TARIFF BOARD URGED

Taranaki Daily News, 29 March 1933, Page 8

TARIFF BOARD URGED

OTTAWA AND THE NEW EXCHANGE IMPORTERS’ STATEMENT. “It is apparent that the quarrel which has developed between the New Zealand manufacturers and the primary producers would not have occurred if the agreement made at Ottawa had been strictly observed both in the spirit and the letter by the New Zealand Government,” comments the New Zealand Importers’ Federation in a statement concerning the dispute. “The Ottawa agreement is a comparatively simple one,” the statement proceeds. “In exchange for substantial advantages granted by England to our primary products, New Zealand agreed that duties on English manufactured goods coming into this market would be reduced by a percentage which would enable English manufacturers to compete on level terms with New Zealand manufacturers. “Both the New Zealand manufacturers and the primary producers accepted that agreement, and the Government promised to set up a tariff board to take evidence and frame a tariff which would give effect to the arrangement outined above. Unfortunately, however, the Government in January last suddenly decided to inflate exchange. The rate was raised from 10 per cent, to 25 per cent., and immediately the Ottawa agreement was clouded. “Exchange was inflated to assist the primary producer in the face of strong opposition from the rest of the community, but apparently the farmers’ leaders are now uneasy. They are well aware that New Zealand’s action in inflating exchange cut across the Ottawa agreement, and has caused resentment not only to the English manufacturer but to the farmer also, who is now forced to compete with our primary products under an unfair handicap. “The farmers’ leaders now realise that the situation is a dangerous one, and are urging that our tariff should be drastically reduced in order that the Ottawa agreement be kept. The position is almost comical.- Do these gentlemen actually believe that the position will be .corrected by merely reducing duties on English manufactured goods? They must be aware that at present a great variety of goods ’■equired by farmers en- - ter into this country free of duty. It is, therefore, impossible to right the wrong which was inflicted on the English manufacturer of such goods through exchange inflation by reducing duties which do not exist.

“On the other hand, if we turn to the English manufacturer of goods which are dutiable, we find his case is not much better because under the agreement the duty on his goods would in all probability have been reduced even if exchange had not been inflated. If the duty is now reduced by a percentage equal to the percentage rise in exchange, the English manufacturer would find himself in exactly the same position as he was before Ottawa. In other words, he would have gained nothing, whereas our products are already enjoying the advantages gained at Ottawa. “This federation insists,” the statement continues, “that the Government should do the right thing and immediately clear the ground by removing all lestrictions on exchange. Let the exchange rate reach its normal level and then let our tariff be re viewed in order to bring it into line with Ottawa.

“The New Zealand manufacturers naturally fear that the present artificial exchange rate may be used as a weapon when the tariff is being reviewed, and that duties oh many articles may be too drastically reduced on that account; and that when the exchange rate falls, as it must before long by the weight of London balances, they will find themselves in h most unenviable position. We agree that, the duties on a great many items coming into New Zealand are far too high, but we sympathise with the fears of the manufacturer and urge that the Government should, in the first place, remove all restrictions from exchange, and, in the second place, set up the long promised tariff board immediately.”