INDUSTRY AND TARIFFS.

Press, Volume LXVI, Issue 20027, 8 September 1930, Page 15

INDUSTRY AND TARIFFS.

.. .SUBSIDIES DEFERRED. ,f WtURE Br MB c. LAWN. " ' ' u , r . t Products to feel the effects ,'. " pe,M " to- ; of'P, riee .., lnn aro raw materials," ifiS M ' A " rT rer •" • ' evening' Mr ton P>ev!o»,lj, ' fnted out that, following a period, - 1914 to 1920, when prices all over - (ha world bad risen rapidly from varit V. causes, had CQmo (mother, which Sad shown a considerable fall, with an increase in competition. ' (iMnch difficulty is caused by the fact ♦tat the prices of somo products nso fall more rapidly than those of B ?hers." continued Mr Lawn, "but the °!? Mary producers are the first affected, SdCOMequcntly we find at present all Sr-ihe world, tho producers of such ' rtiiits as wool, rubber, cotton, and tin, feeling the strain because ♦heir own products vary more m price thw the goods they have to buy for tXSr own consumption. Tho intense petition of the present time is lead•_7to an overhaul of tho methods of nrtduction, marketing, and distribution, k an endeavour to reduce, lossqs as far ,I. possible. Thoso producers who can most rapidly adjust themselves to tho new' position are going to be successful." ' An Interdependent Age. "To-day we live in a world in which »U peoples are economically interdeMDdMrt, and changes affecting one secjj 0 n 0 f people react on other groups. We ■ #re inclined to forget that local pros--1 • Bflrity may be dependent on changes .ISi. U in{ . place thousands of miles away. *A dMllne of industry in England affects I Wburini? power, so that New Zealand's nrojperity is concerned. The effects of iatardependenoe are being re-adjusted and sometimes hindered by tariff barriers and price-control systems." :■ Mr Lawn stated that he would deal " -sAiWitt part only of a wide subject, and : to show the effect of a pro- • <%etive tariff on national prosperity. This last was dependent on tho natural ; resources of a country—its climate, soil, . and power, on the accessibility of foreign markets, on the number and quality of its people, and on the effici- " «ney of its political and industrial organisation. New Zealand was favourably situated in regard to most of these points, although there were faults to remedy. The country was in a position , to maintain a high standard of prosM;, was a tendency to conceutrate ",/A on a narrow range of pastoral products, ■■ Uew Zealand was able to land these ■4; - on world's markets in competition i'evi' with other countries better situated the point of -view of accessibility. |p-'!'W'e were able to do so because of the [|gp T j c jj pastures, efficient methods of proEU- 1 ' Action and marketing, and because of |/l the quality of the produce. There wero F ' «oneentration, but New Zealand had the I highest per capita import and export of ! tty'.MMitry. There was a high purbut any country sold in and it was a fallacy to because tho Pominion from any country than here, it would somehow lose So long as any proi' oj indisufficient to'enable'him to buy'tliat he wanted, it did not matter to .whpm he sold -or, froin whom ho bought, bo long as his markets wore ' «<m '' , s One of the disadvantages of specialisdJSfon'a narrow range of products was ,;ri]tatKew Zealand was very much bound [ , changes that occurred in other L OTjifates. Our prosperity depended very . ' / "litgely on the buying power of the r;!&mners; and they depended on finding market for their products. 'disadvantage was the difficulty r M -if' finding' full employment for • the M-'.Varied capacities of an expanding popuSwob. It\was questionable whether a pl/.ioujitry concentrating on a small range |lM||rodutt«. could absorb a very large especially in view of modern LCSiwbds ttf; machine production. Conse- _' Aeitly it was an advantage to build ■Bjfmore varied industries to absorb this - population, with the result that the \ . would be less dependent on j-l'bveweag markets for the purchase of was required. 'Jffi It-was a worth while aim to encourU'ioßS this growth, said Mr Lawn, but necessary to see that methods fsfefetlltiag in the uneconomical use of "'Am and capital were not adoptod. I {to see that we did not increase of production of our export », which would endanger them competition on the markets Any proposal for the artimnlation of secondary indusuired* very careful scrutiny in see what would be its ultiiCt on national prosperity, what would be, and where that cost dvice for Manufacturers. ! tho means by which secondtstries could be effectively as by educating the people to lie prejudice against Now Zeae' goods. Another was to make for manufacturers tho serthe best technical exports, who pise on production, marketing, luch the same way as the Govnow provided for the farmers, is father too great a tendency , the Government for such but much could bo dono by itary association of the people i in tho industry. Special bounsidies, and tariffs could also ; ( with the last care had to be >at the right kind of protection en only whero there was a real nd"that it was given in the ad of way. In no cases should )n ;be> given whero tho burden was incompatible with the adgained. ' a the safeguarding duties had nposed in 'England the indusineerned had to prove certain -That special conditions cxthat there were inferior ns in the employment of ''jljSjKW? in the competing, countries, MB}^.' r the Industry was of special importance. -Tho protection iWS&rfcai-been 33 1-3 per cent., but differed concerning tho ulti"advantaga. The cost of protectindustries in Australia had recently to have amounted v' Doo ' ooo »nore than if the goods imported free of duty. IHUsomiat> «enerally were opposed to Is, favouring bounties rhere the actual cost was c important objection to once they wero imposed industry they were very iove because of the opio concerned. In fact the or them to be increased rad case for assistance where it could be shown dvantages would follow, in the form of a subit«d, in conclusion, that ;his would not seem satim aetuall/ •onoerned la

any industry desiring protection, but there was always a tendency to seo the advantage to oneself, and to assume that it would bo universal.