MINISTER'S PROBLEM

Evening Post, Volume CIV, Issue 73, 23 September 1927, Page 8

MINISTER'S PROBLEM

TARIFF DIFFICULTIES

"ABUSED ON ALL SIDES"

The manufacturers of New Zealand made further representations to the Government to-day on the subject.of the Tariff, a large deputation waiting on the Minister of Customs (the Hon. W. Downie Stewart.) During the course of the discussion there were some rather warm exchanges between the Minister and members of the deputation in reference to protection. Eeplying to the deputation, the Minister pointed out that it was a very difficult matter for him to keep an open mind in regard to items in the Tariff while he was being abused from all sides. "We come before you as a united body," said Mr. J. S. Boss by way of introduction. ! The Minister: "Are you quite sure of that?" Mr. Eoss: "Oh, yes." It was quite true that there had been sectional difficulties, and no ~ doubt, there always would be. The new tariff did not provide the protection which the Commission had apparently sought to give. The manufacturers should be placed on a parity with those of other countries. A guarantee had been given that prices would not be increased, and that undertaking would be honoured. Mr. Stewart: "Should not prices come down?" Mr. Eoss: "Probably that would be the case." Mr. Eoss suggested that it would be well to set up a Tariff Board. Mr. Stewart asked if the deputation thought that the Tariff Board in Australia had been a success. Mr. Eoss said that his information went to show that the Tariff Boards in Australia and South had been successful in every way. THE WOOLLEN INDUSTRY. Speaking on behalf of the woollen industry, Mr. W. H. P. Barber said that the industry had not benefited at all as a result of the alteration in the tariff. The Minister asked if the taking off of tho cotten duties had been of no assistance. Mr. Barber said that tho association was,not unanimous on that point. The Minister: "That is my difficulty. Half of you want one thing, and half of you want another thing." The woollen industry was a satisfactory one, said Mr. Barber, and there had been ample proof that it could meet the requirements of tho Dominion. Specialisation was absolutely impossible under present conditions. Protection was wanted from imported English shoddy, and from under-paid workers. Mr. Stewart interposed to remark that he received no help and no encouragcment j when he tried to help the secondary industries. "Everyone is trying to cut tho other's throat," said the Minister. In regard to the confectionery industry, there had been a suggestion that tho Government had been got at. That was tho Bort of thing he had boen getting. To say the least of it, it was very discouraging. WALKING THE STREETS. Mr. 33. H. Marriner referred to the boot industry and other secondary industries, and said that if some assistanco was not given by the Government tho position in regard to unemployment would bo, ten times worse than it was at present. If the secondary industries were assisted they would be able to put moro men on, somo to tho extent of twenty. If no help was given, then tho men would havo to walk" tho streots. That was an extraordinary position under a Government that pretended to bo anxious to foster the secondary industries. A PROTECTIVE SOCIETY. Mr. J. C. AUuru said that manufacturers of Now Zealand wero quite unanimous over the tariff. Mr. Stewart: ".I supposo you don't romomber writing to mo and saying you woro not a protective society?" Mr.' Allum: ""Wo have never told you that. We havo never refused to givo you assistance." Mr. Stewart: "Well, where am I, gentlemen? You say you aro not a protective society. Where does that lead me?" Mr. Allum: "We are out to assist New Zealand manufacturers." Mr. Stewart: "Woll, what's that?" Mr. Allum: "It does not mean that wo aTO a protective socioty." Mr. Stowart: "Then, gentlomen, I don't understand you. Whore am I if your own president in Auckland says you are not a protective society?" Mr. Allum: "May I say that your romarks aro in lino with a good deal of public criticism? Wo say we aro not a protective society, and now tha suggestion goes forward to tha public that we are a protective society. We have never said that.'? Mr. Stewart: "When I was revising tho tariff in 1921 I asked you to come and assist mo, but you told me that you woro not going to intervene." Mr. Allum: "Woll, I don't remember tho corrcspondonco, Mr. Stowart. If you aro right, thon I must say that my memory servos me.very badly. At any rate, I will have tho matter invostlgated, and if I am wrong I will make an apology and havo it published." Mr. Allum went on to rofor particularly to roofing tilos, confectionery, and bottles. Tho Government had given enormous preferences to British manufacturers, but there was no guarantee that tho British goods would be mado entirely of British materials or that thoro would bo no increase in costs. In regard to confectionery, Mr. Allum said that confectioners had been so delighted with the manner in which they had boen received by the Commission that they had been very disappointed when tho Commission's report was published. Air ORGANISED BODY. Mr. Stewart: "Why is-there not somo organisation that can coino to me and speak on behalf of the whole industry?" Representations wore being made to him from all sections, and tho whole was very disconcerting. . Mr. Allum made reference to a particuli!i firm which had been anxious to secure protective duties. Mr. Stowart: "That is the firm that suggested that the Government had been bought." Mr. Allum: "A Dunedin firm?" Mr. Stowart: "That doesn't make it any better." AN "ULTERIOR MOTIVE? Mr. 3?. Campbell, president' of tho Wellington Manufacturers' Association, said that ho had been pleased to hear the Minister's remarks about organisation. It was little short of soandalous that manufacturers did not havo an efficient organisation that could go to tho Minister and lay their caso before him. Mr. Campbell went on to say that 'unless protection was givon to industries natural to tho •country tho results would bo little short of disastrous. The aim of tho manufacturers was some system of standardisation, but that could not bo done until thoy had increased their output. Mr. .Campbell agreed that it must bo very disconcerting to tho Minister to have representations made, to him by,

say, five manufacturers in one particular industry and then different representations by, say, two other manufacturers in the industry who were quite -satisfied. He wanted the Minister to be satisfied that there was not some ulterior motive behind the action of the two firms. It was possible for those two firms to force the other five out of business, and having done that to come to the Government for protective duties. Mr. Campbell concluded by remarking that he trembled to think of what the unemployment position would be in New Zealand next year. OUT AND OUT PROTECTIONIST. Mr. L. E. Partridge made no secret of the fact that he was an out-and-out protectionist. In drawing up the Tariff, the Government had overlooked one or two vital considerations, and had depended too much on the opinions of political economists. They had looked to the future, to what the position of the country was.likely to be, rather than to the present position of the country. The Government had rightly been out to foster the.farmers, but had not had a due regard for the secondary industries. NOT ENOUGH ASSISTANCE. Eoplying to the deputation, the Minister (tho Hon. W. Downie Stewart) observed that it was said that a Minister of Customs could revise the Customs Tariff once, but that if he tried to do so twice he was a fool. That seemed to bo pretty true. "It may surprise you," he said, "that I still believe in the secondary industries of the Dominion." He said he was trying to help them, but the members of the deputation did not seem to appreciate the enormous diffic"ulties he was labouring under. It was extremely difficult to make any effort towards any wholesale policy of protection on political grounds. Consistently during the last twelve months farmers' unions, dairy factories, and some county councils had been passing resolutions demanding that there should be no increase in any duties, and that on the other hand there should be reductions. Mr. Stewart said that he had heard no suggestions from the manufacturers 'and industrial associations except from what he had read in newspaper reports. Seeing that there had been a steady stream of opposition all along from farmers towards any increase in duties, one would not have thought it reasonable for the manufacturers to have pointed out to the farmers' unions'the merits of the articles made in Now Zealand, the suitability of their wares, and that the prices we-" reasonable and the quality excellent. " stead of that, the whole thing was i.,, at tho Minister's door to get through a farmers' Parliament. The Minister said he was perfectly certain that if he went to the House and said he wanted to put an increase on the duty on boots he would have no more hope of getting it through than if he asked for an embargo. They were faced with the fact that the large majority of the members of the House were representatives of country interests, and that there were very few—he thought'only two—real manufacturers in the House. . A voice: "We shall have to see to it." AN INDUSTRIAL PARTY. "If you can come into tho House and make a party that will got you what you want," said the Minister, "good luck to you." He repeated that he was left to bear tho whole brunt of the abuse, and was being accused of favouring the American motor body assembling industry, when in reality he had stood by the local body building industry and given them the highest protection. Yet the moment he proposed to make an alteration which .he believed to bo in their interests—a 5 per cent, reduction on unassembled bodies—from Christchurch came a perfect torrent of vituperation and abuse, and he was not given a moment in which to try to explain. Mr. Stewart said he was patiently making inquiries and trying to keep an opon mind to review «the position and see if ho was making a mistake, but he found it difficult to maintain an impartial attitude while abuse was coming from all sides. "Here is an industry," he said, "that is moro indobted to me than any other industry, and they turn round and heap coals on my head. There is nothing but column upon column of wild criticism, and I thought I was acting in their own interests. That is typical of what is eoing on." If tho body of .farming opinion was to bo impressed with the necessity for tho oncouragemont of the secondary industries of tho country, tho Minister repoated, ho must havo more assistance from tho manufacturers than ho had had. "I don't think I havo had six lottors of thanks," he said, "from all tho nion I have helped in all the different industries—not that I expect thanks. It is a thankless- task at any timo.',' A TARIFF BOARD? Mr. Stowart said it wa« a question as to whether New Zealand would be -wise in adopting the Australian policy. Personally, ho did not think so. He did not think there was any more satisfaction over thor^e than there was in New Zealand. Ho had no personal feelings in the matter of the setting up of a Tariff Board, but he did not think Parliament would sanction a body which would have power to alter duties to any extent without the authority of; Parliament. He was willing to submit the matter to Cabinet, however, and if the manufacturers wanted a board and thought it would serve the purpose better than tho present Commissioner and his Department, he would leave it to Cabinet to decide. Mr. Stewart concluded by repeating again that if he had more help from tho manufacturers in campaigning their own cause throughout the country his task would bo rendered a great deal moro easy. A member of the deputation suggested that the revenue should bo raised more from income taxation than from the Customs. The Minister: "I don't like tho word income tax just now."