OVERSEAS MARKETS

Taranaki Daily News, 8 November 1932, Page 9

OVERSEAS MARKETS

BRITAIN ONLY OUTLET importance to dominion. (FARMERS AND THE TARIFF. The importance of the British market to the New Zealand producers and the part that secondary industries should play in the development of the Dominion are discussed by the New Zealand Farmers’ Union in a memorandum circulated to its provincial executives. “It is open to’question whether the gravity of our overseas trading, position has been fully realised b; the general public,” the memorandum says. •‘Almost the whole of our exports are pastoral products, and upon the sale of these, at satisfactory prices abroad depends our ability not only to pay for necessary imports, but to meet the interest on the money we have borrowed to opbn up our country and finance past prosperity.’ If the oversea markets crumble it would mean ruin and repudiation. “The only market so far available is the United Kingdom. In spite of serious investigations, no alternative markets on a large enough scale to be of value to us have been discovered, and there is not the slightest prospect of the early opening of such markets. At the same time, the restrictive policies of the past few years have concentrated more and more produce competing with ours in the British market. The result has been a serious glut of wool, meat and butter, with a consequent depression of prices, and even now indications are far from satisfactory. TARIFF AGREEMENTS. "The price depression has roused the energies of the. British primary producer and forced an alteration of the British .tariff in the direction of taxes on certain raw. materials, a step never before seriously in issue'in Britain. Whether this is a good policy or not is a matter for the British people-to decide for themselves, but in any case it is likely to last for a considerable period. The keeping of a footing in this market is vital 'to our economic life, and it is here that the agreements concluded’at Ottawa are-of such fundamental importance. Out of these agreements we have done, on -.the. whole, very well. In exchange, for preference against foreign suppliers of pastoral- products we have undertaken certain . minor amendments of our own protective, tariff. By-making minor tariff ■ concessions on textiles -and-confectionery, and admitting silk products, duty free, we (have consolidated our hold on the. British market'in face of .the-most deterhnined competition, and we have re'ceived other •concessions as well. “We do not regard this as. a farmers’ victory, or, indeed, as a triumph for (any section of our people. It is - -rather •a,, much-needed measure of • national 'safety. It is true that Britain,'in ex-, change for the indispensable assistance she has just accorded us, depends on our doing nothing, in a general way, that will prevent her industries from reasonable competition in this market, but surely that cannot be objected to. All bargains must have something in them for both sides,; or they will not stand.PROTECTION- OF INDUSTRIES. “The-farming interests of the country Fave no • objection to secondary industries. In fact, they welcome them, because they desire a well-balanced economic life. They do-feel, however, that it is bad'policy to establish in the Dominion industries that have, no. chance of standing up -to fair competition, with the protection of distance- and a moderate tariff. Farmers .look .askance on all forms of industrial and stand for a (revenue rather than a protective tariff, but they recognise that existing protection cannot be ily or suddenly- withdrawn. They feel, too, that in the past protecion has been granted in an-incidental and: haphazard ■manner, without a proper survey of the position, and that some industries unsuited for our conditions,, and barely able to struggle along, have been brought into a precarious existence at considerable expense to the. consumer. That our high cost of living is in great measure attributable to tariff protection is a fact beyond dispute. *lt is felt that it is inadvisable to •foster in New Zealand industries that can be economically conducted only on a mass production basis. It. would be preferable to concentrate our industrial efforts where we have a natural advantage, and exchange our surplus for similarly produced goods from abroad, especially 'Britain. :It is further’considered that the tariff policy of the Dominion should be redirected with a view to carrying out this policy, and reducing such tariff privileges as are uneconomic. In any case, if we want to sell in the British market, we have to assist the purchasing power of our customers by also buying in that market, and this involves some fair distribution of industrial productivity and exchange between the two countries. We cannot have it both ways; if we want British tariff privileges for ourselves, we must grant -reciprocal privileges in return.”