ATTACK ON IMPORT DUTIES.

Press, Volume LXVI, Issue 20103, 5 December 1930, Page 14

ATTACK ON IMPORT DUTIES.

COMPLAINT BY BRITISH AGENTS. _ j NEW ZEALAND'S PROTECTION POLICY. £THE PRESS Special Service.) WELLINGTON, December 4. Adverse criticism of the policy of encouraging secondary industries in the Dominion, including factories not economically justified, by means of heavy duties, which were a crushing burden on the community, was made by Mr L. A. Edwards at the annual meeting of the Association of British Manufacturers and Agents, at which he presided. In looking at the slump which had brought about the trade depression, said Mr Edwards, they must analyse the position from a world standpoint, and not by looking only at things under their noses. The depression was worldwide, and affected every country, the main causes being the deflation after the war and the inflation which followed. The economic position was bad; but that was no excuse for any country failing to study its own economic position, and to do everything possible to put the position right. New Zealand had practically one market for its goods, Great Britain, and depended for its prosperity upon that of the Old Country, and if that fact were solidly impressed on the community in New Zealand it would iiutomutically increase business and prosperity. Talk of Unfair Competition. They had heard a good deal about unfair competition from Great Britain, owing to some of the goods being manufactured from foreign raw material. The world was an economic entity, and the exchange of goods was of paramount importance. That they should support Great Britain was an economic fact, lor the only means of bringing wealth into New Zealand was by the sale of primary produce overseas, and Great Britain was the only market at present, so that the only sane course New Zealand could follow was to see that the primary products found their way to England unhampered by the policy in the Dominion. The last figures available showed the total produ#tion for the year to be £121,100,000, of which £78.000,000 "as by farming, £20,400,000 from mining, forestry, fishing, and building, and £22,100,000 from local factory production. New Zealand's Production. Although the volume of production had been increasing in the past few years, the increase was entirely due to primary production, the other industries being practically retrogressive. The local factories had been going back in the last three years. They were inclined to accept slogans advocating the use and consumption of New Zealand-made products without investigation of the slogans, which were fallacious. To say that by keeping New Zealand factories going they would solve unemployment was entirely wrong, for local industries not economically .justified were a burden. They had to pay high rates, rents, and taxes, compared with other countries, and had to import the machinery i'or the production of their goods. The costs of New Zealand products were too high to enable them to be sold outside of New Zealand. "The duties added to the cost of living," said Mr Edwards, "and so added to the cost of production, which in turn reduced the profit the farmers should get in selling their products on the unsheltered markets of the world. It prevents New Zealand getting an adequate return from the only source of wealth it has. They all turned to the Government to do something. He would prefer that the Government did not do nuite so much. They should not introduce doles, which scratched the surfaco onlv."

Their Association could do a good deal by propaganda, for there were two things tho British manufacturer dare not lose —first, tho reputation for British quality, which held a high place in the world; and, second, the reputation for fair and square dealing.

TAX ON FOREIGN FOOD IMPORTS.

SUGGESTION TO BRITAIN. (PRESS ASSOCIATION TELEGRAM.) WELLINGTON, December 4. The New Zealand Dairy Council today resolved to urge the Government to endeavour to arrange with the British Government for a tax on foreign food imports, New Zealand agreeing in return to a reduction of the duty on British goods entering the Dominion. Mr W. Goodfellow, of Amalgamated Dairies. Ltd., gave a full analysis ot the position, and said that the dairymen were facing a crisis because ot the low price* of primary produce, and the remedy lay in lower costs, 'more efficient marketing, and Empire preference. The Council decided to institute action calling on London importers to devise methods to prevent the unnecessary marketing weaknesses.