TARIFF REFORM OR PRODUCE QUOTAS?

Horowhenua Chronicle, 5 August 1933, Page 7

TARIFF REFORM OR PRODUCE QUOTAS?

Question Ripe for Settlement

Mutual Obligations of Britain and Dominion.

Reciprocal Trade Federation’s Ideals.

To what extent the principle of free trade should enter into the relations of different parts of the Empire trading with one another, is a question that is not likely to be settled without considerable thought and controversy, because there are many issues involved. It is the case, however, that the present system of tariffs for the protection of New Zealand secondary industries is widely criticised by the primary producers; and bound up with this problem is the danger of quotas being imposed by Britain on New Zealand exports of primary produce, a course to which the Homeland might conceivably be hastened through the restricting of its own exports—manufactured goods—by the operation of high tariffs. A movement designed to' bring about a better undestanding between these hitherto widely separated interests, and perhaps ultimately establishing a lasting reciprocity, is now in course of development, and has already reached proportions which assure that in the near future its voice will be heard and its w r eight felt in highly responsible quarters. It is no less than the settingup in the tw r o countries of an organisation called the New 7 Zealand Producers and United Kingdom Manufacturers Reciprocal Trade Federation. These are the sections most closely affected by any alteration in the existing tariff, and they are the nfost likely to press for more equitable conditions. The aims of the Federation w 7 ere described Wednesday by Mr F, R. Picot, Dominion Vicepresident of the Federation, to a gathering held in the Oxford Tea-rooms, Levin' and this he did so successfully as to impress all present, the result being that a resolution was unanimously passed to form a branch, and an interim secretary was appointed.

AIMS AND OBJECTS. The major principles sot out in the ■objects of the society arc:— To .promote an interest by persons directly or indirectly concerned in the production, sale, or distribution of the primary products of the dominion, and by persons directly or - indirectly concerned in the importation, sale, or distribution of articles of commerce manufactured in the United Kingdom, in all questions or matters of' tariffs and tariff reform, and particularly in the promotion of a policy of reciprocal free trade ■between the United Kingdom and the Dominion. To use all lawful means towards the fulfilment of a policy of reci-

procal free trade between the United

Kingdom and the Dominion, and of .generally fostering their mutual

trade, and to that end: To watch and consider’legislation with respect to trade treaties, customs tariffs, rates of exchange, or any other legislation affecting the interests of members of the society; to give consideration to matters of shipping, transport, and insurance, Board of Trade and other Departmental regulations, and to any other matters in ant. way affecting or likely to affect the interest of members, and from time to time to make representations- in the proper quarter; to encourage co-operation among the members;: to 'Collect and publish statistics o-r other economic information; to arrange for the giving of public lectures or addresses, and to circulate and publish propaganda; to promote social intercourse and the study of economic and social ques-

tions. PROGRESS OP THE MOVEMENT.

The meeting, which took place to ■the pleasant accompaniment of'morning tea, was- representative both, of town and country interests, and the ■district from' which these were drawn extended ’ from Shannon to Te Horo. Several apologies for absence were received;’ Mr Hi A. Robertson was voted to the chair.

After outlining the objects of the -Federation, Mr Picot stated that already some ten or twelve branches and sub-branches had been formed throughout ’ ‘the North Island, and in ;the process of formation were a further fourteen or fifteen sub-branches such as the one which was at present being brought into being here. At the present time it was, felt by those vitally interested in the welfare of reciprocal trade that there was no organisation suitably constituted to make sure that matters of educational value ■ could be brought home to the public -at large and that they could be impressed with the dire necessity at the present juncture of putting first things first in the matter of selling to England and buying from England so that the balance of trade could be brought closer into line. Mr Picot stated that he was not going to quote laborious figures, but would like to draw the attention of ■the meeting to the export and import figures for 1932; Kow Zealand sold to Britain, £32,500,000 worth of exports. Zealand bought from Britain, £11,500,000 worth of imports. There were, in addition, very large invisible exports in the way of inter•ests, exchanges, shipping costs, etc. THREAT' OP THE QUOTA. What we feared in New Zealand, said Mr Picot, was the application of •quotas, and, if we were in a position . to demonstrate td England, definitely that no stone was being left unturned 'to absorb as many of hqr manufactured articles as was reasonably possible in ■exchange for the freedom of Her mar■kfeii for our primary > products, thou the Federation would indeed be serving a very good purp ose - One was

struck by Mr Forbes’ first public utterance at a function at Home, where he did not hesitate to say:— , “What we fear is, that if quotas are imposed there will be such repercussions as may seriously impair our solvency.’’ True enough were the Prime Minister’s words, and such statements had been endorsed by the principal financial and banking interests throughout the country. REPLACING FOREIGN GOODS WITH BRITISH. Under reciprocal trade arrangements with Britain, it was hoped to cut out as much of the foreign importations as possible into this Dominion and replace them with goods from England. After all, we must not forget in this far-off land that over 80 per cent, of the population of England obtained its livelihood as the result of the manufacturing interests of that vast country. The bulk of the farming interests at Home was really concerned in the production of the milk supply for that population of 45,000,000 people. True, of the 8000 tons of butter used in England -weekly, only 500 tons was manufactured in Britain. NEED FOR EDUCATION OF PUBLIC Mr Picot felt that if the public at large were educated up to the point where they saw the necessity of preaching the using of British goods, then this country need have no anxiety regarding the freedom of the British market. On the other hand, if we failed to develop the market for British goods, there was no doubt that the British public would have some justi§.eation for the talk of the quota system. . ■ Mr Robertson thanked Mr Picot for his illuminative address, and invited questions on the subject. WHAT OF (PROTECTIVE TARIFFS? Mr G. H. Harper (Te Horo) asked what would be the attitude of the Federation to New Zealand’s secondary industries and their claim to tectionMr Picot replied that the Federation was strongly of opinion that there was still room for adjustment of tariffs, but this could not be done overnight. Most people would agree that too much protection was being given to secondary industries. In many instances they were getting more than was good for them; they could not remove from their minds the knowledge that they had that protection, and so they worked on it. The Federation* would favour a sliding-down of tariffis; it was not out to bring everything to such a drastic stage that it would put the Dominion’s secondary industries out of existence. It was asking, however, that those industries do what the farmers had had to do —put their house in order. ' A COUNSEL OF NECESSITY. In the course of some further observations, Mr Picot stated that the Manufacturers’ /Association of New Zealand was even better organised than the farming industry, and it had •had a representative constantly before fhe Tariff Commission. It was the Federation’s intention to give evidence before the Commission, through Mr Goodfellow, who had been to the Ottawa Conference. New Zealand today was facing a crisis more acute than that experienced by any other portion of the Empire. Ninety-five per cent, of the Dominion’s produce must find its way on to the English market; and New Zealand should have men competent to. point out to the Old Country what a crisis there would be if the latter closed the door on that produce, which the Dominion could not sell elsewhere. TRADE ASPIRATIONS. Mr T. G. Vincent asked whether the Federation had any indication of a widespread desire in the Old Country for trade with New Zealand. It took

a third of our exports to pay interest, he added. ‘‘ I can say pretty definitely, ’ ’ Mr Pieot responded, “that the desire at Home is for further exports to New Zealand.” Britain depended on the Dominion taking imports from her. “And,” he added, “she is fixing up agreements with Denmark, the Argentine and Sweden that we feel to-day should be fixed up with New ZealandI would go so far as to say that New Zealand has to make a separate arrangement, if necessary, from her sister Dominions.” BRITISH MANUFACTURERS ’ SUPPORT. Mr Pieot mentioned that the Federation had had cabled advice of the support of the Manufacturers’ Association of Britain for the reciprocity scheme. In answer to a question by Mr U. D. Hamilton, Mr Pieot promised to obtain further information regarding the milk and butter production of the Old Country. FORMATION OF BRANCH. Mr Robinson invited a motion for the forming of a branch of the Federation, and Mr Harper moved accordingly, Mr Vincent seconding the motion, which was carried unanimously. Mr Pieot stated that the Federation had established an office, in Wellington, and was securing an organising secretary, an interim secretary having already been appointed. Mr P. Jennens was elected secretary of the local branch, pro tem. On behalf of the gathering, Mr Robinson thanked Mr Pieot for his illuminating address, which, the Chairman felt sure, had been of very great help and value to all present. He thought that they would all .do their best, whether in a large or small way, to .further., the. interests of the Federation. ’ v ' Mr Pieot suitably acknowledged the compliment paid hi’