More Elastic Tariff Needed by Dominion

Sun (Auckland), Volume III, Issue 714, 13 July 1929, Page 1

More Elastic Tariff Needed by Dominion

“FROZEN WEALTH” MINISTER OUTLINES POLICY (THE SUE’S Parliamentary Reporter) PARLIAMENT BLDGS., Friday. That the Government would do nothing in connection with Customs that would increase the cost of living here, and would determine tariffs to help New Zealand industries was a statement made in the House of Representatives today by the Minister of Customs, the Hon. W. B. Taverner, in giving a brief outline of his views on what should constitute the Customs policy of the Government. There was a grave and urgent need, be said, for a complete investigation into the general economic position, and important adjustments must be brought about in the shortest time. “If it is conceded,” he continued, “that it is quite impossible to get an export market for any of our manufactured goods, and that hundreds of factories are compelled, because of that disability, to rely entirely upon the domestic consumption, and if we reflect for a moment that we have less than 1,600,000 people to purchase these goods, it must be evident where the weakness lies. It is, of course, obvious that a country that exports I the largest quantity of goods a head of population of any country in the world must import in exchange, and it is a fact which places the arguments of the absolute protectionist out of consideration. In a like manner the free trader is also faced with a difficulty Free trade Would mean increased importations and would bring about a lowering of the standard of living, and would inevitably result in a decrease in wages and would diminish the spending power of the people. The question then was whether there was an eflicient, reliable method of fiscal control other than following either of these two extremes. “I do not suggest I have a complete remedy to propose,” the Minister added, “but I do say it is the greatest question before the present Parliament. It is our duty to the country at large, and to the boys and girls who are year by year coming into the labour market, that we should most carefully and closely examine the present position.” The Dominio.n’s huge trade balance was referred to by him us “frozen wealth,” and he asked what became of,the wealth created after the farmer, and those intimately connected with him, had spent all that was necessary in the further development of business.

The natural channel along which that wealth would flow would be to develop manufacturing industries and to build up external and internal trade. “Such, however,” he continued, “is not the case. A large part of it is used to purchase gilt-edged securities, some goes into large city buildings, and much of it is spent in ways that are entirely unproductive and tends to create a non-producing class of citizen. “With all our wealth we have been unable to do anything in relation to a reduction in the cost of living. Surely it should not be beyond the combined intelligence of the House to remove at least some of the artificial conditions which circumstances have produced. “I desire to say that the Government’s policy in regard to Customs tariff will be efficiently safeguarded and that nothing will be done that will increase the cost of living in New Zealand. “While general tariff revisions can obviously be only undertaken at long intervals the tariff should be sufficiently elastic to permit of rapid changes in conditions being adequately dealt with. The science of the tariff is to make tariff requirements fit in with industrial needs, brought about by changing conditions. “I am pleased to have bad the assurance of the New Zealand Manufacturers’ Federation that it is willing to assist by the establishment of an advisory board which would be a sort of clearing bouse for the industrialist, and which would provide facilities lor collecting data on industries and groups of industries, so that re-exam-ination of conditions might, in due course, be brought about. I am strongly in support of the scheme, which, of course, has no connection with the tariff board.

“I do not favour establishment of a tariff board as I think a duty devolves on the House which should not be delegated to such a board.

“However, I welcome any proposal, short of that, which will bring the Government into closer touch with the industrialist in his endeavour to improve the general conditions. '