RECIPROCITY WITH SOUTH AUSTRALIA.

Otago Witness, Issue 1901, 10 July 1890, Page 19

RECIPROCITY WITH SOUTH AUSTRALIA.

WINE VERSUS OATS.

Prior to a deputation waiting on the Premier of South Australia urging that steps should be taken to conclude a reciprocal treaty with New Zealand, Mr H. J. Scott, the late South Aus-, tralian Commissioner at the New Zealand and South Seaa Exhibition, was waited on by a representative of the Adelaide Observer. The following appears in the columns of that journal: — ••I have, by the courtesy of the Customs authorities, been enabled to obtain some official figures showing the trade between that country and South Australia. The want of a direct line of steamers to New Zealand prevents my obtaining complete information. For instance, Victoria is supposed to send upwards of £16,00Q worth of fresh fruit there every year, but if you. ask our fruitgrowers they will toll you., that a.

great deal of this fruit is sent from here to, Melbourne and thenoe transhipped." " Have you gone into the question of what articles are the most suitable for reciprocal exchange ? "

" I find from the statistics' given that wo imported last year into South Australia 111,407 bushels of oats, and there was cleared for home consumption 108,325 bushels, producing a revenue to the Customs of £3133, but here again it is perfectly evident that New Zealand goods for Adelaide transhipped in Melbourne are entered as Viotorian, because the returns .show that £13,176 worth of oats were admitted from Victoria as against £1764 worth direct from New Zealand. The returns for 1886 give the value of, oats imported from New Zealand as £23,000 as against £2722 worth from Victoria. ,'lhe consumption of oats in this colony per annum is about a quarter of a million bushels'. I arrive at these figures by takiDg the entries for home consumption from the Customs returns for 1889, amounting to 108,325 bushels imported. Then I take the statistics collected this year, and find from them that there were 10,297 acres sown in oats in South Australia, and they produced 131,449 bushels. This makes a total of close on 240,0. W bushels. In 1886 we imported 231,995 bushels of oats. Our average yield amounts to 12| bushels to the aore, and that of New Zealand is upward? of 35. Climatic influences prevent us in South Australia from profitably growing oats over any. large area, and at the present time we can scarcely grow half of what we require for our own use." " How then do you form your basis for reciprocal exchange ?" 11 1 propose that we take their oats free if they take our wine under a reduced duty. The amount of Australian wine imported into New Zealand in 1888 was— 16,374 gallons from Viotoria 2,203 „ „ New South Wales

8,408 „ „ South Australia ; and the total duty levied amounted to £6238 4s 4d. This duty js levied at the rate of 5s per •gallop. If the New Zealanders reduced the duty to 2s 6d a gallon their revenue will suffer to the [extent of upwards of £3000 a year; but if we ;take off the duty on their oats the loss they iwould sustain would be counter balanced. The (difference, if there it any, will not amount to more than a few hundreds on either side. To put it more simply. We obtained in 1889 a rejvenue from the du*ty placed on all oats imported into South Australia of £3133, add New Zealand iwould have obtained a revenue of £3119 2a 2d lon all Australian wines imported if she placed :the duty at half a crown per gallon. Thus if we itake up the whole of the New Zealand wine I trade with Australia, and we on our part import joats only from New Zealand, then, according to ;my calculations for last year, the amount of {customs duties levied by the two colonies on .these articled would be equal within some £14. (There would be no appreciable loss, but a great Ideal of advantage to both parties by the transaotion.

j " You must also look at another aspect of the JquestioD," continued Mr Scott. "New Zealand -imports wines from Great Britain, Spain, Portugal, and other conn tries for £23,000 every year ; ;but under a reciprocal treaty I am certain our , wines would, advance in favour even faster than iat present, and we would doubtless absorb some .portion of this European trade. To show how : rapidly pur wine export to New Zealand is increasing I may say I have been informed by our i three prinsipal exporting firms that 20,000 gal ;of South Australian wine have gone to New 'Zealand' this year. Moreover, for New Zealand | to adopt a duty, of 2s 6d per gallon on South {Australian wines would merely be to revert ito the practice of., 10, years ago, before iwe raised our tariff and they raised ; theirs. I reckon that within a radius of (10 miles of "Adelaide there is room fot a I population of at 'least a million persons engaged [In viticulture, wine' making, and fruit growing. iWine growing is extending' very rapidly, I am glad to 'say, and, ,5000 acres, were planted last . year. Round' atybut Tanunda and other .places in the hills preparations are being made for i further planting next season. Wine growing is i one of the most profitable occupations that can be : followed here, because when the vines are in full ! bearing it gives a net return of £10 or £12 per acre per annum, It also gives employment to more people than almost any other industry of the 'soil that 'can be followed' here. Not only this, but it furnishes work for coopers, bottle-makers, printers of labels, and others, so that I think the Government 6hould encourage it in every possible way. " It has been asked whether we' should not wait for federation and complete intercolonial freetrade rather than, go in for a reciprocal treaty with New Zealand, but I must remind you that the federation question is exactly 27 years old, this very month, and it is hardly to be expected that intercolonial freetrade will be an accomplished fact for another 10 years at least. In tbe meantime a reciprocal treaty would develop our trado with New Zealand, so that when a Customs union comes we shall already have a well established trade with that country." . "What action do you think Viotoria would take if we succeed in negotiating a reciprocal treaty?" "I have no doubt Viotoria would obtain a similar treaty very soon, and I believe the effect would be to force on intercolonial freetrade faster than it would otherwise come. No, I do not believe that such a treaty between Victoria and New Zealand would have any very bad effect on our trade with the latter country. We are able to hold our own now, because owing to the natural riohuess of our wines they are better liked in a cool climate like New Zealand than the lighter wines of Victoria. I do not think the New Zealand Government will make any difficulty about adopting a. differential duty, for already they put 6s a gallon on European wines as against 5s a gallon on Australian. This is in no way a party question, for both the present and the late Premiers , have expressed their sympathy with the idea of reciprocity towards New Zealand. We have led the way before to-day in making lawß and compacts that have afterwards been copied by otber colonies and other nations, and if we can bring about such a treaty aa I have mentioned it will be one practical step taken towards the federation of Australia."

The South Australian Register, commenting on tbe, arguments put before the Government by the deputation, says:— "The difficulty that Mr Holder will have will be in convincing sach of the farmers of South Australia as grow oats, and especially some of the constituents of his colleague, the Attorney-general, that it is their patriotic duty to allow the New Zealand produce to come in free, regardless of consequences to themselves. Unfortunately for the hon. gentleman about the only sop offered to the farmers by the Protectionist tariff with which he has become identified is the duty upon oats, and it is not easy for him ta say to that class— 1 We find that the benefit you derive from that duty is fQ insignificant that we ask you to acquiesce in its .repeal in order that the winegrowers may gain the advantage of a freer entrance into the New Zealand market.' From the. point of view we have always taken we have no hesitation in say> ipg tha.t.ttiQ StSitQwiU bo a gainer and not %

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laser by the remission of the Customs charge upon oats, and therefore we can give an unqualified support to the proposals of the deputation."