A.—.4

MINUTES OF EVIDENCE.

INVEEOAEGILL. Wednesday, 6th Febbuaby, 1901. Jambs Eeskike Watson examined. (No. 1.) 1. Hon. the Chairman, .] What are you, Mr. Watson ?—A merchant in Invercargill, a member of the firm of Tothill, Watson, and Co., and Chairman of the Chamber of Commerce. 2. Have you given much thought to the question of the desirableness or otherwise of the federation of New Zealand with the Australian Commonwealth ? —Yes, I have given the matter some attention, and it has been brought before the Chamber of Commerce on more than one occasion, but we felt that it was bordering on the domain of politics, and that perhaps it hardly came within our scope to make a pronouncement. 3. Will you give the Commission the benefit of your views as to the advantages or disadvantages of New Zealand federating with Australia ?—The principal advantages are distinctly of a commercial nature as far as this district is concerned. There is a considerable trade done at present between this part of the colony and the Australian Colonies, which, I imagine, would probably be interfered with if New South Wales put a heavy tariff on our products. Going back a number of years, there used to be a considerable trade done between the Bluff and Victoria in oats, but Victoria put a duty of, first, I think, 10-J-d. a bushel, and subsequently they increased that by 50 per cent., and since then the trade has died out so far as actual trade with Victoria for home consumption is concerned. A considerable trade is done in oats with Victoria from here, but it is entirely by way of transhipments to Western Australia and South Africa. In the same way, a considerable trade was done in South Australia until they put on a heavy duty, and that trade has practically died out since that duty was put on. The principal item of export from Bluff to Australian Colonies is in oats. There is also a trade done in dairy produce and cheese with New South Wales —in cheese especially in the winter months. 4. You think if a protective tariff was in vogue in Australia it would act prejudicially on the export trade in this part of the colony ?—I do. 5. Has the export trade from Southland with Australia been very considerable?—lt has been considerable with New South Wales; but, as far as Victoria and South Australia is concerned, the export trade for home consumption has practically died out. In the case of oats and dairy produce there has been a considerable trade with Victoria, but that is because the Victorian merchants control the West Australian trade, and hitherto they have had a very large say in the South African trade. War-orders for oats have been placed in Victoria, and Victorian merchants have bought large quantities here to fulfil these orders. Quite recently our own Government secured some of these orders, which are being filled direct now. 6. Does that apply to the 25,000-tons order?—l think of that order 10,000 tons came to Invercargill, and the rest was placed in Canterbury, as far as I know. 7. Is the produce of New Zealand exported to any market besides Australia and London ? — Not to many. The South African market has developed recently, but, as far as Southland is concerned, if the Australian market is closed to our oats and dairy produce we should have to fall back on London. 8. Assuming that the Government of New Zealand could make satisfactory arrangements with the lines of steamers whose terminal port is in Australia to make their terminal port here, what effect would that have on the export trade of New Zealand ?—lt would undoubtedly facilitate trade with other ports besides Australia and London. 9. Are you aware of any reason why that should not be done ?—Not beyond the one of cost. 10. You have mentioned some disadvantages; can you mention any others that would arise through our not being federated?—l think the commercial disadvantages are the most serious. Of course, there might be other advantages in connection with postal matters. Supposing we federate with Australia, it would open to us a market with the entire Australian Commonwealth in regard to produce which I think this colony is much more fitted to grow than any of the other colonies. 11. With free-trade? —I take it for granted that if we federated there would be free-trade with Australia. I suppose there would also be considerable advantage through having the commercial laws of the various colonies assimilated, through having a uniform postal system, and probably there would be a considerable reduction in the cable rates. 12. Would there be any considerable loss of revenue to this colony if free-trade were established through New Zealand joining the Commonwealth ? —I have no doubt there would be a considerable loss of revenue by way of Custom revenues on the goods we at present import from Australia; but that would be more than counterbalanced by the advantages this colony would derive through having such an enormous market thrown open to it at its very doors, and a market which, although it is a large one now, is bound to increase at a fast pace. I—A. 4.