WELLINGTON NEWS

Hokitika Guardian, 12 September 1929, Page 2

WELLINGTON NEWS

; ■ : fjr •; /. . UNEMPLOYMENT CUKES.

(Special Correspondent)

AVELLINGTON, September 9

The number of unemployment cures advanced in the Dominion are many. The man-in-the'-street has a cure for everything, but he is of no importance —it’s the , cure-alls in business and political, life that’ are interesting. The other day Mr Langstone, the member for Taumarununi, assured the House and the country- that'his precious measure, the “ Bank ; of New Zealand Amendment Bill,” if enacted by Parliament, would put an end to unemployment. Now We have the,Assurance of fellmongers that an export tax is a

true solution of*the-unemployment problem. If an export tax is the correct solution then the Government has very

little excuse- for allowing the country, to harbour so many workless for so long a time. Of course the proposition is senseless.

A deputation representing the fellmongering and wool-scouring industry waited upon the Prime Minister on Thursday and requested that the Government should impose an export tax on all sheepskins shipped in the wool and on all scouring wools shipped in the grease/ or, alternately, that an embargo should be placed on'the export of such commodities. The spokesman 'of the deputation stated that a once flourishing’industry was of late years languishing. The cause of the trouble;’ it'was believed, was that foreign buye’rs were securing large quantities of'scouring wools and shipping them ‘to their - own countries to be scoured by cheap'labour. Dry sheepskins with the wool on were exported to America and the Continent and the local fellmbrigers could not get supplies, and 'for these reasons the depu-

tation urged an export-tax or an embargo. ' ; v '

These reasons are worth examining,

Foreign buyers are purchasing large quantities'of scouring wool and having it scoured in their own countries .at

cheaper rates than can be' done/in New Zealand, it may be ashed why tlie owners of this scouring wool should be penalised because the local folly mongers’ are unable to compete with

them: This class of wool is offered, at the auctions and’ there is open competition. which ensures that the owner

obtains the best market price.'.

If foreign buyers : can outbid loqal fellmongers srirelv that is. not /a criminal offence for which the owners of . the wool and the foreign buyers should be penalised. 'The local men compete because their costs elf production .'.are'too high, and instead of'research into costs, which would be troublesome and give many of theinicontinuous'sheadf aches, they"'prefer that the Government should use its big stick—tax or embargo'" 'We are’ told.that dry sheep-' skins with the wool on are shipped to America. The inference appears to be '■.hat wool is pulled by cheap American labour. v c The average • man • will find that very hard to swallow. ... Suppos-

ing the Government was weak enough to accede to the wishes of the deputation and iriipbsed a prohibitive tax or an embargo, the local fellmongers would stand on velvet..>•: ■■ •

Relieved of all competition they coidd : 'fix their mvh prices for the raw material, and they would be able to raise the wages; of their workers and so create a vested interest which would make the abolition of the tax an impossibility. Fortunately the Prime Minister did not hold much', if any,' encouragement to the deputation. 1 The fellmongers. must indulge in a little 1 introspection, 'and if they, did that they would discover' that" production costs in New Zealand areabove; world prices and? foreigners. are able to deal with the raw material more cheaply- than can be done in. the Dominion. The need of the hour is less taxation and not more, but there is little hope of less when business men want special tax favours from, the State for their own little business. This is a matter that farmers,' or their Union lenders, should deal with, for the burden of trade taxes,\ whether on exports or im-. ports, falls, on them. Import and export dfities 'really amount to trade war. Import"duties which are not designed for revenue alone are like the mustard gas'iof.'war time; for they are irritating, and the export tax or embargo is the’poison gas of international trade. If foreign countries can work up our raw material more cheaply than we can why should they not be allowed to do so? No doubt many of those who formed .tlje deputation are owners of motor cars, and it is safe to suggest that most of the cars are American made. It is good business to buy American motor cars, but bad business to sell New Zealand’s wbolled sheepskins to Americans. Some New Zealand business men are thrillingly funny.