THE TARIFF

Evening Post, Volume CVII, Issue 135, 12 June 1929, Page 8

THE TARIFF

AUSTRALIA'S PROBLEM

SCIENTIFIC ADJUSTMENTS NEEDED

(From "The Posty Representative.) SYDNEY, 23rd: May. Australia appears to be anxiously awaiting the findings to be published shortly of the expert economists who have beeu inquiring into the tariff problem, and it will probably point to the need of a revision in the tariff schedule m^BUch a way that it will not penalise industry. The report will certainly oome at an opportune time, in view of the- recent statement by the Minister of Justice (Mr. Gullett), that increases in the cost of living, caused by unemployment, which were felt most heavily in.Sydney and Melbourne, made the attainment of an effective tariff very difficult. :-.

The economists who are preparing the leport are not acting in an official capacity, but they are such authorities on .their subject that the Government is bound to take notice of their recommendation. Perhaps they are saving Australia from another Eoyal Commission. It is predicted that the report ;will not be directed merely to the settling of the issues between Free Trade and Protection, but will.deal with the effects of tariff protection on Australia as a whole, and also on Australia's international relations. V ; v

' One of the main points that all economists are striving to settle is the effect of overseas borrowing; on the tariff of Australia. Some- of the money lent to Australia come 3 here in the form _of goods.; To tax those goods through the tariff is to treat Australia's own borrowings as a source of revenue. This aspect was considered by the recent British delegation. One authority said the other day that the real subject for discussion now was whether, in. fact, the tariff problem was a mere matter of substance or of bookkeeping.. It was possible that any defects might be rectified by a revision of the. method of keeping the books, without a change of policy. That aspect of the matter had been, insufficiently considered in the past. Borrowing inevitably meant additional imports, with the resultant increase in the taxes levied at the Customs House. Some people were too eager to overlook the fact that this was not free revenue.

ITot only did it affect Australia, he pointed out, but also her international relations. , Australia was only : just Ijeginning to realise how her tariffs were wrapped, up with her external policy. As a! country that had adopted protection, it: was; all the more necessary- for Australia to make her position clear. It was in that way that expert economists could help. Australia had' a tariff board whose duty it was to inquire into increases and decreases in .the tariff, but it did not. have a body of experts who could consider changes in the tariff schedule and closely scrutinise every demand. It would be the duty of such experts to present each matter to the board in such a way that all the facts would be considered, andnot only those which particular interests desired should be considered. ,

■:.-It is generally conceded^that Australia's methods of dealing with the tariff are more or less haphazard. The board is often swayed by the condition of a particular industry, and it is fear? Ed that it makes its recommendations without considering the combined effect of its operations over an e'xtejfded period.