BRITAIN PENALISED.

Wairarapa Daily Times, 1 March 1934, Page 5

BRITAIN PENALISED.

(To the Editor). Sir,— Auckland Executive of the N.Z. Farmers’ Union requested the Minister of Customs to make an immediate reduction of 10 per cent, on all customs duties affecting Lnited Kingdom manufactures. Whilst this is not an easy thing to do, the principle underlying the request is thoroughly sound. Many of the articles in which Britain is being specially penalised are on the free list. These could apparently only be dealt with by discriminatory tariff, but it in the meantime everything that could be done for Britain were done, it would be a step in'the right direction. Mr Coates’ reply to the request was that it was not considered possible to rrive effect to the recommendation of my executive until the Tariff Commission had presented its report. Auckland Farmers’ Union considers its recommendation a most reasonable one and one which should receive immediate attention. Britain is suffering from grave disadvantages, owing to Australian competition for instance. The level exchange with Australia, as against the adverse exchange oil British imports into New Zealand, is iesulting in advantages, presumably not deliberate, but none the less extremely undesirable, in favour of Australia and against Britain. Other cases could be quoted, but the Australian case is the strongest. Owing to high protective duties many industries, so uneconomic that they could not exist against fair competition from Britain, have been given in effect, 25 per cent. preference through the exchange rate, plus lesser transport charges. This has been done after Britain had not only provided New Zealand with a free market, but had given this Dominion both quota and tariff advantages following on the Ottawa Conference. There have always been advantages in favour of Australia. Such articles as patent medicines, drugs, gramophone records, photographic materials, when

protected in Australia by high duties had small factories established by overseas firms in order to take advantage of the protection and the nearness of Australia to New Zealand, with the desirability of adding the New Zealand demand to the Australian as an approach towards mass production, meant that trade which would have employed the users of our primary products in Britain was transferred to Australia. Now that the exchange advantage acts as a real protective duty for Australian manufactures, wire and hosts of other things have been added to the list which Australia can produce to the detriment of Britain and export to New Zealand. There is no object in continuing this state of affairs one moment longer. It appears that the Tariff Commission’s report will not be dealt with until after Parliament meets. There will then be the usual delays and meantime British manufactures are being dealt with unfairly and a retaliatory spirit is developing in Britain. —T am, etc., A. E. ROBINSON, Auckland Provincial Secretary, N.Z. Farmers’ Unon.