GUIDING PRINCIPLE

Evening Post, Volume CXVIII, Issue 45, 22 August 1934, Page 3

GUIDING PRINCIPLE

INTERESTS OF ALL

; QUESTION OF AGREEMENTS

Some general observations regarding the principles which guided the Government in reaching its decisions were made by the Minister of Customs in introducing the resolutions. The Government, he said, had taken the view that all those affected should have ample opportunity of stating their views both to the Commission and to himself. Mr. Coates also intimated that the Government would enter into negotiations with other Dominions with a view to arriving at satisfactory agreements. "It will be remembered," said Mr. Coates, "that when I introduced the resolutions on July 10 ( I stated that it was proposed to afford those affected an opportunity of making representations concerning any items. . As members will have noticed in the Press, a large number of- such representations have bfeen made. Many inquiries have, as & result, been instituted, and much important information has been received. The Government now proposes to make certain- alterations in the schedules, and these are set out in the amending resolutions now before the House. These, proposals raise certain general issues with which I intend to deal before making a few observations on some of the more important items in the amending schedules. ."Members will recollect that when 1 dealt with the original resolutions I stated that the recommendations of the Commission were generally accepted as the basis of the Government's decisions. These recommendations were, of course, made on the information available to that tribunal, and, as is stated in- the report, representations were -not made with respect to certain important items. It is. obvious, therefore, that, if additional particulars are received which throw a different light on' the matter the whole problem must b» reviewed.

"It should, I think, be mad© clear that the Tariff Commission endeavoured to iihpres's upon those interested the necessity of making representations to them. . • Notwithstanding .the statement! Tssue^,-a iiuinber of1 industries failed to present their cases to the com-

mission. It has been urged that in- such cases representations, should not now be considered by the "Government. My view, however, is that the Government must have regard to the welfare of the community, as a whole. There are, apart from the proprietors of industries, many others vitally interested therein, and it would not be right that, merely because the necessary steps were not taken, the interests of employees and of others affected should be jeopardised. . FRESH INFORMATION. "In addition to the cases in which no evidence was supplied to the commission, there were others in which further information to that submitted has come to hand since the report was made. This has also been considered by the Government in coming to their conclusions. An illustration of this kind is to be found in the electric heating and cooking appliance industries. Information now available to the Government (in addition to other particulars useful in coming to a decision) shows that there are about 300 employees engaged therein, and the production is . very considerable. This differs greatly from the information available to the commission and on which it based its recommendation. The position, therefore, is that if the information now available to tho Gov: eminent had been in its possession before the original decisions wero made tho resolutions now introduced would have been unnecessary so far as the items affected were concerned. In other words, the Government, in coming to its amended decisions, has complied with the principles set out in the Ottawa Agreement and has fully carried out its obligations thereunder. COMPETITION FROM DOMINIONS. "There is, however, one aspect of the matter that requires explanation. As members are aware, this Dominion has trade agreements with Canada and Australia. Under those agreements, except for specially-enumerated items, the rates "of duty are the' same as those chargeable under the British preferential tariff. In so far as the alterations now proposed in the tariff are; made pursuant to the Ottawa Agreement they may be said to be written into that agreement. Hence the question, from the point of view of the New Zealand Government, of extending these concessions to the other Dominions is a matter for consideration with respect to each item affected. It is found that, so far as certain articles are concerned, if the concession proposed to be granted on United Kingdom goods is extended to Australian or Canadian goods, the result will be that shipments will come to hand from those- countries to the detriment of our own industries. This

would defeat tho purpose of the Government in making its decisions. It will be noticed, therefore, that, with respect to certain items, for example, wireless broadcast receiving sets, it is proposed that the exemption under the British preferential tariff should not take effect until May 31, 1035. This will enable, the Government^ take the matter up with Australia ami Canada with a view to making a satisfactory arrangement with those Dominions. On certain other items, for example, biscuits, fruit and rose trees, drainage pipes, and furniture, the reductions will not take effect until the date mentioned."