PROTECTIVE TARIFFS.

New Zealand Herald, Volume LXVI, Issue 20208, 19 March 1929, Page 14

PROTECTIVE TARIFFS.

CONFERENCE CONTINUED.

FARMERS AND MANUFACTURERS

TRIBUNAL SCHEME APPROVED

The conference- between representatives of tjie Auckland branch of the New Zealand Farmers' Union and (he .Auckland Manufacturers' Association, which met. last month to discuss the present economic position of the Dominion, and.means by which it oould be bettered, resumed last evening. Mr. A. A. Ross, president of the Auckland Farmers' Union, took tho chair, the other farmers' representatives bein< r Mr. A. E. Robinson, the union secretary, and Messrs. R- Feisst and F. Colbeck. The Manufacturers' Association ■was represented by the chairman. Mr. G. Finn, the secretary. Mr. J. Findlav, and Messrs. G. Mills-Palmer and F. M. Hills.

In opening the discussion, Mr. Colbeck said the farmers were in accord with tho views of John Stuart Mill—that the imposition of a tax on the production, distribution, or importation of any article raised its price by at least the amount of the tax. Protection naturally encouraged trusts and combines. As an example he mentioned the iron «tnd steel trusts of the United States. American-made steel rails could be bought in Canada at about £2 a ton cheaper than in the United States. The price of currants in \ ictoria, a protected State, was £57 a ton, while the export price was only £37. As locallv-made goods sold on import parity, it followed that if the cost of imported goods were Tailed the cost ,of locally-made goods rose to a like amount". If this were not so no goods would be imported.

The Costs ol Production. "The raising' of the standard of living for one section of the community by protection of one commodity must result ;n the lowering ol" the standard of other sections," declared Mr. Ross. The root of the matter was high costs. Instead of

raising prices to meet, high costs it was necessary to lower initial costs. Ihe protection on necessary goods, such as flour, fcugar, wheat and timber, had to be met bv higher wages, whirl, went to increase the costs of production. Hence the demand for more protection, which went on in an ever-increasing spiral The industries sheltered behind the tariff wall fixed their prices afld passed on the costs. These must be finally borne by the unsheltered industries, which had to sell their goods at tho world's prico, and could pass the costs no further. The country had nor/ reached that stage, and had for some time been suffering from its detrimental effects. "Costs have been raised to such an ex-

tent that settlement ceased some time ago; while tho population continued to increase, the increase flocked into the city, where the secondary industries, labouring under high costs and the consequent restricted market, could not absorb them, continued Mr. Ross. "The natural result has beeu chronic unemployment, relieved only by uneconomic public expenditure oi,/noney, mostly borrowed, which will have to be accounted for later. ,

Bemoval of Protection. "The root of most of our trouble* i» our present protective system," concluded Mr. Koss. "If that could be abolished and things allowed to return to their natural level the primary industries would gradually and automatically expand until every available acre was producing all that it was capable of. Such oi the secondary industries as were suitable to the country, freed froiri tho incubus of high costs, would expand out of all knowledge. Instead of being responsible for a meagre 5 per cent, of our exports they would take their place with the primary industries."

••If we cannot get on to different lines, th:s conference cannot get anywhere," taid Mr. Robinson, who said that it teemed as though the two parties would never agree. If trie question of costs could ie settled, then it would be possible

. to leduce the wages of labour. The working man would be willing to see his * wages reduced if the cost of were reduced. If wages were reduced the product would be cheaper and could be sold on the open markets ot the world "It is not that the workers are not good," lie said. "They are as good as anywhere in the world.' It is the manufacturer who is at fault. He is aiming at only a small restricted local market."

A sharp difference of opinion was revealed in a prolonged discussion on the tariff duties on sugar, and the position of the Colonial Sugar Company. The trend of opinion was divided into two sections, on tho same lines as revealed at the first conference:

Independent Tribunal. Mr. Ross said it seemed that what was wanted was an independent tribunal to decide the tariff question. The farmers were of opinion that, the caus* of tho trouble was' protection, while the manufacturers asked for more protection as a reined v.

Agreement was voiced by Mr. Findlay, who said the matter might be dealt with V>v a tariff board, t.. make recommendations on which '.lie Government could act. Mr. Fei«st. who said the personnel of such a tariff commission would make a great deal of difference. It was riiost necessary that it should he composed of impartial men v ho would make fair recommendations.

iiiii trouble i 3 that where we both v.ant something w»> are diametrically opposed." said Mr. Ross. In the hope of iiiidjng something on which thev could ngree lie moved a motion asking the Gov- ''' ninent that before any alterations in the customs duties were, dealt with by Parliament they ? houhl be investigated and reported on by a tribunal sitting and taking evidence in public. "I think this resolution m very fine, and T admire the spirit in whi h it is put. forv.ai d." .said Mr. I Fills.

The motion was thru seconded bv Mr. I'irin, and war. curried unanimously, inenihers remarking that it v.:<- ;i step in the right direction.

Farming Efficiency. " T 'would like to put forwaid another motion; we do not know how ellicient our farms aic a/id how the different province; compare," said Mr. Finn. ITe moved that as the future, of the Dominion depended on the efficiency of farming, the Government should be asked to inspect ' 50' farms in each province to enable the efficiency of the industry to be ascertained. The farms would be judged on it. scale of points to be drawn up for the purpose, a similar survey to bo made ir. future every five years. Mr. Findlay suggested the motion should be withdrawn in the meantime to allow further consideration of the question. He mentioned improvement in the quality of export cheese as compared ■with the standard of Cauadian cheese, as loyig one important matter. In reply to Mr. Colbeck, Mr. Finn said thore wns no. slur or implication that the Iwtma of ilie Dominion were inefficient. point was that there was scope for W e ® ci ency. He would withmm Y k _ B potion for the time being. the confer *