THE OTAGO DAILY TIMES WEDNESDAY, MARCH 22, 1922. TARIFF RECIPROCITY.

Otago Daily Times, Issue 18510, 22 March 1922, Page 4

THE OTAGO DAILY TIMES WEDNESDAY, MARCH 22, 1922. TARIFF RECIPROCITY.

The result of the negotiations which are now being conducted between the Ministers of Customs of Australia and New Zealand with the object of effecting tariff adjustments will be awaited with a great deal of interest by people in both countries, who rightly feel that the Customs law as at present applied by each country towards the other is, even if temporary only, simply intolerable. On his arrival in Sydney Mr Downie Stewart informed an interviewer that it would be more correct to describe the future fiscal arrangements between Australia and New Zealand as in the nature of “an equitable trade agreement” rather than in that of tariff reciprocity. There is something that is cold and somewhat uninviting in the definition employed by him. Australia and New Zealand are neighbours by force of circumstances. Moreover, they are partner nations in the Empire. At present they treat each other under their respective tariffs as “foreigners” or “least favoured” nations. In all other matters they must, for their mutual protection, act as members of the great Imperial family. If trouble should ever arise in the Pacific they would stand or fall together. The existing tariff relationships are unsatisfactory to all except a few manufacturers in each country who deisire a monopoly of the trade in their particular branches of industry within their own dominion. Some of them desire absolute prohibition of importation from without. While such an arrangement as would provide for the existence of prohibitive tariffs might benefit a few it .would be distinctly inimical to the interests of the general public. Mr Downie Stewart very properly recognises in the present position a “tariff difficulty” which “should be settled satisfactorily as early as practicable.” The Federal Minister of Customs has proposed, we gather from the cable messages, a mutual exchange of the British preferential tariff in both countries as a basis of trade treaty. He has said that New Zealand was placed on the general schedule in the Australian tariff as a least favoured nation because the effect of this was to establish a point from which negotiations for a reciprocal tariff agreement might be entered upon. As New Zealand has placed Australia in the same position for the same purpose both countries at least start equal in the matter of tariff bargaining. Mr Stewart has refused to accept the Australian proposal in globo and has submitted an alternative scheme. Ho has been represented as declaring that complete reciprocity was impossible “because New Zealand’s production of foodstuffs was similar to that of Australia.” It is to be concluded, therefore, that a mutual exchange of the British preferential tariff is not acceptable to the Government of the dominion. If this be so, the Government, at least, has no cause to express indignation at the fact that New Zealand was placed by the Federal Parliament in the least favoured schedule, and it appears to affirm a principle that tariff barriers should be erected between two parts of the Empire, which have a very great deal in common. The whole question may be approached from ' two points,—the British preferential tariff might be accepted as between Australia and New Zealand, with certain exceptions concerning which there might be an agreement, or the exceptions might be agreed to and the least favoured nation principle applied to all other items. Broadly, the former of these alternatives is not only the preferable, bat it is also that which is in harmony with the accepted principle of British preference. Australia and New Zealand are indissolubly bound together, and the desire of the Federal Minister of Customs for a closer linking up on matters affecting Empire trade problems is one that is highly attractive. The maintenance of substantial tariff walls is not conducive to close relationships, and it is impossible to be enamoured of any proposal to keep the two countries in the attitude of “foreigners” in matters of general trade. There are no material differences between the countries in respect of industrial conditions, as both are in the same category in the observance of short hours and the payment of high wages. Freights and contingent charges constitute a measure of protection to each of them against the other, and the ideal arrangement surely is one under which the fullest trade interchange would be possible. There may, of course, lie certain lines of goods in respect of which both countries may, in terms of the fiscal policy they have adopted, seek special protection or claim special consideration, but it should not be impracticable to make the adjustments that may be deemed to be necessary even though the British preferential tariff should be adopted in principle. That may, of course, be Mr Stewart’s plan. For the future mutual good relationships of these two British nations in the Pacific it is to be hoped that it is.

CENTRAL OTAGO DEVELOPMENT. The Minister of Public Works will have been deeply impressed daring his Ministerial visit to Central Otago by the evidence supplied by settlers of their abundant faith in the tuture of the district. That their optimism is''fully justified has already been proved, and what has so far been accomplished is a comparatively small indication of what ultimately lies ahead. When Central Otago has -been irrigated its fertile lands will be thickly populated, and it will then be a source of great wealth to the dominion. The replies which Mr Coates - made to the requests that were proffered for assistance in the great development work which is contemplated in the district were, on the whole, sympathetic. It would be premature to deal at length with the larger proposals for combined irrigation and hydro-electric services. The relative values of the rival schemes are matters which can only be finally settled by the residents themselves, aided by expert advice as to cost and the possibilities of service. The allimportant fact is that there exist such abundant sources awaiting exploitation. It will be well, however, to avoid the unnecessary duplication of schemes which would multiply the cost to the settlers and reduce the proceeds of their endeavours. The Minister advised the formation of a Power Board to include Cromwell, Alexandra, and Clyde, and this appears to be a sensible plan to secure that uniformity of policy which is so necessary to proper development. One comprehensive scheme may prove to be cheaper and more satisfactory than a number of small efforts. The note of surprise expressed by the Minister respecting the apathy of Dunedin should not go unheeded. “The extraordinary thing to him,” said Mr Coates, “was that the peoplfe of Dunedin had not taken a much more active part in securing irrigation for Central Otago than they had done.” He paid a fitting tribute to those who had done their part in the development of the district, and there is unquestionably much yet to be done. In a large measure the prosperity of Dunedin is dependent on the efforts which are made in the country that lies behind the city, and Central Otago promises a great deal in this direction. It is fairly safe to assume that money would be forthcoming to finance mining enterprises if the prospects of success appeared attractive, but Central Otago, under irrigation, promises infinitely greater wealth than would be derived from any gold-winning proposition. This fact will perhaps be more widely appreciated by ihe next generation, when the proofs of the wonderful productivity of the district are more patent to all, but there is no sound reason why this generation in town and country should not reap abundant rewards from Nature’s bountiful harvest. The spirit in Central Otago is sound and progressive, but the fullest co-operation of Dunedin is essential to its fuller and further development. For its part the Government has promised a certain amount of assistance, and each year should add to the wealth and prosperity of the settlers who have chosen this land of great possibilities for their homes.