NEW FEDERAL TARIFF

Evening Post, Volume XCIX, Issue 77, 31 March 1920, Page 5

NEW FEDERAL TARIFF

EFFECT ON BRITISH SHIPMENTS

CLOTH-MAKING IN AUSTRALIA. (UNITED PRESS ASSOCIATION.—COPYRIdHT.) (AUSTRALIAN - NEW ZEALAND CABLE ASSOCIATION.) (Received March 31, 9 a.m.) LONDON, 29th March. Australian mercantile circles are anxiously awaiting full details of the tariff proposals. There is a general feeling of approval at the removal of embargoes and the granting of preference to Britain and the Dominions, with limitations where economic conditions are lower than in Australia. Some merchants consider that the new tariff must cause a reduction of British exports to. Australia. Mr. Tredwen, chairman of the Australian Merchants' Association, says: "While the tariff gives us a welcome preference over foreigners,' Australia evidently does not want to encourage imports. This may raise a difficult position regarding shipping. "At present steamers are going to Australia with only a quarter cargo. The increased tariff will mean that still less cargo will be shipped, and fewer steamers will load for Australia. It is, therefore, likely that there will be insufficient tonnage to lift all Australia desires to export, and possibly freights on produce to Europe will be increased." Soft goods traders, in response to inquiries on behalf of the Australian press, state that they do not think the proposed increased tariff on woollens will adversely affect trade, particularly while the present conditions in the world prevail. The full effect of the tariff will not be realised until' pre-war conditions are restored; but it is likely that Australian competition with England for many years to come will be confined to lower and medium cloths. Even then it is doubtful whether Australia will be able to produce sufficient for her own. needs. The tariff, together with tjie high cost of production and other charges, will be' sufficient to exclude English cloths of this quality, except to the extent by which Australian production falls Short of the demand. Regarding better "fine counts" and solid worsted goods, the effect of the extra tariff will be inappreciable, except that it will increase the cost to the Australian purchaser. Machinery, plant, and skilled labour are all wanting in Australia to enable her to compete seriously in the production of highly-finished cloths.