Greymouth Evening Star. AND BRUNNERTON ADVOCATE THURSDAY, DECEMBER 9th., 1937. PROTECTION.

Greymouth Evening Star, 9 December 1937, Page 8

Greymouth Evening Star. AND BRUNNERTON ADVOCATE THURSDAY, DECEMBER 9th., 1937. PROTECTION.

PROTECTION against. Protection is being- songht in various

quarters in New Zealand, following the announcement by the chairman of the N.Z. Manufacturers’ Federation, (Mr. D. Henry) at the annual conference, this week, that the Minister of Industries and Commerce (Mr. Sullivan) had invited all the Dominion industries, which required further protection, to confer with Departmental officers and to submit their claims

for consideration. Mr. Henry appeared to regard this invitation as an intimation that the manufacturers had but to ask to receive, but that may not be the case. The Government’s industrial legislation, and the heavy taxation imposed, has added greatly to the costs of manufacturing in New Zealand, and, of this, full advantage is being taken by Australia and other countries. This result was freely predicted, but the Government was obstinate, and now finds itself faced with a problem it will be difficult to solve. More tariff duties will mean

that the people of New Zealand will have to pay more for goods, wherever produced, and this will arouse much discontent. The cost of living, generally, has already been increased owing to Labour legislation, and what benefits have been obtained by way of higher wages and less working hours, have been dearly purchased. The

farmers have been quick to make protest to the Prime Minister against the suggestion of further protection for N.Z. manufactures, partly on the ground that the farmers would have their own costs increased, and partly because of the possible ill-effect on the Dominion’s best market for primary produce. That the latter fear is not groundless, is suggested by the warning given by Mr. C. W. Budd, president of the United Kingdom Manufacturers’ and New Zealand

Representatives ’ Association, at

the annual meeting of the association, yesterday. He and his

Association could not be expected to be free from bias on the question of increased barriers To the entry of British goods into this country, but it must be agreed that they should be aware of what the probable reaction would be in Britain, if the proposed further tariff obstacles are authorised. Mr. Budd did not mince words, and his references to labour conditions on the New Zealand farms, were not without foundation.

The old controversy Protection v. Free Trade is dead and none wishes to revive it. Some degree of tariff protection is essential to Overseas industries, but there must be limits. A perusal of the duties already imposed, coupled with the high exchange rates, suggests that in few instances would further protection be justified, and particularly if gain to the secondary industries could be ob-

tained only at the expense of the

primary. The Labour policy approaches the stage of protection run mad. Not only is this seen where imports are concerned, but the regulations concerning internal commerce are all in the direction of restricting competition and creating partial monopolies. The time is overdue when New Zealand consumers should receive more protection, from the Government which poses as the friend of the workers and those with low incomes.