FEDERATION COMMISSION

New Zealand Times, Volume LXXI, Issue 4291, 26 February 1901, Page 3

FEDERATION COMMISSION

OPENING SITTING IN' WELLINGTON, Tlio Federation Commission, for tin purpose of obtaining evidence for and ay;,dost federation with tlio Australian ('nm.momvealtli, commenced its sittings in Wellington yesterday morning in tbe Legislative Council Chambers.

Lieutenant-Colonel Pitt, chairman o! the Commission, presided. The Hen. W. Rolloston, being engaged in attending the University Senate at Auckland, telegraphed offerinr to furnish a written statement of hi: views of the question. It was decided • o aeeept the offer. Mr Gresley Lukin asked to he. excused from giving evldenee. ft was decided to ask Mr Lukin to attend this afternoon.

Mr James Tzett forwarded a writ ter statement of his views, ft was decided to ask Mr Izett te, attend on Friday. A MERCHANT'S VIEWS.

Mr Nicholas Reid was the first wit ness called. He laid been, be said, '•

merchant in Wellington for the past forty-two years, and was at one time president of the Wellington Chamber of Commerce. ITo was opposed to federation, believing that the loss of selfgovernment would outweigh onv advantage in its favour. Under federation I boro would, if sugar were admit led free, be a loss in Customs revenue of ■£ 100,873. If the Federal Government reduced the duty on tobacco there, would probably be a less of CIOO.000 on tobacco. There would also be an increase in the amount ol Australian spirits imported, which would involve a loss of about one-third on that a.rfielo, while the revenue frem Australian wines would also suffer. The revenue from goods, boots and shoes, leather and other products would also bo reduced. Another reason for objecting to federation was that it would cost this colony Cooo,ooo for the management of the state. With reprard to exports, tint Australian colonies had a large surplus of wheat and flour, which could bo sold at 10s a ton less than in New Zealand, and the North Island would import much of its flour from Adelaide or Victoria, and 1 that would strike a blow at tlm New Zealand milling industry. The manufacture! of lams and preserves would lie destroyed. Hops, preserved milk, bacon and cheese would benefit, but the and confectionery trade woidd hr- -wiped on 1 . New Zealand had lost the trade with the South Sea Islands, which had gone to Sydney. Tho benefit to the timber trade was donblfid. the boot and shoe trade would he mined, and in a short time the export of oats from New Zealand would cease. Reolving to tbel chairman, witness said New Zealand foundries would not bo able to compote against Australian foundries. At present there was nnlv a small export of agricultural implements. and that would soon die out. Thought that a “White Australia’’ was impossible, and that Hie Queensland sugar industry could not be continued without coloured labour.

In reply to other questions, witness said ho gathered that the Federal tariff would ho moderately protective. Victoria was anxious for federation, 'because it would increase her markets. Australia was becoming more self-sup-porting; every year, and but for tbs drought Now South Wales would have bad a surplus of a quarter million bushels of wheat. Believed the expense of administration of the Commonwealth would be greater than anticipated. Did not think that climatic influence would enable New Zealand workmen to turn out more than Australian workmen. The price of land was loss than in New Zealand, and labour and railage were also* cheaper. Did not think that New Zealand would get any return in the shape of public works for her contribution of £600,000. There would be a mfliculty in getting a reciprocal treaty with thd Commonwealth in regard to sugar, bub he thought they would succeed in regard to nine. The loss to the revenue had boon put down at £500,000, wlp'ch would have to bo mndo up by direct taxation. The cost of cultivation and harvesting was muoli less in Australia, than in New Zealand. Including the loss in the Customs revenue and the contribution to the Commonwealth, federation would cost New Zealand £1,100,000. The value of trade between Australia and New Zealand was about level, therefore the Australian Commonwealth would not he interested in putting on a protective tariff' against New Zealand. Did not think New Zealand had anything to fear from a protective tariff.

EVIDENCE BY MR S. BROWN. Samuel Brown, coal merchant, president, of tho Wellington Industrial Association, said the association had not collectively considered tho question of federation. Personally, he. was not affected hy tho qtiestion. If this colony federated with tho Commonwealth, the j workers in New Zealand would he af- 1 fected, not so much by Australian com- | petition as that from Germany and | America. From an industrial point of I view, Now Zealand needed Australia, j more than Australia needed New Zea- j land. New Zealand might need Aus- ; tralia if its workers were to maintain ' their present, comfortable standard of living. Thought the. tendency would ho to raise wages in Australia. On equal l("ins, he believed New Zealand workmen would produce more than workmen in Australia. Thought the result of New Zealand’s federating would bo ■ to level up wages, not to bring down Now Zealand wages. A small colony like New Zealand standing alone would have no influence in making a tariff with one of the great European Pow- ' eis. Tie thought New. Zealand would suffer in the expenditure of public) money. It might cost Australian mann- I lecturers a.s much to produce goods in their largo factories as it cost the Neit , Zeeland manufacturers, as the conditions of labour in Now Zealand and i Australia were not similar. Ho thought. New Zealand would suffer from, the competition of Germany, America and the East. Had no opinion to offer as to whether it would be advisable for : Now Zealand to federate. He was quite indifferent on the subject. MU MARTIN KENNEDY’S EVIDENCE. Martin Kennedy said be was largely interested in the industrial interests <of the colony, and had had commercial connections with Australia for over twenty years. His opinion was that it would bo bettor for this colony not to federate, and ho believed that the colony would do hotter under present conditions. Our constitution was sufficiently elastic to develop our resources, and he thought that our federation with Great Britain was sufficient. What New Zealand wanted was population, manufactures and land settlement, and he failed to see how federation would promote these objects. Did not tiling federation would have much influence on our leading industries. The revenue from oats would bo neutralised by flour, which we imported from Australia. He believed federation would have a most disastrous effect on tho industries of this colour, because Australia was more developed than this colony, which would

bo made the dumping ground for then surplus. The finances of this colony would suffer. The first thing that would have to go would bo our old age pension system. .Sentiment entered largely Oitr the consideration of such subjects, am the influence of New Zealand in Commonwealth affairs would bo so .small Hi.i the oniony would suffer. It would In fair to assume that all fat Government billets would be given to the stronge; party in Australia. There would be koiix advantage—there would be no necessit; for examining the luggage of travellerFederation would not bo of much ad vantage to u.s, as it was very little eba: Australia took from us.

In reply to the chairman, witness sail he did not think the Commonweal*i ;ould borrow money on better terms time this colony Did not think the Com reonwealth would ever he' able to bor row on as good terms as British consois Had exported malt to Sydney. In tna colony they paid ten per cent, more fo, English barley than for colonial. L sew South Wales they grew quite as gum barley as they did in New Zoalun I. they bud greater facilities for prodution in Australia, and the price of hue, was much lower than in New Zealand \inety-two per cent, of our product vas sent Home, and only eight per com to Australia. Did not think Austral! would enter into reciprocal relation with tins colony. .Reasoning by his ex pericnoe in his own country, the tomb-.. :-y would be to fill the public offices wit people outside New Zealand. Did no think the question of distance wonh. handicap this colony. As to defence, n did not think New Zealand would gab any advantage, as Australia and Nov. Zealand had interests in common in tha matter, Each would help the other b case of necessity. He would prefer re ciprocity to federation. The malt in dustry would he injured, but not ruin ed. Labour conditions in Now Zealan were better than in Australia, but In thought the latter would adopt tho.-i ruling in New Zealand. The imiuediat: effect of federation would bo that oa manufactures would be adversely* at footed. New Zealand was in a mud more prosperous state than Australia The progressive legislation of this co ouy had°contributed to that prosperity If it wore true that in event of fedora tion the land and income tax of tin colony would have to bo quadrupled, i would be a very serious thing. MR T. O. MACaG ; HVS VIEWS.

T. Cl. Maoartliy said he had beer thirty-six years in this colony and ten ii Australia. Until the questions of freetrade versus pTotcctioh and the racial difficulty in Northern Australia hat boc-u settled, this colony should not federate. Some of our superior working men might bo attracted to Australia, and if the tariff'tvas made about similai to that of Now Zealand this colon) would be injuriously affected. II > thought this colony should remain as i: is. The financial result would he disadvantageous to this colony. The close identity of the interests of Australian States and tho Federal Parliament would he prejudicial to this colony. Ji was absolutely Necessary that coloured labour should be employed in tho sugar industry. The distance of this colony From Australia would not he a. disadvantage. A “white Australia” could not he carried.

The Commission adjourned at one par. till ten o’clock this morning.