FARMERS AND TARIFFS.

Manawatu Standard, Volume LIII, Issue 167, 14 June 1933, Page 8

FARMERS AND TARIFFS.

EVIDENCE BEFORE COMMISSION MODERATE DIMENSIONS FAVOURED. Per Press Association. . WELLINGTON, June 14. The Tariff Commission to-day heard evidence submitted by the New Zenland Farmers’ Union. This takes the form of a substantial document which traverses tire whole ground. of fiscal policies in general and says that the policy of the Farmers’ Union was clearly laid down in the following terms at the first Dominion conference of the union in 1902: “That taxation through the Customs should be for the purpose of raising revenue and not for protective purposes. From that day to this the union has unswervingly adhered to this policy, which advocates the abolition of all tariff duties, except those for raising revenue.” The statement says that a tariff policy to he valid and permanent must be built up on principles, or, at all events, must be underlain by some broad principle of policy, otherwise it cannot he permanent and is a source of danger and uncertainty to the community. r l he burden of protection falls on the non-protected interests of the country, viz., the farming community, professional classes and those employers and workers who are not employed in protected industries. In New Zealand the farmers have to take the world parity price for goods and a tariff can be of little advantage to them for their prices are fixed abroad. They are not affected by what happens here as regards price, but their costs of production are materially increased by. the artificial loading of protective duties. “But we do not advocate that the existing protective tariffs should be removed in toto immediately, as such would result in internal trade chaos. Their removal should be gradual with the definite objective in view of having them materially reduced before the terms of the Ottawa Agreement are next considered.” The statement goes on to deal with details of trade and says, inter alia, that “our secondary industries have not shown the initiative our farmers have done. Our manufacturers have kept their eyes fastened on the small local markets only to assist them. In catering for these they have cried out for, and have obtained, more and more protection with the result that their industries have grown up as hot-house plants. Our manufacturers have failed to put a single line on the export basis.” After dealing with manufacturing statistics for 1927, which i& taken as the last normal year, the statement says: “We are firmly convinced that less protection will' ultimately prove beneficial to our manufacturers, as such will compel them to seek out and concentrate their energies mainly on the production of those lines of goods most suited to Now Zealand conditions, and which, through increased efficiency of manufacture, may be put on the export basis again.” The statement says that a tariff will not create new industries which can be created only by labour and capital, and a tariff can divert these from one channel to another hut cannot call them into being. “Further we strongly assert that the existing fiscal policy imposes upon the consuming public a burden far in excess of wliat it should have to bear. We maintain that millions are snent need'essly every,, year owine- to ibis pernicious policy.” The union' lias no objection, it states, to a true revenue tariff of moderate dimensions, balanced, where appropriate, bv countervailing excise duties. If this policy is carried out the Union will he prepared to sacrifice am- subsidies and nrotection it at present eniovs, which are purely defensive reactions to a misconceived tariff policy.”