TARIFF CHANGES

Poverty Bay Herald, Volume LII, Issue 17130, 4 September 1926, Page 16

TARIFF CHANGES

FURTHER DISCUSSION

ALLUOATIONS DEFENDED

;Per Press Association.) WELLINGTON, this day

The Hon. A. 1). McLeod, Minister of Industries, said that tariff revision must bo considered carefully from the viewpoint of all..sections of the people. 11l old days' of horse traction most of the things' used in connection therewith were locally produced. In increasing taritf duties, every care must, be taken to see that the'interests of primary producers were fully protected. Replying to an interjection, the Minister said the farmers of New'Zealand never limited wheat production in order to get a higher price. lie believed that next season 10,000,000 bushels would bo grown in the Dominion, and the price would be on a world parity. We could increase our local consumption of our own products and still the price would be lixed in London.

Mr. 11. E. Holland suggested the whole situation ought to be reviewed before next- session, so that, while protecting the local industries, at the same time the people, would be protected against, exploitation through monopolyprices. We should lift the'duties, altogether, off such articles as cannot be produced in New Zealand. He considered it was wrong that the prices of New Zealand products, such as butler and cheese, io consumers in New Zealand should be governed by the London parity.. Since New Zealand could not make motor cars, why not 'let the British car in free of duly, if it was desired 1 to give tariff assistance to the British manufacturer. MINISTER'S EXPLANATION.

The Hon. W. Downie Stewart, Ministin' of Customs, in reply, referring to ii point raised by Sir Joseph Ward, said tliat since goods were coining into the country as British goods that were net really British manufacture, but were partly made in Britain, thus qualifying' to come within the scope of the British preference by reason of 25 per cent of the materia.! or work being British, it was then decided to try making the percentage 75. but this was found inimical lo Britain, so New Zealand decided to try £0 per cent. This had been met in the ease of American motor car.s, by the makers assembling ears in Canada. New Zealand could not take any steps that would hit at Canada, because the latter had been very fair in her treatment of New Zealand produets. British cars suitable for New Zealand's needs would lie on the market here in a month or two. They were already on sale in Australia. The Canadian Ford was a ear used more than any other by the farmer, and 1 on this the duty was to be eased, which .should enable its sale at a cheaper rate. About 27 per cent, of the cars imported into (he IJominion were Fords. American manufacturers were over-slating the, value of the chassis, making it appear that, the bodies could be built for orilv a. few pounds. The duty on British cars was 20 per cent, on cheaper makes, and on similar foreign vehicles 50 per cent. This, while helping local bodv makers, would also a.ssist Hie British makers. MORE EMPLOYMENT,

The Minister slid the ultimate result of the increased duties would Oe the establishment of assembly works in New Zealand, which would give employment to New Zealand skilled and other workers. He thought it unwise to indulge in 'frequent tariff which, where tried, as in Australia, wcvp producing chaos in business. Though there were almost daily operations of the Tariff Hoard in New Zealand, wo had had no general tariff revision since 1921, and an overlaid was now due. The additions to the duty on American and ether timbers was only made after consultation with the Forestry Department. Touching on the Onakakn ironmills, he sud the product thereof wr.s used ill a suing of other industries, and In malic ii special protective provision for the iron would react detrimentally on various other industries, such .is agricultural implement manufacture, which v,as subject to Gere? competition from overseas.

The Hill was read n second time, pal through committee without [intendment, read a third lone and passed.