TARIFF REFORM.

Otago Daily Times, Issue 13834, 22 February 1907, Page 5

TARIFF REFORM.

. DEBATE IN THE HOUSE OF COMMONS. SPEECHES BY MR CHURCHILL AND MR BALFOUR. MR HILL'S AMENDMENT NEGATIVED. Pr<«» Association—By Telegraph-Copjright. LONDON, February 20. Mr Winston Churchill (Under-secretary for the Colonics), speaking to Mr Hill's amendment to ilm Address-in-Reply expressing regret that Dm King's Speech did Jiot mention the Colonial Conference, and did not refer lo the opportunity thereby offered of promoting freer trade within the Empire anil closer commercial relations with the colonies on- a preferential basis, declared that the Conference was a most important constitutional function, and it would be treated with every respect. He argued that it wa.s impossible to give preference, to the colonies .without taxing bread, meat, and dairy produce. The Government was opposed to colonial preference politically, and also on economic grounds. Taxes on fond would arouse against Iho colonics a dangerous and terrible antagonism on the part of the workers of the Motherland. Mr Hill's amendment was a marked advance on Mr Balfour's letter to Mr Chamberlain on February 14 last year, wherein ho defined his position on tariff reform. Mr Churchill added: " Yet Mr Balfour is, about to support this amendment, although it emanated from the most militant section of the larilf reformers."

During the debate Mr R, Hunt (Union-1 ist) implored Mr Balfour to descend from the heights of philosophy and golf, and explain his fiscal policy in language that I ordinary persons could understand. Tho Liberals roared with laughter, unci Mr Balfour joined in. The Radicals cheered Mr Churchill's denunciations of preference. The Times says: "Mr Ramsay Mac.donald's facts relating to foreigners outbidding for Australian raw materials suggest a strong argument for Imperial preference in order to avert tho danger of Great Britain's supplies of raw material being intercepted. Differential treatment may give us, in the event of an export duty being imposed on .Australian materials, an important advantage in the purchase- of such materials as are not directly required for Australia's industries."

February 21 (Received Feb. 21, at 11.32 p.m.)

Mr Hill's amendment was negatived by 353 to 98.

Mr Balfour, in supporting the amendment, said the Government should enter the Colonial Conference with an open mind. He asked how they meant to keep intact the bonds uniting the Motherland and tho colonics. A zollvercin was impossible and an Imperial Council impracticable. Meanwhile the colonies merely asked Britain to make a beginning with her present fiscal system. He believed fiscal and industrial necessities .would compel Britain to adopt a wider basis of taxation and utilise it in order to gain admittance to foreign markets. They would thus meet the needs of the poorer classes and secure on a preferential basis closer connection with the colonies.

(Received Feb. 22, at 0.32 a.m.)

Mr Isaacs and others largely dealt with the question of taxing the food of tho people, and Mr Austen Chamberlain answered their arguments.

Sir Gilbert Parker urged that a shilling registration tax on corn would give Australia and Canada all the advantage they needed. He declared Mr Ramsay Macdonald's statement that Australia was going to prevent the export of raw material was the most monstrous travesty of Labour principles he bad ever heard. If the Australian Labour people meant that, and lie did not believe they did, then Australia's doom was certain. The production of raw materials was the only production of a new country in the initial stage which could possibly give work to the workei. Mr Macdonald's argument was absolutely contrary to all principles of Laboni. They knew as well as anything that Australia should not put an export tax on anything she produced. He instanced the United States, under whose Constitution it was impossible to do so, the democracy knowing that its whole salvation was dependent on the products of the soil. Australian wool com-mand-ed our markets and did not need preference, but Australian development lay in the direction of dairy products, and sooner or later the Aibtherlitnd would accept the policy of preference, no matter how small, as a basis of larger prosperity and a healthier condition of the trade of the Empire.

Mv Lloyd-George (President of the 150a.nl of Trade) emphasised the value of the frozen trade, and warned the House of the danger of imperilling it by any thin end of the wedge leading to Protection. He urged that the amendment was introduced for the purpose of converting Mr Balfour, whorn he congratulated on his ingenuity in eluding the tariff reformers' snares.

In February, 10C6. Mr Balfour, in a leltor to ill Chamberlain, stated: "I hold that fiscal reform is, and must remain, tho first constructive work of the Unionist party; that tho objects of such reform are lo secure more equal terms of competition (or British trade and closer commercial union with tho colonies. The establishment of a modcrato general tariff on manufactured goods, not imposed for the purpose of raising' prices or giving nrlificial protection against, legitimate competition, and the imposition of a small duty on foreign corn, nro not. in principle objectionable, and should bo adopted if shown to be necessary for tho attainment of the ends in view or for tho purposes of revenue."