BRITISH PARLIAMENT.

Hokitika Guardian, 15 June 1925, Page 2

BRITISH PARLIAMENT.

[Australia & N.Z. Cable Association.] IMPERIAL PREFERENCE. LONDON, June 12. Clauses dealing with increased Imperial preference on tobacco, dried and preserved fruits and wine, came tip for eonsidcrafioii in the Commons when Lee Smith moved a crippling vametuimenf to postpone the operation of preferences until January Ist. He argued that vested interests in the Dominions and the colonies would grow up behind the pieterence duties. It simply meant subsidising certain colonial produce and constituting a payment to dominion interests, wttli a standard of prosperity higher, and taxation lower than Great Britain. Preferences would give most advant- ; age to Australia, very little to South —( Africa, and not a shilling to Canada or New Zealand, or a shilling reduction in prices to tlie people of Great Britain.

Air Guinness, defending the proposals, said preference would develop alternative sources ol supply and any temporary outlay would ultimately benefit, the Cnited Kingdom consumers once Empire production became the dominant factor. We do not imagine there will he an immediate reduction in the price ol most commodities (’apart from tohaeco. Re- ✓ “* (’erring to Lee Smith’s arguments, he contended that the aim should be to get capital embarked on the development of the waste lands of the Empire for food and raw materials, which would eventually lead to a reduction of prices. Large producers of manufactured tobacco assured them that although the limited scope of preferences would not decrease tho, cost of mixed tobacco, they intended to give the full benefit on pure Imperial tobacco to those who smoked it in the proper form, and as a result therefore we should have a class of tobacco on the market cheaper than any hitherto available. Mr Guinness said the proposals: meant, as tar as possible. to meet the dominions’ desires as expressed a.t the Economic Confer-

ence. Government believed the provision us long overdue, because for many years wo had enjoyed preferences. which were freely given long liefore countervailing advantages were ol’Yred. and they had done much to develope inter-imperial trade.

A PREFERENCE ADVOCATE. LONDON, June 12.

Conti luting his speech, Mr Guinness said the Dominion gave preferences during their development period, and now that they had become a powerful factor in the world’s trade, Britain should do everything possible within the free trade system to give corresponding benefits. Tho Dominions did not lack foreign suitors commercially. Britain hail a free gift from the Dominions, far more valuable iu proportion per head of population than she was offering in return.

Mr Harney expressed the opinion that preference would he economically futile, and politically unwise. Ho declared that unless we gave Australia. New Zealand and Canada tariff advantages on their primary products, such as wool, meat and wheat any preference would he useless, and this would lead to the substitution of an irritating system, of bargaining for a svstem based on affection.

NO FOOD TANKS. LONDON, June 12. Tn tlie House of Commons, Mr Churchill, in ihc course of the preference debate, said there was no danger that preference would lead to a tax on the basic food necessaries, which might, lead to collision between their kith and kin in Britain and the Dominions. For ton years, the Conservatives had repudiated any intention of taxing basic foods. Not one l.il 00l had challenged flic preference resolution passed at the .1917 Imperial Conference. They could keep this controversy and party-splitting issues out of the realm of Imperial development. The more they did it. the more they would build up a great consensus of unity on basic freedom and goodwill.

A division, of opinion was revealed in the ranks of the Labourites. Several of then) warmly supported preference, notably Mr David Kirkwood (Glasgo) on behalf of the Clydesiilers. He said he wanted to go further, and to sell the Dominions’ produce in Great Britain at cost price, hut they in nowise favoured free trade sweat-

mg. They infinitely preferred fruit from. Australia and Now Zealand where it was produced under fair wages and hygenic conditions to the fruit of the Near East, where the conditions were appalling. Moreover they all were for cementing the Empire. which was the best way of accomplishing universal peace. Mr Churchill, in replying, said he welcomed the extraordinary manifestation from the Labour benches, which, he knew, was the outcome of serious private discussions. It was a sign that the development of Imperial trade, apart from taxation on food, was passing from the realm of party polities. He added that the whole of any preference would reach the consumer .and notably that on sugar, which, however, would stimulate l'.mpiro production ; hut the smoker would reap the benefit of a tobacco reduction immediately. The amendment was defeated by 2i7 votes to 93. J>REEERE NO KS CL A USES ADOPTED. LONDON, .Tune 12. Following tbe rejection of the Labourite (Mr Lee Smith’s) amendment, cabled earlier, tbe House of Commons automatically adopted the Imperial preference clauses of tbe Budget.