PARLIAMENT AND TARIFFS

Greymouth Evening Star, 14 July 1934, Page 7

PARLIAMENT AND TARIFFS

REPORT’S FRIENDS & FOES

LABOUR LEADER’S PLAN

[PER PBISS ASSOCIATION.] WELLINGTON, July 13. The House met at 10.30 a.m. Mr. Schramm asked the Minister of Employment whether, in view of the totally-inadequate allowances to relief workers for compensation, he would place the necessary legislation on the Statute book, to remedy the injustice. Mr. Hamilton replied that compensation was paid to relief workers already at a rate in excess of that to which they were legally entitled under the Workers’ Compensation Act. However, the representations would be considered, Mr. Tan Henare was granted seven days’ leave of absence, on account of illness. The House discussed the report of the Tariff Commission, and Mr. Coates’ statement when introducing the tariff resolutions. Mr. Savage said that the Finance Minister stated that the world was in a. state of flux, yet the statement was based on the old order of things. The report and the statement seemed to be very contradictory. Whatever they did with the tariff, they -were still' moving blindly, and in the end

the probability was that industries would suffer. The statement said that some duties were imposed on goods not produced in the Dominion, for revenue purposes. He could not understand that, but thought revenue, which he knew was necessary, should come from incomes directly. He would abolish all revenue duties. They did not seem to be able to get down to a simple understanding for importing from Britain things, the Dominions could not produce, and exchange other things for them. There were some industries he would go to any length

to protect. He thought, instead of waiting for America, or some other country, they should make a move in New Zealand. The time was ripe for a long-distance plan with Britain, to bring in things the Dominion could not produce, ana exchange them for things it could produce, but with the tinkering of exchange rates and tariff business, the community did not know what the Government was going to do next week. Something in the nature of a definite plan should be definitely reached, so that the people would know where they stood. The Government should say whether it was prepared to enter into long-term agreements.

Mr. Ansell said that the Leader of the Opposition’s statement, that he would abolish all tariffs for revenue purposes, w r as revolutionary, and impossible. Under the present system, everybody paid part. Mr. Savage would secure revenue from a few. Mr. Ansell said he thought that the Commission’s report was a wonderful contribution to the problems the Dominion was at present facing. He doubted if the world would return to its former state of trading. New Zealand had formerly relied on Britain foilier market, but Britain had decided to become more self-contained. He was definitely opposed to the free trade policy. The employment of youths in industry had to be considered, when discussing the tariff, and he did not agree with some of the resolutions. He thought that there was no alternative but to set about developing secondary industries. He contended that the tariff in recent years, built up on scientific lines, protected industries which were capable of development. TOO DEAR LOAF,

Mr. Wilkinson said that towns could not flourish, unless the finances of the country people were in a satisfactory position. He thought that they should endeavour to have two-way traffic between New Zealand and Britain, and not have ships coming out in ballast. He agreed with the Leader of the Opposition, that the duty on goods not produced in New Zealand should be reduced. He agreed, too, that certain industries should be protected, as all the population could not be farmers, but they should not protect industries till they became burdens on the people. If the resolutions were adopted, some prices would drop. That was what the people had been wanting for a long time, and it would stimulate trade. He was sorry that goods used by the working people, such as chinaware and linoleums, were not reduced. He contended that absolute preference should be given to Britain, in those lines. At present, the wheat duties gave opportunities for collusion. Duties should be fixed on a sliding scale or abolished. He said that the present duty on Canadian flour was £4/9/- per ton, and the Commission recommended that it should be £5/15/-. Bread was the staff of life of the people, and the price should be reduced. The du- - ty on Australian flour was about £7 per ton. The position was absolutely absurd. If the Government would not reduce the price, it should be turned out. Sliding scale duties were abolished in England a hundred years ago. New Zealand was a hundred years behind the times.

Mr. Wilkinson said that the question of wheat. and flour duties was one that required further consideration by the House. He did not think that any Parliament could justify the present state of affairs. He hoped that alterations would be made when the Bill was in committee.

Mr. Parry said that Labour’s idea was that costs should not be reduced, because income falls, but that production should be increased, to improve, income. The policy was to control’ produce sent away, and goods received in exchange, which would give true trade reciprocity. Economic selfsufficiency was the only thing that would make for world peace, as the trade of other nations would not be attacked. He thought that it might be necessary in future to subsidise industries, to provide work for the people. He contended that the glass bottle industry had not been fairly treated. The general tariff should have been increased, so as not to allow foreign countries to kill it. The tariff would also have a serious effect on the millinery trade, which employed many women and girls. Mr. .Tull said that, if ships were to come out in ballast, freight rates must increase. Therefore, it was necessary to give greater preference to Britain. He criticised the new tariff on motor vehicles, and said that it gave a reduction of practically 75 per cent, on

I cars other than British. He hoped I that the resolui.on would he revised. The lunch adjournment was then ■taken, SECONDARY - INDUSTRIES. WELLINGTON, July 13. In the House, this afternoon, Mr Clyde Carr said that farming activities offered little avenue for the employment of thousands of young men who were seeking work yet the secondary industries on which the country was depending for employment of these young men, were being destroyed. Britain had concentrated on secondary industries, and was now over to agriculture. New

Zealand had concentrated on primary industries. He hoped the Government would realise the necessity for swinging over to secondary industries. He contended there was a market for New Zealand’s secondary products. They should have faith in New Zealand, and give the young people a chance. Mr Stallworthy stressed the danger of a shortage of skilled artisans. He said they did not want to find when some measure of prosperity returned that they were a nation of navvies. He appealed to the Minister of Customs and the Government to reconsider the adjustments contained in the Customs resolutions, as numbers of industries in Auckland were in danger of being wiped out. Mr Kyle, regarding wheat and flour, said that Mr Wilkinson was not studying the interests of the South Island farmers, when ho urged the abolition of the sliding duties. The

sliding scale of duties brought about a decline in the price of wheat since it, was put in operation. To-day, the sliding scale was supposed to guarantee a maximum price of 4/6 a bushel to the farmer. The whole industry would be wiped out if only world parity were obtained. South Island farmers were practically providing the Auckland farmer with daily bread, yet the Auckland newspapers and others urged the abolition of the sliding scale. Had Professor Tocker been on the Commission instead of Professor Murphy, Mr Kyle was sure the report would have been different respecting wheat and flour. Mi- Kyle said he would advocate barring the importation of Japanese matches. A voice: What if Japan put an embargo on New Zealand wool.

Mr Kyle said that was a danger, but he would rather see one bale of wool go to Britain than two to Japan. He hoped the Minister would be able to strike a. fair deal with Australia, regarding New Zealand potatoes.

Mr Sullivan contended that it was a false assumption that trade would return to normal. Surely nobody believed that Britain would return to free trade or that Japan, Germany, and China, would scrap all the modern machinery put in during the last few years. The whole basis of the report fell to the ground, yet New Zealand was asked to build up a policy on what was really a false assumption. Why was Australia, under the Ottawa Agreement, able to give double the protection New Zealand was? Was the House being misled? It was a tragedy, and called for

explanation. If the Government gives effect to the policy, the number of unemployed in the Dominion would be doubted. Mr Webb appealed for protection of the iron industry instead of a. reduction in duties. Other industries than wheatgrowers should be protected. Every industry in New Zealand, but coal, was protected. Every section of the community was protected, except the coal miner. Everything in the report went to increase rather than decrease the cost of living so far as miners were concerned.

Mr Connolly expressed regret that the Commission, although it visited

62 factories did not visit, one farm where wheat was growing. Wheatfarming enabled the ground to be economically worked, and was surely worth preservation. The labour cost

was about £4/10/- to £5 an acre, and the land cost equalled a shilling a bushel if the wheatgrower were put out of business. Something had to replace it. If used for fat lamb growing, or dairying, it would add more to the already overglutted market. He challenged Members to prove, it was possible for bakers to produce a loaf a farthing cheaper, if the recommendation of the Commission was given effect.

Mr Barnard protested against the haste with ■which consideration of the report was forced on the House. The report had been in the hands of the Government for three months, and had been in the Members’ hands for 24 hours. He thought members should have had three or four davs to consider the report. He added that tobacco growers were being thrown out of work white the wheat growers were protected. The object of the tariff .seemed to be to compel smokers to smoke imported cigarettes. He commended the Commission for the recommendations regarding Japau, and hoped the Government would take early steps to approach the Japanese Government, before the problem became greater.

LEGISLATIVE COUNCIL WELLINGTON, July 13. In the Legislative Council, Mr. Carrington gave notice of intention to introduce an Alsatian Dog bill. Continuing the Address-in-Reply debate, Mr. Masters said the amendment to the Arbitration Act had brought about a spirit of conciliation in industry, and there had been onlv a small decrease in the number ’ of awards. 1-Ie did not think it was sound policy to raise internal loan for unemployment purposes. They had been told Australia was out of her difficulties, but it had to be remembered that the Commonwealth had a floating debt of a hundred millions. New Zealand would be extremely unwise to borrow money to spend on works of doubtful character. It had been stated that the railways should be competed, but the report of the Railways Board showed that these lines would not pay working expenses, let alone interest on loans. He "was pleased to announce the Government was calling a conference of all interested in tourist traffic for the purpose of exploring avenues for the development of the traffic in the Dominion. He deplored the pessimistic attitude of a. section of the farmers. Professional grousers were helping to destroy the spirit of confidence and preventing investment in farming activities.

Mr. Perry briefly replied to the Debate. The Address was agreed to.

HEARING DEPUTATIONS.

WELLINGTON, July 13.

The Minister of Customs has promised that, as far as possible, he will arrange to hear representations from the persons affected by the revised tariff. It is desired that all who wish

to make representations should present their case without delay, so that finality can be reached. The Minister has agreed to set aside definite hours next week which will be given entirely to the matter. As a means of economising in time for all concerned, it is desired that those who have submissions to make should prepare, in writing, for the consideration of the Government a brief statement of their case. By arrangement with the New Zealand Manufacturers’ Federation the views of the local manufacturers are, as far as possible, being put forward through that organisation. The Minister also states that, except to the extent that may be shown to be necessary, representations to liijn suggesting modification of the tariff schedules that were adopted by Resolution of the House this week, will be taken in the presence of the press.