AGRICULTURAL IMPLEMENTS

Dominion, Volume 21, Issue 11, 7 October 1927, Page 6

AGRICULTURAL IMPLEMENTS

— A MEASURE OF PROTECTION TO ENSURE INCREASED OUTPUT Why tariff protection has been given to certain classes of locally-made agricultural implements is explained in -a memorandum circulated yesterday by the Minister of Customs. “With relatively unimportant exceptions,” said the Minister, "agricultural implements and machinery are admitted unaer the 1921 tariff ffeo from all sources. A request has been made by local manufacturers for tariff protection in respect of certain classes of implements and machines. These goods have been produced in the Dominion for many years past and, by reason of their quality and suitability of design to meet local conditions, they have been an important factor in the development of the farming industry of the Dominion. The competition of imported goods has, however, been such that the outputs of local works have been seriously reduced, and unless tariff protection ’is afforded (particularly against machines and implements made in North. America) there is- a prospect that the local industry may be forced to cease operations. Any such result would be highly undesirable not only to those concerned in the industry, but also from the point of view of agriculturists in the Dominion. The absence of a local manufacturing industry and. thb resulting lack of effective competition in this market might well, under the particular circumstances, result in an increase in the present prices of imported machines and implements. The (decrease in local outputs has increased production costs per unit, and consequently the difficulty has been accentuated, as output has fallen. Increased tariff protection by appreciably increasing the local production and reducing cost can make ■ possible at least the maintenance and probably the reduction of existing prices. . "It is therefore considered that tn. respect of those, classes of machines and implements which can economically be made in the Dominion the duty should bo high enough to reduce substantially the importations and ensure increased, local output. It is therefore proposed that the rates of duty on the following agricultural implements (not being handworked), namely, cultivators, harrows, plougiis, drills, and other seed and fertiliser sowers, combined or separate, lime-sowers, seed or grain cleaners, and cellular seed or grain separators, shall bo 10 per cent, under the British preferential tariff and 35 per cent, under the general tariff.” .