TARIFF POLICY

New Zealand Herald, Volume LXX, Issue 21518, 15 June 1933, Page 13

TARIFF POLICY

CASE TOR THE FARMERS REVENUE PURPOSES ONLY I PROTECTIVE RATES OPPOSED GRADUAL REMOVAL URGED [BY TF.I.EC.RAPH —PRESS ASSOCIATION'] WELLINGTON. Wednesday . Evidence submitted by the New Zealand Farmers' Union was heard by the Tariff Commission to-day. Dr. G. Craig, Comptroller of Customs, presided. The evidence for the Farmers' Union takes the form of a substantial document which traverses the whole ground of fiscal policies in general, and says the policy of tho union was clearly laid down at the first Dominion conference in 1902. " Taxation through the customs," tho stateniont proceeds, "should bo for tho purpose of raising revenue and not for protective purposes. From that day to this, the union has unswervingly adhered to this policy, which advocates the abolition of all tariff duties except those for raising revenue. Validity and Permanency "A tariff policy, to bo valid and permanent, must be built up 'on principles, or at all events must he underlain by s omo broad principle of policy, otherwise it cannot bo permanent and is a source of danger and uncertainty to the community. Tho burden of protection falls on non-protected interests of the country, viz., tho farming community, professional classes and those employers and workers who are not employed in protected industries. , "Iu New Zealand farmers have to take wo/dd parity prices for goods. A tariff can bo of little advantage to them, for their prices arc fixed "abroad. They" are not affected by what happens here as/regards price, but their costs of production are materially increased by tho artificial loading of protective duties. "We do not advocate that existing protective tariffs should be removed in toto immediately, as such would result in internal trade chaos. Removal should be gradual, with th<? definite objective in view of having them materially reduced before the terms of the Ottawa ' agreement are next considered." Manufacturers Criticised The statement goes on to deal with the details of trade, and says, inter alia: " Our secondary industries have not shown the initiative our farmers have done. Our manufacturers hare kept their eyes fastened on small local markets only. To assist them in catering for /these they have cried out for and have obtained more and more protection, with the result that their industries have grown up as hothouse plants. Our manufacturers have failed 1o put a single line on an export basis." After dealing with manufacturing statistics for 1927, which is taken as the last normal year, the statement savs: /'We are firmly convinced that less protection will ultimately prove beneficial to our manufacturers, as such will compel them to seek out and concentrate their energies mainly on the production of those lines of goods which nre most suited to New Zealand conditions, and which, through increased efficiencv of manufacture, may fie put on an export basis again. Burden ol Present Policy A/tariff will not create new industries. Industries can be created only by labour and capital, and a tariff can divert these from one channel to another. but cannot call them into being. We strongly assert that the existing fiscal policy imposes upon the consuming public a burden far in excess of what it should to bear. We maintain that'millions are spent needlessly every year owing to this pernicious policy." has no objection, it states, to a true revenue tariff of moderate dimensions, balanced, where appropriate, by countervailing excise duties. If this policy is carried out the union will be prepared to sacrifice any subsidies and protection which it at present enjoys, which are purely defensive reactions'to a misconceived tariff policy. Upon 'the conclusion of the case for the Farmers' Union, the commission heard representations on behalf of the New Zealand Canister Company. A representative of the firm asked that there be no alteration in the general tariff yaffecting the trade, biit that a heavier duty be imposed on goods imported in small tins. It was contended that this was necessary to develop the tin-making industry in New Zealand. The commission then adjourned until to-morrow. t ' PRESENTATION OF EVIDENCE CHAIRMAN STATES PROCEDURE [BY TELEGRAPH —PRESS ASSOCIATION"] WELLINGTON, Wednesday At the sitting of the Tariff Commission to-day, the chairman, Dr. G. Craig, f-aid that where a producer or a manufacturer proposes to present a case for the consideration of the commission, through, an association or organisation, it is desired that this be done as soon as possible. At an early date the commission will hear evidence in such other centres as may be necessary. While absent from Wellington to hear evidence from other producers or manufacturers in the same line of business, it was obviously advisable that the case for' the association or organisation should be heard before the time arrived for the taking of further evidence.