MINISTER EXPLAINS.

Manawatu Standard, Volume LVIII, Issue 78, 1 March 1938, Page 5

MINISTER EXPLAINS.

GOVERNMENT’S POLICY. MORE PROTECTION NECESSARY. In an explanatory statement last night the Minister of Customs (Hon. IV. Nash) said that before effect could be given to the increased duties it had been necossary, in view of the trade agreements with Canada and Australia, to enter into negotiations with the Governments of each of those countries. Agreement had been finally reached on Friday last, so it would be evident that no time had been lost by the Government in implementing tlie proposals. Mr Nash said it was the Government’s policy to encourage the development of suitable industries in New Zealand as far as that was reasonably possible. Tlie increasing volume of imports had made it apparent to the Government that some further measure of protection was necessary if industries in New Zealand were to develop as it was felt they should do. “The action now being taken,” said Mr Nash, “is accordingly designed to afford the industries concerned ' a measure of protection which it is considered should enable them to capture a Inrge proportion of the trade in the goods now imported from the countries to which the increased duties have been applied, thus leading to the expansion of industry along the lines desired.” “There are large quantities of goods at present being imported into New Zealand which could satisfactorily be manufactured within the Dominion,” Mr Nash said. “The proportion of such goods now being made here, even though in a number of cases the industries are very extensive ones, is not as large as it should be. The increasing volume of imports has made it apparent to the Government that some further measure of protection is necessary if industries in New Zealand are to develop as it is folt they should do. ENCOURAGING INDUSTRIES. “It. is the Government’s policy to encourage the development of suitable industries in New Zealand as far as that is reasonably possible,” Mr Nash continued. Such development, he said, was a necessary part of the Government’s policy; it was necessary from the point of view of employment; it was necessary for the purpose of utilising our own resources in the shape of jaw materials; it was necessary for the purpose of maintaining efficient production, and it was necessary in the national interest. “Although duties have been increased it does not necessarily follow that internal prices will rise,” said Mr Nash. “On the contrary, as a result of increased production and consequent greater efficiency in industry New Zealand manufacturers should be in a position to reduce prices, and intenial competition should ensure that prices are kept at their lowest level. “No increases have been made in the duty under the British preferential tariff, except in respect of tariff item 196. footwear, in which case tlie duty on boots and shoes, other than of rubber, has been increased from 20 per cent to 25 per cent ad valorem or 3s per pair, whichever is higher, and that on slippers from 20 per cent to 25 per cent ad valorem. The duties on footwear imported from Australia, Canada and foreign countries have also been increased.”

Mr Nash stated, in reference to the increase in duty on British footwear, that opportunity had been given to the United Kingdom manufacturers to make representations and full consideration had been given to a case presented on their behalf.

“The duty on South African wine has been increased from 3s 6d to 5s 6d a gallon and that on Australian wine from 4s to 5s 6d a gallon,” be sa.id. “The other increases apply only to Australian. Canadian and foreign goods, and in a number of cases only Australian goods are affected. AUSTRALIAN CONCESSIONS. “Following upon representations made in that regard during the negotiations the Commonwealth Government has signified its willingness to n.dmit into Australia from New Zealand free of duty fruit-grading machines and also the infants’ foods, Karilac. Karil and .Kariol. The necessary formalities in this connection are being proceeded with and should be finalised at an early date. “The question as to whether certain other classes of goods can be admitted from New Zealand on a more favourable basis is being considered bv the Commonwealth Government.” Mr Nash said that he was sure that the decision to admit the infants’ foods referred to free of duty was one which would be highly appreciated by Autra.lian mothers, who should m future he in a position to obtain these products at lower cost. It would, he said he evident from tho nature of the proposals which had been given effect to that the negotiations with Australia presented a problem of some magnitude, and the task of Hon T IV. White (Australian Minister of Trade and Customs) with whom the negotiations had been conducted, had been a very difficult one. FRIENDLY FEELING.

Mr Nash 6aid that he felt that the fact that agreement had been reached on practically all points was attributable largely to the friendly manner in which the proposals made on behalf of Neiv Zealand had been accepted and discussed by the Commonwealth government, which recognised the right of this Dominion to safeguard and uevelop her industries. He had no reaFon to think that the action _ now taken would in any way*, prejudice trade relationships between the Commonwealth and New Zealand but, on the other hand, he was definitely of the opinion that the negotiations had <»one a long way to cement the evident goodwill which existed between the two countries.-A similar position obtained, lie said, regarding trade relations with Canada. The Minister, in concluding, said

that his last word must he one of appreciation of the courtesy land consideration given to the Government’s proposals bv the Government of Canada following on his discussion sit Ottawa in July of last year —and communications during the past three months. The amended duties had been amicably arranged. Given the co-operation of the manufacturers'in connection with competent organisation of their plants and business .administration, the new arrangeI ments would extend employment m the Dominion and provide the products at no greater price than was being charged to-day, Mr Nash said.