FISCAL POLICY

Hawera Star, Volume XLVIII, 19 December 1924, Page 5

FISCAL POLICY

PROPOSALS IN THE COMMONS. ELECTION PLEDGES. • COST OF LIVING. BY CABLE—PRESS ASSOCIATION —COPYRIGHT LONDON, Dec. 17. In the House of Commons during the debate on the Address-in-Reply, Captain Wedgwood Benri moved tiie official Liberal amendment, regretting the King’s Speech did not mention constructive proposals for dealing with unemployment, hut foreshadowed the introduction of tariffs and preference, which would raise prices, increase the cost of living, hamper industry and reduce employment. Mr Baldwin, replying, said the Government attached great importance to the constitution of an Imperial Economic Committee. The specific reference cq the committee upon which the Dominions had been invited to nominate members, was to consider the possibility of improving the methods of. preparing for the market, and marketing within the United Kingdom food products from the overseas parts of the Empire with a view to increasing the consumption of Dominion , products, in the United Kingdom in preference to imports from foreign countries, and. to promote the interests both of producers and consumers.'

The Government Intended to re-sub-mit to the House all the resolutions of the last Economic Conference, which involved reductions in the duty. He adhered to the pledge he made in his election speech at Gravesend that preference would not be used as the thin end of the wedge to, tax food. He hoped to secure an increase in trade with the Dominions by the proposal that the full money equivalent of the advantages that would have been conferred on the Empire in respect of any duties which were not retailed should he devoted to schemes for developing trade within the Empire, and, firstly, schemes for marketing. ; It was hoped to allocate £I,OOO,OCKr annually for this purpose.

He thought, with the contemplated Economic. Committee, on which British and Dominion experts would be represented, and with the terms of reference he had mentioned, it might bo passible to open entirely new and untried ways of developing Imperial trade. He hoped these would be of far greater benefit to the Dominions than two. or three small taxes proposed at the last Economic Conference.

-Mr Baldwin said the first things to be remitted tothe Economic Conference would he meat and fruit. It was impossible to touch meat or fruit by taxes, hut it was hoped to devise a scheme to somewhat alter the course of trade for the benefit of the Empire and the benefit of dur own people without taxing food. After paying a tribute to Mr J. H. Thomas (Colonial Secretary in the La> hour. Cabinet) for his highly valuable efforts for the maintenance of Empire interests, Mr Baldwin said a. new Safeguarding of Interests Bill would be introduced next summer, andiapplied in justifiable cases. He expressed the opinion that any * duty levied under tips' Act should be general, and not a discriminating duty. Preference on these duties would be given the Dominions.

- Replying to Mr Lloyd George, the Premier said such a general duty Would apply to • all countries, even though unfair competition Was only encountered from one. , ”

Mr Lloyd George . interpreted Mr Baldwin’s statement regarding, the preference ‘ resolution as meaning that no duties would be granted the Dominions or colonies bn food, and any existing preference would refer only to the existing duties and not to the creation of fresh ones. He roundly condemned the announcement regarding the safeguarding of industries as not being a straightforward wav of introducing a general tariff, and a transformation of -the fiscal system. Mr Lloyd George declared that it was the gravest proposal he had ever head from a British Prime Minister.

Mr Churchill said the proposed expenditure on Empire objects instead of food duties would be not dissimilar from the lines of the imperial Conference proposals of 1907 for improved communications in marketing and the popularising of Empire products. Great care would have to he taken not to do an injustice to our own agricultural producers. ( The Liberal amendment was defeated bv 339 votes to 151, and the Address was agreed to.