The Evening Star TUESDAY, DECEMBER 28, 1920.

Evening Star, Issue 17545, 28 December 1920, Page 4

The Evening Star TUESDAY, DECEMBER 28, 1920.

The Australians have realised that what their country needs is less Helping- dependence on the overIndustries, seas supplier and more

manufactures, of its own. The revised tariff which came into* force last April was directed to that object, Arid it seems to be working .to the general satisfaction. The tariff provided for a high measure of protection to new industries, and as much encouragement as could reasonably be given to others. A preferential rate is accorded to Great Britain, and there are also an intermediate rate to encourage reciprocity between British Dominions and a general rate* for the other countries. Provision was also made for a deferred duty, which will become! operative at a later date, to .secure that industries yet to be formed -will be protected in their earlier stages.'. In the last few months a considerable impetus has been given to not a few secondary industries in •Australia. Recently there has been quite too much unemployment in both Sydney and Melbourne, but that i 3 explained by the extortionate demands and disruptive tactics of the section of workers who oppose most their own interests when they will not allow industries to proceed in peace. It is natural,to suppose that unemployment would be more prevalent if it were not for the Government's policy of encouraging industries.

The Government, at any rate, has no doubts about the wisdom of its policy. Frequently of late it has been pointed out how new conditions arising from the war, of which the great increase in the Debt is only one factor, have accentuated the need for more and larger industries in New Zealand. Mr Hughes is no less convinced that they are ncedod for Australia. His views were expressed recently when he presided at a conference of woollen manufacturers and various State committees called to discuss the further development of the woollen manufacturing industry in the Commonwealth. At present, he pointed out, Australia treated only a verysmall percentage of the raw products it produced, particularly wool. There was undoubtedly room for expansion. For the year ended June, 1919, close on five million pounds' worth of woollen goods was imported which could have been manufactured in the country, making employment for both capital and labor.. It was a reflection on Australia, producing the best wool in the world, that it should send so large a part of it overseas and take it back again in manufactured goods. More machinery would be required for greater manufactures, and that could be produced in Australia. The Federal Government was prepared to render all the assistance it could tc-<the expansion of existing factories or the establishment of new ones showing a reasonable prospect of success. He believed that it was of vital importance to Australia that she should accomplish more in the way of manufactures than she was. doing. The expansion of the woollen manufacturing industry would not destroy the market for the greater portion of their wool abroad, because they could not absorb it all themselves. Industries for which they had the raw material should be able to expand, at least to the extent of providing for the wants of their own people. The Government would assist in that expansion.

And there comes in a difficulty not to be ignored in connection with a policy meant to assist industries in Australia or New Zealand. The industries will not be helped at all if they are helped too much. A state of excessive dependence would be as bad for industries as for the community at large, and Governments are apt to be only blundering helpers when they do not promise more than they could ever perform. Mr Hughes's actual plans for further assisting industries, at least at the commencement of this conference, were just about as vague as they could be. The Government would help in procuring machinery. It would set up in each State branches of a propaganda department, estimated to cost £20,000. New departments, when they are set up, speedily exceed their first estimates of cost. That suggestion for new expenditure was very natural as a Government proposal, but it has its disturbing aspect. The New Zealand Parliamentary Industries Committee, dealing with this general question, reported last year that " the question of secondary industries is largely bound up with the Customs tariff, and, notwithstanding that in many cases protection is now given, unless further assistance by duties or bonus (always having in view the necessity of keeping down the cost of living) is extended it is certain that some very desirable industries are in danger of languishing, and possibly perishing." The committee advised that "before increased protection on locally-manufactured goods is giren it should be the duty of the Board of Industries and Commerce to ascertain that such protection will not result in prices being unfairly raised against the general public.' 1 Local industries should be able to give assurances, before they have advantages conferred on them, that they will turn out goods of a standard merit at no undue cost to their consumers. The Australian tariff will, no doubt, be considered carefully by the New Zealand Government in framing its own revision, and the views of all the parties interested should be sought in conferences before its new proposals are brought down.