A TARIFF ADJUSTMENT

New Zealand Herald, Volume LXX, Issue 21615, 6 October 1933, Page 8

A TARIFF ADJUSTMENT

The amendments of the Australian tariff, indicated in the Budget and now actually produced, contain a number of interesting features. The Minister introducing the resolutions immediately anticipated any outcry on industry's behalf by remarking that even with the reductions in duties one half the adverse exchange rate would remain as a protective device. He thus recognises in advance the criticism certain to come from the Labour Opposition, which, under Mr. Scullin, is pledged to the highest degree of protection for Australian industry. Next may be noted that British goods are given first consideration throughout. To this extent the revision implements the Ottawa undertakings. Australia thus gives a lead to New Zealand where, apart from the removal of the surtax on British goods and the specific concessions arranged at Ottawa, nothing has been done. The lead, in some respects, must be of fair length, for the Tariff Commission having been set up, it must be allowed to complete its labours before any actual tariff revision can be undertaken. This is true of duties, but need not preclude consideration of the 3 per cent primage. At Ottawa New Zealand agreed to remove this charge on B'ritish goods otherwise admitted free when financial conditions permitted. That reservation is wide and vague: but in Australia the reason for dealing with the primage on British goods is that the adverse exchange operates against them. It does so equally in New Zealand, and a concession • similar to that being granted by the Commonwealth would certainly be appreciated. The tariff proposals can be relied upon to impress British opinion very favorably. When their nature is realised, there may even be voices heard asking what New Zealand is doing. In fairness to this country it should be recognised that Australian duties as a whole are much higher than ours, that the margin of protection for industry is considerably greater. It is a point easily overlooked when action is being contrasted with inaction. New Zealand should be stimulated by this example to do something about the tariff at the earliest possible moment next year and to consider the primage duty sooner.