FARMERS AND TARIFFS.

Putaruru Press, Volume XI, Issue 511, 2 March 1933, Page 6

FARMERS AND TARIFFS.

THE UNION’S POLICY. Reduction on British. Goods. It is expected that Parliament will adjourn towards the end of February. In the recess a Commission will probably take evidence regarding an adjustment of the present customs duties, and the Farmers’ Union intends to proffer evidence, states the Dominion Executive of the Union. The fiscal policy advocated by the union at present is:— (a) That there should be an immediate substantial reduction of duties on necessities imported from Empire countries willing to reciprocate, with the definite view of inaugurating Empire free trade. (b) That with a view to extending our markets a reduction of duties on necessities be also extended to foreign countries willing to reciprocate with the Dominion. It is felt that such a downward scaling of tariffs is in keeping with the policy enunciated at Ottawa. Resolution Passed in 1902. An examination of the union’s records shows that the following resolution was carried at the first Dominion conference in July, 1902: “ That taxation through the Customs should be for the purpose of raising revenue and not for protective purposes.” From that day to this, the above formed one of the main planks of the union’s policy, and the general objective for which the organisation is heading. At the same conference the idea of “ free trade within the Empire ” was introduced and discussed. Effect of High Exchange. At the last Dominion conference, the following resolution was carried: “ That there should be an automatic reduction on all tariffs on British goods proportionate to the exchange rate ruling for the time being.” Owing to the British manufactur-

er, who is the best consumer of our j primary produce, being hard hit over i the increase in exchange, the above ' will form an important item in the j union’s evidence before the Commission. Secondary Industries. The farming interests of the country have no objection to secondary industries; in fact, they welcome them because they desire a well-bal-anced economic life. They do feel, however, that it is bad policy to establish in the Dominion industries that have no chance of standing up to fair competition, with the protection of distance, and a moderate tariff. Farmers look askance at all forms of industrial protection and stand for a revenue rather than a protective tariff, but they recognise that existing protection cannot be easily or suddenly withdrawn. . In the past, protection has been granted in a haphazard manner, without a proper survey of the position, and so some industries have been brought into a precarious existence at considerable expense to the consumer. That our high cost of living is in great measure attributable to tariff protection is a fact beyond dispute. Scaling Down of Duties. The union has asked the Government to approach the Imperial Government over the proposed restrictions on New Zealand butter, pointing out that the Ottawa agreement is being departed from in the proposal. If a commensurate scalingdown of duties on British goods had been proposed by the New Zealand Government simultaneously with the increase in exchange rates, it is probable that the restriction proposals would never have been made.