OVERHAUL OF TARIFFS

Hawera Star, Volume LII, 28 January 1933, Page 5

OVERHAUL OF TARIFFS

INTENTION OF N.Z. CABINET CONFERRING WITH BRITAIN AFTERMATH OF OTTAWA. COMMITTEE TO BE SET TJP. (Government Memorandum.) WELLINGTON, Jan. 27. “It has been the practice of New Zealand Governments during the last few years to hold periodic mquines into -the Customs tariff,' stated the Minister of Finance (the Rt. Hon. J. G. Coates) during the course of his statement to the House of Representatives this afternoon. . “Such inquiries were held in and 1927, and the time would in the ordinary course be ripe for a further investigation. The need for such an investigation is all tho more urgent owing to the existing economic and financial crisis, whch has had such a catastrophic effect on the world s prices. In New' Zealand more particularly the tariff should be overhauled owing to the fact that our export trade depends almost wholly upon our primary products and the lower prices obtainable have made it necessary to reduce costs of production to the lowest possible level consistent with an oider]y economic and industrial development. ‘‘ Xo one will question the fact that the incidence of Customs taxation is a very important factor in connection with such costs, and with the general 'cost of living of the Avholo community. Apart from these considerations New Zealand is committed under the Ottawa agreement to conduct such an inquiry, the question having been there approached from the viewpoint . of facilitating trade with the United Kingdom in return for valuable concessions given to the Dominion. “The Government has no intention of exposing to unreasonable competition any industry which can function on an economical and efficient basis. On the other hand, as I have indicated, the country cannot afford to maintain tariffs which increase costs of production and the cost of living unless a real benefit accrues to the community therefrom. It is intended to set up a small body which will review the whole position and make recommendations with respect to tariff rates. It is proposed that the inquiry should commence as soon as possible. “It will be remembered that under Article 8 of the Ottawa agreement it was arranged that United Kingdom producers should have an opportunity of putting forward their views at the 'tariff investigation. The 'Government is in communication with His Majesty’s Government in the United Kingdom with a view to ascertaining when the producers there will be in a position to furnish the necessary information. When a reply is received an indication will be given as to the date on which the inquiry will commence. The personnel of the investigating body will be made known at as early date as possible after the closing of Parliament.”