Poverty Bay Herald PUBLISHED EVERY EVENING GISBORNE, FRIDAY, OCTOBER 21, 1932. THE OTTAWA POLICY

Poverty Bay Herald, Volume LIX, Issue 17916, 21 October 1932, Page 6

Poverty Bay Herald PUBLISHED EVERY EVENING GISBORNE, FRIDAY, OCTOBER 21, 1932. THE OTTAWA POLICY

The ease in opposition lo the trade agreements entered into at the Ottawa Conference was very lucidly and very aoiy staled in the House this week by the acting-loader of the Jaipur Tarty. Mr. .Savage had marshalled his points with great eans, and lie advanced every argument that he could adduce against the policy adopted by the Govermnent, and, in Diet, by the whole Empire. And now that every - In.iig possible has been said uu both sides of the question there emerges more strongly than ever the conviction that the achievements of Ottawa are the most momentous in the history of the Empire. Mr. Ravage’s main contention is that New Zealand, instead of making nerself more dependent upon external markets, should be moving in the direction of economic independence —towards the ideal of a selfcontained country —and with this object in view lie advocated a development of local industries and an incrca.se .in the purchasing power of the people. 'There is, of course, much to be said in favor of this view, but it is difficult to escape the conclusion that it is aimed primarily at propitiating the comparatively’ small industrial section that would be unable to oxisl apart, from the sheltering of high protective tar ill’s and does not regard

matter from the wider and more important national viewpoint. Mr. Ravage returns to the argument that induing should lie imported that we .annul ourselves produce, and that anything not obtainable in the country’ should be imported free of duty’. On the first point the difference of opinion is ns to what the Dominion can produce economically, and the second aspect is one of Jinance, for it is almost trite to remark that the

ptesctil customs tarilf is .imposed largely for revenue purposes and that the income derived is insufficient to maintain the services endorsed by a Government whose ideas of legitimate expenditure are a great deal more moderate than those of the Labor Tarty. In any ease, it seems somewhat illogical to demand, in the interest of consumers, that there should be no duties on essential imports, but that the same consumers should be unduly penalised by’ excessive tariffs ni overseas products Hint, compete with iueilicient domestic industries.

The, essence of till trade is that there .should be both buyer and seller. Mr. Savage, however, wants New Zealand jdared in the position of a seller only, with no obligation to take from the consumer of her produce the goods they have to sell, and from the sale of which they derive the credit with which to buy from us. The statement that it was better for the primary producer to sell to the consumer in New Zealand than to sell Iq consumers

overseas might be accepted .were it possible for the Dominion to absorb its own produce. The real position, however, was explained by the Minister of Lauds, who pointed out that we consumed only 3 per cent, .of our wool, 23 per cent, of our butter, 0 per cent, of our cheese, Tit per cent, of our mutton, and 7 per cent, or our lamb. If we were to accept a policy of disregarding our export trade, how would the country dispose of its surplus produce/ Mr, Savage referred to the need for au Empire migration policy’, but even if this were adopted New Zealand vvduld require three or lour titties her present population to absorb anything like the quantity’ of primary produce now available, ami, under present circumstances, any appeal for unrestricted immigration would hardly be popular, especially among the supporters of Mr. Savage's own party’. The real position, of course, is that the oomilrv is virtually dependent upon its overseas markets

and the lirsl stop to future prosperity ts to secure and extend those markets,

To secure an increase in the purchasing power of tlm community, which is earnestly desired on till sides, we must, sell more of what wo produce or else ootaiu higher juices for the same quantity. Certainly it does not matter wliere we sell, but since the country

cannot increase its own consumption —-except by’ Hooding an already overstocked labor market .with more immigrants—we must look overseas. By’

stimulating the demand for our products overseas we take the most effective steps for securing what Air. Ravage desires- —an increase in the purchasing power, and, incidentally’, a ..letter demand for the products of our secondary industries, since the latter arc mainly purchased with the proceeds from our exports. The Ottawa Conference has taken steps to accomplish this. Under the agreement New Zealand will have the opportunity of

selling more .tn her produce, and on better terms. The resultant increase in Ihe national income must increase the people’s power to ouy, and that, in turn, will assist, other domestic industries. It is a logical condition of these concessions that the Dominion should give better facilities on Iter markets to the goods produced by’ the people who have guaranteed to buy from her, but it. is wrong to assume that, these facilities must be detrimental to our own workers. On the contrary’, it will, in some measure, reduce the cost of living to them, and that, again, coincides with Air. Ravage s expressed desires. On yet another point the Ottawa agreement will have the results which he advocates; it wilt induce the investment of British capital. Capital invariably follows trade, and to the extent that the Ottawa agreement ensures increased and more permanent trading relations between Britain and the Dominions there are greater prospects of larger British investments in the outlying parts of the Empire. A condition attaching to this, of course, is that credit should lie sound, ami this raises iho point that New Zealand’s credit can only Vie maintained by Gu‘ icgular service of the existing debt to British bondholders, a teat that woub. he impossible if the theory of a sellcontnined nation were earned to its ,-.inclusion. Actually, Mr. Ravage appears to have, no complaint with the results that the Ottawa Conference will produce, but he fails to realise how very greatly they will meet the wishes he has expressed w ithout going to the dangerous extremes he has advocated, and which, in all probability, would defeat their own ob.iectives.