AUSTRALIAN TRADE

Evening Post, Volume CXVI, Issue 114, 10 November 1933, Page 8

AUSTRALIAN TRADE

THE EECENT TREATY

BILL BEFORE THE HOUSE

Very ..little interest was taken by the House- of- Eepresentatives yesterday afternoon on the Trade Agreement (New Zealand and Australia) Eatification Bill,, which was read a second time after a short debate.

In moving the second reading, the Minister of Customs (the Et. Hon. J. G. Coates) said that it was fitting, wherever possible, that every endeavour should be made to straighten out difficulties and reach agreements that would encourago a general period of trade. The four points for which the Government had sought had been, first, to obtain as favourable a trade treaty as possible; second, to safeguard tho primary and secondary industries; third, to encourage trade within the Empire; and, fourth, to prevent a diversion of trade from the United Kingdom. It was desirable to encourage trade within the Empire as far as possible, although at the same time they had to consider the consumei*. The Australian delegation had been very helpful, and had tried to meet the Dominion more than half-way. wThe last trade agreement which was made by the Hon. W. Dbwnio Stewart resulted in better understanding between the two countries," said Mr. Coates, "and I believe that tho present agreoment will continue that relationship. Let us hope, as tho result of this agreement, that we will havo better and still more satisfactory trade between the two countries." INTERNAL INDUSTRIES. x The Leaderiof the Opposition (Mr. M. J. Savage) . said that the first consideration of the Government should be the development of the Dominion. Anything that could be produced economically in New Zealand should be made within the ■ country. Such a policy would divert a large number of people into useful occupations. As New Zealand was :on the wrong side of th<> ledger.-in connection with Australian trade, it was .not fair to give Australia anincreased advantage by still greater preferences, while- there were opportunities Of developing trade with other countries. He was not arguing that they should not develop Australian trade, . but no advantago ■ could be gained by, importing articles whicb could be economically manufactured within the Dominion. This policy could be slightingly called economic nationalism, but it would have to. come. It was necessary for a country to put its internal economy in order before it could talk internationally. Mr. A.-J. Stallworthy (Independent, Eden) said that the great prqblem was to increase New Zealand's trade with tho United Kingdom. At the present time New. Zealand obtained only 50 per cent, i of, her. imports from Great Britain, and tho position was a serious one. The steel trade, for instance, had almost altogether been .diverted from Great Britain to Australia, and. there were other commodities in which the same tendency was being shown. EFFECT OF EXCHANGE. Tho Hon. W. Downie Stewart (Government, Dunedin West) said that it would be impossible to gauge the extent of the concessions which had been obtained • until trade developed under the new treaty. .He had correspondence on the question of dried fruits and currants,, and he hoped that the Minister would give them some details of his scheme for controlling any abuses of the:concessions which had been made. There was also the question of the diversion .of trade from the United Kingdom consequent on tho raising of the exchange rate, and on this point alsofhe asked for details of proposals to icheck this diversion. : I \The effect of. tho high exchange on the;flow of trade had been far-reach-ing, and in view of the fact that it was of enormous importance to New 1 Zealand- that trade with the United Kingdom should be fostered, it was :' essential that there should be ample safeguards against trade shifting to Australia. ... Beplying to tho debate, Mr. Coates said that ,-the ■ question of diversion of trade .was'in evidence before' New Zealand depreciated■ her currency, and. it had to be admitted that the depreciation might havo had a further tendency in this direction. It had to be recognised, however, that most of the British firms affected had subsidiary concerns in Australia, and it was very difficult to know just where to draw the line. To alter' the duties enumerated in the schedule would be tantamount to varying the agreement. At the present time, the .question of the duties on raisins was the subject of communications between the New Zealand and Australian ■ Governments, and ho would discuss the question more fully when the 'Committee stage was reached.

In the House, of Bepresentatlves today the Bill was put through the remaining stagos and passed.