PROTECTION.

Southland Times, Issue 1049, 2 November 1868, Page 4

PROTECTION.

The report of the Select Committee of the. . Legislative Council upon the New Zealand; •Tariff, is now before us. It is a careful resume of the arguments for and against the adoption of a protective policy for New Zealand. The conclusion arrived at by the committee is favorable to such a revision of the tariff as will lessen the taxation on some articles that cannot be produced in the colony, and placing an' extra tax oh 'articles that can be produced. oorr r inanuiFactured in the colony, It says :— " The ..legislature of Great Britain teems with illustrations; of the benefits arising from" a temporary protection. It was, for instance, by; the operation of this^principle injte navigation kws thW rescued the carrying trade of the world from the Dutch, and when this object was gained, viz.,

that English ships. , and , sailors wet* enabled to navigate ds cheaply as those of any other country, it has been, said that the ends which may once have justified navigation laws, required them no longer, and afforded no reasons for maintaining their invidious exception to the general. rule of free trade." This is a powerful argument in favor of a Protective policy for a new country. "We, in common with the advocates of Protection for the colonies, are not blind to the . advantages arising under certain circumstances, from the Free Trade system. When a country attains to the position of a dense population, renowned for the extent of ita manufactories, but still dependent to a large extent upon foreign countries for the necessaries of life, it, is self-evident it would not only be politic, but profit* I able, to adopt Free Trade, if by so doing it could secure reciprocal advantagei from other nations— -if by sweeping away the duties on the necessaries of life, they could secure a free market for such articles as it possessed or produced in superabundance. But we maintain that to secure the rapid progress of a new and sparsely populated country, protection and encouragement to native industries is one of the first essentials. It was not until "England, under the fostering influence of this system, had become the workshop of the world, that Free Trade became either popular or desirable. When the Australian, New Zealand, and other British colonies have reached a similar position, it will no doubt be to their advantage to follow England's example — but until that time comes, to do so would simply to put a break upon the wheels of progress." ' . . The report would indicate that such are the conclusions of the Committee, although studiously avoiding a bold support of a. definite system of protection aa against Free Trade. It says :—" Considering how admirably adapted; New Zealand is for the establishment of manufactures, from its possession of an abundance of coal, ot water . power, and , of some orjhe jtnost important^ raw; materials of commerce—^atite^capital and labor should be confined merely to; the production of those articles which encourage and employ the skilled labor of other countries, but that it is highly expedient that the energies of its people should be directed and encouraged to call into active exercise those dormant powers, the operation of which, should any complication suddenly arise, wouldjleava them not entirely dependent for AsnppMGC' from beyond their own shores, and which, even in times of peace, would leave them less exposed to the fluctuations of the market and the extortions of monopoly." The next clause of the report haa reference to the tariffs of other colonies of the ©mpire^vfrom the examination of which the C6"mmttt»i;:ajg>ears to have come to the cblusion^ that^Wgaiieral tendency of colonial legislation wast more protective than could be: considered legitimate. It says :— " In many of tht colonies, for instance, the duties' da millinery and articles made irom fabrics of silk, or silk mixed with other materials, is fixed at from five to twenty per cent, ad valorem, and on imported timber^and on manufactured doors and windows, as duly averaging from ten to twenty pitt cent, is imposed." This, to pur mind, is the weak point in the report. Throughout, it breathes the spirit of protection, and yet it would reduce the operation to a very small scale indeed. The arti<^» it cites as being carrying the principle to an illegitimate extent are exactly the class of articles that in the opinion of Protectionists should be heavily taxed. To take the item millinery. _It is true that for a long time this colony - : must depend upon other countries for silks, . and similar fabrics, but we have qualified parties among us to manufacture ' them, and they are entitled jto protection. Again, with reference to timber, window sasheß, doors, and similar articles. • la it fair to the colonial mechanic, to allow the free importation of American or other prison labor nianufactures, to compete with him on equal terms? .It is most certainly injurious to trade, and detrimental to the interests of the mass -of the people. In this colony 7 the're.jii timber of almost, every . description*^and mechanics to work it up, and therefore we ' cannot ' agree with the ; report 4frat the duties imposed upon this' class of articles are in anyway excessive. "^ _ } ...V.,\7 The concluding portion of the report is taken up with comparisons of j> the different tariffs adopted 'in the colonies, the tJnited States, and other countries, as compared ; with that of JSTew •: Zealand, and the; conclusion come! to is — " That it is necessary ithat the ; duty^on spirits and tobacco should be reduced" as early as possible, as T under, the present high duitieß on , these r articles,; smuggling and illicit distillation are becoming tan organized occupation.' ' : It may be. expected that an increase4j cdnstiptio^at a^wer ratemay^^ r^placjEtjui ßo^ae measure the loss of revenue which would otherwise follow the proposed reduction. Your

Committee hare also considered what would .be the most advisable course to pursue in the event of any further decrease in the Revenue beyond that now apprehended, and they are of opinion ttiat, with the exception of an increased duty on malt, no further increase of Customs duty is practicable. Under such circumstances, it is worthy of considera- \ tjion whether it might not be advisable to place a small duty on all imports, carying out in so doing the principle of preserv- • ing an uniform ratio between the duty and the value of the articles on which it ris raised. This plan, which is the basis on which the Californian Tariff is founded, has the advantage of bearing equally on all classes of the community, and of yielding no inconsiderable amount of Eevenue, without injuriously affecting . any section of society, whilst, incidentally, a considerable impetus would be given to the great agricultural and other important interests, now languishing and in a depressed condition."