CANADIAN MOTOR-CARS

Taranaki Daily News, 23 August 1930, Page 21 (Supplement)

CANADIAN MOTOR-CARS

WITHDRAWAL OF PREFERENCE. PRESENT ONE-SIDED TRADING. A statement that the Government might he placed in the position of. having to consider the withdrawal of the British preferential tariff to motor-cars imported from Canada was made by the Prime Minister, Hon. G. W. Forbes, at Christchurch on Saturday. Mr. Forbes said a close inquiry was to be made by the Government into the question of the percentage of British labour and materials used in the manufacture of articles imported under preferential tariff.

“With regard to the preference that we now give to Canada,” he said, “it is the intention of the Government- to find out what proportion of the goods we import from that country is really Canadian and how much American. That is a matter that will be looked into closely, particularly as it applies to motorcars.” New Zealand imported heavily from Canada' and unless Canada was prepared to purchase New Zealand butter, and thus enable New Zealand to pay foi K 'tho goods bought from Canada, an extremely difficult position was likely .to arise. On his trip to tho Imperial Conference he would be accompanied as far as Canada by Dr. G. ■Craig, Comptroller of Customs, who would discuss with the Canadian authorities a reciprocal trade arrangement between New Zealand and Canada. “We have been giving Canada g'eat advantages as far as her manufactured goods are concerned,” said Mr. Forbes, “and even with the admission of our butter into Canada at a duty of 1 percent. per lb, the balance of trade has been against us. When we were given p.ix months’ notice that tile duty was to be raised to four cents per lb, we felt that the arrangement with Canada was going tJ be ft very one-sided affair from our point of view. “Canada has the advantage of being able to get her manufactured goods imported into New Zealand as Lritish goods. That is a tremendous advantage, especially to the motor-car industry, which in Canada is so closely allied to' the American industry. In view of that advantage which we give them we were looking for more favourable treatment .from them.

“An unfortunate feature is that the importation of New Zealand butter was made a feature of the recent general election in Canada. The new Prime Minister, Mr. 11. B. Bennett, took up a..very decided stand against the importation of New Zealand butter during the election campaign and he may not be disposed to meet our wishes. It is my earnest hope that better counsels will prevail, as I do not want to be put into the position of having to adopt

retaliatory tariff measures. 1 feel that every encouragement should be given to trade between Dominions, but we must give the most favourable treatment to those countries that are prepared to trade with us.”