Dominion Preference

Dominion, Volume 24, Issue 50, 22 November 1930, Page 13

Dominion Preference

Sir, —it is significant to note that per capita New Zealand's army of unemployed now exceeds that of Great Britain. The figures are: Great Britain, population, •17,000,000, unemployed 2.O0O.OOO; New Zealand, population, 1,500,000, unemployed, over 7000, and steadily growing. We now rank with the United States, Germany, and Australia in the matter of unemployment. All four countries are highly protected countries. In view of these indisputable facts, we can hardly blame the Imperial Government for turning a deaf ear to our request that she adopts our system of taxation. Tariff reform, preference, call the system what you will,,is no cure for unemployment; all the facts go to prove this conclusively. We are only too well aware just what these “custom” duties mean to us in New Zealand. We, can hardly purchase any article unless it is “loaded’.’ with Custom duty. Its im; position. robs our people of fully 2o per cent, df the value of their moneyit raises the cost of our purchases; it increases our national wage bill; and is a direct cause of unemployment. Because the basic wage must be increased to meet the increased cost of living due to these . Custom duties, employers have, of necessity, to restrict their overhead, and labour is the first to be sacrificed. “Industrial” Britain fully realises these things, and not wishing to increase her wage-bill (which in turn would increase her production costs) prefers free trade. Increased production costs to any exporting country competing in the world s markets are undesirable. The failure of the Dominions to„impose tariffs on Great Britain is, therefore, not surprising, particularly, when some of the “protected” Dominions register a larger percentage of unemployed than tree .trade” Britain. My greatest surprise, however, lies in the fact that the Dominion Premiers should know so little of the British abhorrence for. this quack; cureall “protection.” They either did not know, or politics are not as many .would believe. To which, shall we attribute their proposals?-! 0> KODDX . v Palmerston North, " November 18.