THE LEVEL OF PROTECTION

New Zealand Herald, Volume LXXI, Issue 21912, 22 September 1934, Page 10

THE LEVEL OF PROTECTION

The tariff revision now being dealt with by the House of Representatives involves, in a number of instances, the reduction of duties on British commodities which compete with the products of New Zealand industries. In other words, the level of protection, as against the British manufacturer, is being reduced. The possibility of this happening should have been foreseen long ago. One of the undertakings at Ottawa was to revise the tariff with a view to giving the British manufacturer the opportunity of competing on equal terms with local industry. This was a wide and rather vague prescription, but its application was bound to call for some downward revision of duties. It could not be assumed that the New Zealand tariff existing when the conference was held embodied no duties which gave local industry higher protection than that principle embodied. Yet it has been notable that in instance after instance, when the House was asked to reduce a duty, there were protests that a promising industry was being exposed to the risk of ruin, a.id that unemployment would be increased. This, of course, is in some degree inevitable when any duty at all protective is touched. Members then tend to appear much more in the character of advocates than as judicially-minded. But there is beneath the situation the question of what the tariff in New Zealand stands for, and whether it is to be allowed any flexibility. This country is committed, and has long been, to a policy of moderate protection for local industry. On. that understanding vested interests have been created, interests of labour as well as capital. They should not be disturbed wantonly or without due thought. It does not follow that if an industry has been established and has gone far toward finding its feet, that it can expect always to enjoy the same measure of protection as in the beginning. If there is a reasonable inference that it is being given more shelter than it should require, it should have to face some reduction. In a word, it is not consistent with New Zealand's tariff policy to regard protective duties as never susceptible of variation, and that should be understood whenever an industry is started .within their shelter.