SPIRIT OF OTTAWA

New Zealand Herald, Volume LXX, Issue 21561, 4 August 1933, Page 10

SPIRIT OF OTTAWA

effect on the tariff SCALING DOWN ADVOCATED OTHER REVENUE SOURCES "We can find no satisfaction in being assured we are being drowned in 20 feet of water instead of 40 feet," said Mr. J. Hislop, chairman of the Auckland section of tho United Kingdom Manufacturers' Association, in a statement submitted to the Tariff Commission yesterday. The general tenor of a long statement was to support applications for the reduction and abolition of duties on British imports. Mr. Hislop said two courses were open to New Zealand, namely:—(l) Tho Dominion might adopt tho policy of artificially building up what to-day were referred to as secondary industries, or (2) it was open to the Dominion to adopt a policy of development that would direct its ingenuity, labour and capital into alliance with tho pastoral industries which, in the faco of world competition, had held their own in the markets of the world, providing New Zealand with the necessary credits to purchase the commodities she could not economically produce. Reasonable Competition

Quoting Article 7 of tho Ottawa agreement, Mr. Hislop maintained that it was the market of Now Zealand and not New Zealand industries that was protected. Therefore, nnder the agreement, the protection by a tariff should not apply to goods produced in Britain unless it could bo shown that such goods were being produced in New Zealand and could be assured of sound opportunities for success. When tho latter condition was fulfilled, only such protection should be allowed as would allow British goods a reasonable opportunity for competition on the basis of relative cost of economic and efficient production.. "We sincerely endorse the policy that the production of wealth, whether it be by primary or secondary industries, shouid bo encouraged," said Mr. Hislop. "If, however, encouragement of one industry means the hindrance of the full development of the other, then such a policy is worthy only of your most emphatic condemnation." Mr. Hislop considered no sleep need bo lost over the source of revenue if the customs tariff were discontinued. "If .we were to do away with tariffs in their entirety," he said, "the revenue would come from the same source as at present—the pockets of the community." "Britain Dissatisfied" Examined by Mr. A. E. Mander, secretary of the New Zealand Manufacturers' Federation, Mr. Hislop said ho did &t know whether the clause, giving tho British producer a reasonable opportunity for competing on tho basis of relative cost of economical and efficient production, was included in the agreements made with all the other Dominions, but he accepted Mr. Mander's assurance on the point. Mr. Mander: Do you consider Great Britain is dissatisfied with our present tariff?

Mr. Hislop: I do, most emphatically. Did you see a statement by Mr. Forbea that Britain had definitely expressed every approval of New Zealand's preferential treatment of British goods?—l also saw Mr. Forbes' statement in regard to the high exchange. The Chairman, Dr. G. Craig: We should not get on to that subject. Mr. Mander: Do you agree that Mr Forbes has had every opportunity of judging whether Britain is satisfied or not? His statement conflicts with your evidence. Mr. Hislop: No. The British people and the British Government think New Zealand will carry out the Ottawa agreement, and "under those circumslauces they are prepared to give us a clianco to carry out our agreement as a result of this commission. DATE FOR NEW SCALE NO INDICATION POSSIBLE Following a statement that the complete revision of the customs tariff will not be possible until some time next year, the president of the Auckland Chamber of Commerce, Mr. H. Turner, wrote to the acting-Prime Minister, the lit. Hon. J. G. Coates, pointing out that the announcement has created considerable uncertainty among the business community and asking whether it will be possible to expedite matters so that the tariff ' can come under comprehensive review some timo during the coming Parliamentary session.

"We havo evidence," wrote Mr. Turner, "that a substantial amount of business is being held up until the revised tariff comes into force. You will recognise it is very important to increase the volume of imports in order to rectify the present disparity in trade." . In reply, Mr. Coates writes: "It is clear that a complete review of tho tariff cannot be satisfactory unless very thorough and it is not possible at this stage to give any indication 6f the date of conclusion of the Tariff Commission's inquiries and deliberations."