HIGHER PROTECTION

New Zealand Herald, Volume LXXV, Issue 22975, 1 March 1938, Page 10

HIGHER PROTECTION

Considerable surprise will be occasioned at the scope and number of the tariff amendments involving increased protection brought into operation as from this morning by Orders-in-Council. Changes in the Australian trade agreement were expected but the amendments also affect Britain, South Africa, Canada and foreign countries. Increases in duty range from 5 per cent to as much as 20 per cent and include both necessities and luxuries. The object stated by Mr. Nash is to safeguard local industries and promote their development. He does not state that their need of higher protection is directly due to the Government's policy of raising wages while at the same time shortening hours. Labour costs are hampering local industry in competition with overseas industry. So New Zealand consumers are being compelled to pay the price in higher duties or higher prices for goods produced under higher protection. Few will build much on Mr. Nash's pious hope that prices will not rise. They will take more note of the ominous remark of Mr. M. R. O'Shea, secretary of the Manufacturers' Association, that this morning's list is a "first instalment" and that his association cannot yet say whether all the industries requiring increased protection are covered or whether the cover is sufficient. One effect of the new duties may be to divert trade from Canada, Australia and foreign countries to Britain. Duties have been raised on many manufactures of these two Dominions and, to preserve Empire preferences, consequential increases have been made in the relevant foreign items. Apart from footwear, however, duties on British goods have not been raised and her margin of preference over a wide field has therefore been increased. This may assist in diverting purchases from small customers like Australia and Canada to a large and regular customer like Britain. It is unfortunate that local urgencies should have dictated the Canadian increases so soon after Canada had remitted the dumping duty _pn butter, although the blow in her case is softened by the remission of surtax, except- in Tespect of footwear.