AUSTRALIA’S NEW TARIFF.

Timaru Herald, Volume CXXV, Issue 18536, 5 April 1930, Page 17 (Supplement)

AUSTRALIA’S NEW TARIFF.

Mfeting Desperate Situation. SYDNEY PRESS SURPRISED. (United Press Association—By Electric' Tel earanlx— Ccujt ich t.) SYDNEY, April 4. "Sensational” and "astounding” is how Sydney papers describe the new tariff proposals. Mr J. H. Scullin, Prime Minister, said that it was an emergency measure to meet a desperate situation. Four steps will be taken to restrict imports as follows: Cl) An absolute prohibition against the importation of a selected list of items. (2) Partial prohibition—that is, prohibition with power to ration up to 50 per cent, on last year's imports. (3) The imposition of a heavy surcharge duty on a list of items tabled by the Acting-Minister of Customs. (4) A combination of rationing and surcharges. The measures do not apply to New Zealand, Papua or New Guinea. The measure is intended solely to restrict imports and not to increase revenue. It is estimated that imports will be reduced by £40,000,000 and Customs revenue will be decreased by from £10,000,00 to £12,000,000. .RECEPTION IN ENGLAND. CONSTERNATION CAUSED IN BUSINESS CIRCLES (United Press Association—By Ulectrlo Telegraph—Copyright.? LONDON, April 3. Something like consternation was caused in business circles when details of the Commonwealth super tariff was published. Mr J. E. Fenton issued a statement containing Mr Scullin's announcement inmreasing the tariff. He stated that it was not connected with the Government’s general tariff policy. It was an absolutely temporary measure, designed to re-adjust Australia's adverse trade balance. PROHIBITION OF EXPORTS. DRASTIC MEASURES INSTITUTE!). (United Frees Association— By Bsctrls Ts»es:raph—Copyright.) (Received April 4, 8.25 p.m.) SYDNEY, April 4. Usually a sensitive barometer to any change in the commercial financial outlook, the Stock Exchange gave no appreciable reaction to-day to the new restrictive tariff schedule. The view is held that the Government will have to resort to direct taxation to compensate for loss of revenue, as the result of curtailment of imports. The Commonwealth Government has issued a proclamation totally prohibiting furs, skins and certain articles of wearing apparel, also various kinds of agricultural machinery, radio sets, petrol pumps, and dried fruits, while in the rationed articles are ale, porter, wines and cigarettes. Large manufacturers here are of opinion that the new tariff will result in lower prices for all goods protected. One firm of implement makers already announces 5 per cent, reduction in farming and agricultural machinery. Many importers, however, who placed orders overseas months ago for winter delivery, have been placed in a most embarrassing position.

BRITISH TRADE AFFECTED. FUTILE TO TALK OF EMPIRE FREE TRADE (United Press Association- By Slectrle Te! egraph—Copyright.) (Received April 4, 7.10 p.m.) LONDON, April 4. The "Daily Chronicle” says the Australian tariff must inflict a heavy blow on British trade, just when it needs the help. While Australia’s new policy is maintained, it will be a waste of breath to talk to the Commonwealth about Empire free trade. LONDON PRESS COMMENT. DRAMATIC STORY OF ECONOMIC POLICY. (United Press Association—By Electric Telegraph—Copyright.) (Received April 4, 9.20 p.m.) LONDON, April 4. The “Daily News” says: "It takes two to make a bargain. If Australia will not buy, we may, with the best will in the world, find ourselves in a position in which we simply cannot buy.” The "Daily Telegraph,” in an editorial, describes the tariff as probably the most dramatic and most sudden stroke in modern economic history. " Obviously the result must, for a time, gravely restrict Empire trade, by reducing Australia’s imports. The situation need not have arisen in its present aggravated form if there had been in the past that close economic consultation and co-operation between Great Britain and the Commonwealth, and Britain would not have been faced, as now, with the temporary loss of a great slice of her Australian trade. That is why we say that the moral in the unpleasant news from Canberra is that we should be getting together, so as to turn this misfortune to the best possible use.”

EFFECT ON SHIPPING. DECISION REGARDED WITH DISMAY. (United Press Association—By Electric Telegraph—Copyright.) (Received April 4, 10.30 p.m.) SYDNEY, April 4. Shipping men regard the new tariff with dismay, as there is bound to be a serious diminution in cargo from the United Kingdom, and ballast will have to be carried. It is definitely stated that the Orient and the Peninsular companies will maintain the existing fortnightly services, owing to being bound by their mail contracts. It is highly probable that a number of tramp steamers will no longer come to Australia, owing to lack of cargo.