The Southland Times. PUBLISHED EVERY MORNING. Luceo Non Uro. SATURDAY, MAY 3, 1930. CANADA’S TARIFF

Southland Times, Issue 21073, 3 May 1930, Page 6

The Southland Times. PUBLISHED EVERY MORNING. Luceo Non Uro. SATURDAY, MAY 3, 1930. CANADA’S TARIFF

Canada’s tariff revision, despite Mr Dunning’s general assurances, has two objects in view and one of them is something close to a counter to the changes made in the United States tariff which has affected detrimentally the export of some Canadian raw products across the border. The other is the broadening of Imperial Preference, especially with regard to manufactures, so that the opportunities for British-made goods will be bettered in comparison with •the United States. On broad lines this revision will emphasize Canada’s adherence to the principle of Imperial Preference, but, peculiarly enough, the new tariff also contains something to draw attention to (he most serious of the difficulties confronOig those who wish to bring about complete free trade within the British Empire. This point crops up in connection with the increase in the duty on New Zealand dairy produce, an increase on butter amounting to three hundred per cent. The message from Ottawa states that Mr Dunning proposes to raise the duty on butter from one cent per lb. to four cents per lb. Expert opinion in New Zealand assures the public that this will not be enough to prevent large exports of New Zealand butter to Canada, but if that is so the increase proposed by Mr Dunning represents a compromise with the Canadian farmers, who hitve sought protection high enough to give them a clear field on the Home market. Probably provision will be made for some modification, because Mr Dunning was careful to mention his desire to negotiate a special trade agreement with New Zealand, and as this country’s dairy interests are particularly important, any margin in the tariff to permit of bargaining will be very useful when negotiations are undertaken. The important point to remember, however, is that the Canadian farmer is a protectionist where his own interests are involved. While he is able to meet and beat outside competition on the Home market, he i.s content to discard tariff walls, but when New Zealand butter importations threaten his market he seeks a tariff, and, though we may not like it. in this country, his title to this protection cannot be questioned. It is the same all over the world. Naturally lhe strong industries do not seek protection and are ardent advocates of free trade, but those which have to fight heavy competitors who enjoy 'tremendous advantages through the magnitude of their home operations, argue for the tariff. In Britain Mr Snowden has retained the McKenna Duties, and, while he pleaded his inability to do without the revenue, the attitude of the MacDonald Government was probably influenced by the broadside, delivered by the head of Morris Motors on the day the Budget speech was delivered, showing the tremendous strides made by the motor trade in Britain under the protection of the Safeguarding Duties, progress which made it clear that operating under British conditions the British firms were more than a match for any rivals manufacturing in Britain. His argument was that if foreign concerns set up factories in Britain to escape the duties they had to employ British labour and there could be no objection to the competition, but the McKenna Duties had made possible the growth of a great industry, employing many thousands, and marked..by great efficiency. That is the essential ingredient in protection, , it seems to us, Industries which obtain aid through a tariff must be prepared to show that they are working efficiently. In other countries this idea Is gaining ground and it affords a new conception of the value of protective measures, and a new idea of the responsibilities State assistance imposes. Canada’s activities are carried on uiider the shadow of the United States’s power, and she must be guarded lest her retaliation lead to repliea of a more serious character. The farmers of the United States have demanded and obtained protection .against Canadian butter-fat,, and the Canadian farmer, driven to expect an over-supply of butter-fat in his own market, asks for higher protection against his farmer competitor in New Zealand, and so the returns of dairymen in this country are influenced Jjy the farmers of the United States. These points are worthy of consideration, because

they impugne on large issues which deeply concern this country, and they should give people in New Zealand a better understanding of tariff issues.