REDUCE COSTS BY TARIFF CUT.

Horowhenua Chronicle, 8 July 1933, Page 5

REDUCE COSTS BY TARIFF CUT.

SHEEP FARMERS' CASE AGAINST PROTECTION. ASK FOR GRADUAL SCALING DOWN OF DUTIES. (By Telegraph—Press Association.) WELLINGTON, Saturday. A policy of successive tariff reductions for the purpose of ultimately obtaining practically free relations with Great Britain was advocated by the New Zealand Shop-owners and Farmers ’ Federation in a statement placed before the Tariff Commission to-day. Mr L. G. Aekland, the President, said the Federation wished to urge on the Commission the necessity of bringing down farm production costs fpr export. If the export trade of primary produce was to survive a general scaling down in costs was essential. His executive felt that New Zealand produced and manufactured articles, together with manufactured and semimanufactured articles now imported under the tariffs not only for direct consumption on the farm but for use and consumption by the general community would be very materially reduced in cost if the secondary industries were placed on a similar parity of prices to those which industries producing for export received from the countries whore New Zealand’s primary produce was sold. It was apparent that while New Zealand was dependent on the British or world-price level in return for exported produce, she could not afford to continue a protective policy, which had the effect of creating such a disparity in prices received and for production costs of her farming produce. They believed protective duties were one of the greatest factors in the virtual rigidity of our production costs. The actual duties collected were only a small portion of the charges ultimately imposed ou the industry as these duties meant increased charges on practically the whole of New Zealand’s requirements and services. Every section of the community consequently was required to pay higher xirices than would be the case if no protective duties were imposed. In fact, every item of expenditure was increased as the result. Produce from the farm on balance to-day, could not possibly return to the farmer sufficient to pay his way after outside charges' had been met. Less protection and lower prices should widen the domestic market for manufactured goods and ibe of benefit to the whole community. While the Federation realised that drastic changes could not be brought about without creating substantial difficulties, they were of the opinion that manufacturers and distributors should reduce the expenses of their businesses sufficiently to meet a gradual readjustment. They therefore suggested the maintenance of a moderate tariff for revenue purposes and adequate tariff protection for infant industries for a defined term of years, an immediate reduction of tariff barriers in accordance with the spirit of the Ottawa agreement by a uniform percentage right, through' the schedule, and a subsequent gradual reduction by a specified percentage to be determined on all excepting luxury lines.