TARIFF POLICY

New Zealand Herald, Volume LXXV, Issue 23058, 8 June 1938, Page 14

TARIFF POLICY

TWOFOLD OBJECTIVE ENCOURAGING INDUSTRIES EXTENDING OVERSEAS TRADE GOVERNMENT'S INTENTIONS [by telegraph—OWN correspondent] WELLINGTON, Tuesday A declaration that the Government contemplates no general review of tariff schedules within the life of tho present Parliament was made to-day by the Prime Minister, Mr. Savage. In cases of extreme urgency, in the interests of New Zealand, adjustments may be made in individual items. "Apart from the question of revenue, the Government's tariff policy is designed, firstly, to encourage the development in New Zealand of manufacturing industries suitable to tho Dominion; secondly, to foster trade with countries within tho Empire, and, thirdly, to develop trade with foreign countries which offer markets for tho Dominion's products," Mr. Savage said. "In considering the extent to which the tariff should be utilised as a means of affording assistance to industries, regard must necessarily be had to the economic aspect of each industry concerned, "It is necessary also to consider tho position in relation to trade with other countries, particularly tho United Kingdom, which provides an essential market for our primary products. The tariff, therefore, in general aims at affording adequate measures of protection for New Zealand industries, while at the same time permitting manufacturers in tho United Kingdom a reasonable opportunity to compete in this market with local manufacturers. Agreement With Britain "This is the principle which was endorsed at Ottawa and which this Dominion will observe so long as the existing trade agreement with tho United Kingdom remains in force. Negotiations commenced last year for the revision of the agreement are still proceeding. This principle, it will be noted, does not preclude the adjustment of existing duties in respect of goods imported from the United Kingdom, where tho circumstances render such steps necessary. In view, however, of the disturbing effect which it is recognised frequent tariff changes have upon trade, it is not intended that adjustments in respect of individual items should be made except where action is called for as a matter of extreme urgency in tho national interest. "Except in cases such as that mentioned, it is proposed to withhold consideration of the tariff until such time as schedules generally can be reviewed. No steps in this direction are proposed during the forthcoming session of Parliament. Should, however, complaint.? be received in tho meantime from New Zealand manufacturers that their interests are being prejudicially affected by importations from the United Kingdom or elsewhere, each case will be carefully investigated and considered on its merits. Empire and Foreign Trade "In so far as tho tariff may bo used to foster trade within the Empire," Mr. Savage continued, "apart from observing the principle already given effect to of granting preferences in favour of Enipiro products, tho Government will continue its policy of extending trade with various countries within the Empire by means of trade agreements with those countries. "With respect to trade with foreign countries, the Government, by »means of concessions "under tho tariff, has recentlv completed trade agreements with Germany, tho Netherlands' and Switzerland. - These agreements, tho former particularly, render possible the development of considerable trade with those countries in this Dominion's products.- Negotiations with a view to the conclusion of similar agreements with France and the United States of America are contemplated, and the Government will pursue this policy recognising tho necessity to _ develop export markets wherever possible."