With which Is Incorporated The Waikato Argus. MONDAY, OCTOBER 27, 1930. CHAMBERS OF COMMERCE.

Waikato Times, Volume 108, Issue 18160, 27 October 1930, Page 6

With which Is Incorporated The Waikato Argus. MONDAY, OCTOBER 27, 1930. CHAMBERS OF COMMERCE.

The Associated Chambers of Commerce held their annual conference at the Hermitage, Mount Cook, and there has been some plain talking about what is necessary to cure our present evils. It is unfortunate that the conference has not got beyond the stage of seeing the sacrifices which it is necessary for other people to make. A resolution was brought forward condemning the sliding scale on wheat and flour. All the arguments were, of course, with the mover, but the vote went with the supporters of the duty. One of those who opposed the resolution said no other industry had been so harassed.for 16 years, an unconscious piece of humour to come from a man defending an industry which is guaranteed a price of six shillings and ninepence per bushel when the world’s parity is about three shillings. Such a vote will naturally discount many of the speeches made at the conference, which is unfortunate. The chairman commented on the lag between wholesale prices and retail prices, and on the unwillingness of Labour to come to any arrangement to meet existing conditions. The retailers have been unable to see that prices must fall, and have waited until their customers were unable to buy. The Labour people watch the growth of unemployment, but refuse to consider any revision of awards, though a reduction in wages would lead to the employment of very many now wanting work. The chairman referred to the position of the primary producer and said that in order to meet the drop in prices it was necessary to .relieve him from heavy taxation and from heavy costs. Speaking of secondary industries he said that Parliament must face the question whether the country was large enough to warrant the manufacture of goods under heavy duties. He thought that if secondary industries under existing protection were to be maintained a bonus of some kind should be paid to primary producers. If, however, protection is such a blight on the country that producers must be paid a bonus to compensate them for the injury done would it not be better in every way to abolish the protection? It would almost seem as if business men considered opposition to protection to be unspeakable, and akin in some way to blasphemy. On the question of labour 'the chairman was emphatic that rates must be re-adjusted, if production and industry are to carry on. Then the question of taxation must be faced, and both State and local body taxation reduced. The chairman has certainly a good grasp ,of the conditions which are troubling us, but he is not equally clear about the remedies required. In any case he is too late. If he could have said these things three or four years ago they might have done some good. It is not certain. We have been arguing for some years that costs must be reduced, but without effect.

Farmers a.re conservative and vote for the same party, at each election without considering whether they approve the policy. When a reduction of costs is spoken of, wages is the first thing to which men’s thoughts turn. It is cerlainiy important, but not the most important. Farmers are the chief sufferers from protective duties and should refuse to support any man who does not oppose them. This is a young country which requires capital to develop its resources. The capital comes largely from London and interest on it must be paid there. We can export primary products successfully, but no one is bold enough 'to suggest export from our protected industries. We have to rely on our primary producer and it is folly to burden him with taxation to help his neighbours while he has still to pay his share of the cost of running the country. There are other and special reasons why New Zealand is not likely ever to be very successful as an industrial country. It certainly cannot hope to succeed in that line to-day. It is on that account a gross error to fly in the face of Nature -and try to do that for which we have no aptitude, while the proftection we give such industries injures the production for which we have special advantages. The best that can be said for these duties is that while they are meant to be protective they fail in that capacity and yield something to the State. The duty on wheat and flour, and that, on cement yield nothing. They simply take money from the pookets of many people and put it into the pockets of a few. They are a drag on Industry and on production yet politicians can be found who wall advocate such duties. There are many things in this country which require amending, but perhaps the most crying necessity is some competent politicians. Chambers of Commerce can point out matters which require reforming. In the present instance the*; have found a chairman who has not been afraid to denounce protection. It is doubtful, however, if his utterances are to the taste of his hearers. If we may judge from the vote on wheat duties the members are protectionists, first, last and all the time, unless indeed it is a Canterbury vote, based on provincial patriotism, and regardless of consequences. It is perhaps right for Chambers of Commerce to think of the interests of their members rather than thoss of the country, but it rather discounts the value of such conclusions as they may come to.