THE NEW ZEALAND TARIFF. (From the Oamaru Times, 13th October.)

North Otago Times, Volume XI, Issue 359, 30 October 1868, Page 3

THE NEW ZEALAND TARIFF. (From the Oamaru Times, 13th October.)

"We have before us a copy of the " Report' of the Select Committee upon the New Zealand. Tariff," as laid upon the table of the Legislative Council, on the 18th of September, and purpose to present our readers with a synopsis of its contents. The Committee state that they have examined into the practical effect of The Tariff upon commercial and industrial pursuits with special reference to placing the interchange of goods between this and the neighboring Colonies upon a more satisfactory basis, and believe that although the Government does not consider an immediate reduction of taxation practicable, some adjustments of the Tariff might be effected with great advantage. In passing, the Committee recommend the partial introduction of direct taxation, in the shape of a house-tax. The question of Protection versus Freetrade, forms the subject of two lengthy paragraphs, the Committee declaring, as a rule, in favor of itnrestricted commerce, but expressing their belief that in exceptional instances temporary protective measures may be adopted with good results. They quote, and express their adherence to the principles laid down by Mr Mill in the following extracts from his writings : — " If there is some particular branch of industiy not hitherto carried on in the country, but which individuals or associations, possessed of the necessary capital, are ready and desirous to naturalize, and if these persons can satify the Legislature that, after their workpeople are fully trained and the difficulties of the first introduction surmounted, they shall probably be able to produce the article as cheap or cheaper than the price at which it can be imported, but that they cannot do so without temporary aid, either of a subsidy from the Government or of a protective duty, then it may sometimes be a good calculation for the future interests of the country to make a temporary sacrifice by granting a moderate protective duty for a certain limited number of yeai-s — say ten, or at the very most twelve — during the latter part of which the duty should be on a gradually diminishing scale, and at the end of which it should expire." " The only case in which, on mere principles of political economy, protective duties can be defensible, is when they are imposed teinporai'ily (especiallyjn a young and rising nation) in hopes of naturalizing a foreign industry, in itself pei-fecbly suitable to the circumstances of the country." The Committee then proceed to give the result of their inquiry as to how far this principle is admitted by other British Colonies, and state that they have arrived at the conclusion that the general tendency of Colonial legislation exceeds what they consider the legitimate exceptions to the doctrine of Free Trade, instancing the duties upon millinery and fabrics of silk, which range from 5 to 20 per cent, ad valorem, and on imported timber and manufactured doors and windows, ranging from 10 to 20 per cent., as cases in point. . After remarking that the Colonies generally are in favor of a large measure of Protection, and that Great Britain herself does not c my out the principles of Eree Trade to their legitimate extent, the Committee proceed to the consideration of the Taiiff. Premising that they have ascertained that three-fonrths of the Customs revenue of the Colony is derived from ,the duties upon spirits, tobacco, wines, ales, tea, sugar and molasses, the Committee recommend the reduction of the duty upon spirits [from 12s. per gallon as at present to 9s. or ilOs. per gallon, oil the ground that the present high tariff induces smuggling to a large extent, and is consequently a positive loss to the revenue — adding, in support of this statement that the seizures of illicit stills' ,duriQg the period, September, 1865, to

June, 1868, have been thirby-three in number: the penalties "recovered £508, and the regards paid .£803 ; and stating "that one of" the stills' (seized at Irivercargill) 1 was capable' of distilling 200 gallons of spirits in 24 hours. A reduction of the duty on tobacco, at present 2s. 6d. perlb^ is also recommended upon similar grounds. The Committee point out that there is an annual falling-off in the amount of duty upon imported ale and beer of from £8000 to' £10,000 ; the cause being ascribed to the rapid development of the Colonial manufacture of these articles. To remedy this, an increased tax upon malt is proposed. 'The next paragraph 'of the report deals with the subject of encouraging and promoting the interchange between this and the neighboring Colonies of goods and merchandize of Colonial growth or manufacture, and after referring to the disallowance by the Imperial Government of an Act passed by the Legislature of Tasmania for the promotion of Intercolonial Free Trade, on account of a legal difficulty arising from the wording of the ' Constitution Act, the Committee express a hope that, if the Imperial ' Government are petitioned for a relaxation of any treaty stipulations which would prevent the removal of all restrictions upon the interchange of Colonial productions, such a reasonable request will meet with immediate acquiescence. Separately considering the desirability of the importation of Australian wines into New Zealand upon more favorable terms, the Committee recommend that the English system of charging duty according to alcoholic strength; be adopted instead of the present even 'duty of -is. per gallon. "With regard to piece goods, the Committee state it as their opinion that the duty should not be reduced, as the present duty is an encouragement to local manufacture. After giving a comparative abstract of the duties ' levied upon grain and breadstuffs in the various Colonies, the Committee conclude their report as follows : — After a careful review of the whole subject, your Committee have arrived at the conclusion that it is necessaiy that the duty on spiiits and tobacco should be reduced as early as possible, as under the present high duties on these articles, smuggling and illicit distillation are becoming an organized occupation. It may bo expected that an inci eased consumption at a lower rate' may replace in some measure tlieloss of levenue which, would otherwise follow the proposed reduction. Your Committee have also considered what would be the most advisable couise to pursue in the event of any further decrease in the Revenue beyond that now apprehended, and they are of opinion that, with the exception of an increased dtity on malt, no further increase on Customs duty is practicable. Under such circumstances, ifc is worthy of consideration ' whether it might not be advisable to place a small duty on all impoits, carrying out in doing so the principle of preserving an uniform ratio between the duty and the value of the articles on which it is raised. This plan, which' is the basis on which the Californian Tariff is founded, has the advantage of bearing equally on all classes of the community, and of yielding no inconsiderable amount of revenue, without injuriously affecting any section of society, whilst, incidental^, a considerable impetus woxild be given to the great agricultuial and other important interests, now languishing and in a depressed condition.