsweetenod. Tinned salmon, British—ljd instead of 2d. Fresh apples and pears—Jd per lb Biitish, Id per lb foreign till January 31st, 1922, and Id per lb British, H per lb foreign afterwards Powdered resin—2o per cent British, 35 per cent foreign. Formerly free. Silk yams—lo per cent foreign. Formerly free from all countries." Cast iron fittings for pipes of over three inch diameter—2o per cent British, 35 per cent foreign. Rockbreaking machines, except jawcrushers—free British, 10 per ' cent foreign. Jawcrushers—2o per .cent British, 35 per cent foreign) Spray pumps, foot or hand power — 5 per cent British, 15 per cent foreign. . Power spray pumps—free British, 10 per cent foreign, " Ca& iegistersr-20 per cent all countries.'; •'''■','" '".. '-;•' '"■*..- Furniture castors—2o per cent. Brit ish, 30 per cent foreign, up to May 31st, 1922. Excise Duties. The second schedule to the resolutions of'November - 3rd', 1921, is amended in so far as it relates to culinary and flavouring : essences, and that there shall be levied on alcohol used in the production of such culinary and flavouring essences entered for home consumption after November 29th, l?2l£ duty, at the rate- of 16s per proof gallon of-alcohol. THE TARIFF COMMISSION. ponrrs prom thb-bepobt.'-,(spk)iaii to "line press.") , WELLINGTON, November 29. l>aring the debate on the. TaxiijE Bill to-night, the Prime Minister read, » inmber of the recommendationsinide by the Tariff Ctammissibii. T)k> principal points he made were that any"protection riven should be^Jvett.devised, 7 and not mote.than sufficient for the welfare of the industry concerned. Effective provision shouklbe made against dumping. The profits of'those engaged in protected .industries .'should be sub* ject to periooioal investigation l -by an authority, 'such as the Department of Industries and Commerce,; The encouragement" of industries-through protection should be direct-maMv to those industries which obtained, their taw materials wholly orchiefly jn, ;New land. Provision shouid.be,made encouragement of 'scientific research and for the training of skilled-workers and artisans.?- Arrangements bo made for giving of the removal of protection.fi#m industries,/the protection to- be- -■ regarded ;«6;.a, temporary measure and to cover, a sufficiently long period for the/ development of the industries. The Cemmission bad-noted that for many years it had been argued that New Zealand's industhal. conditions were noi'suitable for the development of manufacturihg industries, ,be| cause wages were so high and the conditions of labour were so> good.' This argument, in the opinunv of the Commission, was unsound. The members of the Commission that good conditions of Vlabour were a goodlmsis for a sound industrial', structure. ■"' A comfortable of. living- for .the working man was not incompatible with the progress.;of : . the-manufacturing industries suitable establishment in NeW: Zealand. Theremarkable development of industrial technique was rapi&y removing, the Jiecessity.for unskilled i and degrading: toil, and- New Zealand- manufacturers had ■.been comr pelled,'owing, to the shortage of labour in i.the""Dominion, ■ to make the fullest use of devices. ; Much', of the shortage of -labour, the.'Commission suggested,.' eouTd: be removed, by the systematic venedoxagement: of suitable immigration, ;and by 'the: training of workers and artisans; ;.•'■" . - GOVERNMENT BY'^RDEMt'r'J: ; ; ' ; ;l ; topaL;. >; '' ' "V.. LABOT7E PAByY-'S OBJECTION. WELLINGTON, November 29. Referring-io the veryextensive powers whibhtiie Government purpose taking under the Tariff Bill,? Mr. Holland," Leaderof-the Labour to-night said:-'^the-Prime Miawter is doing in a small-way what King Charles' the First lost his 'head for ;dping. I ,d<»; not say .thai the. Prime-Minister is in aanger.of Joang Jiis headr Mr < Speaker, bat he' is in danger of losing his seat." (Laughter:) "Wider this Bill," added Mr Holland; "power is left entirely with the Minister io determine 'the amount oidjaty to be levied hi certain cases. . Why' should not the duties be determined by the House?" An hon. member: ft cannot' move quickly, enough. ... -" - Mr Holland' asked why should not the House lay down a definite principle upon which the duties-shall be imposed. ■ No one wished to suggest.that there i would be any impropriety on the part of the Minister, but all the time the power wasbeing wrested away from the people's representatives,- The power of taxation should, be jealously guarded by the members of the House. Parliament should snake, the laws for the Minister toi-iaot«np«u In thitf case

Parliament was authorising the Minister to make them under any circumstances* The Bill also gave him power to refrain from imposing dumping duties where dumping was heing done. It seemed to him that' Parliament disappeared altogether in its power in respect to these clauses, and Cabinet became absolutely supreme. The Hon. "W. Downie Stewart, replying to Mr Holland's speech just beiore midnigiht, 'said the member for Bulle>r tad taken strong exception to the power given to the Minister, but if the hon. member looked at trie tariff legislation of other countries, he would see that there was a tendency to vest extensive powers in some su-?h authority as the Minister, so that the tariff might be made flexible and ea.sy in its working. The alternative was a castiron tariff, which could not be promptly adapted to changing conditions. Many of the powers referred to by the member for Buller had to be exercised subject V> confirmation by Parliament. How could a schedule of "dumping" duties be fixed by Parliament when each case called for careful enquiry and the consideration of so many circumstances ?