SUBSIDIES OR TARIFFS

Evening Post, Volume CXII, Issue 9, 10 July 1931, Page 6

SUBSIDIES OR TARIFFS

The Farmers' Union has done itself no good by its advocacy, without full consideration, of new fiscal principles. Even to suggest the substitution of subsidies 'for tariff protection at this time' is futile. We are well aware of the weaknesses of Jthe present system. Tariffs which are imposed temporarily for-the protection of young industries become permanent and are increased. Industries are established under the shelter of revenue duties,' as Mr. Downie Stewart recently pointed' out, and repeal of those duties is made difficult. But in considering these disabilities in a lime such as the present-one cannot overlook the practical issue of revenue.. How can a Government possibly add to its Budget problems by surrendering Customs duties and incurring hew subsidy obligations'? It would have to make good the lost revenue and find, more money for subsidies, and this at a time when incomes are reduced and income tax must be raised in order lo maintain the yield. The Farmers' Union, too, is advocating a course directly opposed to that proposed by Mr. Waite, who claims to speak for farmers. The Farmers' Union would abolish duties on necessaries of life and production. Mr. Waite would put an embargo on foodstuffs arid similar local products—which • are surely necessaries of life. Both 'extreme courses are impossible. Business affairs are sufficiently disturbed now. Revolutionary fiscal changes would make them worse. It is waste of time lo suggest such impracticable measures. - , •