DOMINION INDUSTRIES

Taranaki Daily News, 14 September 1927, Page 9

DOMINION INDUSTRIES

HELP THROUGH THE TARIFF PROPOSALS OF GOVERNMENT. CONDITIONS TO BE FULFILLED. (By Telegraph.) Wellington, Last Night. In determining the industries .which should receive tariff assistance, the Government has carefully considered the report of the Tariff Commission, stated the Hon. W. Downie Stewart, reviewing the tariff proposals in the House of Representatives to-night. That report has been prepared with the greatest care, after hearing evidence from all sections of the community. The Government's general policy, is that assistance should, where thought necessary, be granted to industries which are suited to New Zealand conditions, which are carried on in an economical manner and which are considered to be in the interests of the Dominion as a whole. The Dominion cannot develop along progressive lines if it has to depend upon the primary industries alone.

It will be recognised that the farming and manufacturing industries are up to a point inter-dependent. Assistance has therefore been granted to certain of such industries where the conditions just referred to have been fulfilled. At the present time some industries are not in a satisfactory financial ebndition, but it is thought that is probabL due rather to the financial stringency from which we are now happily emerging than to the operation of the tariff. There is no need that several applications were received for high tariff protection. The Government is, however, of opinion that a high protective 'tariff policy is not in the best interest* of the Dominion. It believes that the industries are more likely to be conducted on satisfactory lines if a certain measure of competition is allowed to take place. ‘lf the protection granted to an industry is such that reasonable competition does not exist, there is a tendency for such an industry not to avail itself of the best manufacturing methods or to keep its plant up to modern requirements. It is pleasing to record the fact that a considerable number of well equipped and well managed industries in New Zealand are being successfully and profitably conducted under the present tariff. There are, however, certain industries with efficient plants and conducted on sound lines which appear to be suffering, either from a decreased production or a production not sufficient to allow the plant to be operated economically. In these instances Parliament must face the question either of abolishing the protection and probably forcing the industries out of existence or of granting increased assistance. In these cases, where the continuance of such manufacturing concerns is considered to be in the public interest, the Government has proposed certain increases in duties, but only sufficient to enable the in industries to prosper if efficiently carried on. In deciding upon the industries which should receive further assistance, the Government has taken into consideration the possibility of the further utilisation of materials produced in the Dominion. It is unnecessary to state that many of our manufacturing industries now use considerable quantities of raw materials of local origin.. In the manufacture of many articles local materials are used.

The Government also proposes to abolish the embargo on the importation of egg pulp and to substitute rates of duty sufficient to afford protection to the poultry industry. It is considered that prohibition of importation, though it may be necessitated by abnormal conditions, is not a satisfactory means of affording continued assistance to industries.