TARIFF INQUIRY

Dominion, Volume 26, Issue 100, 21 January 1933, Page 10

TARIFF INQUIRY

Early Move Expected

OTTAWA AGREEMENT

British Producers’ Rights

ECONOMIC READJUSTMENT

Steps are to be taken by the Government in the near future to carry out the inquiry into the Dominion’s tariffs which was promised by New Zealand in the agreement with Great Britain signed at Ottawa last August. This statement was made by the Prime Minister yesterday in reply to a question on the subject.

The investigation of New Zealand's tariffs is expected to comprise one of the most important works to be-initiat-ed by the Government within the next few weeks, for it is understood that the revision of the schedule which ’ill result will be regarded by the Government as an essential part of its policy of economic readjustment. The Prime Minister said yesterday that, in accordance with the terms of the agreement, United Kingdom producers would he given an opportunity of putting forward. their views in connection with the promised inquiry, and that steps would b© taken to accord facilities through the • British Trade Commissioner, who would communicate with the 'British producers. The Ottawa agreement committed New Zealand to the principle that protection by tariffs shall be afforded against United Kingdom products only to those industries which are reasonably assured of sound opportunities of success. . Further, the New Zealand Government undertook to institute an inquiry into the existing protective duties and, where necessary to reduce them as speedily as possible to such a level as would place the United Kingdom producer in the position of a domestic competitor.

According to the agreement, the protection afforded to the New Zealand proudeer shall be on a level which will give the United Kingdom producer full opportunity of reasonable competition on the basis of the relative cost of economical and efficient production. The pressure of other business has recently made it impossible for the Cabinet to devote itself to the tariff question, although it is understood preliminary work has already been done, and that it will be possible to go ahead with the inquiry in the near future. It is expected, however, that it will necessarily be some time before tariff adjustments can be brought about.