The Evening Star TUESDAY, MARCH 1, 1938. TARIFF INCREASES.

Evening Star, Issue 22895, 1 March 1938, Page 8

The Evening Star TUESDAY, MARCH 1, 1938. TARIFF INCREASES.

After long delay caused by. protracted negotiations the Government to-day announces increases in the duties on certain manufactured goods imported to New Zealand. The countries most directly concerned are Australia and Canada, and the changes have been effected in agreement with those dominions. It will be remembered that the Australian Minister of Trade and Customs recently paid a visit to New Zealand to discuss the matter, and the new arrangement so far as the Commonwealth is concerned is the outcome of the conversations that followed. The case as presented to Mr White by Mr Nash and those associated with him was that it was desired to increase the duties on certain Australian manufactured products, to redress the trade balance with Australia, to protect New Zealand’s secondary industries, the cost of which has been materially increased by the operation of the forty-hour week and by other industrial legislation, and to preserve a large part of the New Zealand market for British manufacturers, so as to ensure reciprocal markets in Britain for primary produce, particularly butter. This last-mentioned is an important point—a vital one really —for if the Home market is to remain open to us as in the past, it is essential that nothing shall be done to incur the resentment of the British manufacturers. It has already been complained that Australian factories are encroaching on Britain’s share of the New Zealand market. Manufacturers in this Dominion, particularly those engaged in the footwear and certain woollen industries, have been pressing hard for additional protection. It has been contended that the New Zealand Government, in its efforts to raise the standards of living of the workers, so increased costs that manufacturers found that they could not compete with other countries whose workers were not so favourably placed as their own. The dismissal of boot operatives and other employees was repeatedly recorded. Manufacturers complained that the Governments of this country, unlike those of Australia and Canada, were not bold enough adequately to protect the secondary industries. The primary producer has another point of view. The executive of the New Zealand Farmers’ Union recently adopted the following resolution:—“That this union makes the strongest protest against any increase in the Customs tariff or any other method of protecting New Zealand industries which would inevitably result in an increase in the cost of living in this country and prejudice the sale of New Zealand produce in the United Kingdom.” In the new duties announced it will be noticed that increases have been Blade on all imported footwear, includ-

ing that of British manufacture, in the case of which the added impost is comparatively light. In this connection Mr Nash says that the opportunity had been given to the United Kingdom manufacturers to make representations, and full consideration had been given to the arguments presented on their behalf. Adjustment of tariff schedules is always a delicate matter, but in the present case satisfaction may bo felt that the alterations are the outcome of friendly negotiations, and are not likely to bring retaliatory measures in their train. The Minister of Customs is hopeful that internal prices will not rise as a result of the imposition of the new duties, Mr Nash thinks that with increased production and the consequent greater efficiency of industry the New Zealand manufacturers should soon bo in a position to reduce prices. That to a large extent will depend on the acts of the Government. If further burdens are to be put on industry in the way of taxation and industrial regulations and restrictions then internal prices cannot possibly fall. The greatest outcry has been occasioned by the flood of Australian footwear manufactures that have come to New Zealand. To meet the position substantial additional protection is now given against these goods, as well as those from Canada. Two points remain to be cleared up. One is whether all the industries that are suffering from the competition of goods produced overseas at lower costs than those ruling in New Zealand are included in the schedules. The other is whether they will give the protection that is necessary to enable the New Zealand industries to be successfully conducted.