FEDERATION COMMISSION.

Lyttelton Times, Volume CV, Issue 12422, 11 February 1901, Page 3

FEDERATION COMMISSION.

SITTING IN DUNEDIN. [Per Press Association.] ; . DUNEDIN, Feb. 9.

The Federation Commission commenced its sittings in Dunedin this morning, ail the Commissioners being present. Mr Alexander S. Paterson., import and export merchant, thought-the advantage of Federation would be that it would give New Zealand fear million additional people ; to trade with, upon the basis of a home market. He did not think it -would, in the long run, injuriously affect the commercial industries of New Zealand, as New Zealand industries would be able to successfully compete with those of Australia. It wouM give a clearer and freer market for our produce than would be given to other countries. , New Zealand would be comraercially just as well off if she had a. Freetrade market with Australia, as she would be if in the Federation. He thought the nearness to Australia would give New Zealand.a big advantage over America, and did not think it had yet been proved that it would cost more to produce in New Zealand than 'in America. He thought there must be a large market in the future, but at present, if shut out of the Australian markets, New Zealand would be confined to the Home market. One of the best ways of opening up fresh markets ■would be by giving assistance to steam. freights to ; those markets. He saw no reason why we should be at a disadvantage with Australia in regard to, the manufacture of boots, even at present. Federation would certainly tend to a levelling of wages between Australia and New Zealand, but in the long l run lie did not think the effect would be serious. He did not think the cost of living was dearer in New Zealand. His exports went principally to Sydney. He saw no reason why in the • manufacture of agricultural implements New Zealand, with Federation and inter-State Freetrade, should not fairly well,hold its own against Australia. The question was.if New Zealand was able to do business with Victoria and South Australia, in face of the tariff now charged, what would she be able to do with a free entry. 'Mr W. A. W. Wathen, president of the Trades and Labour Council, said the Council had! passed a resolution to the effect that they would not support Federation unless the Arbitration) and Conciliation Apt were enforced. His own view was that it would not pay New Zealand eventually to be federated with Australia.' One tendency would be to reduce the living wage, which New Zealand had been fighting for for some time. The effect of* Federation on the local manufactures of the colony would also* be detrimental. The manufacturers in New Zealand could 1 , in his opinion, successfully compete with the large manufacturers of Australia. If New Zealand joined the Australian Commonwealth it would ultimately be reduced to a low level in view of the coloured lobour engaged'in some parts of Australia.. He considered that the cultivation of sugar could not be carried on by white labour. Coloured labour, he thought, would eventually become a political power in the Commonwealth unless a large portion of Australia were allowed to lie waste. If New Zealand joined the Commonwealth the tariff would ha lower than the tariff now ruling. Under the existing tariff there was considerable competition from America and other places, andif the tariff were further reduced', competition.' would he increased, tending to reduce wages in the colony. Another effect would be that the better equipped factories in Victoria would be able to send their surplus supplies over here. He thought that under equal conditions New Zealand could compete with the Commonwealth. He considered there was a probability that Chinese and' other foreigners would also become a. permanent portion of the population in Australia unless this were provided against, and under Federation many of those foreigners would no doubt coime to New Zealand and reside here. If Federation came about, equal wages for equal work might be established if the Commonwealth Government were strong enough to secure it. He did not know if there was a Minimum Wages Act in Victoria.