CHANGES IN DUTIES

Evening Post, Volume CXXV, Issue 87, 13 April 1938, Page 12

CHANGES IN DUTIES

When alterations in the Customs tariff were announced recently, it was to be noted that manufacturers received the greater protection only as an instalment. One suggestion made was that the duties on United Kingdom goods should also be examined with a view to affording greater protection against competition from this quarter. In a letter to the Prime Minister which we published yesterday the United Kingdom Manufacturers' and _ New Zealand Representatives' Association drew attention to reports that the Government was considering increasing the duty on apparel and similar goods from the United Kingdjom. The association asked for information and also an assurance that United Kingdom manufacturers would have an opportunity to state their case before any higher duty was imposed. In his^ reply the Prime Minister did not give the information sought but he did give a qualified assurance that the United Kingdom manufacturers would be heard.

Two points of great importance may be noted in the reply: (1) That, in considering what action may be necessary for the protection of New Zealand industries, "due regard will be had to any obligations of New Zealand. under the Ottawa Trade Agreement or trade agreements with other countries"; (2) the Government will take the course which is considered best, in the interests of the community as a whole." The Ottawa Trade Agreement bound New Zealand to revise her tariff so as to admit United Kingdom goods on a fair competitive basis. That basis was fixed after a thorough investigation, 'and, while it cannot be regarded as unalterable, it should be changed only if an equally thorough inquiry (in which United Kingdom interests should be heard) discloses that changes in conditions justify alterations in the duties. The whole value of New Zealand's undertaking would'be lost if the tariff, framed after investigation, were subject to change on ex-parte representations. With respect to the "interests of the community as a whole"—a phrase that may cover any decision the Government may choose to adopt—we think that the consumer's interest should be stressed. There is always a tendency, when the' interests of organised bodies of manufacturers and importers diverge, to overlook the greater third party, the consumers. When costs of production and costs of living are steadily rising the consumer, more than ever, should be heard.