RECIPROCITY WANTED TO PROTECT FARMERS

Manawatu Times, Volume LIV, Issue 6864, 20 March 1929, Page 4

RECIPROCITY WANTED TO PROTECT FARMERS

Protest Against SpoonFeeding A. AND. P. ASSOCIATION AND TARIFF BARRIERS The Manawatu A. and P. Association committee devoted a little of its time yesterday to a consideration of the question of doing all possible to promote reciprocal trade within the Empire by the removal of tariff barriers on primary products. The matter was introduced by a letter from the Chamber of Shipping of the United Kingdom which pointed out tho need there was to maintain an equitable balance between industry and agriculture and not to stifle one to the advantage of the other. It was feared that unless steps were taken to reduce tariff barriers and other obstacles to trade which already existed and to prevent the introduction of new tariffs where none uow exist, a situation must develop in which primary production would diminish. A reduction in primary production could only result in a diminition of manufacture which depended entirely on raw materials with the result that exports would still further decline and all parties would automatically be the poorer.

As It Affects New Zealand. Mr. M. A. Eliott furnished an extended resume of tho position as it affected New Zealand. "This matter is of considerable importance to the farmers of New Zealand,’’ ho said. "Unless agreements can be made between various countries to remove or reduce tariff barriers which already exist and to prevent the introduction of new traiffs, primary production must be adversely affected. We have an example of this in our trade with Australia, Canada and the United States. Australia is erecting a tariff wall against our butter and cheese; hams and bacon and Canada i§ introducing legislation to place a higher duty on Now Zealand and Australian butter. Tho United States already has a high duty on New Zealand butter, viz., 6d. per lb., frozen meat, lid. per lb., and wool, and politicians there are now endeavouring to place a prohibitive duty on these products. The climate is the real obstacle to greater production of butter and cheese in Canada and United States of America. The private farmer forced to house and hand feed his cows for about 4 months in the year, cannot hope to complete with Australia and New Zealand. Nature is against him in the same way as nature is to some extent against the wheat grower in New Zealand. New Zealand has a heavy duty on Australian, wheat, viz., 16d. on f.o.b. cost of 5/- per bushel, and flour, tinned fruits, -etc., and so the game of neighbours shutting put each others’ primary, products goes on.

Why Spoon Feed. .‘‘Wo should at least have tariff reciprocity or free trade within the Empire. Australia should admit our butter, cheese, hams, etc. duty free and we, on the other hand, should admit Australian grown wheat, tinned fruits, etc. free. Canada, Australia, New Zealand and other parts of the Empire are each, respectively better situated as regards soil, climate etc., to grow some description of produce more economically than the others. Why then, in the name of common sense, should tariffs be erected to artificially protect and spoon feed certain products when natural conditions are more favourable to their growth in other countries?

Buy. British. ‘‘As far as the U.SA. is concerned, that country seems to be determined to shut out any product that, competes in however small a degree with ti-.e American farmer or manufacturer. In consequence, the people there have to pay for this protection and the cost of living in the United States is double what it need be. America wants all the world to buy her goods but will take little or nothing in exchange. Our remedy should be to place still lower preferential duties on British or Empire manufacturers and higher duties on American goods- " Last year onr exports to the United States were '52 per cent, of our imports, or in other words, we bought from them more than twice the value that we sold them, tho exports being valued at £4,260,000 and imports £B,203,000. Our exports to Canada were £2,469,000 and imports £3.259.000; to Australia exports were £3,403,000 and imports £3,499,000. The only countries that take more from us than we take from them are tho United Kingdom, France, Germany and Japan. The TJ.S.A. is now proposing to increase tho duty on our frozen meat from l|d. to 3d. per lb. If this is carried it will'at once stop the shipments of beef that were the cause of the improved prico of cattle in New Zealand last year. Another example: Australia grows a few bananas in Queensland and in order to protect a handful of planters there, ft heavy duty has been placed on bananas from Fiji and other South Sea Islands with the consequence that considerable areas of land suitable for banana growing in the Islands is unproductive and Australians have to pay far more for bananas than they need do." Mr. Eliott then moved:' That the Manawatu A. and P. Association urge upon the Government to do all possible to promote reciprocal trade within the Empire by the removal of tariff barriers on primary products; and that other North Island A. and P. Associations bo written to asking for their support. ’ ’ Members Give Support. Mr. Conway said that it was the primary producer that was most heavily hit at all times. Tho townspeople perhaps would not like to support the motion but the Dominion wa3 essentially an agricultural country. Mr. L. 11. Collinson pointed out that the countryman’s interest was also the townsman’s. He would support the motion. Mr. \V. McKenzie asked that all

Chambers of Commerco be written to as well. Mr. Hodder thought that would be a mistake as they would not all support the move. There was a great deal to be said on the other side. The motion was carried.