TARIFF REVISION

Hokitika Guardian, 14 June 1921, Page 2

TARIFF REVISION

THE PROTECTION ISSUE

INVESTIGATION OF LOCALINDUSTRIES. WELLINGTON, June 10

As it is thirteen years «inee the New Zealand Customs tariff* was overhauled the task facing Parliament next session, is one of no ordinary character. Since the last revision, New Zealand’s manufacturing industries have grown considerable, and there was never so great a promise of future development, the stimulating cause being the prospects of cheap electrical power within a few years. Christchurch already affords an example of how cheap power of a convenient nature, encourages the creation of factory industries.

The preparations for revision are more thorough than on the previous occasion. There was no Department really concerned in those days with the development of industries and control over prices. The Board of Trade, though created to ileal with war exigencies, has f-iind an important place in the seller-e rf things during peace time, and it will probably provide some protection to the consumer from the operation of the protective principle which is sure to be strongly advocated on behalf of New Zealand manufacturing industries. Protection has lieen abused in New Zealand, by lieing used to maintain prices of locally manufactured products 1 up to the artificial point set by a high tariff on imported articles of similar description. If an article from abroad cost a sovereign after the duty had been paid it was singular that the selling price of the Now Zealand article seemed always to work out at about 19s lid. This was one of the points made by the Cost of Living Commission of 1912, which quoted the matchmaking industry in New Zealand as the worst example. “It would pay the authorities.” said the Commission of this industry, “to pension off all the employees, giving them the present wages earned, i.e. £11,302. The revenue from imported matches would produce at least £20,000 a year, and the public wouuld have matches at much lower prices than those ruling at present.” The Commission did not make this sweeping statement without giving statistical details. These figures went to show that if all the-matches used in New Zealand were imported, and bore the usual duty, the public could be supplied at Is 3d per dozen instead of the ruling price ( that time) of Is Bd. Protectionists will have to face criticism of this sort when their claims come before Parliament, but the public, has a new ally to-ilay. The Board of Trade has conducted a number of close actuarial investigations of tlie cost of production in manufacturing industries, and it is suggested that if any fresh measure of protection is given to struggling industries it should he subject to periodical overhaul of their accounts, so as to show whether the tariff is being used, not as a protective medium, but as an instrument to extort larger profits from local manufactures. The financial side of New Zealand manufacturing is being thoroughly investigated by the committee of departmental experts headed by the chairman of the Board of Trade, and it is also important to note ’hat the Hon. E. P. Lee. Minister of Trade and Commerce, is making his own inquiries into industrial processes. This 's the purpose of his present visit to Dunedin. Mr Lee will be a valuable assistant to Mr Downie Stewart, Minister of Customs, when the tariff Himes before the House for alternation and improvement.