THE OTAGO DAILY TIMES TUESDAY, SEPTEMBER 3, 1907. THE TARIFF BILL.

Otago Daily Times, Issue 13998, 3 September 1907, Page 4

THE OTAGO DAILY TIMES TUESDAY, SEPTEMBER 3, 1907. THE TARIFF BILL.

The Government may, upon the wholo, deem itself to be fortunate in respect of the progress which has been made so far in the consideration of the Tariff Bill. Two nights' discussion has sufficed for seven out of the sixteen classes of dutiable articles that comprise the first of the five schedules of the measure. This represents very satisfactory progress, but we should think that the Government is asking rather much of the House if it expects it to complete its examination of the Bill in the foui sittings of this week. A revision of the tariff is, happily, not undertaken afc frequent intervals, ■ and this render? it a matter of especial importance that it should be thoroughly and systematically performed when it is taken in hand: not that we doubt the earnestness with which the members havp applied themselves to the duty which is imposed upon them, even though we may have soma difficulty in detecting any trace of a system in their treatment of the proposals. The principle upon which 1 members who support the abolition of the duty 011 flour oppose, the reduction of the duties on fruit is, we confess, incomprehensible t.o us. If they were influenced in their former vote by consideration for the interests of the consumers it might have been expected that they would give their ap-

proval to a proposal which would ' have the effect of lowering the prices ' of fruit in the colonial market. It is at least questionable, Sir Joseph 1 Ward lias pointed out, whether the removal of the duty on flour would benefit the householder in any degree. "As tho bakers do not deal in farthings no reduction in the price of bread would result unless the bakers gave up the half-penny per loaf, which i 9 the whole benefit of the remission." Consumers who believe they wild secure a- cheaper loaf if the duty were removed may well ponder over these words, in which tho Prime Minister suggests tho improbability of their gaining the slightest benefit as the outcome of such, a step. For tho sake, however, of conferring j a problematical advantage upon tho public, members who boast that they are favourable, to the protection of local industries supported a proposal Which, it is averred, would cripple every flounnill in the colony, deprive hundreds of workmen of tlie employment they' possess in the milling industry, and ptobably throw out of wheat cultivation many scores of thousands of acres that are ah present devoted to the growth of this cereal. It is, for these members to reconcile, in tho best way they can, their actions in Parliament with the fiscal convictions they profess •: we merely direct attention to the inconsistency of the votes they have recorded, since it serves to Illustrate the absence of any definite principle from the consideration which the House is giving to the tariff, We should, however, exempt the Government from the scope of this criticism, . It has tho revenue to protect, in the first placs; and its concern for the finance of the colony represent? the main argument upon which it relies in combating an effort to secure the reduction of any of the> dutios it lias proposed. It is influenced in the second place by a desire to afford to local manufactures what it regards as a reasonable measure of protection against competition from abroad. But in the pursuance of this,desire the Government protects the colonial industry at the expanse of thg revenue. In other words, it sacrifices revenue in order that certain industries may be artificially fostored, and to that extent it taxes the public. This is notahly the case iii regard to the duties on fruit. There is, the Minister of Customs said last week, no industrv in the colony that is so highly protected as that of grape-growing. Now, although most descriptions of fruit arc, by reason of the duties that are levied upon them, unduly high in price, grapes are sold at rates which put thein beyond the reach' of all but those who are well-to-do or fairly well-to-do members of the community. This is a case in which' a remission of duty would probably result in immediate benefit to the, consumers, since it would admit of the sale of the fruit at a moderate price. But legislators who wore prepared to vote for tho free admission of flour, and to take all the chances of the destruction of an industry in consequence, fell back upon their protectionist principles to justify their opposition to a proposal that would have the effcct cf enabling the masses of the public to obtain supplies of fresh fruit at moderate rates. The plea that it is desirable to give adequate protection to local industries operated also to secure the adoption by a large majority of the Government's proposals for amending tho duties 011 boots and shoes. Under the old tariff a duty of 221 per cent, ad valorem was charged upon these goods, unless they were the product of foreign countries, in which case the duty was 33| per cent. It might have been imagined that this was a sufficient measure of protection, for an industry that has been in existence in the colony for many years. The Customs returns show, however, that boots and shoes to a total value of £272,456 were imported in 1906, yielding a revenue to the colony of £66,705 in duty. This lias apparently convinced the Government that the old tariff was not- sufficiently protective iu its character. Moreover, tho Minister of Customs says that shoddy boots have been coming in. to the colony for years. For these reasons the old tariff is to be superseded by a new scale of duties under which an ad valorem duty will be supplemented by a direct rate upon each pair of boots and shoes that is imported. The proposal is one which, we are afraid, will increase the price of the working men's boots and shoes to a greater proportionate extent than the higher-priced goods; but Mr •Millar justifies it 011 the ground that it is necessary in the interests of the local industry; and this argument prevailed with, tho House. Probably, whom the eft'eet of the change is ( realised by the masses of the colony ' there will, as Mr Masrey. cxpects, not be so much complacency over it as is being shown at present.