THE PARTING OF THE WAYS.

Otago Daily Times, Issue 20222, 7 October 1927, Page 8

THE PARTING OF THE WAYS.

In the opinion of the Minister of Customs, New Zealand is coming to the parting of the ways in the matter of tariff revision, so that Parliament will bo called upon to decide whether the present policy which Mr Downie Stewart himself describes as one of moderate protection is to give place to one of out and out protection. In the early days of the Dominion the Customs duties were imposed almost entirely for revenue purposes, and only by degrees was tho thin end of the weclgo of protection introduced in its application to articles manufactured in the Dominion. There is at the present time an insistent demand on tho part of those responsible for the conduct of the secondary industries for additional protection. As a result of the campaign that is constantly waged in favour of protective tariffs certain industries have already a high tariff wall raised in their behalf, but many of those who enjoy this protection are not satisfied. It would almost seem that the imposition of protective duties behind which an industry is sheltered induces a desire and creates a demand iiiat the tariff wall should be still further raised. The Minister ot Customs has throughout the discussion on the subject shown a disposition to compromise between opposing interests, but it is evident that he has come to the conclusion that a point has now been reached at which

the Government must take a stand. Despite all that can be advanced to the contrary by the advocates of higher tariffs, there is more than a suspicion that the comparative security afforded to highly protected industries and the consequent weakening of competition tend to discourage initiative. Any comparison between conditions in New Zealand and America is, of course, most misleading. What renders the United State so impregnable under f a high tariff wall is the enormous home market that exists. In the case of New Zealand*, the sound position to take up is that no demand for increased protection should be entertained unless it is supported by arguments of unquestionable weight and cogency. It seems prooatile that that is the view which Parliament will adopt. It may be hoped that it will exhibit a similarly reasonable attitude concerning a curious proposal, inserted in the Customs Duties Bill, against which the Chamber of Commerce in this city has rightly raised a protest. It will be a misuse of authority if, as is provided in the Bill, power is to be 'conferred on Customs officials to refuse clearances of goods in what may be deemed excessive quantities at a time when the imposition of increased duties is feared, and also to empower them to make retrospective demands for additional duty within three months of the revision of the tariff. It may be doubted if there is any precedent for a proposal of this kind. Whether it is novel or not, it contemplates the clothing of departmental officials with extraordinary powers which they could hardly pretend to exercise with complete fairness.