THE CANADIAN BUDGET

Wanganui Chronicle, Volume 73, Issue 103, 3 May 1930, Page 9

THE CANADIAN BUDGET

COMPLEX CHANGES IN TARIFF TAX ON NEW ZEALAND BUTTEK. ißy Telegraph—Press Association—Copyright) OTTAWA, May 1. The Minister of Finance (Air Dunning), in his Budget speech, announced an estimated surplus of 44,507,000 dollars for the fiscal year. He announced numerous and complex changes in the tariff rates, involving under the general tariff increased rates on fifty-four items and decreases on forty-six; under the general tariff increased rates on fiftyfour items and decreases ou forty-six; under the intermediate tariff, an increase in the rates on thirty-live items and decreases ou ninety; and, under the British preferential tariff, increases ou eleven items and decreases on 270. When the revision is completed the customs tariff will consist of 1188 items, of which 589 will be free under British preference. The changes proposed, Air Dunning said, will have the effect of greatly increasing British preference in the Canadian market. “Canada is not engaged in a tariff war with, any country," he said, and stated that llic tariff changes were not the result of any bargain with any other country. They are an expression of the spirit in which Canada would approach the Imperial Economic Conference in a few months time. ‘ ‘ We do not intend to meet the other countries of the British Commonwealth ol Nations is a spirit of petty bargaining, but rather in the broad spirit of willingness to become, in ever increasing measure, good customers to those who treat us in like manner, fins is the spirit in which we desire ito meet all natiions, but we believe i .hat within the British Commonwealth ■ at Nations lies the greatest measure of

pportunity for the mutual development of trade, because of our common heritage, kindred institutions, aud common patriotism. The budget itself under the countervailing tariff makes the duty on vegetables, eggs, and grain the same as that of countries exporting to Canada. The duty ou British-grown tea will be I iemoved. Canadians abroad will be i made subject to income tax." i .Air Dunning announced that duty on New Zealand butter would be increased on October 12, from one cent, to 4 i cents per lb. The trade agreement now 7 'in operation with New Zealand would , be terminated on October 12 and details of the new agreement would be announced soon. “After October 12 Canada will ex- : tend full British preference to New 7 Zealand. The Government of Canada has proposed to the Government of New Zealand that a direct trade agreement should be negotiated to supersede the present arrangement. We hope to be , able to arrange for a meeting of representatives of both countries in the near future in order to endeavour to reach i a mutually satisfactory agreement." Air Dunning announced that he expected the completion of the Newfoundland trade agreement shortly. THE TARIFF INCREASES. DOMINION EXPORTERS’ VIEWS. [ Per Press Association j AUCKLAND, Al ay 2. “We do not believe that the increased tariff will be sufficient to interfere seriously with New Zealand ex- !■ stations of butter into Canada," said Mr W Goodfellow (managing director lof Amalgamated Dairies Ltd.) “Can--1 ada does not want to shut New Zeai land out of her markets. The increase : lias been made to satisfy the demands <>f Canadian farmers. ■’

A more serious view is taken by a 1 1 H-al reporter, who said that the increase brings the tariff up to the full i dumping duty. The new 7 tariff would operate early enough to affect the heavy New Zealand shipments intended to arrive for the Canadian autumn. COMMISSIONER FKPLAINS ■ MORE TRADE WITH DOMINION I Per -Press Association j AUCKLAND, Alay 2. The Canadian Trade Commissioner ; Alr Croft), commenting on the cables, i states that the new treaty is designed Ito extend trade between Canada and ! New Zealand, and affords slightly ■ greater protection to the Canadian , dairy industry. Canada has been exI porting large quantities of milk and j cream to the United States, but now, with the proposed raising of the Amjerican tariff, Canadian farmers feared [a surplus of butter-fat. Air Croft also ,-pointed out that at present no direct agreement exists between Canada and New Zealand.