TRADE TREATY

Southland Times, Issue 21831, 7 October 1932, Page 7

TRADE TREATY

UNFAIR BALANCE : NEW ZEALAND AND AUSTRALIA ADJUSTMENT NECESSARY (Per. United Press Association.) Wellington, October 6. When the question of a treaty between Australia and New Zealand was discussed at the conference of New Zealand manufacturers a delegate said it was high time the Government was asked to do one of two things, enact machinery to deal with the depreciated currency within the Empire or give notice of abrogation of the treaty. Mr J. Abel said the matter should oe discussed with a view to some adjustment being made owing to the effect of depreciated currency. Mr S. Takle (Auckland) said the duties hardly affected Australia owing to the high exchange. The Customs Department should be able to help. The chairman, Mr Campbell, suggested waiting until Mr Craig, Controller of Customs, returned from Ottawa.

The matter was discussed last year, said Mr J. G. Jeffery (Dunedin) when a deputation waited on the Minister. Dr Craig then said the position was a very difficult one to deal with. When the Customs Act was framed it was never anticipated there would be such a thing as depreciated currency within the Empire or the Act would have been framed to meet it. Notwithstanding the fact that the Australian treaty was brought about to establish a more reasonable balance of trade between the two countries, the adverse balance was becoming greater every year and it was affecting the industry and primary producers. Mr Reid had told them that nothing which was done at Ottawa would have any bearing on that matter and unless some action was taken the position would become more aggravated each year. The Government should enact machinery to deal with depreciated currency within the Empire or give notice to abrogate the treaty. It would be six months before abrogation of the treaty could be given effect to and the manufacturers would suffer greatly in that time. At no time had it been so necessary to retain purchasing power within the country, yet here was Australia taking advantage of the position for their own ends to the great disadvantage of New Zealand. The president, Mr Campbell, said a deputation would mention the matter to tbe Prime Minister when waiting upon him later in the day.