MEAT BOARD AND TARIFF

Gisborne Times, Volume LXXIII, Issue 12080, 20 October 1933, Page 2

MEAT BOARD AND TARIFF

SUMMARY OF CASE TO COMMISSION. ’ , ■■■'-ly-. -■ QUOTAS WOULD BE A GREAT danger. (Special to the Times.) WELLINGTON, Oct. 18. The growth of New Zealand’s farms is one of the greatest romances m farming history, and the New K land farmers in their initiative, m dustry and skill arc unsurpassed by the farmers of any other country. Farming is the basic industry o New Zealand, providing almost the whole of the country’s exports and the only means of financial communication with the outer world. No secondary industry, other than those putting farm products into a marketable condition, has yet placed itself on to an export basis. The purchasing power of New Zealand’s farm products is now at the lowest point in the history of the Dominion. The exchange parity of’the goods and services that the farmers and the rest of the community render each other has got completely out of line. This 'lack of farm purchasing power is filtering through the whole community and is the major cause of our unemployment problem and general economic difficulties.

The only way in which to bring back prosperity to tbe Dominion is the return or the bringing about of conditions that will restore profit to industry. Other industries cannot prosper until the basic industry of the country, which is primary production, is restored to a profit-earning basis. The raising of the exchange rate was necessary and in the interests of the whole community. It enabled the farming industry to carry on add thus continue to support the Dominion’s other industries. It was purely an internal matter and not equivalent to an addition to the tariff.

In raising the exchange rate, Ne w Zealand is doing just Hie same as Britain, and that is keeping the value of its currency at a level to suit itself with the country’s money and at the country’s expense. Every other country in the world except Holland and Switzerland has recently done or is doing what i s equivalent to the same thing. New Zealand depends more upon the British market for the sale of its exports than any other country, and very much more than any other British Dominion. New Zealand’s position is.. therefore, entirely different from that of any of the other Dominions. Britain being tbe. only market for about seventy per cent, of New Zealand’s exports the loss of free and unlimited entry to that market will seriously impair Now Zealand’s solvency and thus injure every section of the community.

The speeches of British Camnet Ministers anj other public men. together with the statements of the British Press, show that Britain i s adopting a policy of restricting imports and fixing quotas' with all conn, tries, including British Dominions. This policy is fraught with very much g'.eater danger to New Zealand than to any othc-r Dominion.

The only way to be sure of securing free and unlimited entry for New Zealand products into Britain is to give similar entry to New Zealand of British goods. In accordance with the provisions of the Ottawa agreement an immediate substantial reduction should be made in the duties on British goods. Under our proposals the balance of the duty then remaining should be removed at the rate of 25 per cent, a year.

No charge should be made in the tariff on goods from other countries, including British Dominions, exceot upon a reciprocal basis and in arranging any such changes British interests should be considered as well as those of New Zealand. The commonly-accepted idea that free entry of British goods into New Zealand will largely destroy New Zealand’s secondary industries. is wrong. Free entry of British goods into New Zealand will either help or leave unimpaired secondary industries employing 79 per cent, of the employees and paying 84.8 per cent, of the wages.

The remaining secondary industries employing 21 per cent, of the employees and paying 15.2 per cent, of th e wages would in the first instance suffer .from free entry of British goods. These .could in a large measure meet the situation by reorganisation and should receive assistance by wav o'* bonuses for a limited period while doing so. I 1 ree entry 0 f British goods into New Zealand will.reduce costs to all New Zealand industries, both primary and secondary. These reduced costs will enable those of our secondary industries with natural advantages to place themselves on to an export basis. This would reduce costs to a'U consumers of the products of those industries and thus help other industries to reduce their costs to the advantage of all consumers. Dur standard of living in the past lias been bolstered, up by the expenditure of money borrowed in Britain. In the future our standard of living will be such as wo can earn, while at the same time repaying to Britain the money borrowed from her. Until this is done, we as debtors cannot expect to establish a higher standard of living than our creditor. The cost to the public revenues of loss of duty on British goods can be made up.