FARMERS AND CUSTOMS DUTIES.

New Zealand Herald, Volume LXIV, Issue 19832, 30 December 1927, Page 12

FARMERS AND CUSTOMS DUTIES.

Sir, —On December 14 you. published a letter written by Mr. Downie Stewart to the Farmers' Union. »I crave space to reply. The Minister's letter is a ti3sue of half-truths, unsound deductions and economic 'fallacies. ? It would, in fact, be humorous were it not so tragic. For instance, the Minister, after admitting that lie has taxed ail the tools of the agriculturist, points out that as an offset he has removed the duty from gramophone records, silk piece goods and household linoleums. He evidently forgot one important item —vacuum cleaners. The Minister says, "On 28 out of the 34 items mentioned by you no increase in duty whatever has been made under the British preferential tariff." He knows quite well that since he has increased the foreign duty the British manufacturer will naturally be able to raise his price, as he has raised the price of the competing foreign article. He knows also that in many cases the British implement is quite unsuited to our requirements, and consequently we shall continue t-o buy the foreign implement at a higher price. He says that the duty on certain British implements was the same under the 1921 Customs Amendment Act. Quite so. But who was answerable for the 1921 Act? Was it not the Reform Gov* ernment? Prior to the Reform Government coming into office all farm implement!'. were free. Ha says, "The New Zealand manufacturers cf agricultural implements had in the past rendered- valuable assistance to the New Zealand farmers, et:." Thanks, awfully. I suppose the New Zealand farmers reciprocated "the valuable assistance by buying New Zealand-made implements. He says, "I find also that, the various branches of the Farmers' Union are noi unanimous with respect to the duty 011 such implements.." One branch out oi hundreds passed a resolution in favour of a "reasonable duty." This branch is a South Island' branch and is notorious for its clamour for a duty on v?heat. As against this, the Minister himself told a deputation that "every dairy company in New Zealand had passed resolutions against any duty being levied on agri cultural and dairy machinery." With regard to the duty on timber for containers for fruit, butter and cheese sold in New Zealand, the Minister says, "The Government is of opinion that the successful carrying on of the timber industry is bound up with that of the whole Dominion and that it was considered that unless some tariff assistance was given to this industry its future welfare would have been prejudiced." I suppose the Minister is of opinion that the dairying and fruit industries are in such a flourishing condition that they can well afford to continue to ps.y increased tribute to the timber industry. The Minister is outwardly very keen on encouraging British trade. So is the union, but we would bring this about by reducing the duty on British goods. Mr. Downie Stewart thinks he can best do it by increasing the duty on foreign goods. The Minister is most anxious that no injury should be done to the secondary industries. He ignores the fact that anything he gives to them must come out cf the pockets of soma other,, section of the community. Then he raises the same old. bogey that has been used to frighten the farmer for the last. 50 years. "It should be remembered also that if any further considerable reduction had been made in /he customs duties the revenue required to pay the interest on the national debt and to maintain the various State services muist necessarily have been obtained by some other means, as increased land tax or increased income tax." Mr. Stewart knows, better, because he has said so, Only a short time ago Mr. Stewart said it was quite possible that if he were to reduce the protective customs tax he would get more revenue. Whether he said it or • not, if he will only read any fiscal history, he will find that almost without exception, when customs taxes have been reduced, they have produced mere revenue. Frank Colfeck. MorrinsviUe, December 27, 1927.