THE NEW TARIFF.

Gisborne Times, Volume XXV, Issue 2188, 18 September 1907, Page 2

THE NEW TARIFF.

FURTHER DISCUSSION IN THI< HOUSE. MINISTER EXPLAINS THE OBJECTS OF THE .TARIFF.

Press Association. WELLINGTON, Sept. 17. When the House of Representatives met at 2.30 pan. the Tariff Bill was brought on for its third reading. The Hon. J. A. Millar, Minister for Custoihs, in moving the third reading, said there were two governing principles guiding the Government in framing this tariff. The first and foremost was the taking off of duties on necessaries of life and on articles that could not bo manufactured in the colony; and there was the encouragement to our local industries. Some members appeared to think that tho encouragement of our industries was of little account; but ho thought they "would agree that in such a country as this, with the amount of agricultural land available, that they must take these industries hand in hand with their agricultural pursuits. They were aware of exactly how many men could bo settler!' on the land of the oolony. They, were met with the statement that this colony wanted population, and it had been advocated by many that wo ought to go in for an immigration policy, but what was the good of doing that unless they had work for them when they came here. If it was true that every adult was worth £250 to tho State, then every man driven out to look for work elsewhere meant a loss to tho 6ta/te and increased the national indebtedness on the others. He said that under the tariff assistance had been granted to •10 industries. He claimed that in a few .years we would see a large increase of employment in these industries. He contended that in future this country would be a large -manufacturing country, as we had the raw material —copper, tin, iron, stone, a :id unlimited water power running (> waste. It was stated that they were placing a tax on the farming community, but he maintained that not one penny of the increased taxation had been placed on the farming industry. He maintained that every effort should be made to provide work for other portions of the population, and the tariff submitted had thfit end in view. Continuing his remarks on tiie farming industry, the Minister read a statement showing the duty on farming implements in force in the Commonwealth and Canada, by which he showed thpt farming implements in these two countries were taxed ten times as much as they were in New Zealand. Proceeding, he read a tabulated statement of the farm products of'the colony which were protected by a tax on similar commodities imported from other countries. These figures, he contended, were a direct reply to statements which had been made that the Government was unduly taxing the farming industry of the oolony. In regard to the mining industry, he contended that only two articles were taxed, and that at the small figure of 5 per cent. Under the Aot of 1900 it was provided that machinery for mining purposes was admitted free, but under this heading mining companies had claimed the right to import everything U6ed in the mine, even if used for general purposes, free of duty. In fact, he added, they had gone so far as to claim the right to import brooms for sweeping purposes free, whilst nil other industries had to pay 5 per cent.

Mr. Jas. Allen_ said they were all in favor of assisting local industries, but differed in the manner of granting assistance. He contended that a blow had been struck at the mining and fanning industries, which were indigenous to the country, in an attempt to assist other industries which were not indigenous to the colony. Proceeding, he allowed that reductions had been granted in foodstuffs. Referring to Mr. Miller’s remarks, he contended that no one could say how many they were able to settle on the land. He looked forward to huge settlement on the land. He did notthink the time had arrived yet when they should go in for helping the country from the towns instead of from tne country itself. He contended that the Canadian duty on farming implements meant nothing except on paper, as they manufactured all classes of fanning implements in Ginada. He contended that farming implements had been free in ■ this country since 1900, if not before, and the motion in 1900 Vas made by-Mr. Massey, also one for placing fencing wire on the free list. In the face of this he contended that the present Government had not placed farming implements on the free list. He agreed that it wias right to assist local industries so long as it did not injure anv other industry. He regretted that the Ministry was found in the wrong lobby when the question of granting free flour was considered.

The Premier: Where was the Leader of the Opposition? Mr. Allen: He was there, too. Continuing, Mr. Allen said there weire other means of helping flourmilling without keeping this heavy duty on. They could have grunted a subsidy or given them the amount realised by the duty. He deprecated the heavy tax on cheap boots, as this placed a very heavy burden on the poorer people who used cheap boots. Under the present tariff a 5s boot cost 7s 3d, ..'>inst 6s ljd under the old tariff, but the man who imported 30s boots got them for 365, or 9d cheaper than under the old tariff. Continuing, he said he understood that as a result of the Imperial Conference it was intended to encourage trade between England and the colony, but, he added, the duty had been increased on almost every articlge imported from the Old Country. He contended that because the colony could not get preference in the Old Country they had clapped on the duty on almost all articles from the United Kingdom. The Premier had stated at the Imperial Conference that New Zealand admitted a large number of British manufactures free of duty. He (Mr. Allen) had counted the items, and found there wore onL ten which were admitted free. Referring to tire preferential tariff, ho said a huge increase had been made in this tariff from 38 to 215 articles, and consequently he contended this was a revenue tariff, and would produce large sums in future. He stated that while at Home the Premier said ho would, if resident in, England, be found fighting on tho side of free food, but here he wus fighting for dear food, and would not take vhe duty off flour.

Mr. McGowan contended that Mi. Allen had adopted taotics of his leader in claiming credit for everything “good” that had been done in tee House. " He (Mr. McGowan) claimed that all the Government asked was that the tariff should be compared with the tariff of any other country, and if considered from that point of view it would be granted that it was the most reasonable tariff ever introduced in New Zealand. Sir W. J. Steward claimed that :o him, not Mr. Massey, was due the credit of initiating proceedings to place fencing wire on the free list.

Mr. Milford, referring to the flour duty, said lie regretted it had not been carried, as if it had been it would have been a groat benefit to the consumers, and he believed in taking off the duty from necessaries of life. The first item to be considered should have been the first staple of life —bread. He considered the Government had done much for the people in taking the duty off so many necessaries, but he urged the Minir

ter for Customs ought not to rest on his oars. Continuing, ho said that ho felt tho constant demand for increased wages by the workers mas due to the high prices of foodstuffs, and .he contended the Government had missed a grand chance of assisting the workers when they failed to take the duty off flour. He u'rged on the Minister that he should keep an eye on the commodities from jvhich the duty had been removed in order to see that consumers received the benefit. He particularly urged on the Minister to watch the operations of the Colonial Sugar Company, if he desired the consumers to get the benefit of the remission.'

Ur. Hogg complimented the Ministor on tho Tariff Bill. Ho acknow-ledge-J that it was a great improveiit on the old tariff. He regree-",-d, however, ■.-. hen the sugar duty was abolished that tho Government did not go further and take the opportunity of sweeping away the duties on wheat, flour, potatoes, and .fruit. He tried to get the duty removed from fruitt, but was defeated. With regard to flour and wheat he found that during tho last six years tho colony had exported these articles to the value of £625,374, and they had imported flour and wheat to the value of £74,909, on which tho duty paid was £B6OO. In 1900 the value of tho wheat exported was £276,111, uwl in 1906 it was £9915. Did that show that ho wheat-grower was progressing under the taxation of wheat and flour? Did the farmer get the benefit of the duty on wheat and flour? After the harvest he received the same price for his wheat as was paid in Australia. Who was holding wheat and regulating prices now ? It was not the fanner, but the grain merchant and tho flour-miller were the middlemen, dividing the spoil between thorn. The farmer was not in the swim. He often sold' hiis wheat to a merchant before it was grown. He got 3s last harvest Tor his wheat, and now the grain merchant wtas requiring 4s 6d to 4s 9d per bushel from the flour-millers. Every year New Zealand" consumers paid £150,000 more for the flour used than they would pay if they lived in Australia. Tho difference on flour was 30s to 35s per ton. He wanted £IOO,OOO, the Amount that went into the millers’ banking accounts, to remain in the pockets of the people. Abolish the duty on flour and the price would immediately fall 20s per ton. Tho miller and grain merchant would naturally suffer, but the farmer, in company with the artisan, and especially the man wiith a big family, would be the gainer. He assured the Government that come what might the people would insist on the removal of the taxes now placed on the main articles of food.

Mr. Hornsby said Mr. James Allen’s remarks regarding his desire to see development of land and closer settlement were most remarkable, as the lion, member had most consistently opposed every purchase-: of land by the Government for closer settlement. Replying to Mr. Allen’s statement that Canada’s tax on agricultural implements was meaningless, ho t witted the member for Bruce with having forgotten the existence next door to Canada of the United States. He added tbit Canada’s prosperity eommencod with the inauguration of a protective policy by Sir John McDonald.

Mr. Fisher expressed the hope that the Minister would bring down a Bill this session to deal with shoddy goods, as by doing so he would confer a boon on the people. Mr. W. Eraser, replying to the statement made by Mr. Hornsby, said it was true highly proteoted countries were able to sell their manufactures at cheap rates, but that, was oniy to outside countries. He contended that German manufacturers had two prices, the oheaper on e being for the sale of manufactures to foreign countries.

Mr. Poole said the United States were the most striking example of prosperity that this country could set eyes on. He urged that we were going in the right _ direction in fostering local industries. Mr. Flatman contended that if Mr. Hogg’s suggestion to take the duty off flour had been carried it would not benefit the producer nor damage the Millers’ Association. Mr. Hardy acknowledged that the country had never had a Minister who filled the positions of Customs and Labor so well as Mr. Millar. He added th'at the tariff whs a great improvement on the old one. Mr. Herries, referring to the increases in the tariff, said the only increases in machinery were connected with the land in 6ome way or other. Ho complained that protection had been removed from farmers who went in for growing maize. The result would be that maize from South AfYica, v grown by Kaffir .labor, would come in to compete with maize grown by white labor. Mr. Laurenson said the tariff would relieve every person an average of 8s per head per annum, and the decreased taxation under the tariff would he equal to 3s per head. On this basis he pointed out that instead of the man with a large family suffering, the larger the family he had the more he would benefit. He contended that a protective tariff would not only benefit the worker in towns, but would also be advantageous to every farmer and settler in the country.

The discussion was proceeding whei: the telegraph office closed at midnight.