Remove Tariff on British Goods

Manawatu Times, Volume LIV, Issue 7241, 22 August 1933, Page 7

Remove Tariff on British Goods

Dairy Board’s Suggestion To Tariff Commission MEANS OF CHEAPENING PRODUCTION COSTS Per Press Association AUCKLAND, Last Night. A scaling down of the Customs duties on British goods over a fixed period of years until the duties were wiped out was urged upon the Tariff Commission by the New Zealand Dairy Produce Board in an official statement presented by its acting-chairman (Mr. W. Dynes Fulton). Mr. W. Grounds, a member of the board, submitted a statement in support of the board’s views. “As long as prices for dairy produce overseas were on a rising scale the industry was able to carry on under the over-increasing costs of production and transport,” the board’s statement ran, “but the prices ruling during tho past two seasons, to state the position simply and accurately, have robbed the producer of the equity - he had\in his own particular farm and placed tho industry generally in a state of bamtruptcy.

“It is utterly hopeless for any dairy farmer to try and make his revenue balance tho expenditure under the present conditions of low prices for produce and high costs of production. We believo the existence of tho industry depends upon securing lower coses or production and at the sumo timo retaining tho goodwill of the British Government and the free and unrestricted right of export to tho United Kingdom. “Wo therefore ask for the gradual abolition of all tariffs on British goods. This request is made on the grounds: “(1) New Zealand’s agreement with Britain at Ottawa regarding protective tariffs should be honoured.

“(2) Encouragement should be given to importers from Great Britain to ensure a i'rco market for the produce of the Dominion, for if this is not done, quota restrictions at the expiry of the Ottawa treaty seem to bo inevitable. “(3) Unless the cost of production can be reduced, primary producers will bo unable to carry on, and tariffs directly and indirectly affect the cost of production. “It is obvious to everyono that a restriction of production and restriction of export, of necessity means that tho restriction of production will not only affect the primary producers, but will also spell disaster to tho iiuancial and economic existence of the Dominion. It is therefore necessary to do everything possible to prevent the application of restrictions.

“Wo believe the opening of the market of the Dominion to freo entry of British goods will go a long way toward prevention of the quota rcgula tiou of imports of dairy produce into the United Kingdom. It might be claimed by manufacturing interests that the dairy industry was given Government assistance for its establishment. This is admitted, but that assistance has long since disappeared and wo can claim that the same principle should be applied to all secondary industries; namely, having been given assistance in their establishment, they should bo prepared to face world competition. Unless they are able to do this, it is difficult to find a reason for their existence.”

The statement concludes: “The New Zealand Dairy Produce Board, realising that the preservation of the Dominion’s dairy industry is at stake, urges the removal at the earliest possible moment of tariffs on British goods.”