TRADE AND TARIFF

Hokitika Guardian, 16 July 1929, Page 7

TRADE AND TARIFF

MINISTER’S OPINIONS

GOVERNMENT’S GUIDING PRINCIPLE.

WELLINGTON, July 12

As Minister of Customs, the re marks of the Hou W. 11. Taverner on trade and the tariff were of great interest to the House when h© spoke this afternoon. He advocated as a first principle that commercial relations within the Empire should be further opened up. Apart altogether from the general question of free trad© or protection, our comparative isolation. from the great trading centres, together with our ever increasing production of foodstuffs, rendered it essential to explore every avenue for creating new centres of distribution and he believed the exceedingly high quality of our goods Mould make that work reasonably easy. AN ECONOMIC DISEASE. References had been made luring the debate to the necessity of developing our secondary industries, and he was convinced this urns the earnestdesire of all parties in Parliament.

“We arc faced to-day with peculiar and unprecedented economic conditions,” continued the Minister. “We have on one hand a huge trade balance; on the other hand we have our secondary industries languishing and in many cases experiencing depression. It is long past the symptomatic stage, and has reached that, of an economic disease. Also noticeable, painfully so, is that side by side v itli our enormous increase in national wealth, brought about by increasing exports, wo have chronic unemployment and its accompanying conditions which produce a general lowering of the morale of a very essential section of our community. IMMEDIATE ADJUSTMENTS NECESSARY. “There is, indeed, grave and urgent need for complete investigation into the general economic position. Important adjustments must be brought about, and that in the shortest possible time. We may differ as to the curative methods to be employed, but sve M'ould be failing lamentaoly in om duty if we did not draw pointed attention to the need for earnest amt quick action.” It was urged that it was quite impossible to get an export market for our manufactured goods, and that wo bad less than a million and a half population as an available market. There the tvoakness lay. A country which exported the largest amount of goods per head must import in exchange, and that fact placed the protectionist in a difficulty. In like manner, the free trader was similarly placed, for Free Trade would mean increased importations, 'which woulr bring about the lowering of the standard of' living and diminish th< spendingpporerM r er of the people, “Is there an efficient, reliable nieth od of fiscal control other than th two extremes of Protection and Fiv< Trade?” continued the Minister “Time will not permit of an extended examination of that point, ami do not suggest that I have a completi remedy to propose. I do say, however, that it is one of the greates questions before the present Parlii ment, and it is our duty to the country and to the boys and girls wlv are coming into the labouiv. marko t'hat we should examine the prcseir position.

FROZEN WEALTH. The trade balance may be rererre to as frozen wealth. It is roasonabt to suppose that the farmer and thus connected with Kim spend all that i.< necessary in the further developiheir of their business. What, then,! Iso conies of the wealth created alto that had been done? Under happieconditions, particularly if there vn an export trade in manufactures, ; lot of that wealth u r ould flow io th. cities for the establishment of indiu tries. One cannot blame the weal*’ producer for not investing in Ihr way. Except for a few industries where is the market, for their good after they produce them? A ilarg part of wealth goes into the purebar of gilt-edged securities, and some gt* into bricks and mortar, and is havin’ the effect of producing over-built c-it ies,”

The Minister suggested it was no beyond the combined intelligence < the House to remove the auomal that with all our wealth ive had bee unable to reduce the cost of iivirr (“Hear, hear.”) In this connectio the Government’s policy in regard tthe Customs tariff would be efficient ly safeguarded and nothing don which would increase the cost ci liv ing in New Zealand. “I propose tlay that down as a basis of action,’ added Mr Taverner, “and if anyoi, has a better idea ive shall bo glad U hear it, but this suggests itself to m as an avenue of approach to the prob lem which has much to recommem it.”

NO TARIFF BOARD. While general tariff revision woul only be undertaken at long intervalsaid the Minister, the tariff should b sufficiently elastic to permit of i.api changes in conditions being adequate ly dealt with. The science of tariff was to fit in witli industrial needs brought about by changing conditions. The Government n r as operating alon those lines. He u r as pleased to havi the assurance of the New Zeaiam Manufacturers’ Association that the; were willing to assist by the estat liAment of an advisory board, wipe! would be a sort of clearing house loi the industrialist. Mr Poison (Stratford): A case o judge and jury. The Minister: Personally I am no’ in favour of the establishment ot i Tariff Board. I think the duty devolves on this House, and should no! be delegated. (Hear, hear.) But welcome any proposals short of that, because they will bring the Goveri) ment into closer touch with the in dustrialist in an endeavour to irrpjovo general conditions.