DEMAND FOR A SCIENTIFIC TARIFF

Sun (Auckland), Volume 1, Issue 41, 11 May 1927, Page 13

DEMAND FOR A SCIENTIFIC TARIFF

PROTECTION URGED FOR INDUSTRIES AND WORKERS

are spending immense sums °- money in the higher education of our children, but because of the ack of industries there is no outlook for them. Our professions are overcrowded, there are not sufficient openings fer apprentices in our industries and our children will either have to seek a livelihood in other countries or swell the ranks of unskilled labour in our own land.”

The president of the Auckland Provincial Industrial Association. Mr. J. A. C. Allum, used theses words in his address at the annual meeting today.

He continued:—“What is really required is a scientificially adjusted tariff, a tariff that will enable our manufacturers to compete reasonably with oversea importations, that will enable them to build up industries that will provide work foy our children, pay wages that will ensure a high standard of living for pur workers and provide them with means for bringing up their families in reasonable comfort. Such a tariff will make for a happier and more contented condition of society, and the increased returns from contented workers will add materially to the prosperity of our country. The question of fostering and encouraging our secondary industries is one that must be faced, and a protective policy is the only means of gaining that end.

“A brief glance at history shows that Britain’s strong manufacturing position was built upon protection, and that when she adopted free trade she had such a great start upon all competitors in manufacturing and shipping that it took them generations to overtake her. “Edward the Fourth absolutely prohibited the importation of ordinary iron goods such as locks, hammers, pincers, scissors, pins, etc., which up to that time had been supplied by Germany and that Queen Elizabeth and the Stuarts consistenly carried on this policy. “Protection had been the mainstay of America's great progress and success. A LARGER POPULATION “The benefits to be derived from a protective tariff are worthy of more serious consideration than has been accorded them in the past. Chief among these would he-the more rapid increase in population. This larger population would provide a better local market for the Dominion’s primary products. It is only natural that when the question of protection is raised those interested in the importation of cheap goods, on which they can make larger profits, will seize the opportunity of stirring up public opposition and urging the policy of free trade. Even the most ardent supporter of free trade must recognise that facts come before theories. One outstanding fact to-day is that New Zealand has an increasing number of people who are unable or unwilling to undertake farm labour. They have the right to live and the right to come to New Zealand for their living. This living can be provided for them if New Zealanders will buy goode manufactured in this country, and if our Government will see that reasonable protection is afforded for our young industries. “I desire to affirm most emphatically that the Industrial Association is not out for a high protective tariff,” he said, “but it is essential to the welfare of a young country that reasonable protection should be afforded to our secondary industries, which to-day provide work for over 80,000 employees.’! A LEAD FROM AUSTRALIA In Australia the business of tariff revision is conducted in a much more formal way than in the Dominion. There they have a permanent Tariff Board whose function is to investigate year in and year out and advise the Minister of Customs, who has constitutional power to make changes in the tariff in accordance with the board’s recommendation. The board's proceedings are open to the press. In New Zealand there is a periodical revision, but the frequency of these depends entirely on the Government. The last revision was six years ago. The usual procedure is to appoint a commission of Customs officials and as the evidence is taken behind closed doors the public have no knowledge of what is being done until the new tariff becomes law.

It is true that our Minister of Customs has discretionary powers to deal with tariff matters, but he almost invariably declines to take the responsibility where any increases in the tariff are involved and most of the actions taken are not of an encouraging nature. For instance, towards the latter end of last year a local firm wrote to the Comptroller of Customs advising that they were manufacturing a rotary can washer and asking what would be the duty on a somewhat similar machine manufactured in Australia. The reply was that the duty would be 25 per cent., plus one per cent, primage. Upon this understanding the local firm increased its plant-and the stock of raw material.

The Australian firm on being informed of the duty placed upon their machines immediately circularised a number of the New Zealand dairy factories advising that they were endeavouring to get the New Zealand Government to admit their machines free of duty and offering the machines on very favourable terms. Meantime the local firm had been busy and its agents had almost completed the sale 61 three machines when a bombshell was dropped by the Australians sending another batch of circular letters stating that through the courtesy of the New Zealand Government they were to be permitted to land 15 of their machines in New Zealand free of duty except for the 1 per cent, primage. The local firm loses the orders for at least three machines and has to dispense with some of its staff: DEFEATING THE TARIFF Another instance of tinkering with the duty and defeating the objects of a tariff is one that affects the largest industry of the Dominion, an industry in which there is very serious depression, has been brought under my notice by a well-known firm. There is a duty of 4s a 100 ft. on all dressed timber imported into New Zealand. Butter boxes and cheese crates come under this heading. A drawback of the dutv is allowed on all boxes and crates when filled with butter or (ffieese and exported, thus doing away entirely with the protection afforded

by the duty. Rebate of duty should only be allowed in those cases where goods are exported in the same condition as when imported. We have understood that this is the law. Several of the Dominion’s industries are in the happy state of being able to carry on without any increase in the tariff, but others unfortunately require an increase to enable them to meet competition—sometimes unfair competition—even suspected dumping A number of these manufacturers have made representations to the Tariff Commission and practically everyone has offered to guarantee that if an increase in tariff is granted prices to the consumer will not be increased. On the other hand, they hope that the increased output and reduced overhead expenses would result in a lowering of prices.