WELLINGTON TOPICS

Hokitika Guardian, 4 February 1927, Page 4

WELLINGTON TOPICS

ORDERS-IN-COUNCTL

FARMERS AND MILLERS

(Special to “ Guardian.”) WELLINGTON, Feb. j. In these day's the metropolitan newspapers are far too busy in discussing the affairs of other countries to pay much editorial attention to the happeningat their own doors. The “Dominion'’ admits to its correspondence columns this morning. however, a letter from a New Plymouth correspondent which was .intended to stay the hand of the Government in subsidising the farmers and millers at the expense of the bread consumers. "The dangerous nature of government by Order-111-Council,” the writer says, ”is again being strikingly shown by the tactics of the flour combination in regard to the so-called ‘dumping’ of Australian flour. Knowing apparently that their case for still higher protection is too flimsy for the experts of the Customs Tariff Hoard and too unpopular to stand the probing of Parliament, an attempt is being made to put political pressure on the Acting-Prime Minister. Reinforced by wheat growers and other self-interested parties they are trying by deputation to browbeat the .Minister to over-ride the advice oi his experts and use a clause of the Customs Act to impose by Order-in-Couneil a further duty on flour. This (lanse permits the .Minister to so act, but obviously it is for use in emergenr ics. it was never intended to usurp ilie rights of Parliament. It appears to me that a principle is at stake which urgently calls for action by responsible bodies in 'Wellington.” There is no reason for supposing this letter was withheld from publication with any ulterior purpose, but it is unfortunate iL did not see the light of day till the. .Minister of Customs had reconciled

imseif to a “ dumping duty ” under

certain conditions. THE .MINISTER’S C ONCESSION. This happened on Friday last, the day after the letter just quoted was written. “ What is proposed now,” Mr Stewart stated. ” is to admit with out dumping duty, lines of Hour from Australia which comply with each of the following conditions: —(a) Definite contracts must have been made not later than this date, viz., January lpo;. (b) Such contracts must have specified shipments by vessels sailing from Australia during January or February, (c) The flour must reach New Zealand not later than the end of February. Flour which does not fulfil these conditions will have; to pay such (lumping duty as is chargeable according to the relevant facts, the amount of dumping duty being the difference (if any) by which the export price is exceeded by the legitimate Australian home consumption price, after due allowance is made for differences in trading conditions as between export and domestic sales respectively. It is expected that the result of this decision will be that no further business will bo done between New Zealand importers and Australian suppliers at what can properly be regarded as dumping prices. Should this result eventuate, lliu New Zealand wheat-grower and the New Zealand miller will have the utmost protection that can he given under existing customs legislation.” These regulations, it may he assumed, were made with an honest desire to meet the necessities of the position, but apparently they gave satisfaction to neither of Die parties to the dump-

ing controversy. THE FARMERS’ SIDE

The Christchurch “ Press,” for instance. the champion of the agrarian interests throughout the Dominion, takes the Minister severely to task for not having moved earlier and more emphatically. "In the meantime,” deHarts this authority, “a good deal of wheat has been sold forward at prices

lower than might have been asked for and obtained if the Government had throughout made the dumping duty operative, or had pronounced its policy long ago. The fanners, that is to say. have once more suffered for the benefit ;f others. In refusing to impose dumpfug duties the Government was acting

within its powers, for the law gives to the responsible .Minister authority do nothing, even where the dumping is proved, if lie thinks the public interest requires inaction. That is to say, the Act is not a real law at all. The real law is the Minister's own inclination. Although in some countries provision is made for the alteration of the tariff, cither through the imposition or remis-

sion of duties, by bodies or persons other than I’ariiamenl. most people who have studied politics and tariffs—specially politics—are agreed that all

“lu ll arrangements are unwise and danherons. I.au-.s ought to lie clear and certain in their operations, and ought not to be subject to modifications, suspensions, or uullilication by a Government or its r< presentatives or agents.’’ This appears to he an explicit denunciation of government by Order-in-Council ” and to that length will meet with very general approval. ‘the other side. On the other hand the “Taranaki Dailv News.” one of the liveliest of the -Dominion’s provincial newspapers, sees in the regualtions the violation of a vital principle in Magna Cliarta. “By a stroke of the pen.” it says, “ the Acting-Prime ~Minister has made a pre-

sent of over £300.000 to the wheat and Hour interests of this Dominion at the expense of the bread-winner. These figures are based on the statement of Mr David Jones, M.P., who has been leading the successful agitation for the imposition of the dumping duty on Australian flour. Wheat that was selling last week at os fid will now he worth 6s -Id per bushel, .but the unfortunate public will eventually have to pay a further penny on every loaf of bread. This will he in addition to the present protection on flour of £3 a ton, which roughly equals a. penny a loaf. A serious aspect of the matter is that this heavy tax on the consumer has not been imposed after careful investigation by the commission of experts] set up to revise the Customs tariff, nor lias Parliament had «n opportunity to! express an opinion. By what can only be regarded as political pressure on the part cf the flour monopoly and wheatgrowing interests an Order-in-Council I has been issued under a clause in the Customs Act designed to prevent ‘ dumping ’ from abroad.” That really is the root of the whole trouble. Government by Order-in-Council has been substituted for the popular will represented by Parliament.