THE TARIFF

Nelson Evening Mail, Volume LXVI, 10 February 1933, Page 7

THE TARIFF

CASE FOR REDUCTION ADDRESS BY MR JAMES BEGG The case for the reduction of present tar ill's was interestingly discussed by Mr James Begg, before a meeting ot' the Otago Provincial Council of the Farmers’ Union (reports the Christchurch ‘‘Press”). Mr Begg sad that the rate of exchange on London havng been raised to 25 per cent., it was now necessary to consider a corresponding reduction of the protective tariffs enjoyed by most of our secondary industies. A reduction corresponding in these tariffs would leave these industries in the same competitive position which they enjoyed prior to the raising of the exchange rate and so could not logically be objected to by those interested. A reduction of 25 per cent in the protective tariffs woull certainly reduce prices and would encourage the flow of British goods to New Zealand, thus implementing in the fairest possible way the arrangements entered into at Ottawa, and it would also tend to prevent funds from accumulating in London and reduce or cancel the liability of the Government to the banks in this respect.

“COSTS MUST COME DOWN” “Costs must come down if the fanning industry is to survive,” he continued, “and the above is one of the most obvious methods of bringing about a reduction without inflicting additional hardships in any quarter. “The idea favoured in some quarters that New Zealand should be practically self supporting is feasible only if we are prepared to become bankrupt in respect to oversea debts and content to sink to a standard of living which would be one of the lowest in the civilised world. No section of the community can now afford the cost of subsidies and high protective tariffs, and the aim should be to reduce these to tlie lowest possible point with the ultimate aim of free trade with Great Britain, a reduction of duties oil goods from the other Dominions, and the abolishing of subsidies of fertilisers free subsidised railage, wheat duties, and all other impediments to trade.” Mr Begg then moved: “That this Council advocates an immediate reduction of 25 per cent in the Customs tariff, and that following that, the Council urge that the spirit of the Ottawa agreement he carried out to the letter.”

REDUCTION FAVOURED Mr E. H. Murney said that while lie fully supported Mr Begg's remarks, lie was of the opinion that they should not advocate any reduction in the American tariff. He felt that the motion should refer to British goods only. Mr Begg suid that Great Britain had expressed satisfaction with the present

margin of preference and if an allround reduction in tariffs were given this margin would continue. In his opinion competition was essential. If British manufacturers had not the competition of America they would keep' their prices higher than otherwise.

After further discussion the motion was carried.