NATIONAL UNITY

Poverty Bay Herald, Volume LIX, Issue 17951, 1 December 1932, Page 8

NATIONAL UNITY

DOMINION’S GREAT NEED LESSONS OF OTTAWA HON. W. I). STEWART'S REVIEW “If the, ideal of the Ottawa Conference was economic unity for the Empire, how important it is that there should he national unity in New Zealand. In illy opinion we can only overcome the unprecedented difficulties we are facing if all classes, all sections and interests combine to show the necessary courage,, patience, and willingness to assist their neighbors. Harmony is imperatively necessary if we are to come through this crisis successfully. ” These remarks were made toward the conclusion of an address to the \\ elliugtoii Manufacturers’ Association by the lion. W. Downie Stewart, Minister ot Finance and Customs. His address was mainly directed to the Ottawa Conference and an expression of appreciation of the way in which New Zealand manufacture!', had responded to the circumstances with which the Dominion was faced. “A FARMERS’ HOLIDAY” Sir. Stewart recalled that many years ago manufacturers, on a revision of tariffs, said he had butchered them for a farmers’ holiday. They seemed to have survived. Hooii afterwards the farmers accused him of being under the heel of the manufacturers. So he had to do his best to balance things. During the last 10 years there had been two major revisions of the tariffs, together with minor revisions. He had tried to do justice all round by taking the long view, as he believed they had also done, of the national policy of the country. Speaking of the Ottawa Conference, the Minister * expressed his thanks to the manufacturers for the assistance they had given iii that direction. They realised that a systematic settlement of this country began 50 years behind Australia, and the earliest stages ot development were always agricultural and pastoral. Industrial life only emerged after rural industries had progressed some distance. Compared with other Dominiohs, New Zealand was a small and isolated country which had been described as “two small islands lost in the immensity of the Pacific. It was natural that New Zealand should concentrate on the export of primary produce and raw materials. When the older countries of Europe became industrialised it was supposed that- food-producing countries and those countries producing raw material would find for themselves a permanent and golden future in supplying the growing demands of those great industrial countries. New Zealand had concentrated m one direction with a limited range of exports, and had met serious .competitors in the main markets of the world. Jhe buying power oi tli,e muiii null Lot bC-j came very depressed, and the national policy of New Zealand was seriously jeopardised so far as the export of primary products and raw material weic concerned. A BROAD VIEW That was the broad picture when the Ottawa Conference met, said Mr. Stewart. New Zealand manufacturers took a. broad, national view of the situation and recognised that their duly wa s to help to sustain the foundations of New Zealand’s national policy, even though it meant sacrifices, to assist the farmers to retain British markets, ft. was anticipated that large concessions would be expected from New Zealand, but lie did not think the Dominion should he called upon to do much, having regard to tlio heavy pvefeicnees given in llie past. In the result it was true that they were not called upon to make very heavy concessions at Ottawa. 'lhey were a good deal more restricted than was originally anticipated. Speaking of his meeting with the British representatives at the conference, the Minister said they expressed the view that they had no desire to press for more than was reasonable and would justify them in 'granting concessions to New Zealand. The conference was latgeiy m the nature of an experiment for. securing closer economic unity in the Empire. He did not agree with some of the extravagant- views that Ottawa was the most important event in tho last ICO years. Nor did he share the fears ot others that the bargaining and haggling meant the break-up of the Empire. The real value of Ottawa was the. frank recognition bv each part oT the Empire of the aims and ideals of other parts. REVISION 1 OF TARIFFS

The .Minister referred to the hurried manner in which the Ottawa agreement was arranged, and said he thought mine flexibility would have been desirable, j There was a clause under which no alteration coiild be made in the New Zealand tariff without tile prior consent of Britain. That appeared to have caused some uneasiness. The revision o| tariffs was for the purpose of seeing that they were hot more than sufficient to compensate for differences in costs ot production, the ideal which had always been aimed at in New Zealand. It was finally agreed that the clause be dropped. There was some concern as to whether the revision of the tariffs was likely to prove prejudicial to the New Zealand manufacturers. Personally, he thought there was little cause to believe that the inquiry would he any more arduous and difficult than any revision winch had taken place in the past. The tariff would be based on the principle of compensating for higher wages, but it would not he in the interests of manufacturers to build up tariff walls so high that competition was completely cut off. Whci the industry was not economically conducted. the duty had been removed, and occasion had arisen to remove protection altogether.