PRODUCTS FROM LAND

Manawatu Standard, Volume XLVII, Issue 124, 23 April 1927, Page 4

PRODUCTS FROM LAND

FREE TRADE URGED. t BETWEEN DOMINION AND COMMONWEALTH. CHAMBER OF COMMERCE DISCUSSION/ ./" “The benefits and importance of free trade within the Empire cannot be too highly* stressed, and this applies particularly to two countries situated closely as New Zealand and Australia. The present attempts to raise a tariff barrier in New' 2ealand against Australian produce, and in Australia against New Zealand produde, are to be greatly deplored,” declared Mr M. A. Eliott, president of the Palmerston North Chamber of Commerce, when speaking £t the monthly meeting of that body yesterday in regard to the request of Australian producers for a higher duty or embargo on bacon and hams imported from Now Zealand. “New Zealand,” Mr Eliott continued, “can produce a surplus of butter, hams and bacon and potatoes., for all of which there is a market in Australia; on the other hand, Australia has a surplus of wheat, dried fruits, etc. Why should there not be absolute free trade between the two countries for these commodities, thereby < considerably reducing the cost of living to the whole community? “We read of the complaints ! from farmers in the South Island who object to Australian wheat coming into New Zealand, and just as loud complaints from the farmers in the North Island because Australian farmers object to. New Zealand butter, bacon, hams and potatoes being admitted into Australia. Is this not meet inconsistent and illogical? If a few wheat farmers in the South Island must have protective duties and require spoon feeding in ,order to encourage them to grow wheat, surely it would be better for the country generally if they gave’ up growing it altogether, and wheat and flour were admitted into this country free.” ,Mr Eliott then moved: “This Chamber of Commerce is of the opinion that there should be free trade between Australia and New Zealand as far as the direct products from • the land are concerned, and that the New Zealand Government should accordingly use every endeavour to .arrange a reciprocal tariff with Australia; other chambers in New Zealand to be circularised and their support requested.” In so doing, he stated: ‘-‘The great underlying principle of trade is: ‘You can’t sell except you buy.’ We cannot sell to Australia unless we are also prepared to buy. Let us then buy the products that they can grow more cheaply and better than we can and sell them the products that we can grow more cheaply and better than they.”

PROTECTION IN COMMON-

WEALTH

“I don’t agree with you,” stated Mr P. Stuart. ‘ When Mr Seddon tried to arrange reciprocal trade with Australia, the latter would not have anything to do with it. Australia is protecting all her industries and even goes as far as to give a bounty on exports. I don’t think; you would have any chance of getting the Commonwealth to give you free trade.” Mr W. E. Wir ks pointed out that there was already a reciprocal trade agreement with Australia and that, under the circumstances, the chamber was -apparently labouring the same ground. The chairman: I don’t think so. Mr Stuart: There,is at present the same duty both ways. “Well, why not remove both,” suggested Mr J. H. Stevens. You are developing Australian trade at the expense of our own.” Alleging that a section of the New Zealand dairying industry was wrongly giving preference fo other than British manufacturers, Mr H. Catton instanced the case of a dairy company that had placed an order for an electrical generator with a Sweedish firm, in preference to a British, simply because there was a saving of two or three pounds. Such, he did not think, was loyalty to Britain, the country to which the primary; producers of the Dominion were locking for their prices, Mr Stuart: Thors is no benefit in a protective duty either way; it is better that we should trade free. But there is no customs tariff, you would have to pay moxe income tax. The Government has got to get the money. “I am dead against free trade,” declared Mr H. Oram.

Mr J. W. Mui:r: Tariffs prevent undue transportation charges.

FREE TRADE OPPOSED.

“I agree with the motion except as to where it refers to free trade,” stated Mr Oram. “It is ridiculous to trade with other countries unless they deal reciprocally with us.” Mr Winks wanted to know whether Australia was endeavouring to break the trade treaty, and was informed that six months’ notice would have to be‘ given of such intention. / ■ ■ ■ “The wheat prcducers have to buy all their manufactured goods on a protective tariff, and yet you are asking that they be compelled to sell on a free trade basis,” Mr Btuart told the chairman. Mr Eliott explained at this stage that there was a move on foot by the dairying interests of Australia to secure a 6d duty per pound on New land butter, and a further move to obtain a- prohibitive tariff on New Zealand bacon., Mr Oram suggested that this information should be furnished to other chambers of commerce throughout the Dominion. “I don’t know whether they are aware that there is a movement to break the treaty,” he added. The chairman: It is obvious that Australian producers are endeavouring to obtain an embargo on our products. It is not right that two British Dominions so closely connected as Australia and 'New Zealand should prohibit products from one coming into the other. We can grow some articles more cheaply than they can. and the reverse is also true. - Why should not each country have the benefit? Mr Stuart commented that the policy of both .governments was protection, and, that being so, before, the chairman’s suggestion could be given effect to, the policy of both countries would have to be changed. “Some of Australia’s industries became possible through that country’s protective tariffs,” stated Mr Muir. “Unless you give protection, your industries are at a disadvantage. I don’t think' you could get the present situation altered.”

After further brief discussion it was decided that the chairman and Messrs Catton and Stuart draw up a circular to be sent to other chambers asking their co-operation in getting the Government to do all in its-power to have the present reciprocal treaty continued and to prevent any embargo on New Zealand produce.