EMPIRE TRADE.

Hokitika Guardian, 11 February 1926, Page 4

EMPIRE TRADE.

POLICY OF PREFERENCE. TRADERS URGE FURTHER DEVELOPMENT. WELLINGTON, Feb. 5. The Prime Minister, Hon. J. G. Coates, and the Minister of Customs, Hon. Downie Stewart were entertained at luncheon at the Midland Hotel by the New Zealand Association of British Manufacturers and Agents. There was a large attendance over which Mr G. IT. Scott presided. Among those present were Sir Alexander Roberts, New Zealand Commissioner at Wembley, and Mr F. D. Lambic, British Trade Commissioner’s office.

Mr Scott proposed tlie toast of “Our Guests,” and in doing so congratulated Mr Coates on having been made a Privy Councillor. Both Messrs Coates and Stewart were New Zealanders horn (Applause). These two leaders placed their country first and showed that polities came second. That was a reversal of the usual process. The association for which h.e was speaking lmd no polities, hut it recognised tile need of a strong Government. Perhaps Mr Coates would not agree that there was need of a capable Opposition, not necessarily a strong one. (Laughter). They did not believe in continually seeking Government assistance, knowing that the same legislation and Government co-operation hacking individual effort made for the nation’s progress. Traders aimed at assisting the Government in the development of Empire trade, and tlieir association would help in advertising the Dominion abroad. He hoped that the administrative difficulties would he tackled with the intention of overcoming them, and that the policy of Empire preference was given effect to. They desired to trade amicably with all parts of the

world, hut it must he on a basis which was reciprocal. The preference policy of the Empire was intended to give all the dominions an advantage, hut the position with Canada was that preference was being given to the United States via Canada. Industrially Canada was largely owned by l nited States capital, although her loans came from the United Kingdom. Since 1990 Canada had enormously developed her exports to New Zealand by 100 per cent, but our exports to Canada had moved upwards by a very moderate degree. The flat tariff would not work out equally, hut the preference rate would have to he made more than 50 per cent if some industries were not to he penalised, through a rebate of duty on raw material.

Ho appealed for protection in respect to trade marks, contending that there was need for safeguarding British goods in this respect. lie also thought that the fern-leaf trade mark should be used as a universal mark for Now Zealand produce, and urged that Empire Day should he set apart for association with trade exhibitions or something of that sort. Shipping rates were too high complained Mr Scott, and on certain lines they were heavily penalised. British manufacturers had to pay double taxation on their earnings through the operation of the British law, hut here they were taxed as nonresident, traders. The taxation on a man’s overseas business meant that he not only had to pay for fleet protection, lnit he had to meet New Zealand taxation as well. M bile New Zealand contributed only 8s per head to the Navy, the British manufacturer was heavily penalised in having to pny loral and Dominion tax, as well as help to pay 95s per head for the maintenance of tin 1 Navy.

After referring to the question of local body borrowing, Mr Scott, amidst applause, drew attention to tile fact that tenders for the new railway workshops were to lie entirely British, lie appealed for more expansion in the purchase of British goods. 1 hey should in that matter play the British Empire game. (Applause). Reol.ving to the toast. Mr Coates said (hat the Government was anxious to adopt methods which would serine the host economic and financial results to the country. The first concern was the country’s credit. They were proud ol the British characteristic of sticking to one’s word, and the Government would have to give a lead to the people in giving a helping hand to Britain.

Nowhere was there a greater held lor British trade, and to-day the Unit 'd Kingdom was. getting openings lor more of fheir trade tloili in any other part of (lie Umpire. The Government was willing lo give the British manufacturer a fair chance, and give him preference. The difference between duly paid on British goods imported into New Zealand and the duty which would have been paid on such goads had tile duty been levied at general or foreign rates was as follows: —The pteference of goods produced in the United Kingdom was 8it,558,000 in 11)08, and in 1025 £3.892,000. The percentage of British motor-ears imported into tlio Dominion was A per cent, in 1022 and IS per cent in 1025. lie admitted that Mr I .amhie was a lirstelas.s representative, but New Zealand wanted to see Mr I-amhie holding a

higher status. Proper organisation was also required. The Hon. Downie Stewart said that the problem of United States trading through Canada was a difficult one. The percentage of British imports from (treat Britain was not as great as it was before the war. The United States had taken second place amongst our imports. Conspicuous among the changes was the growth of trade with America and Canada and the decline of trade with Groat Britain. The j liext comfort lie could offer was that, j had it not been for the preference J tariff, the percentage would have been . lower.