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XV

flocks of this country are now entirely free from it. This trouble and the cause for the tax having now disappeared, the reason for its continuance no longer exists; moreover, cattle, horses, and pigs entail more expenditure for the eradication of diseases peculiar to them than sheep ever did, and yet there is no tax imposed in respect to this class of stock. The amount collected under the sheep-tax is barely £20,000 a year, and I propose to ask Parliament to repeal it altogether. This concession lam satisfied will meet with general approval, as the sheep-farming industry has reached such dimensions that it behoves us to assist it in every legitimate way. CUSTOMS. The complexity of the existing Customs tariff has long been a cause of complaint from merchants and trouble to the Department. A Bill to simplify it will be introduced, and the Government intend to propose readjustments and remissions which" will facilitate trading operations, assist industries, and, last but not least, sensibly lighten the cost of many food articles of general consumption. Details will he submitted by resolution in the usual way I may add that encouragement will be given to some of our important industries in cases where foreign competition appears to press unfairly on the capita] invested and depress the wages of the workers. The question of the importation of articles of shoddy clothing has received very careful consideration. The matter is one of an extremely difficult nature to deal with. The mere imposition of a duty will not suffice, and, in my opinion, separate legislation will be necessary. The whole subject has been examined with a view to submitting proposals to check a system under which our people are imposed upon by not knowing the class of articles they are purchasing. I estimate that the total remissions of duty will amount to about £375.000 ; but with the expansion of trade and the development of the country it may reasonably be anticipated that, as inrthe case of the postal remissions, the revenue will steadily recover. By an alteration in the weight of the contents of packet tea the intention of Parliament has been evaded, and quantities of packet teas, made slightly over the weight, have consequently been admitted free of duty. As packing can be done most satisfactorily in New Zealand the duty will be fixed at 2d. per pound upon packets containing up to 51b. in weight; and this should effectually prevent the evasion that has been practised. As a matter of fairness to the holders of duty-paid stock, provision will be made for the proposed exemptions or remission of duties to come into operation on the Ist November next. This, lam satisfied, will be recognised as fair treatment to those concerned. Last year the actual Customs revenue received was £2,941,040. In the proposals 1 am now submitting I estimate that the reductions in Customs tariff amount to £375,000. This must be admitted to be a very heavy reduction, and it will be found on examination to be chiefly in the direction of reducing the cost of the necessaries of life and upon that class of wearing-apparel that is largely used by the mass of the people. Among the principal items are sugar, currants and raisins, figs, dates, unground spices, and all articles of infant diet, which are made entirely free. Cotton piece-goods, dress prints, and cotton tapestry, linseed and olive oil, and various other items are put on the free list. The duty on potatoes is altered from an ad valorem one to £1 a ton, fixed so that the anomaly of the higher the price the greater the duty will be removed, to prevent unfair exploitation of New Zealand markets. The increases, including general and preferential, amount to £121,000. The difference between the decreases and increases is therefore £254,000.