PREFERENCE

Nelson Evening Mail, Volume LVI, 13 June 1925, Page 2

PREFERENCE

FURTHER DEBATE fUy Electric Telegraph.-Copyright.i (fv.'.sirau.tn '& N.Z. Cable AMociati.v;.. 'LONDON. June 12. Clauses dealing with increased Imperial preference cm tobacco, dried and preserved fruits and wine, enrne up tor consideration in the House ot Commons, when Mr Lee Smith moved a crippling amendment- to postpone operation oi preferences until Ist January. He argued that- vested interests in the Do minions and colonies woidd grow up behind preference duties. It simply meant subsidising certain colonial produce* and constituting pavnierit to Dominions interests with a standard ot prosperity higher, nod taxation lower, than Britain. Preferences would give most advantage to Australia, very little- to South Africa, not. a shilling to Canada and New Zealand, or a. shilling reduction in prices to the people of Britain. Mi- Ctiinness, defending the proposals said the preferences would develop alternative sources ot supply and any temporary outlay would ultimately benefit, the Cnited Kingdom consumers once Empire production became the dominant. factor. We. do not imagine there will lie an immediate reduction in the price of most, commodities, apart front tobacco. Referring to Mr Lee Smith s arguments, he contended the aim should be to get capital embarked on the development of waste lands of the Empire. for food and raw materials which would eventually lead to a. reduction of prices. Large producers ol manufactured tobacco assured them that, although .the limited scope of relereiiccs would net decrease the cost of mixed tobacco, they intended to give the full benefit- on pure Imperial tobacco to those who smoked in the pure form and as a result therefore, we should have a class of tobacco ou the market, cheaper than anv hitherto available.

Mr Guiness said the proposals meant as far. as possible to meet- the Dominions' desires, as expressed at- tile Economic Conference. The Government belEved the provision was long overdue, because for many years we enjoyed preferences which were freely given long before countervailing advantages were offered .and they had done much to develop inter-imperial trade.