"CONTRADICTORY"

Rotorua Morning Post, Volume 2, Issue 357, 19 October 1932, Page 5

"CONTRADICTORY"

("Post" Special Commissioner) .

BRITISH POLICY FOREIGN AND EMPIRE TRADE INTERESTS ARE NOT COMPATIBLE LABOUR PARTY ATTACK

Wellington, Tuesday. Mr. Coates' Ottawa statement teems with evidence of a definite poi- ^ icy in the direction of making the Dominion still more dependent on : external markats for the sale. of our ] products. While every other nation ^ is rapidly moving toward economic independence New Zealand industries ] are -to -be sacrificed for a spurious brand of Impe-rial preference." In these words, Mr. M. J. Savage ' (Auckland West) deputy leader of the Labour Party inaugurated in !j the House to-night, the Opposition ; attack on the trade treaty between ^ New Zealand apd the United King- ' £ dom which was before the House for ! ratification. Mr. Savage said that New Zealand , was committed to a thorough overhaul of her protective tariff duties in ; order ,to put Great Britain in a better position successfully to -comp.ete with Do.minion industries. . "That is not preference," said Mr. ^ Savage, "but a definite move in the direction of sacrificing our secondary , industries in order to gain a temp- ^ orary advantage in disposing of our ^ primary products. No attempt appears to have been made to admit ( eertain British products not prpduced in New Zealand absolutely free of customs tariffs while at the same ^ time safeguarding our rights to de- ( velop eertain local industries capable of economic expansion. Eastern Standar.ds It is clear from the Ministerial statement of policy, that Grqat Britain herself was giving great attention under expert advice to the development of her agriculture. The whole of the available evidence shows that every nation is moving toward producing at least a greater amount of the requirements of its people. Are we to he driven back to eastern standards because we have failed in the western world?" asked Mr. Savage. New Zealand should shape her ; course in accordanee with economic ; facts. From the point of view of ; the primary producer it is surely bet- ^ ter to sell to the consumer in New 1 Zealand than to sell to the consumer " in foreign countries or even in Great : Britain. "The development of suitahle secondary industries in New Zealand will strengthen the local market by keeping our people in profitable employment a.nd finding places for t-he generations to come," said Mr. Savage. "The alternative appears to be to produce primary goods «ind exchange them for products from cheap labour countries. "To confine ourselves to world par- ; ity means that we will ultimate-ly : reaeh the lowest standard of those ; in the competitive race. A definite movement is now being made to develop trade with the East, but what does it all mean?" aslced Mr. Savage. DeSperate Struggle "The Dominion was face to face : with problems which involved a desperate struggle to prevent her people from being reduced to the living standards of the East. To the exte.nt that New Zealand had developed trade with Eastern countries, her position in the British market was weakened and to the extent eastern manufactured products were used by New Zealand, fewe-r British manufacturers would be required. "The loss by Great Britain of the marke-t for her manufactures would be reflected in her purchases of New Zealand products. "In addition, New Zealand imports of British goods could not successfully compete with importers of Japanese goods and in that case, what would becojne of New Zealand's agreement with the United Kingdom. "The object of preferential tariffs was apparently the transfer of New Zealand's foreign trade to the British Empire," he added, "but there could not be effective preferential tariffs and increased foreign trade at the same time. One must nullify the other. For the same reason Britain could not enter into effective preferential tariff agreements with the Dominions and at the same time invest her surplus capital in foreign countries. Payment in Goods Britain must draw her income from investments in the form of goods produced in countries wherein her iponey was invested. Britain must take their goods notwithstanding the preferential treatment promised for the Dominions in the Ottawa agree-, ment. Similarly, Britain could not .have preferential trade with the Empire and increase her foreign trade at the same time. Those were the contradictory parts of her present policy and that was without considering her foreign investments. "The question now arose whether it was practicable for Britain to disregard her foreign trade. "Preferential tariffs could not b6 substituted for increased purchasing • power as a means toward, increasing trade, either internal or external. Wage reductions to the extent of millions annually constituted the foundation upon which the Ottawa Conf erence, and incidentally New Zealand, were expected to Tbuild, hut nothing could be accomplisbed until the people realised what was happen- , ing. Falling Incomes "Trade would never be expanded on falling incomes and could not be expanded on s'tationary incomes. There w.as no other way than by the expansion of the people's power to buy, . yet the monetary policy was practically shelved at Ottawa. Mr. Savage said that in the piattef of the maintenance of present incomes a't a minimum, a large sectiqn of employers had not . been helpfui for under the amending dndustrial legis- ' lation, eertain employers were _ re-, fusing the protection of the Arhitration Court to the wages and condi- 1 tions ,of their employees. As an alternative they offered vages and eonditiops on a considerably reduced scale and were simultaneously expect- ;

ing the assistance of the workers in maintaining protective tariffs so as •to ensure reasonable standards. "In ;that respect," he added, "they; are bre-aking faith with those who » stood by .them wfien the tariff legis- ; lation was before Parliament. By so doing they are providing evidence i of their own economic downfall."