NEW ZEALAND TARIFF

Hawera Star, Volume XLVI, 29 June 1927, Page 13

NEW ZEALAND TARIFF

Protective Duties. MAIN OBJECTIVES OUTLINED . Progressive Development

(Written for “The Star”) Now Zealand’s custom tariff is frankly protectionist in policy. The industrial ambitions of the people have, for many years, had the sympathies and encouragement of the nation’s legislators, who have generally recognised that flourishing secondary industries were essential for the economic well-being of the country, reducing dependence upon overseas markets for manufactured goods and leaving a wider margin between exports and imports, tending towards a more favourable balance of trade. Gradually a protective wall has been built around the Dominion’s struggling industries, t and although the result has been an increase in i prices to consumers, the added burden has been carried, if not cheerfully, with a minimum of complaints. One has to go back to the year 1841 for the country’s first tariff. This was a modest affair, containing few items, and as might have been expected, preference was given to the goods of the Mother Country, a policy which has been followed ever since, with one exception—in the tariff of 1844. In that year all duties were increased and preference was dropped, while an interesting sidelight on the condition of the country was given by the imposition of a duty of 30 per cent, “on all guns or weapons of any description or gunpowder, or any munition of war,” apparently levied to prevent the growing importation of fire-arms to the Maoris. A feature of the .1846 tariff was the appearance of fine articles on the free list—namely glass bottles, bullion, live animals books, seeds and bulbs. Preference to British goods was also provided. In 1851 the first set of elaborate duties was provided while that year’s tariff was notable also for the first appearance of ad-valorem duties. Revenue was the only objective sought in the 1864 tariff. In the succeeding years considerable alterations were made and the list began to develop into something like the modern classification. This movement was particularly pronounced in 1895 when the first duties designed to give protection to local industries were levied. The process of sub-division and protection has continued ever since. In 1900 further steps were taken towards a free breakfast table, while seven years later the tariff was completely revised. Some important alter*ations were made and many more articles were placed on the free list. Consequent upon the war, sweeping alteration were made in the tariff in order to meet some of the extraordinary expenses incurred by military activity. The main objects of the 1921 revision were to secure a larger revenue and to give more protection to local industries. The complicated nature of the tariff may be indicated by the fact that there were 566 items on it, and there were three rates *f duties, general, intermediate and British preferential. The general applied to foreign goods, and the intermediate to nations entering into reciprocal relations, with New Zealand. PREFERENCE AND RECIPROCITY. As mentioned above, preference to British goods has, with the exception of two years, been a feature of New Zealand customs tariffs. The first definite attempt at reciprocity was made in 1870 when the Colonial Reciprocity Act gave power to the Government to make reciprocal agreements with the Australian .States, including Tasmania, but this failed to secure Royal assent and consequently lapsed. The next attempt was made in 1895, when an Act was passed and secured Royal sanction which ratified tentative agreement, which had been entered into with South Australia, besides giving power to the Government to make further agreements with the other Australian States. In 1907 a customs tariff was negoti-' ated with South Africa while a tariff agreement with Australia has been in operation since 1922. MAIN OBJECTS OF TARIFF. These may be summed up as under: — (1) To protect and encourage local industries by charging a duty on goods of a. class 'made in the Dominion, and*admitting free of duty machinery.' plant and raw materials used in those industries. (2) Subject to the above, to admit free of duty articles of common consumption. (3) To grant preference to articles produced in Great Britain and in other parts of the British Empire. (4) To obtain revenue mainly from goods classed as luxuries.