THE CUSTOMS TARIFF.

Manawatu Standard, Volume XLIV, Issue 1037, 9 June 1924, Page 4

THE CUSTOMS TARIFF.

Speaking at the annual meeting of the Manufacturers' Association held in Dunedin the- other evening the Hon. Mr Stewart, Minister of Customs, gave some interesting facts concerning the operation of the new tariff, which he claimed was benefiting the Dominion in many ways. He pointed out that one of the main objects of that tariff was to encourage local industries, by admitting free of duty machinery and raw materials used in such industries. The 1923 returns show that during the year industrial machinery of tish "origin to the value of £257,398 was adinited free of duty, whereas, under the operation of ttie previous tariff, duties to the extent of approximately £30,000 would have been collected". Raw materials, again, to the value of nearly two and a-half millions were imported without payment of duty other than primage, irrespective of the country of origin. There is evidence here of a very real assisttance thus given to industrial production and of preference to British manufacturers, which is in keeping with the general policy of the Government on the question "of Imperial preference. Opposition critics have, however, stated that the increased tariff collections point to a shifting of taxation from the shoulders of the wealthy to those of the general community, and in that taxation the worker is bearing a considerable share. As a matter of fact the Minister of Customs points out that there is a constant process going on of shifting taxation from the Customs to direct taxation. In 1903, 74.01 per cent, of the total taxation levied by the Government came from Customs" duties, but in 1922 only 33.08 per cent, was collected at the Customs; whereas Australia still drew half her ■ftixation from the Customs (55.06 per cent), and Canada 37 per cent. While the Customs collections in this country have increased by over 60 per cent, during the last ten years, it has to be borne in mind that the value of the imports has also increased, and is more than double that of 1914, the increase being about 127 per cent. That increase is, as the Hon. Mr Stewart says, due to the increased prosperity of the country as reflected by its trade, and has resulted not from heavy imposts, but was actually achieved in face of considerable reductions in the scale of duties. In corroboration of that statement, it is pointed out that, in 1895, the proportion of Customs revenue to the total taxation imposts was 25 per cent., whereas, in 1921, it was little more than 12$ per cent. Over 56 per cent, of our imports come in entirely free, except for the primage duty, whereas, in Australia, the percentage of free imports is only 30.31 and in Canada 34.08 per cent. The Minister's statement on these matters ought to dispose of the allegations that have been made, from time to time, that the Customs levies are unduly oppressive on the general public and that they have been made so deliberately in order to relieve payers of direct taxation of some portion of the burden which they have been carrying for the last ten years.