THE FALLACY OF PROTECTION.

New Zealand Herald, Volume XXV, Issue 9077, 11 June 1888, Page 3

THE FALLACY OF PROTECTION.

TO THE EDITOR. Sir, — see it is proposed to largely increase the import duty on almost every article that enters New Zealand. This is supported by many members on the ground that it will raise the revenue required by the Government to meet its liabilities, and also encourage local industries. To make it of any avail to foster local industries it must be made sufficiently heavy to be absolutely prohibitive, for if the duty be so lighfthat other countries can still continue to import, it cannot avail local industries ; and if, on the other hand, the duty is so heavy as to stop importation the revenue will cease ! I submit that this country is better without industries that need protective duties to support them, and that the labour which would be employed by such industries can be more usefully employed in other ways, for let us remember that once we enter upon a policy of protection it cannot easily be reversed without serious difficulty. Those who, upon the strength of that duty, had founded industries which would surely collapse were the duty removed, would have a very strong case against such removal of duty without some compensation to them for the loss such reversal of policy would be sure to cause. They would therefore require constant bolstering up at the direct expense of the consumer of such articles as they manufactured, and which such consumer could otherwise buy by just so much cheaper as the amount of the import duty. The result of the proposed increase will be to seriously enhance the cost of living to every consumer in the colony, and as the consumers are very largely in excess of the producers, I respectfully urge that their interests should be considered first. I see that the duty is increased on a number of articles which are already manufactnred in the colony, and which are at present competing with the imported article. As it is not proposed to levy any duty on the home manufacture of such article, what* will be the result ? I imagine it will be that the home manufacturer will immediately raise his price to the same extent, or nearly so, as the import duty is raised, and by this means the consumer will be compelled to pay to the manufacturer an extra price for this commodity, putting so much extra profit into the manufacturer's pocket, without benefiting the State one single halfpenny.—l am, &c, J. Thornes. ' Thornleigh, St.-George's Bay Road, Auckland. June 9, ISBB.