CUSTOMS TAXATION.

Waikato Times, Volume 103, Issue 17409, 23 May 1928, Page 7

CUSTOMS TAXATION.

FARMERS' OBJECTIONS. HINDRANCE TO PRODUCTION. PROTECTION STRONGLY OPPOSED. Once again the Farmers' Union is unanimous in its condemnation of lhe protection afforded to secondary industries through the tariff wall. At the Provincial Conference in Hamilton this morning lhe following remit was passed unanimously:— "Thai, this conference recognising the imperative need for reducing costs of production and the close bearing the present high protective Customs taxation has to such Costs, urgently calls upon lhe Government, to reduce immediately Customs taxation of a protective nature."

Mr Felsst's Speech. Introducing The remit, Mr R.' H. Feisst said he considered it the most important before the conference. Invidious class legislation was the only description that could be applied to protective tariffs of this nature, and it was not based on economic grounds. Those interests benefiting by protection always wanted more.

"Protection is the root cause of unemployment in New Zealand," Mr Feisst added. "It is also the cause of war. National wealth is not equitably distributed because of preferential legislation. Capital is drawn from unsheltered industries into sheltered industries. The politicians build up a superstructure without a foundation." (Applause). The Minister of Finance had said that 51 per-cent, of the revenue was raised through indirect taxation, continued Mr Feisst. If protection was carried Lo its logical conclusion there' would be no revenue at all. (Hear, hear). The Minister had said at Cambridge that the. object of the Government was to reduce taxation on the necessities of life wherever possible. The little reductions he had suggested amounted to putting Is into the hands of housewives and taking £1 out of the pockets of the farmers of New Zealand. (Applause). Nothing will be done unless the Union takes united action." Other Speakers. Mr McGee (Tc Puke), in seconding, said the manufacturers were satisfied in working behind the tariff wall in their own market instead of creating a world demand. He said he wished to include in lhe remit the resolution from his branch —"Thai this conference views with alarm the increase in protection which is being extended lo secondary industries, the effect being to increase greatly costs to the primary producers of the Dominion." Captain Hushwortli (Kailaia) said the subject was one of many angles, anil volumes had been written about it. However, the supporters of the protective system had been driven back to a position which was utterly untenable. They dared not face the issue as it was now. Protectionists had dodged behind a smoke screen, and refused to come into the open. The object of protection was to keep out competition, but it had been proved that, if this purpose were carried out to the full, the result would be that no revenue would be obtained. Are Subsidies Better?

Mr Wynyard said men had been induced to put money into protected industries, and the farmers could not expect the duties to be removed immediately. H C considered it would be wise to-'add to lhe remit lhat any industry requiring assistance in its infancy should be by way of subsidy. Mr Eric Walker said that salvation lay in the platform of the Country Party. Captain F. Colbeck said there would be no waste land Or unemployed in NewZealand with free trade. ' Another delegate expressed the opinion that the Government had issued a direct challenge to the farmers, and lhe Union was not taking it aggressively enough. Mr C. A. Magner said the farmers should ignore political creeds and .fight the protection bogey. They did not want anything but "farmerism." Another delegate claimed the wheat buyers in the South were responsible for preventing modification of the tariff. "Do Something." Mr R. D. Duxfield said the delegates were all agreed on the remit, but it was useless if they did not do something Mr W. Lee Martin, M.P., said he did not intend to take part in lhe debate but in justice to the Labour Party he challenged the statements made' by some delegates. Mr Martin brielly outlined the Labour platform on the subject. Tne remit was carried unanimously.