EMPIRE TRADE

Evening Post, Volume CX, Issue 68, 17 September 1930, Page 6

EMPIRE TRADE

(To the Editor.)

Sir,—Last year New Zealand imported forty-nine million pounds worth of goods. Of this total thirty-three millions came from mthvn the Empire. On £25,000,000 of this latter figure by reason of New Zealand's present system of preferential tariff in favour of Empire goods, British countries were given the benefit of dutis on similar goods of foreign origin ranging from 10 per cent, to 20 per cent. In other words, New Zealand gave a trading advantage to British countries of at least £2,500,000 on a conservative estimate. Of the total imports Great Britain herself sold twenty-four million pounds worth. If the preferential tariff in favour of British goods was removed, it is questionable how much of New Zealand's trade Great Britain would continue to hold had she to sell on a price parity with other competing nations. A further impost levied on New Zealand is that in many cases the prices she pays for British goods are higher than the charges Britain makes when selling similar goods in other foreign countries where no protective tariff exists. In other words, Britain, quite rightly and where possible, scales up her prices so as to take the maximum advantage of the punitive duties which New Zealand levies on foreign countries for the Empire's benefit. In spite of an additional duty of 20 per cent, charged on foreign goods, these countries sold dutiable articles to New Zealand last year to the value of nearly £8,500,000. • The effect of these commercially unreciprocated concessions to Great Britain it that the New Zealand primary producer has to bear an additional national overhead charge. His costs are, therefore, correspondingly higher and the profits derived from the sale of his goods, overseas less. It has been suggested that if New Zealand was buying her manufactured requirements on a free trade basis that she would save in the neighbourhood of £4,000,000 per annum. When' it is considered thot the total population of New Zealand is under 1,500,000 and the cost of maintaining Government services and debt interest ia approximately .C 20.000,000, the value of her contribution in proportion to her total resources can be licst. appreciated.

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unless she receives corresponding reap rocal treatment. New Zealand sells hei products to Great Britain on a world parity basis. Every influence exists to depress the price received by reason of. the unrestricted competition from similar goods allowed in "from other countriea from whom Britain receives little or no reciprocal trading or with a low standard of living and therefore lesser production costs. Not only the New Zealand farmer but the whole people of New Zealand suffer .accordingly. The New Zealand dairy farmers are now moving to put a stop to this manifestly uneconomic procedure. They are organising with the intention of demanding a review of the whole fiscal S3'stem of the Dominion, and it is to bo hoped that Great Britain will readily meet their representations. If Great Britain levied a duty of 2d por 1b on foreign butter and Id per lb on foreign cheese, this would allow New Zealand to sell the whole of her dairy products to Britain and would.yield a sum of.appi-oxi-inately £2,500,000 as a set oil against the New Zealand tariff. .An equitable basi-i of.trading having once been finalised, tlie way would be clear for arranging furthe; concessions for the mutual advantage English fanning has been killed by lac!-' of protection in the past, arid these sanir conditions which • exist in Great Britai': are to-day acutely- and adversely influencing the prosperity of New Zealand and reacting oil her whole economic system.— I, am, etc.,...

CONRAD B. LOCHNEE Auckland, 12th September.