THE TARIFF.

Press, Volume LXIII, Issue 18923, 11 February 1927, Page 10

THE TARIFF.

minister states views. PROPOSALS MUST BE REASONABLE. '•it' the proposals of the Tariff Commission arc reasonable, tliey have every chance of going through Parliament," said the Hon. Mr McLeod, Minister for Industries and Commerce, addressing the Canterbury Manufacturers' Association last evening. Mr A. W. Beaven (president) said the majority of -the members of the Association were not high protectionists in the sense that tliey wanted something which would be detrimental to other industries. They did not want to increase prices on tho primary producers. Of the imports only one-half paid any duty. Ninety per cent, of farm implements were duty free. Half tho Customs revenue was from luxuries, and a great deal of the remainder from semi-luxuries. Tho only way threequarters of the population paid any taxation was through tho Customs. Tariff duties were only J. 5 per cent, of imports now, as compared with 25 per cent. 25 years ago. Evidently it was the amount of the imports, not. the tariff 011 these imports, that Was adding to tho cost of living. The only clmnco the competitive industries had of being helped to compete with the outside world was by tariff, and tho sympathy of the sheltered industries. The best way of helping competitive industry was by picking out those articles which had h large sale, and by putting on a largo enough duty, to give them a market; I then mass production and improved plant would enable them to be reduced in price. Mr McLeod was received with loud applause. He agreed with Mr Nosworthy that New Zealand implements were a record o£ what New Zealand was capable of doing. Ho wished other sections than the farmers were as proud as they were to praise our own industries. There was something wrong when people did not do so. Ho was inclined to get down to tin-tacks. A considerable section of the community—the, ladies—thought it was tho correct thing to wear apparel made only in Paris. We must got that sort of thing out of our minds. The same remarks applied to boots. Distributors would not allow manufacturers to put their brands on footwear because the formor said that if they did so, the boots would not sell. This should not be so. It was a point that wanted taking up. We should be-proud to use and wear goods mrido in New Zealand. His predecessor in the office of Minister for Industries and Commerce, tho Hon, Mr Downie Stewart, had done honour to the position, and had been admired for his sincerity of purpose. Tho speaker hoped ho would be able to leave behind as good a record of service. This was his first official visit to Christchurch as Minister for Industries and Commerce, and he must compliment tho Association on tho itinerary it had arranged, which resulted in such small loss of time.

Commission Free of Bias. He had listened carefully to the earlier speakers on the tariff question, and he felt they had not been very clear on it. (Laughter.) The whole matter was a question on which the definite conclusion of Cabinet, asbacked tip by a sufficient majority to carry it through, was never known until its proposals wero laid on the table of the Housp. A great deal of work must be done before this was possible. Cabinet had had a good deal'of difficulty in appointing the Tariff Commission, but it had decided bn a line of policy which, in the main, was agreed to by (the great majority of the manufacturers. It had decided on a Commission which, as far as possible, would bo freo of bias. It did not care to appoint the representatives of certain interests, because their subconscious bias would mako their conclusions more or lesß valueless. The setting up of a Civil Service Commission had met with general approval. He heartily approved Mr Howard's remarks about a pessimistic feeling. The speaker had been accused of being a pessimist, but he never felt like one. There was a necessity for optimism, but also for extreme caution. People were wanted Who refused to lose their heads. New Zealand was in much the same position as other countries. We would be insano if wo thought we could escape the results of the war. The first stage had been the direct penalty of loss of life, the second the reconstruction of the huge waste, and now we had the aftermath. We were not.going to get off scot freo, and people in business must bear their share of the burden. They should see what could be done to remedy the evils that existed. Many industries were hanging on to ladder, looking for firm ground for their feet.' Mutual understanding was needed instead of mutual criticism. The only remedy was to study the other man's difficulties. There was an inclination to blame the other fellow. Distribution Costs. One of the most serious problems in the world was the distribution of the products of manufacture by the shortest, easiest, and most direct route. A writer had expressed it that trade should flow of its own volition, liko a well-guided stream. About 60 per cent, of tho people engaged in distribution were indispensable, another 20 per cent, could be done without with better organisation, and tho remaining 20 per cont. were getting in the way of distribution, and holding it up for toll. He knew the fight of the primary producer to eliminate the last-named, and the fight had not finished. Governments might be defeated, but the general opinion of those worth taking notice of was that a better solution would have to bo found out of this difficulty. He knew ho must be careful in what he said about sister Dominions, but there was this astounding fact: that notwithstanding tho high protective -tariffs in Australia, she was still importing more than she was exporting. This was causing many men to wonder where they were getting to. New Zealand should build up its industries, but it must out. down its extravagance. Cleaning Up Needed. A tremendous amount of cleaning up had been necessary in the Lands Department, but the end was now in sight. Over a third of. the rural land occupiers were tenants of the State. A great deal of cleaning-up was also necessary in their industries. A tremendous amount of capital had to be lost before the people of tho Dominion could demand the building up of industry on an over-capitalised position. It was no fault of theirs. Deflation must be faced before they could establish a sound position on which to build. Ho believed thero had been a real attempt to face the .position. He knew the farmer better than any othet man in New Zealand, and the farmer was not a free trader in the main, but he had followed the results of Sigh protection in Australia—the daily fights between the manufacturer and the worker over wages and hours of work; There was no permanence in the position. The far-

mcr was afraid wc wore looking for a period of high protection, and the s'tme difficulties. Irrespective of Cabinet he could say that he knew enough of the primary producers, to know that they could control enough power to make it impossible for any Government to face a policy of high protection. So far as he knew they were not. seeking it. If the proposals mndc were unreasonable there would be a very severe fight in tlie House. Too many people were going into the towns, ami that was uot hopeful for the secondary industries. Mr Mc.Leod concluded his address with an expression of appreciation of the courtesies extended to him.