PRINCIPLE APPRECIATED

Dominion, Volume 20, Issue 298, 15 September 1927, Page 10

PRINCIPLE APPRECIATED

FOSTERING TRADE WITHIN EMPIRE A COMMERCIAL VIEW Appreciation of one of the main principles underlying the proposals—encouragement of still further trade iu goods produced within the British Empire instead of in those of foreign origin—was expressed by the president of the Wellington Chamber of Commerce (Mr. C. M. Bowden), who pointed out, however, that having had time to do little more than read through the proposals he was not iu a position to oiler any detailed criticism of the various items. “It is earnestly hoped,” he said, "that tho effect of the proposals will be to swing trade to Britain. It cannot be overstressed that our prosperity u greatly dependent on the state of trade in Britain; industrial activity there stimulates the demand for our exports, and, conversely, industrial depression in Britain must assuredly mean that the consumers in our chief market are unable to pay the high prices which formerly ruled for our produce. Further assistance granted to local industries is also a move in tho right direction. "It is, of course, possible to afford undue protection to an industry, but the commission appears to have exercised considerable discrimination in this matter, and has given concessions by further protection only to those industries which are suited to New Zealand conditions, and can be carried on economically, and with benefit to the Dominion. It is particularly gratifying to note that full recognition is given to the importance to the Dominion of what are called secondary industries. It has often been stated that the prosperity of the Dominion iB dependent on the primary industries, but that is only a half-truth, and it is pleasing to see the growing recognition that the so-called primary industries and secondary industries are interdependent.”

Mr. Bowdon remarked that the increased duties on timber would have the effect of assisting important operations carried on in the Dominion, and he understood that the price of timber would not be increased to the public. Incidentally, by this action, the Government had very considerably increased the value of tho huge Crown areas of timber yet held in various parts of Hie Dominion. The railway revenue would profit substantially in addition. "The effect of the wheat and flour duty will be watched with interest,” added Mr. Bowden, "though I am personally doubtful of the wisdom of fix- ■ ing the price of bread by the means suggested. T do not think that New Zealand will vear by year grow sufficient wheat for her own needs. I note that the remissions are expected to approximate £lBO,OOO per annum, with a possible increase to upwards 'of £300,000. Duties have been increased in..eertain cases, and it is not clear whether allowance has been made for t*,e considerable additional revenue which may be expected under this heading. If not, the remissions will not be* nearly as substantial as stated.

“Whilst the remissions made will be welcomed. I nevertheless cannot see any justification for the statement made when the income tax proposals were being considered, that the increase in the income taxation to the family man would be largely .offset by the remissions in Customs taxation. The remissions in the main are on articles which do not affect him directly.” “ANOTHER BLUNDER” MOTOR BODY-BUILDING TRADE “NO BENEFIT TO ENGLISH MANUFACTURER” "In my opinion,” said Mr. L. A. Edwards, a member of the council of tha British Manufacturers’ and Agents’ Association, “the only alteration in the tariff, so far as the motor industry i« concerned, is a 5 per cent, allowance if the motor bodies are imported completely unassembled.” “The proposals,” he went on, "are absolutely useless to the motor body building‘trade and to the British mo-tor-car interests, and, in my opinion, the Government has perpetrated the same blunder that it made when it previously attempted to protect the bodybuilding interests in New Zealand. As far as the motor section is concerned, the revised tariff is of no benefit to tha English motor manufacturer.” Mr. Edwards pointed out that the motor body-building interests and the British motor-car interests had asked for a reduction in the duty on British chassis, and they were bitterly disappointed that they, did not get it. This decrease in duty was not opposed by anvone, even the American interests, and in his opinion it was hard to understand why the . Government did not grant this very essential relief. The effect of such relief would have increased tlie importation of British motor-cars, and at the same time provided real employment for motor-body builders. Taking the tariff as a whole, however, Mr. Kdwards considered it a great win for England. "It will mean,” ho concluded, "one and a half millions additional trade to her It is also a great win for certain local industries, outside the motor industry.” DISMISSAL OF EMPLOYEES

The following telegram was received vesterdav by Mr. T. M. Wilford (Hutt) from a‘firm in Christchurch:— “Congratulate you on your remarks re motor-bodv builders. Tariff means ruination to ‘industry. Dismissing majority of employees this week.”

FARMER M.P.’S SATISFIED From inquiries made in political circles, it appears that the new tariff has given every satisfaction to the farmer members of Parliament.