BRIGHT PROSPECTS

Rotorua Morning Post, Volume 2, Issue 320, 6 September 1932, Page 4

BRIGHT PROSPECTS

Though we hear a great deal of the preferences granted the dominions at Ottawa, the benefits will come in an indirect manner. The New Zealand Parliament will be engaged for a considerable portion of the approaehing session in passing legislation preparing the way for more intensive trading in British goods, the most significant provision in any of the settlements being that which direets the Dominion Government to abolish tariffs which alford protection to unessential and inefficient industries. That is reasonable enough, anc the qualification will apply to a larger number of industries than one would suppose at the first glance. The idea of tariffs should be to place our own producers 011 an equality with competitors . when higher wages add to the \ cost of production, but in this reason should be displayed, and the general effect should not be to increase the cost of the article to the consumer. It should be easy for the Government to rearrange matters in regard to this question and where an industry has to be unduly coddled, it should not be permitted to stand | in the way of legitimate competi- | tion. Mr. Stanley Baldwin reI veals Britain's outlook on the rej sults of the conference when he states that Great Britain is now I offered a larger share of the do- ; minions' markets — a share which , must become increasingly greatj er as the prosperity of the do- ; minions increases. Naturally to . those who have an extensive im* j port trade with the United Kingdom the prosperity of the latter is all-important, and, if prices for our produce can be improved by this means, the good fortune of our best cii(stomer must be a source of gratification to us. There is cause for increasing confidence in the enthusiasm with which the Ottawa Conference was hailed. It is impossible to see what use preferences will be to the dominions unless they discriminate sufficiently to shut out foreign competition, and that obviously will not do. Already Denmark and other Continental countries have reviewed the postion and will sacrifice prices rather than lose the market. But, business that is worth ' anything from £200,000,000 to £400,000,000 annually may be accorded Great Britain by the dominions and this should result in an increased purchasing power which should be reflected in prices for our produce. Such an access of confidence cannot be exclusive. The general satis-

faction concerning Ottawa has already created a healthier tone in other parts of the world, and it is considered that the economic conference to be held later will be a pronounced success in arranging for a scheme of international trade that will be mutu- ' ally advantageous. A great deal of claptrap is reported about the results at Ottawa, and it has afforded men with a gift for rhetoric the opportunity to talk at random. It is probable that the combined activities of all our New Zealand delegates achieved nothing of any value to us except when they granted eoncessions to the United Kingdom whose people have it in their power to dissipate our troubles by an increased demand for our goods, and the increased prices usfially associated with such a movement. So good are the prospects that it appears to us sheer folly to delay any longer to take those measures necessary to assist development. Our markets could be extended to the limit of New Zealand's capacity for a half century without any fear

of over-production. Already the Marketing Board has succeeded in impressing some of the larger nortfiern cities of England with the virtues of our butter, cheese and lamb, and there are other outlets which could be explored with profit. It has been proved that we can raise the class of pigs to make the bacon most in favour in Great Britain, and this trade last year was worth about £54,000,000 of which our share was just half a million sterling. The prospects are surely so good that they ju^tify some enterprise from even a Government committed to a policy of extreme caution.