EMPIRE TRADE.

Manawatu Standard, Volume L, Issue 253, 20 September 1930, Page 4

EMPIRE TRADE.

(To the Editor). Sir, —Last year. New. Zealand- imported forty-nine million pounds worth of goods. ' Of this total .thirty-three millions came from within the Empire. On £25,000,000 of this latter figure by reason of New Zealand’s present svstem of preferential tariff in favour of Empire goods, British ■ countries were given the benefit of duties on similar goods of foreign origin ranging from 10 per cent to 20 ner cent. In other words New Zealand gave a trading advantage to British countries of at, least £2,500,000 on a conserve-, tive estimate. Of the total imports Great .Britain her.self sold twenty-four million pounds worth. If the preferential tariff in favour Pf British goods was removed, it is questionable how much of New Zealand’s trade Great Britain would continue to hold had she to sell on a price parity with other competing nations. A further impost levied on New Zealand is that in many cases the prices she pays for British goods are higher than the charges Britain makes when selling similar goods to other foreign countries where no protective tariff exists. Britain, quite rightly and where possible, scales up her prices so as to take the maximum advantage of the punitive duties which New Zealand levies on foreign countries for the Empire’s benefit. In spite of an additional duty of 20 per cent charged on foreign goods, these countries sold dutiable articles to New Zealand last ypar to the value of nearly £8,500,000. . The effect of the=e commercially unreciprocated concessions to Great Britain is that the New Zealand primary producer has to bear an additional national overhead charge, his costs are therefore correspondingly higher and the profits derived from the sale of his goods oyersen's less. It has been nmgested that if New Zealand, was buying her manufactured requirements on a free trade basis she. would save in the neighbourhood of £4.000.000 per annum. When it is considered that the total nonnlation of New Zealand is under 1,500.000, and the cost of maintaining Government services and debt interest is approximately £20.000.000, the value of her contribution in proportion to her total resources can best be appreciated. New Zealand to-day can no longer afford to extend these financial concessions unless she receives corresponding

reciprocal treatment, New Zealand sells* her products to. Great Britain <■ a world parity basis. Every influem exists- to depress the' price received by reason of the unrestricted competition from similar goods allowed in from other countries from whom Britain rc ceives little or no reciprocal trading or with n low stondfird of living, nn*: therefore .lesser production X<, onlv the New Zealand farmer lint the whole people of New Zealand suffer cordingly- The New Zealand dam farmers are now moving to put a stop ito this manifestly uneconomic proce - dure They are organising with the intention of demanding a review of the whole fiscal system of the Dominion and it is hoped that Great Britain will readily meet their representationIf Great Britain levied a duty of 2d i>er lb. on 'foreign butter and Id per lb. on foreign cheese, this woiild allow New Zealand to sell the whole of her dairy products to Britain, and tin, would vield a sum of approximately £2.500.000 as a set off against the New Zealand tariff. , . An equitable basis of trading having once been finalised the way would ho clear' for arranging further concessions for the mutual advantage. This business, adjustment is overdue. English farming has been killed by lack or protection in the past, and these same conditions which exist in Great Britain are to-day' acutely and adversely influencing the prosperity of New Zealand and reacting on her whole economic system.—l am, etc.. CONRAD B. LOCHNER. Auckland' Club.' Auckland, 16th September, 1930.