Government Considering Protective Tariffs

Press, Volume XCVIII, Issue 28951, 20 July 1959, Page 10

Government Considering Protective Tariffs

iNew Zeaiana Press Association)

AUCKLAND, July 19. The question of protective tariffs was at present under very active consideration and investigation, said the Prime Minister (Mr Nash), in Auckland on Saturday night. He was speaking at a ceremony at which he accepted, on behalf of the people of New Zealand, the 100-millionth tableware article produced by Crown Lynn Potteries, Ltd., of New Lynn. “An inquiry into tariffs is going on now," he said. “If your case can be proved, the Government will keep you going, provided you don’t use the protection you get to unfairly exploit the public.” The pottery industry was worthy of some protection, he said There were too many people being born in the country to be absorbed by primary industry If there was no extension of secondary industries there would be no future for young people in New Zealand Mr Nash urged the firm not to worry about taxation but to make more and more goods. New Zealand was not an appendage of the British Isles, but she could not live without her. “They send things here that we cannot make,” he said. New Zealand also had ■ financial commitments with Britain. Before presenting the Prime

Minister with a white and burnished gold loving cup, Mr T. E. Clark, managing director of Crown Lynn, said: "At this time, when an expansion of secondary industry is urgently needed to absorb the large and ever-increasing number of young people who will be leaving school, there is a stronger case than ever for providing industry with an incentive by way of lower taxation on profits retained in the business.” Mr Clark said it was rather ironical that when the country could least afford the overseas exchange to buy new plant and equipment, industry was urged to expand. But, when export prices were booming, the door was opened to a flood of imports and some industries were allowed to wither and waste away. “No-one is well served.” he said, “by a situation which sees the manufacturer on the rocks this year, the importer in trouble next year, and the wholesaler and retailer m a constant state of uncertainty over supplies.” Mr T. P. Shand, M.P., deputising for the Leader of the Opposition (Mr Holyoake), said incentives had to be given to manufacturing industries.

“If we take all the profits out of business, it will be a sad day for all of us,” he said. Mr Shand prophesied that in 10 or 15 years the barrier in trade between Australia and New Zealand would be broken down.