OTTAWA AND OUR IMPORTS

Evening Star, Issue 21193, 29 August 1932, Page 14

OTTAWA AND OUR IMPORTS

DISTRIBUTING FIELD MAY BE AFFECTED WHY MANUFACTURERS ARE COMPLACENT [From a Correspondent.] WELLINGTON, August 27. The rumblings which have followed the announcement of the somewhat indefinite terms of New Zealand’s obligations under the Ottawa pact have been less serious than may appear. The terminology of the agreement, as cabled, certainly leaves more than a “ possible probable shadow of doubt ” as to what it is all about. How is the British Government to he served by an “ inquiry into existing protective duties,” and how’ long will it he before the British is benefited by this reduction, which is to be “as speedily as possible ” brought about? How is the British manufacturer to be “ placed in the position of a domestic competitor”? Preservation of the existing preferences is understandable enough, but the remainder of the pact, the “ bringing of the protection afforded the New Zealand producer to a level giving the British manufacturer full opportunity for reasonable competition on tho basis of the relative cost of efficient production,” is merely words. It looks like a compromise, it smells like a compromise—it is a compromise. If we accept the suspiciously likely estimate that the utmost the New Zealand delegates conceded to the Mother I Country was a promise to go homo and think about things, then the confidence which rules in manufacturing circles, well-informed circles, is understandable. No one, as far as the writer can learn, attaches the slightest importance to the pronouncement of Mr Forbes, which one gentleman who figured in tho Ottawa preparations described as “ going off at half-cock,” Everyone seems to be supremely confident that when the delegation left here there was to be nothing given away, but behind it all there is a strong undercurrent of uneasiness (it is queer how every nation distrusts its delegates in discussions | with other nations) that at Ottawa pur representatives may have succumbed to the superior strategy of the British envoys. It is needless to say that the manufacturers are prepared to fight tooth and nail in defence of their own. However, before any attack on our own industries is likely, it appears fairly clear that there is a good stretch of import trade which is non-competi-tive and not going to British firms. Here the Government may do what it will as far as New Zealand industries are concerned, though what the importers will say is another matter. Tho total of this trade reaches up to more than 20 per cent, of our total importations, and does not include petrol. Probably this field should content anyone; certainly it would be enough to answer any reasonable claims which Britain may make for what she has extended to this dominion. .And, further than this, it appears likely New Zealand could not go. Not alone be- | cause of the consequences which would follow to her own industries, but because Britain would not get the trade which the reductions in duty proposed to grant her. Australia is a great deal nearer than Britain, and Australia is also in the Empire. She has the advantage of shorter shipment, lower transport charges, high Protection, and | a fairly considerable home market to . aid her in large-scale economies. When | data was being prepared for Ottawa it was oarlv realised that in certain directions to “lower the tariff barriers would he to open the way, not for London, but for Sydney. However, though the fact is not generally bruited about when Australian and New Zealand statesmen arc gathered together in one place, there is a verv definite intention on the part j of tho New Zealand Government not to allow Australia to upset our internal economy, high exchange rate or not, and any movement in tariff preference will be watched carefully to see the effect as between tho industries of the , Commonwealth and the dominion. If that effect is found to be adverse, I think I am right in saying that a compensating exchange duty will bo levied, as provided against all countries with depreciated currencies. With all these facts common knowledge it is no wonder that tho manufacturers are taking Ottawa calmly. Thev are convinced that no Government would dare upset the equilibrium of the country by any sudden drastic revision of tariffs, that there is an ample field for revision in directions | winch may effect the distributive trades, but will not have dire effects for our own secondary industries, that j ihe industrialists' pet bogey, the Aus- ; tralian “ dumper,” is not to appear on ihe horizon; an'd that, in brief, as | much of the trade as they can get is* still to be had for the getting. Ottawa, ] it seems to the manufacturer, was little more than a gesture. One thing begins to emerge from all this, however, and it is the fact, mentioned by Mr H. D. Acland in one of his informative speeches some time time back, that a definite cleavage between town and country is not resulting in any love being lost between those in the ranks of tho primary industries (whom we know as the backbone of the country) and the men in the secondary industries. There is only one thing better than hearing a farmer on a manufacturer, and that is to hear a manufacturer on what a farmer does not know.