BRITISH PARLIAMENT

Hokitika Guardian, 19 December 1924, Page 2

BRITISH PARLIAMENT

LATEST CABLE NEWS

lUBTRALIAN AND N.Z. CABLE ASSOCIATION FISCAL CONTROVERSY FOHK,SHADOWED. LONDON, December 18. The .speeches of the J.ilieral and Lahour Leaders suggest that the Opposition intends to make the most of the opportunity to launch the fiscal controversy anew, hut a iiiiiiilhm’ of the Opportunists are evidently disposed favourably' to consider n new Empire subsidy plan which the Prime Minister announced in the House of Commons, namely that £1,000,000 would he annually allocated for developing schemes for the marketing in Britain of produce from the Dominions. The “Telegraph” thus outlines the scheme;

“Tin* Government will invite the Dominions to set up an Imperial Economic Committee, which will he purely advisory, hut will he charged with the duty of inquiring as to the best means of marketing Dominion products. The Government will also carry Imperial preferences, which will involve the decreasing of the existing duties to British taxpayers, but the small duties on apples and tinned fish are to he dropped, and a subsidy of one million per annum instead expended by tho Imperial Economic Committee in improving inter-Impcrial mark-

ets. Even Mr Lloyd George is not altogether unfriendly towards an Empire subsidy. He said he hoped the Government would not have regard merely for the carriage of goods from the Dominions hut for the carriage of our goods to the Dominions. I’er.sonnlly, he had always regrdttcd that the ideas

I mooted at the 11)07 conferences were not carried through as it was impossible to carry a tariff involving a taxon bread. Mr Wedgewood Benn. representing the other section of the Liberal Party, argued that, even if preference did not involve the imposition of new and higher duties, it would give the Dominions a vested interest in the existing duties, and thus would hi* even more difficult to deal with than the vested interests in Britain. Sir Edward Grigg. speaking from the Liberal benches, however, said *ie welcomed Mr Baldwin’s declaration regarding imperial preference. and he was glad lie had kept faith with the Dominions. Mr Philip Snowden, in a caustic speech, sneered at the Government’s pro]>o.sals as “an effort to keep the Empire together by a subvention of one million sterling.” He attributed this new version of preference to Mr Churchill, whom lie described as “tin* greatest political acronat.” Mr Snowden said the Labour Party was not opposed to spending money in the promotion of imperial trade, provided that it was done in the right way, I,lit the LaWir Party objected to this subvention, because it was going to increase the price of food from the Dominions. Mr Haden-Guest said that he was prepared to believe a boldly-conceived Dominion ) olicy would put a now complexion on the life of the people of Britain and Dominions, hut this <ou!d not he achieved hy a little patchwork by means of preference. The pity was that the people of Britain did not know the Empire. It would pay the Government to make Empire travel very cheap. Mr Churchill, replying to the debate, boldly eaimed that the Government’s Empire trade proposals were practically those of the Lilieral Government in 1907. and said tlu-y would give effect to the policy of imeprial preference without the imposition of food taxes (Ministerial cheers). The Government’s desire was to encourage Empire products at the expense of foreigners, not at the expense of the domestic producers.

LONDON, December 17. In tlic House of Commons during tlie debate on the Addrcss-in-Rcply, Mr IVedgewood Itenn moved the official Liliernl amendment, regretting that the King’s Speech did not mention any constructive proposals for dealing with unemployment but foreshadowed the introduction of tariff preference, which would raise juices, increase the cost of living, hamper industry, and reduce employment. Mr Baldwin, replying, said the Government attached great imjKirtance to tlie constitution of the Imperial Economic Committee. The specific reference to the Committee upon which tho Dominions had been invited to nominate .members, was to tho possibility of improving tlie methods of preparing for market and marketing within the United Kingdom the food products from overseas ports of tho Empire, with a view to increasing t)ho consumption thereof in tlie United Kingdom, in preference to imports from foreign countries, and to promote the interests of both tho producers and consumers. Tho Government intended to re-submit to the House all the resolutions of tho last I'.conomie Conference, which involved any reductions of duty. He adhered to tlie pledge made in his election speech, at Gravesend that preference would not he used as the thin edge of a wedge to tax food. He hoped to secure an increase in trade with tho Dominions hv a proposal that the full money cf|iiivnleiit of the advantages, that would have been conferred on the Empire’in respect to 'any duties which were not retained, should lie devoted to schemes for developing trade within the Empire, and, firstly, schemes for marketing. It was hoped to allocate one million sterling annually for this purpose. He thought, with tho contemplated Economic Committee, on which British and Dominion exports would he represented, and with tho aforementioned terms of reference, that it might lie possible to ojicn entirely new and untried ways of developing Imperial trade. He liojied those would lie a far greater lienefit to the Dominions than the two or three small taxes proposed at last Economic Conference. Mr Baldwin said tho first things tohe remitted to the Economic Committee would ho meat and fruit. It was impossible to touch meat and fruit by taxes, hut it was liojied to devise a scheme to somewhat alter the com so of trade, benefit the Empire and benefit their own pcojile, without taxing food. After paying a tribute to Mr J. H. Thomas for his highly valuable efforts for tho maintenance of Empire interests. Mr Baldwin said a new Safeguarding of Industries Hill would he introduced next summer, and applied n justifiable east's. He expressed the opinion that any duty levied under this Act should he a general, not a discriminating duty. Preference on those duties would he given the Dominions. Deriving to Air Lloyd George, the Premier said such general duty would apply to all countries, even though unfair competition were only encountered from one. Mr Snowden declared that the Em- , jiire, nnparently was to lie kept together by a British subvention of a million annually to the Dominions. # Mr T.lnyd George interpreted Mr Baldwin’s statement regarding the preference resolution as meaning that no duties would be granted Dominions or colonies on food, and that any existing duties, and not to the creating of fresh ones. He roundly condemned the Safeguarding <>f Industries announcemold as not being a straightforward way of introducing a general tariff transformation of their fiscal system. Mr Lloyd George declared it. was the gravest proposal he had ever’ heard from a British Prime Minister. Mr Churchill said tho proposed expendible on Empire objects, instead of food duties,' would he not d.is-similar from the lines or the Imperial Conference proposals of 100 for improved com dm ideations, and tJio marketing ;ilid popularising of Empire products. Great care would have to he taken not to do an injustice to our own ngrieitltural producers. Tim Liberal amendment was defeated by 309 to lot, and the Address was agreed to.

PRESS COMMENT. LONDON, December 18. The “Morning l’ost” and “Financial Times” commend Mr Baldwin’s proposals, especially preference. The “Daily Telegraph” and ‘‘Daily Express” make no comment. The “Daily Chronicle” stresses the danger of protection.