WELLINGTON TOPICS

Hokitika Guardian, 29 June 1927, Page 1

WELLINGTON TOPICS

TARIFF reform. NEW ZEALAND'S PROBLEMS, (Special to “ Guardian WELLINGTON. June 27. A revision of the Customs Tariff was among the big things promised in the Governor-General’s speech at the opening of Parliament last week and itie conversion of the promise into a performance will be awaited with curiosity and interest, and, perhaps, with some concern. While the gospel of protection, in one degree or another, is generally accepted in the Dominion, there is a feeling abroad that “the encouragement of local industries ’’ hy the maiiipui'atinn of the tariff may become a cosily expression of patriotism and of loss tangible assistance to the industries concerned than to the Minister of Finance. Several branches of the Farmers’ Union lately have affirmed in almost identical terms that they adhere to the principle of Frt'o Trade and deprecate all tariffs, save those for revenue purposes, and though these protestations are discounted to sonic extent hy the fact that practically everything the farmer produces is

“protected” they arc symptomatic of the gathering revolt against the burden of Customs taxation. As lor tile wage- earners it. is little comfort to them to lie fold that the C ustoms duties, in the main, are obtained from motor-cars and champagne. They know that their.own contributions are in the way of bare necessities of life and that during the last decade the prices of many of these have advanced enormously. THE HOME COUNTRY.

That this question of tarills is not altogether a domestic affair, concerning only those countries that frame them, may he judged Irom the report recently issued by the British National ( ommittce of the International Cliam-In-r of Commerce. The ( omniitlcee, while taking an entirely optimistic view of the future, realises that “ the revival of trade can he greatly helped hv international goodwill and understanding.” It stresses the need lor a. steadv increase in the volume of trade, which, directly or indirectly, must benefit all nations, and points out that at the present time this development •• is hampered hy numerous harriers susceptible of reduction, and even of complete removal, without any injury to the welfare of the nations imposing them.” Though recognising that every nation has the right to determine for itself its own fiscal and to rill policy, the committee expresses the opinion that in many directions tariffs have been raised to an altogether unreasonable height. The London “ Times ” supplements this view by a direct allusion to New Zealand’s impending tariff revision. “It is highly important,” it says. “ that business men should be alive to the fate that their interests limy he involved. If that proves to he the case it is to he hoped that they will he more prompt in making proper representation Jo the Now Zealand Government through the High Commissioner than they were in the case of Australia.” The business men of the Mother Country are not likely to overlook the hint. THE BROAD OUTLOOK.

The “Times” having stated the position frankly and having acknowledged the right of the Dominions to do what they please with their tariffs, whether in British eyes it seems wise or not. accepts the inevitable philosophically.

“ T’iie best we can hope for. as practical people." it says, “is that they will endeavour ns far as possible to build up their industries at the expense. of foreign rather than British trade, and give tin's country effective preference in trades which they do not at present propose to protect.” Of course this is quite the right attitude for the Mother Country to maintain, hut there are other features ol the situation to lie taken into account. It is quite true that a very large part of the Customs revenue is obtained from luxuries, or, at any rate, from nonessentials, hut it also is true that the volume of the duties has been largely increased. During the liiimcial year 1914-15 the sum of £3,29*1,9-13 was collected and during the financial year 1924-25 £3,339.576. These figures do not mean that the rates have been doubled—the growth of population and periods of prosperity have been tactors in the increase—hut they at least show that the Customs revenue continues to he the sheet-anchor of the Dominion's finance. How much the Govcinment Is going to .squeeze out of the public in the name of protection is now a matter of speculation.