QUOTAS AND TARIFFS

Wanganui Chronicle, Volume 75, Issue 125, 30 May 1932, Page 12

QUOTAS AND TARIFFS

NEEDS OF NEW ZEALAND SIR JAMES PARR’S VIEWS. OPPORTUNITY AT OTTAWA. The belief that New Zealand should consider asking at the Ottawa Confer cnee for the protection of import quotas for her goods in Britain during iho next four or live years was expressed by Sir James Parr, Leader oi the Legislative Council, in a luncheon address to the Auckland Creditmen’s Club last week. A year ago, said Sir James, he had predicted in an address before the Auckland Chamber of Commerce that Britain would abandon the worship m free trade and would adopt tariffs, against not only forrAgn mauufactur ers but foreign foodstulls as well. Hi> prophecy had been received with some incredulity, but it had been fulfilled after the October general election, when the new Government, without warning to meet the Dominions in conference, imposed a 10 per cent, duty in their favour on certain foreign foodstuffs. Meat, unfortunately, dm not come under this tariff. So far as beef was concerned, it was doubtful ii such protection would bo of any use, seeing that Empire countries at present were unable to compete with the Argentine in this commodity. Mutton and Lamb. However, on foreign mutton and lamb there should certainly be a pro tective duty. New Zealand supplied 5b per cent, of Britain’s imports of both to-day, and tho Empire was capable to supplying the entire demand. He was convinced that at the Ottawa Confer cnee New Zealand should ask for complete preference for her products, aim that it would be obtainable if she was prepared to fulfil her obligations in re turn.

“ What is the problem at Ottawa? is it not markets?” asked the speaker. ‘‘There is a war for markets through out the world to-day. Britain is los mg her markets in foreign countries, which erect tariff walls against her. manufacture for their own needs and export the surplus. Britain needs a market with >ou, and you need more markets in Britain. In 30 years New Zealand has increased her production by 450 per cent. It is still increasing, but where is it to go to?” There was a great market in Now Zealand for British goods without injury to economically-justified New Zealand manufactures, which were entitled to moderate tariff protection. The Dominion in recent years had been spending about £15,000,000 annually on foreign goods, 75 per cent, of which could be either made locally or imported from Britain. The average annual sum spent by the Dominions ami Crown colonies in foreign countries hud been £500,000,000, and Britain had spent £300,000,000 on foreign foodstuffs that the Empire could have supplied It was time that these conditions were regulated to the advantage of the Empire. To-day there seemed to be every favourable element for a good trade treaty for mutual encouragement and assistance. Buch a treaty would put the farmers of New Zealand upon their feet as nothing else could. Duty Not Sufficient. But, it might be asked, was the 10 per cent, preference effective? Was not something else needed? Something was needed. The duty was not.sufficient: to keep Denmark and the Baltic States out of the English market. The Danes were shut out of Continental markets lor their foodstuffs by absolute prohibitions. They were prepared to pay the British duty themselves in order to keep tho trade. Every shop in the Midlands stocked Danish butter, but only one in seven or eight stocked New Zealand. If New Zealand got that market her output could bo doubled. She had every right to it, for tho Danes were poor customers of Britain. The tariff, it was true, would ultimately wear them down, but in tho meantime they were getting over the wall and New Zealand farmers were desperately in need of help. The immediate result that New eZaland desired could bo secured by a combina tion of tariffs with the quota system for, say, the next four or live years, until the effects of the tariff really began to be felt.

Tn tho past there had been a goou deal of misunderstanding about quotas, and a section of primary producers hau declared that the system ought not to be discussed. It should not be contused with the bulk purchase board scheme propounded some years ago by Mr. E. F. Wise, a Socialist meinour of the British Parliament. Mn Wise’s plan had inevitably been rejected, because It would have given a board in Britain absolute control over a Dominion’s exports. Restriction on Foreigners. The quota scheme on the other hand, merely restricted the foreigner to u certain proportion of the trade in a commodity. For example, the Empire to-day supplied 45 per cent, of th< butter and cheotio imported into Bn lain, and foreigners 55 pex- cent. At was easy to imagine what would hap pen if those iigures were compulsoriQ reversed for live years. Dominion farmers would have a wall that the Dant ‘•.ould not climb over. He was of opin ion, and he believed rightly, that New Zealand must think about asking for a quota for the next four or live J cars. It should not be imagined that tin quota system was without a body ol ■authoritative support, Sir James continued. Sir Benjamin Morgan, chair man of the Empire Economic Union, and Sir Geoffrey Vyle, vice-president of the Associated Chambers of Com luorce of Great Britain, who would al- - the Ottawa Conference on behali of that body, were among those who bad openly advocated quotas, and the Federation of British Industries and other bodies had done the same. In applying the system, the British Gov eminent would, no doubt, act upon re commendations made by the present Advisory Tariff Board. As the board , was absolutely independent of poll | tics, party considerations would not enter into the matter. Sir James explained (hat he did not hold to tariff protection as a creed. He sympathised with those wlio held free 1 trade convictions, but the Empire must make the best of a world full of tariffs which there was no hope of re moving. Protection and the quota system were expedients to be used to meet the needs of the hour.