TARIFFS AND PRICES

Evening Post, Volume CXII, Issue 122, 19 November 1931, Page 12

TARIFFS AND PRICES

We can agree fully with llic President of the British (U.K.) Manufacturers' Association that there should be a non-political investigation into the position of secondary industries. We doubt, however, whether it be prudent to go so far as Mr. Edwards suggests in changing the basis of protection. Some industries are not economic. With a reduction of the tariff they would be doomed. Even with these it would not be wise to adopt drastic and sudden measures leading to rapid extinction of industries. The displacement of labour would place on the community a burden which Would outweigh in many instances the relief obtained by reduction in costs. Other industries are not really uneconomic, but have become so by development of wasteful manufacturing methods—twenty factories where five would do the work, and all the twenty trying to supply a full range of manufactured articles in competition with overseas manufacturers who specialise. What is needed to correct this is the close supervision of a competent non-poli-tical body which could gradually apply pressure for the introduction of better methods. But even with a great change of tariff policy substantial immediate benefit may not be received. Our tariff policy is protective and preferential, but it is also revenue-producing. A Government which proposed to reduce importation by a higher tariff or to increase it by lowering duties would have to turn elsewhere for its revenue.