SAFEGUARDING DUTIES

Dominion, Volume 23, Issue 196, 16 May 1930, Page 9

SAFEGUARDING DUTIES

DISCONTINUANCE IN BRITAIN EFFECT ON INDUSTRIES MR. GRAHAM’S DEFENCE (Rec. May 15, 5.5 p.m.) British Wireless. Rugby, May 14. In a debate in the House of Commons on the Estimates for • the Board of Trade, Conservative members deplored the intention of the Government to allow the safeguarding duties to lapse. Speakers pointed to the benefits which industries had derived from the duties and the effect which their removal would have in increasing unemployment. Reference was particularly made to the lace industry of Nottingham. Mr. W. Graham, President of the Board of Trade, replying, said that eight safeguarding duties had been imposed, but those duties related really to less than 2 per cent, of the imports into this country, and to less than 1 per cent, of the exports in the field of articles wholly or mainly manufactured. During the time the duties had been in force, figures showed that the exports had diminished and that was one of the characteristics of many safeguarded industries. Whatever happened in the Home markets the export trade seemed to suffer. Mr. Graham could not believe the Conservative contention that there had been an advance of 162 per cent, in the home demand for different classes of lace. Beyond all question there was a great majority at the last election for free trade principles. The Government took the proper course, and in his view the sound economic course, in deciding that it would allow these duties to lapse, or at all events give no promise to continue them. Free trade in his judgment was not a negative principle, but a great positive force. It had been suggested that France, by possession of the power of retaliation, had been able to get a consideration which would not have been open to us. The underlying suggestion of the speeches of the Conservatives was that we should have a retaliatory tariff as a weapon in our hands. In his opinion that would be the worst weapon this country could adopt. It would be disastrous to the great leading industries on which this country depended. Reviewing the trade position, Mr. Graham said that since the autumn of last year the country had been exposed to a series of events which had had a profoundly adverse influence on our industry and commerce. There had been new tariff proposals in the United States and unrest in India. Australia, which had a very large external debt, was now trying under very high tariffs to restrict imports into the country and to encourage exports to Improve the position. In Canada, however, there was a more hopeful outlook, and he acknowledged with gratitude the concessions which Canada had given to the Mother Country in the new Canadian tariff.