HAURAKI BY-ELECTION

Wanganui Chronicle, Volume 74, Issue 115, 18 May 1931, Page 8

HAURAKI BY-ELECTION

FARMERS AND TAXATION THE ATTITUDE OF REFORM PROTECTION FOR INDUSTRIES AUCKLAND, May 17. “I have made it plain since the beginning of this campaign that the Reform Party, during its term on the Government benches, worked consistently toward a gradual reduction of indirect taxation, including as much relief as possible from the customs schedule,” said Air W. W. Massey, Reform candidate in the Hauraki by-election, speaking at Te Kauwhata last evening. Air R. G. Pulham presided. “I should like to clear up in the minds of the electors of Hauraki any misapprehension regarding the attitude of the Reform Party on the question of preferential tariffs,” said Air Massey. “The Country Party representa tive in this contest is reported to have said to Otahuhu that this was the first tune he had heard of the Reform Party’s desire to reduce customs duties. I repeat, the Reform Party has worked consistently toward a reduction of such taxation.” Arbitrary Reduction Unsound The Reform Party did not undertake to reduce the customs duties artificially by 10 per cent, in one swoop, as advocated by the Country Party. It adjusted the customs schedule to the economic requirements of the country and gave the farming community the benefit of the reductions where ther* 1 was a chance of lowering in any way the costs of production. “To say that the customs duties should be reduced arbitrarily by 10 per cent, in the hope of forcing down the prices of local manufactures is economically unsound.” said Air Massey. “Tf brought into operation it would produce immediate chaos in the Indus tries affected and would be the cause of widespread unemployment. On the other hand, the Reform Party advocates directing the customs schedule as far as possible to luxury items, with greater and greater relief to the necessities of life, combining this with the rationalisation of industry. This is the only sound manner of dealing with the problem.” With the secondary industries developed along sound lines, according to a rationalised policy, costs would automatically fall and the general burden on Ihe community would be lowered Tf the country wanton to remove pro tertive duties let it remove the cause of protective duties first, instead of starting at lhe wrong end. Rationalisation of :ridustrv would bring down costs and allow the customs duties :o be lowered without any dislocation of Um econo i/r* stability of Ihe Dominion