TARIFFS & QUOTAS

Evening Post, Volume CXVI, Issue 71, 21 September 1933, Page 13

TARIFFS & QUOTAS

NO RELATIONSHIP,

ENGLISH PRICE-LEVEL ,

MINISTER'S INQUIRIES

A definite assertion that New Zealand's tariff policy was not related to the British Government's proposals for a quota, on imported dairy produce was made by the Minister of Industries and Commerce (the Hon. R. Masters) at a dinner given by the Wellington Manufacturers' Association last night. He said that he had investigated: the question while in England, and had found that there was no complaint against the Dominion's tariff. The Minister said that, in view of the controversy which had been going on in New Zealand, he had been asked by the Prime Minister to investigate the position, and he had found that the proposed quota on New Zealand cheese was the result of the milk marketing scheme which was being put into operation in England. The real concern of the British Minister of Agriculture (Major Elliot) was one of higher prices for the English farmer. Cheese production in England had last year increased by 30 per cent., and New Zealand was responsible for 70 per cent, of the total importations: of cheese into the United Kingdom. It could thus be seen that a quota on cheese front the Dominion would have a, big effect on tho English market. Ho had discussed the position with Major Elliot, and had, been informed authoritatively that tho Dominion's tariff policy, did not enter into the question. "My concern is to raise the price-level for the farmers of Great Britain/ said Major Elliot. "I am not concerned with the duties B,aid on goods, from Great Britain." It had been pointed out at Ottawa that Britain was .satisfied generally with the New Zealand tariff, and did not desire- it to" bo lowered. It-was realised that the tariff was largely a-revenue one, and that1 reductionsjmight cause financial embarrassment which, would prejudicially reflect itself in United- Kingdom finance and in United Kingdom trade with the Dominion. BRITISH MARKET. One gentleman had. been reported to have stated to a meeting' of New Zealand farmers, that it would pay New Zealand better io pension off all employees in inefficient secondary- industries rather than lose the British market for her primary products. However, there was no suggestion of losing the British market. If a quota was imposed on. New Zealand, there would be a still greater quota against' tho foreigner. As far as the inefficient industries were concerned, New Zealand had agreed to set up an inquiry into her industries, and that promise had been. kept. "I want to say right here that I. have no more desire than anyone else to see ine'fficient'industries carried on,'.' said Mr. Masters. ■ The Minister said that it had also been' stated "that 'under ' the Ottawa Agreement New^Zealand had promised to reduce tariffs'on British goods, and he wished to point out that the promises made at Ottawa were being adhered to. The Dominion had agreed to reduce tho duties on certain goods and abolish the surtax on,products from the United King'dpm. This had been" done.' The Tariff„ which had been agreed tipqn,. was now sitting, and the delay in this case had not been the fault of"; New Zealand, but had been caused, by the British manufacturer. BRITISH PREFERENCE. No Dominion was more-generous in her treatment of British trade than New Zealand. Of the total imports of £24,765,000 in 1931, £12,140,000 had been purchased from the United Kingdom, £5,734,000 from other British countries, and £7,400,000 from foreign countries. Most of the foreign products could not be supplied by the United Kingdom, and . included such items as- petrol, sugar, tea, coffee, pure silk, and manures. Apart from that, there were lines in which she enjoyed a, preference of 25 per cent., and still could not compete with foreign countries. In view of this fact, there was nothing to be gained by wiping out the duties altogether and depriving the Consolidated Fund of the revenue. The whole of the propaganda was really a side issue, and had no bearing on. the question of a quota on New Zealand's produce. New Zealand gave greater preferences than any nother country, and purchased more British g^ods per capita than any foreign country in the world, and with the exception of the Irish Tree State more per capita than any other Dominion or colony. New Zealand's purchases of British goods per head in 1931 amounted to £7 9s, as against the Danish average.of &2 8s 5d per head. Fifty "per cent, of the goods 'imported from Great Britain came in free. At Ottawa, Australia, with a much higher tariff, a depreciated exchange, and a sales tax on imported goods, had obtained tho same terms as New Zealand. The reason for- this was that Great1 Britain would not differentiate b'etweeri the Dominions. "I hope," said Mr. Masters, "that no one will be deluded into thinking that anything in the nature of a Tariff Commission'can alter- the position as far as the entry of New Zealand goods into Great Britain is concerned."1