CUSTOMS TAXATION.

New Zealand Herald, Volume LXIV, Issue 19542, 22 January 1927, Page 8

CUSTOMS TAXATION.

Much of the apprehension that has been aroused by the opening of an inquiry into the customs tariff might have been allayed had the Minister responsible explained the direction which the Government proposes the revision should take. Though he has not responded to earlier invitations for such a declaration of policy, Mr. Stewart might now be persuaded to say whether the Government accepts the. principle formulated by the Auckland Chamber of Commerce: that as the prosperity of New Zealand depends mainly upon an increased primary production, any change in customs tariffs which would tend to increase the cost of production should be avoided. A clear understanding upon that point i should,, indeed, be a fundamental condition of any modification of the tariff. However great may be the embarrassment of secondary industries from foreign competition, none of them has been confronted with adversity in the same degree as the great primary industries dependent on overseas markets, and while tariff assistance might relieve the difficulties of the former, part of the cost would fall upon the latter, for which no such sustenance can be given. No serious challenge will be raised to the maintenance of the established policy of reasonable protection for efficient local industries; what is urgently sought is an assurance that the Government will steadfastly maintain the protection of the primary industries bv opposing any alterations of the tariff likely to be injurious to them. That is one aspect of the matter. The other is that the present tariff imposes a tremendous burden of taxation upon the community. It is already largely responsible for the high cost of production in the widest sense and the high cost of living. Will the proposed revision be designed to relieve this condition by reducing or abolishing duties on necessities that are collected solely for revenue purposes ? In its election manifesto, the Government pledged itself to a policy of moderate protection * and the exemption of necessities. Now that it has actually commenced the task of revision, its ideas on the subject should be more j precise, and there are strong reasons j why they should be clearly stated j by the' Minister of Customs.