EMPIRE TRADE.

Hawera Star, Volume XLV, 19 June 1925, Page 7

EMPIRE TRADE.

PREFER ICNCE ISS UE

THE DOMINION’S POSITION. WELLINGTON. June 19. Some inteiesting remarks concerning trade with Britain and preference tariffs were made by Sir George Elliot in the course of his address at the annual meeting of the shareholders of the Bank of New Zealand to-day. He said that last year New Zealand 'sold to the United Kingdom 79.8 per cent of its total exports, and it purchased from the United Kingdom only 47.2 per cent, of its total imports. New Zealand levies an average customs duty of 20 per cent, ad valorem on most goods imported into the Dominion from the British Empire and. by way of preference to the Empire. ■a* further ad valorem duty oi from i'* per cent, to 20 per cent, is levied on goods imported from foreign countries. British goods, therefore, have a considerable preference. Tbeie can be no doubt that, it pro.create on British goods were abolished in New Zealand. British trade with ns would fall very considerably. Although jt would have amounted to the same thing in the end. it might have been wiser in the beginning, because more understandable. Co make a general increase in duties, with a rebate on goods manufactured within the Empire. One cannot help feeling that, in spite of Custom preferences, Great Britain, though still far ahead of her competitors in this market, seems to be losing the position she held in 1900. or even in 1910. Such a condition .of affairs should receive tlie earnest attention of statesmen both in the United Kingdom and in New Zealand. The advent of the motor-car considerably affected the position of British imports to New Zealand. The total imports of motors, spare parts, and benzine for the year ended December. 1924, amount,ed to: —£659,745 from The United Kingdom; £5,962,653 from other countries. In 1905 the proportion was 57.9 per cent. United Kingdom, 42.1 per cent other) countries. Parliament, with the best intentions in the world, dealt a blow to the motor industry, which it still staggers under, when it passed legislation charging owners of motor vehicles ail annual license fee of £1 per horse-power. To meet this legislation British manufacturers concentrated their energies on producing a type of car which has proved satisfactory to British users, but apparently is not popular with users in this Dominion. Until the position is realised by British manufacturers and a car is produced which will suit both English and Colonial conditions, the present preference for non-British cars will doubtless continue.

It is of vital importance for the welfare of this Dominion that tariffs should be so framed that, while giving our local industries a fair measure oi‘ protection, they should not bear unduly on the commercial activities of the* United Kingdom. It must never be forgotten that if we are to hold and increase our exports to Britain, we must on our part take British goods in exchange. The majority of the people living in the United Kingdom firmly believe in free trade. On this principle they have built up a great manufacturing nation and, if*world conditions were the same as they were even 20 years ago, for them ii free trade policy might still he the best. But conditions are not the same. Practically every foreign country is slowly and surely building high custom tariff walls round its boundaries, and. as a consequence, British trade is suffering. It is obvious that, unless British industry is fostered, Great Britain cannot continue inderiniteiy to be the splendid market that she has keen for colonial produce. With a large national debt (half of it incurred on account of the late war) New Zealand cannot, even if she so desires, be self-contained, for she can only pay her external debts and the interest on them by the export of woo], butter, Jamb, mutton, etc. At tlie present moment the Mother Country of the greatest Empire the world has ever ’ seen is suffering the aftermath of a great tragedy, but, look, mg back over the records of her past history, none need doubt that the genius of her people will bring her triumphantly through this time of stress and strain.

There is a point that calls for more than passing consideration. It is this, that'while New Zealand last year purchased from ; ‘other British possessions” 26.9 per cent of her total imports. she sold to them only 7 per cent, of her total exports. It seems to me that it might be possible to make a quinquennial adjustment of our customs tariff, which might be based on the conditions of trade that had existed during the live years between the separate British possessions and New Zealand. I can appreciate that there would he considerable difficulty in arriving at a. satisfactory adjustment of the position, for many factors are involved, but, as long as care were exercised in seeing that imports of all raw materials were safeguarded, the difficulty should not be insurmountable.