THE FEDERAL TARIFF.

New Zealand Herald, Volume XXXVIII, Issue 11782, 11 October 1901, Page 5

THE FEDERAL TARIFF.

FEELING IN SYDNEY.

A HARD FIGHT OVER THE TARIFF.

EFFECT ON NEW ZEALAND PRODUCTS.

HOW IT HAS BEEN RECEIVED. STRONG DISSATISFACTION. DEFIANT ATTITUDE OF QUEENSLANDERS. TO RESIST IT BY FORCE. DECISION OF THE REVENUE TARIFF PARTY. NO-CONFIDENCE MOTION TO BE MOVED. DETERMINATION TO FIGHT THE PROPOSALS. By Telegraph.— Association.—Copyright. Brisbane, October 10. The Courier says the tariff confirms the conviction that the sugar industry is doomed. Great excitement prevails hi the North. Many will be utterly mined by the combination of the Tariff and the Kanaka Bills. Serious and forbearing men around Cairns are angrily talking of forcible resistance. The defiant attitude is most pronounced.

A SLAP AT NEW ZEALAND. Sydney, October 10. The tariff and its effects are the questions absorbing the public mind. The feeling is pretty general that the tariff has been framed under the influences which dominated the Victorian fiscal policy, and that scant consideration has been shown to New South Wales' preelections for free trade. The object of making the agricultural tariff so high is undoubtedly to kill the New Zealand trade, and thus bring that colony up with a sharp turn to the realisation of what she has lost. As New Zealand supplies the bulk of the oats used here a great deal will require to be imported for the next year or more- The one crumb of comfort is in the fact that in supplying South African orders the Australian colonies have drawn largely on New Zealand to help them to fill such orders. A couple of years age the New Zealand producer would have felt such a tariff very much, because Australia was his best market. Things, however, have changed, and he now looks to South Africa to take his products. The question arises whether the producers here will not lose more than those of New Zealand. As one shrewd merchant remarked, New Zealand will now make special efforts to cater for the South African trade. If she does, she must cut very seriously into the demand which our exporters have been supplying to the great benefit of the producers here.

DISCUSSION IN PARLIAMENT.

(Received October 10, 10.10 p.m.) Sydney, October 10,

The Leader of the Opposition gave notice of motion that in the new tariff proposals of the Commonwealth Government, the financial proposals for the State Government are unsatisfactory. The Premier declined to delay business by adjourning, and challenged Mr. Lee to proceed with the motion. The debate is now going on.

FEELING IN VICTORIA.

Melbourne, October 10.

There will be a hard fight over the tariff. Revenue tariffists are angered by the Goverment proposals, and will assist to knock everything out over 20 per cent.

NO-CONFIDENCE MOTION. (Received October 10, 10.10 p.m.)

Melbourne, October 10.

Mr. Reed presided at a large meeting of the revenue tariff party, when it was decided to move a want of confidence in the Federal Government. If the motion is unsuccessful the party will fight every item to the death. The censure motion will probably be moved on Tuesday.

INDUSTRIES LIKELY TO

SUFFER.

VIEWS OF AUCKLAND MERCHANTS.

The new Customs tariff for the Australian Commonwealth, as published in yesterday's issue, is being much discussed in business circles, particularly with the view of ascertaining how the New Zealand trade with the Commonwealth will be affected. The total value of New Zealand's exports to Australia in 1899 was £1,000,319, exclusive of gold, so that all things considered the colony has considerable interest in the Federal tariff, and in maintaining her business connection with Australia. Many of the products sent from New Zealand to the Australian colonies are affected by the new Federal tariff, and as of the total trade of just over a million sterling, £616,405 was with free trade New South Wales, now brought under the Federal tariff, it will be seen that a good deal of business adjustment will be necessary if New Zealand is to maintain her trade on the Australian continent. So far as can be ascertained the timber trade is likely to suffer more seriously than any other Auckland industry, as New Zealand* timber has not only lost a free market in New South Wales, but also a distinct preference in the Victorian market, as against the American and other competing timbers. The position with reference to the grain trade was explained in yesterday's issue- We give below the opinions of* Auckland business men, with respect to other exports: —

THE TIMBER INDUSTRY.

SERIOUS TARIFF CHANGES.

SUGGESTED EXPORT DUTY. The Auckland district has for many years carried on a large trade in exporting timber to Australia. The values of the timber exSorts from New Zealand in 1899 were: To New South Wales £92,511, Victoria £73.525. Queensland £6059, South Australia £4203. West Australia £1395, and Tasmania £708, making a total to the States of the Australian Commonwealth of £178,399. The industry being of great importance to Auckland 'a Hre.vi.d reporter saw several of the leading timber merchants, and ascertained their views on the probable effects of the new tariff. Mr. L. J. liagna.ll said He believed the effects of the tariff on the industry would on the whole be serious. " It will," he said, '• have a very adverse effect on the export of small sizes of timber. The highest rate imposed by the new tariff on rough timber

is 2s 6d per 100 ft, that being on sizes less | ! than 7in by 2jin. Those happen to be the most unsalable sizes, and the high rate j will almost prohibit us from sending it to the Australian market. In the past there has been no duty on this size of timber either in New South Wales or Victoria, | i while there was a rate of 4s per 100 ft on | j Oregon and Baltic timbers. Even with ; j that advantage we still had to sell at a | low rate in order to dispose of the small sized timber, because, especially in the white pine, the smaller sixes are generally used to make the cheaper class of boxes to be used for fruit cases, rabbit crates, and similar goods, the price of which can only afford a cheap package. The new tariff j will also affect butter-box timber, for though 12in by 6in white pine Hitches are to be allowed in free the proportion of 12in by j 6in flitches: we can get out of a whit* pine j log is only about 20 per cent-, and if the heavy rift' is to be on the smaller sizes j we will require to get a much better price than at present for the larger flitches, in order to compensate us for the large perj centage which, if sold in Australia., will | have to go in on the highest rate. There J is. in fact, a very small local outlet for the smaller timbers, so that on the whole ] it will be impossible for us to get the adj vantage of the free entry into the Austraj lian market for the larger flitches. The I only other way would be to send the white j pine to Australia in the log, and that would mean throwing a large number of people j out of employment from the New Zealand mills." "Are these other timbers available in Australia suitable uu butter-box making?" "White pine is the only suitable timber for making butter-boxes. ' For other purposes other timbers might be utilised, but in cutting for butter-boxes you can only utilise about 50 per cent, or 60 per cent, of the lop;, and the balance must of necessity be cut into the small sizes, which are hit by the high rates, and as we ship that class of timber at about 6s per 100 ft a duty of 2s 6d is a very serious matter."

"The milling industry at Kaipara will no doubt be seriously affected':" " Yes, about 80 per cent, of the timber cut there goes to Australia. There is, of course, a hope that the Bill may be modified before it gets through both Houses of Parliament, but at present the duties are on. and will have a serious effect if retained. We might have been able to stand a duty of Is 6d per 100 ft all round, but the rati of 2s 6d per 100 ft on the cheaper timbers is very heavy." Mr. Howell, of the Kauri Timber Company, who has large experience of the Australian timber markets, was inclined to take a more hopeful view of the situation. He said it would be some time before the effect of the new tariff could be correctly estimated, but there seemed no doubt that the rather heavy duty on small timber would interfere with the trade, as up to now kauri had undoubtedly had a considerable advantage over other timbers through being admitted free into New South Wales and Victoria. He explained that hitherto the small-sized Oregon timbers had paid a duty of 4s in Victoria, while kauri had gone in free. Now all small-sized timbers were apparently to be charged 2s 6d, so there would really be a reduction of Is 6d on the Oregon timbers, and an increase of 2s 6d 011 kauri, making a difference of 4s to the disadvantage of kauri, when compared with the old duties. So far as white pine was concerned, he thought strong representations would be made by those engaged in the butter-box and fruit-box industries to get some modification of the tariff, or to get an export drawback. He thought the duly would probably make a difference of from 2d to 3d per box on the selling price of butter-boxes. Asked if he thought an export duty on logs sent from New Zealand would help the industry, Mr. Howell said he would not be inclined to recommend that as a remedy, as it might drive the Australian consumers to look for other timbers. At present only a comparatively small' quantity of timber was sent from New Zealand to Australia in the log, that part of the trade being almost entirely confined to picked logs wanted for special purposes. He was satisfied that Australia would have to take a certain I quantity of kauri from New Zealand, and ; there certainly was some hope that the I business would not be interfered with to j any material extent, although the admis- ; sion of large sizes free into Australia might , lead to considerable difference in cutting. The Hon. E. Mitehelson expressed the fear that the new tariff would lead to men employed in the timber mills here being thrown out of work: He thought the effect would be exceedingly serious in the butter-box industry, and the most serious part of it was that mills here had been specially fitted with machinery to cut white pine for the Australian butter-box trade. With regard to kauri, the new tariff would practically prohibit the export of small sizes. He believed that a heavy export duty should be placed on timber in the log, but said it would not do to treat 'itches in the same way without discriI minating in favour of Great Britain, where j there was a large market for flitches. The new tariff would necessitate his company shortening hands, as they now exported largely from the Kaipara in sizes that would not pay under the new tariff. Mr. David Goldie stated that New Zealand could do without the Australian market for the wale of first-class timber, but > they must get rid of the second-class. There was an almost limitless demand for flitches in England and Scotland, but if the timber was cut for that purpose, then the second-class would be in small sizes, and we would be charged the heavy duty in Australia. They might get over the difficulty by cutting right through the log, including the second-class and sending it in flitches, which would be admitted free by the Australian tariff. That, of course, would still result in injury to the New Zealand labour market. He favoured an export duty on timber in the log. It was calculated that at the present rate of consumption 14 or 15 years would exhaust our supplies of kauri, and the forests were now largely in the hands of the Government.

BUTTER AND CHEESE. There is a considerable export from New Zealand to Australia in butter and cheese, although relatively to the large trade done with Great Britain, the colony's interest in tbe Australian market is not very great. Mr. Wesley Spragg, on being asked how the new tariff would affect the trade, said: —"I do not think it will work us much harm in the long run. When the people of Australia require butter or cheese for their own purposes, as they will during their erratic seasons, they must get it from New Zealand. The new tariff will unquestionably affect us a little, but it will also mean that the Australian consumer will have to pay a higher price, and it will influence us to pay more attention to the market in South Africa. What wc want, and what this should force us to provide, is a direct line of steamers [mm New Zealand to South Africa, so that we can market our goods in South Africa direct, without the intervention of the somewhat unneighbourly people of the Common wealth. The South African market is at present being exploited almost entirely from Australia, the New Zealand produce going through Australian ports on its way to South Africa. If we are sufficiently progressive to arrange for a direct line of steamers, as has been suggested, we can do the business direct and save the profits now going to Australian merchants. In that way good may possibly come out of the Apparent evil thrown upon us by the new Federal tariff. The Victorian tariff on butter has for some years been exactly the same as the new Federal tariff, and that has not prevented us doing a large business there season after season. The fact that last year we sent large quantities! of butter to Victorian firms is some guarantee that the new tariff as applied to the whole Commonwealth will not be prohibitive."

CONDENSED MILK. A duty of l£d per lb has been imposed on preserved milk, and this will no doubt seriously affect the milk-preserving industry in Auckland, which has hitherto had a free market in New South Wales, and a large trade in West Australia, at a tariff of less than half that now imposed. It has to be remembered, however, that even if the tariff now before the Commonwealth is finally adopted, this particular industry may be assisted by the special exception granted to West Australia, allowing that State certain rights in living their own tariffs for the next five years on a sliding

scale, to merge into the Federal tariff at the expiry of the period mentioned. Mr. N. Bell, secretary of W. T. Murray and Co. (Limited), stated that the new duty would seriously hamper the industry in the Australian markets, md it- might, on that account, be necessary tor the company to look further afield. "lie thought, however, if the farmers were reasonable in their demands, the industry might possibly be little affected by the change. FISH TRADE. Mr. A. Sanford, speaking of the effect on the fish trade, considered that exporters would not be affected. They had *vo compete with New South Wales, and unless j that colony could further develop its own production the consumers would be the ! ones to pay the Id duty. Mr. Sanford did j not anticipate any decrease in his orders | from Sydney. | * TINNED MEATS. ! Messrs. Hcllaby Bros, were seen as to ' the effect on the tinned meat trade. The manager expressed the opinion that this : trade would not be affected, as they shipped very little tinned meat to Austra- ! Ha, most o*f it going to the Islands. If ! there were a duty on keg meat it might 1 affect their chancer of getting navy conI tracts. __ j THE TRADE WITH THE COM- ! MONWEALTH. i The following table, showing the distrij button of New Zealand exports to the. Com- | monwealth in 1899, is taken from the report ! of the Federation Commission : — Oats 180,712 Timber 178.399 Cheese • 57.985 Butter 57.506 Matt "-1.253 Wheat 37,047 Potatoes 36.894 Flax 28,524 Hides... 26,763 Tallow 26,009 Wool 25,460 Hops 25.378 Maize 24.917 Meats, preserved and potted 24,120 Bran and Pollard 18.010 Barley 17.007 Oatmeal 16.924 Seeds 15,734 Leather 14.683 Fiali, frozen 12.931 Preserved milk 9.336 Flour 8.272 Hams 7.857 Woollen piece ffoods 6.981 Onions 6,876 Pish, potted and preserved... 5,725 Miscellaneous 89,016 £1,000.319 As Sydney has hitherto been a free port, it will be of interest to show the proportion of the total New Zealand exports to Australia which found its way to New South Wales. The following shows the exports to New South Wales iu 1899 — £ Oats ... 96,774 Timber 92,511 Cheese 43,825 Malt 40,486 Potatoes 32,572 Butter 29,651 Wheat 27.584 Tallow 24,182 Wool ... 23,096 Maize 19.512 Bran and Pollard 15,5 C Hides 14.518 Flax 14,065 Hops 12,676 Barley 10.079 Flour 8,160 Oatmeal 7.IHS Hams 6J66 Leather 6,751 Onions 6,389 Seeds 6,262 Woollen piece goods 4,524 Coals 4,513 Fish, frozen 4,357 Horses 3,971 Beans and peas 3,764 Fungus 3,663 Sulphur ... 3,483 Agricultural machinery ... 3,241 Meats, potted and preserved 2.986 Bacon 2.668 Miscellaneous 40.596 _______________ £616,405