TARIFF INCREASES

Wanganui Chronicle, Volume LXXXIII, Issue 19648, 6 September 1926, Page 5

TARIFF INCREASES

EFFECT ON PRODUCERS CONSTITUTES A DANGER. ■ MINISTER OF LANDS EXPLAINS , DIFFICULTIES. J (Special to “Chronicle.’’) WELLINGTON, Sept. 4. j That any wholesale increase of the : tariff which entirely ignores the position of the primary producer in this country will be extremely dangerous jis the opinion held by the Minister of [lndustries and Commerce and of Lands, I (the Hon. A. D. McLeod). I Speaking on the Customs Amendment (Bill last night, the Minister said that ■this country could not become the great 'country it was destined to bo without 'largely increasing the secondary indus['tries, even to the point of becoming an [exporting country as the result of the [activity of secondary industry. He was (sure that the primary producers were inot opposed to the encouragement of [’secondary industry or the imposition of additional tariffs to encourage the {secondary industries, provided that the prices of the products of those industries did not rise as a result. The Leader of the Opposition (Mr H. E. Holland): Would you apply that to the protection given to ‘wheat and flour too?

“Yes,” replied the Minister. “It can be reasonably applied all round.” Air Holland: It does not apply at the present time. “I say that exceptional conditions ‘have arisen,” replied the Minister, !“and I say this definitely, that the far’mer has never limited his production lof wheat in this country in order that I by so doing he could get a higher price. !If, as we all hope, this country produces ten million bushels of wheat next year, then the selling price of wheat iin this country will be the world’s parity. Make no error about that.’’ “It will be export parity too,” interpreted Mr J. McCombs. The Minister: Yes, but I am putting the primary producers’ viewpoint. Mr McLeod alluded to the protest raised against the control legislation and the objection raised against control being exercised in regard to local sales. Mr Holland: You would not favour applying export parity to internal conditions? The Minister: I know that as far as the primary producer is concerned he has to accept export parity. Mr Holland: But we don’t know that. Mr McLeod replied that the price the farmer recevcd locally for his produce was fixed by the selling value in London. This country might increase its consumption by 60 per cent., and that value would still be fixed in London. It was certain that if New Zealand exported only 20 per cent, the local price would be fixed in London just the same. I Air Holland: That has not always [been so; we have often paid higher [prices for butter here than at Home. I “Owing to a temporary shortage, and |that alone,” replied the Alinister. Cor'porations with large accretions of capital had means of fixing prices, but the ‘farmer had no control over the way [labour conditions and wages were fixed. The farmer considered that he was be’ing detrimentally affected. In some jcases where farmers lived a more or less isolated life these ideas were exaggerated, but he felt sure that a good deal of educative work would have to be done before unanimity could be recahcd on the point of materially adding protective duties to industry. As far as the primary producer was concerned, if he could feel that prices were not going to bo increased against him for the hundred and one things he had to use every day on the farm he was not opposed to the growth of the secondary industries. The farmer’s experience was, however, that those things were always increased against him.