THE New Zealand Herald AND DAILY SOUTHERN CROSS SATURDAY, FEBRUARY 6, 1932. BRITISH TARIFF POLICY.

New Zealand Herald, Volume LXIX, Issue 21100, 6 February 1932, Page 8

THE New Zealand Herald AND DAILY SOUTHERN CROSS SATURDAY, FEBRUARY 6, 1932. BRITISH TARIFF POLICY.

The tariff programme of tho British Government has been announced with welcome dcfiniteness. Mr. Amery's description of it as a fledgling, not a full-grown bird, is apt in so far as the duties do not cover the whole programme, but there is no mistaking the breed of the bird. The scheme is one of moderate protection, as the Chancellor of the Exchequer explains, and is designed to encourage the transfer to Britain's fields and factories of the work now done elsewhere. It is not rigid: means are provided for varying it in accordance with changing needs, and an advisory committee is expected to proceed along tho lines now laid down, introducing additional duties as circumstances in British industry may dictate. This plainly means the progressive application of a system of protection, so adjusted that its excluding influence will steadily displace the revenueproducing element characteristic of its initial phase. It is satisfactory to note that the scheme is not a compromise between the protectionist and free-trade sections of the Cabinet. A compromise would have got the country nowhere. This scheme promises to take it to a position where its balance of trade will not have so disastrous an overplus of imports. In the fact that the last two years have seen imports practically stationary, while exports have decreased nearly 38 per cent., is warrant more than enough to bring Britain into line with the system pursued by other countries. From that point of view, the Government's programme is justified as a defensive measure, and that even an additional 100 per cent, may be charged on goods from countries with a discriminating tariff against Britain—on the advisory committee's subsequent findings—gives proof that the weapon is not a toy or "for exhibition only." The scheme is a real beginning of a real endeavour to put things right. Its details, as so far made known, begin with a 10 per cent, ad valorem duty on all imports—save those from British territories abroad —except wheat, tea, raw cotton and raw wool. Mr. Chamberlain explains the exemptions: wheat is on the free list because a quota system, designed to reserve a portion of the domestic market for the British grower, is to be instituted ; tea can be more conveniently dealt with in conjunction with other beverages, such as coffee and cocoa, in the ordinary working of the Budget; raw cotton and raw wool are needed particularly by great textile industries in Britain. The additional duties imposable on the continuous findings of the advisory committee are to be governed by fluid conditions, the interests of industries and the community dictating from time to time what should be done. Additional duties will also be included, in the superstructure built on the basis of the general 10 per cent, ad valorem duty, on luxury articles and goods that should be produced in sufficient quantity in Britain. The existing tobacco and sugar duties, and the McKenna safeguarding and emergency duties, will be continued. These details impress the seriousness of the Government in its decision to employ tariffs as an important means of remedying the industrial position at Home. But there is made refreshingly clear as well that the National Government is embarking on a sound policy of Imperial preference. The door that was once ''banged, bolted and barred" is thrown open; the obdurate opposition to Imperial preference maintained by the Labour Government at the last Economic Conference is definitely abandoned for one of fiscal solidarity within the Empire. The change of front is complete ; even products from the Crown colonies are exempted from the duties. Not only has Britain determined to arm herself with a weapon at least as effective as any that may be used to discriminate against her trade in other countries; she has given proof of sincerity in her sense of Imperial responsibility. The whole Empire is to reap benefit from the mandate given so emphatically in the British general election. There is thus brought within realisation the hope that was still cherished when the Labour Government turned deliberately a deaf ear to the pleadings of the Dominions. Another Government is in power, and it is more than ready £o listen: it has determined on a step fraught with tremendous possibilities for Imperial development. This hope was not. Imperialism in the inapplicable sense of desire for dominance over other peoples: it was a zeal for full co-operation within the family, a standing shoulder to shoulder in times of difficulty and a realisation of the possibilities of prosperity largely dormant throughout the whole British realm. Mr. Chamberlain's words well set the position as to-day, with this news broadcast throughout British lands, it, can be inspiringly envisaged : "a policy that will bring a new hope and a new

heart to Britain and give rise to a new spirit of energy and determination throughout the Empire." This enthusiasm need not, must not, lose itself in idle sentiment. Practical measures of all-round British reciprocity must be quickly afoot. The Ottawa Conference should be entered by every Dominion with practical offers of co-operation. Mr. Chamberlain evidently anticipates—and in this he expresses the confidence of the Government—although Sir Herbert Samuel has used the unaccustomed right of independent speech by a Minister to pour scorn on the expectation—that there, will be a progressive application of the preferential principle, advantage being returned for every advantage given. To proceed in that way is the duty of every section of the Empire.