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Hokitika Guardian, 27 January 1928, Page 2

Till-; annual report of the Commonwealth Tariff Board, which was presented to the Federal Parliament lately, contains sonic .striking economic truths on |ho operation of the Customs tariff. Increased duties on certain classes of imports designed to improve the position of several important industries in the Commonwealth have correspondingly increased the cost of production, resulting In stagnation in those industries. The Board gives emphatic warning that there is a danger of the tariff being used to holster up an ever-increasing cost ol production, irrespective of any consideration to the ever-widening gaps bet-.weeii the .standard maintained within the Commonwealth and the United Kingdom. The disparity in wages, it is stated, not only affects industries using materials wholly the product of Australia, such as the iron and steel industry, but experience has shown that even industries using appreciable proportions of inqiorted' materials are placed at a serious disadvantage with products from overseas. The Customs revenue was iontinually expanding, showing that increased duties had failed to achieve their objective, and revealing stagnation. otAvitlistanding that stimulation ol Australian industry had been aimed at. The increased amount collected of higher duties imposed with the Object of discouraging importations represented. in the case c.l goods used for manufacture, an addition to the cost of production which indirectly increased the cost of living, hi the ease of commodities imported in the form in which they were consumed, there was a direct increase in the cost of living. Where protection failed to protect, tlie balance of trade was likely to lie adversely affect",l. When, also, it was associated with a tendency towards extravagant buying, encourage,l bv credit companies, ol articles which might he described as luxuries, or semi-luxuries, imported from i, country which gave no opportunity to the Commonwealth for reciprocal trade, the position became menacing. Protect inn when it failed to protect became a double-edged weapon which ctit. both ways The Board is profoundly concerned over the policy of leaders of industrial unions in constantly applying for increased romuiicratou and shorter working periods. thereby adding to the cost of production. The Board calls for the serious attention r.if all parties; otherwise it says, there can be nothing hut disaster ahead. Reviewing its impressions of the economic position of Australia. the Board states that oversea countries are displaying increased interest. in the affairs of the Commonwealth, and in its manner of exploiting national wealth. Only one thing

the British fleet—has enabled Australia to continue to develop the Commonwealth as slowly as if chose. Under changing conditions greatly increased population was essential.