“Downie’s” Tariff

Sun (Auckland), Volume I, Issue 157, 23 September 1927, Page 2

“Downie’s” Tariff

Small Comfort for Industrialists

SOME REFLECTIONS AND A MORAL (Written for THE SUX.) YEARS AGO, or thereabouts, the late Tom Fergus, who had whiskers down to his middle and voice like a foghorn, was Minister for Public Works in the Atkinson Ministry. One day in the course of a debate he used the Scotch word “pawky.” This unfamiliar adjective arrested the attention of a member—l think it was Vincent Pyke—who asked what it meant. Fergus, for a moment, was floored. At the best of times, he had anything but a ready wit- Looking round for' inspiration his eye lighted on the bald pate of the late Hon Downie Stewart (father of the present Minister for Customs), and he said. “D’ye see Downie there; well, Downie’s pawky.” The House smiled broadly, and understood. The story helps one to understand Downie Stewart the second and his Tariff. Downie the first was a verra cautious old Dunedin lawyer who never looked for a fight and never failed to discover a means of avoiding one. Downie the second is a chip of the old block. Scholarly, astute, and diplomatic to a degree, and the most lovable man in Parliament, he is handling the contending factions to the Tariff like a group of litigants, each of whom expects a great deal, while nothing is more certain than the fact that he is going to get very little. A DIFFICULT TASK If the Minister has any fiscal beliefs of his own, he has been very sucin concealing them. He talks like a man who has tried honestly to fathom the Tariff question, but whatever his personal views, his present job is to steer a tariff bill through Parliament with as little damage as possible to the Government. The task is unusually difficult. The industrial interests have a strong case for increased duties, but the farmers’ representatives in Parliament a.re decidedly unsympathetic. Mr. Stewart has taken the line of least resistance, and has drawn the red herring of British preference across the scent. None knows better than he that when the parties have exhausted their arguments on the floor of the House and all the wires have been pulled, the Bill will emerge very much as it was introduced. A few concessions will be made. In the main the farmers will be left with a grievance, more imaginary than real, that import duties are a hardship, and the manufacturers will still be complaining that foreign competition is killing them by inches. Protection has been the settled policy of New Zealand for nearly half a century, but it :ls many a long day since it was a live political issue. It is; easier for a Liberal Government to put an increased measure of protection on the Statute Book than a Conservative party, which relies mainly on the farmers for its Parliamentary majority. The fiscal legislation of New Zealand was profoundly influenced in a former* generation by the adoption of protection in the State of Victoria. The great battle waged by the Victorian industrialists, assisted by the “Age,” Melbourne, under the direction of the late David Syme, affected political opinion in this country to a much greater extent than is known in these later years. There was a Victorian m gration to the South Island of New Zealand not only on account of the discovery of gold, but because Victorian graziers were attracted by the pa stures of Marlborough, Canterbury «.nd Otago. How these hard-living, resourceful Australians made a success where the cultured but impractical disciples of Wakefield and Godley lost their money and faded out of the picture is a story in itself, but it is too far removed from Mr. Downie Stewart and his tariff for it to be told here. BIRTH OF N.Z. INDUSTRIES The victory of Protection in Victoria was followed by its adoption in New Zealand. The iron, woollen, boot, twim> and other industries were born in Duneclin, which for many years was industrially pre-eminent in New Zealand. Seddon. who reigned from 1893 to 1906, and w'ho spent some very impressionable years in Melbourne before being lured to the goldfields of the West Coast, was a ProtectionistAny alterations to the tariff made during bis tenure of office (with the exception of the abolition of the duty of 6d a gallon on kerosene just as the New Zealand Coal and Oil Company had commenced the distillation of the Orepuki shales) were in the direction of helping local industry, and the Millar Tariff of 1907 carried on the good work. With advent of Reform in 1912 a period of extraordinary prosperity for the agricultural and pastoral industry followed. The war two years later created such a demand for food and animal products that phenomenal prices were obtained. A land boom ensued, and everyone had money to burn. As the result of shipping shortages. and the fact that the British manufacturer could not execute foreign orders, the imports into New Zealand were restricted more effectually than the most ardent Protectionist could ever hope for by means of a tariff. The industrialists in the Dominion found their plants inadequate to cope with the orders that poured in on them. Still, they rose to the occasion, and our own factories were ablfe, not only to feed and clothe and house the community, but to fit out the expeditionary forces with equipment that stood them in good service on the field of battle. The lesson of this remarkable period in our history is in danger of being forgotten to-day. When we were thrown largely on our own resources and it was almost impossible to obtain from abroad the goods since imported in such profusion, everyone was fully employed, and the Dominion enjoyed the highest degree of prosperity. POST-WAR ACTIVITY

It is recent history how the slump followed the boom. With the postwar revival of industry in Europe, Britain began with feverish energy to execute orders so long unfilled that we had forgotten to cancel them. The flood of imports grew out of all proportion to our purchasing power, and in a twinkling war profits disappeared. The years of 1924 and 1925 saw a recovery, and unfortunately a fresh burst of extravagance.' In 1926 depression again descended heavily on us, and the diminished returns from our agricultural products make it difficult for us to pay for the millions of pounds’ worth of goods that optimistic importers thought the local market capable of absorbing. Meanwhile, local industry is in a parlous state. Production costs soared during the war period and a sympathetic Arbitration Court insists on fixing wages accofding t 6 tc figment of

a statistician’s mind pomilsnthe “cost of living” and!®* gard to the cost of Drodn)^ O, *S! The war taught the Bi ■ facturer a great deal mate taught us. ft gave hi methods, and increased IT pl,u “. ate in man, instances Zealand" false sense of !ato little preparation foVthe * a*** petition that was bound to *"* peace was restored. ° C 0Q *« , wi* t The protection v tariff was. a rapidly dimlmshb, th « tity. and Mr I>ownle posed alterations stm lel-TT* dustry more or less at thTm J 0 ® 1 laimporter. meroy 0 f ti» Yet if protection is sound • ciple—and the writer Prfav. is—there never was a Out fc dustrial history of the lCmtasL the »- there was more need »!><* Mere Mr. r>ownie Stewart ». protectionist with a Xew Zealand on to a new trial activity, there mlgbt h! " Il '» hope for local industry but o **>• be fairly obvious to the manufacturer by now that hZ political friends’ and a j2. ta * active opponents. 1 manAN Ar.Anrul

AN ACADEMIC INTERPcst The Minister’s interest in t, S 7. is mainly academic: half htecoß.,™? make no pretence of trying tr ISP* stand fiscal theory the rank and file, who aremsmL 10 * presentatives of the farmers. l“~ £ to discover that industi ialism offals only escape for their the bondage of agriculture “s* This, of course, is rank hen*y a, community -w hich is so largely ,*cu3i in butter-fat production, but la rv er ’ s opinion farming is syronymoi -with drudgery, and is the hardestio least remunerative mode of a livelihood which mankind has2* sorted to since the eviction from Hi Garden of Eden. ™ ™ So far as the immediate future «• industrialism in New Zealand is can cemed, it is becoming more and nSI obvious that our manufacturers at expect very little from the arms Government in the matter of tariff protection. They will be thrown bed on their own resources and the erpansion of manufacturing will depesi more on the extent to which iadni. trialists can combine, specialise and reduce production costs. It is a hati road, but it seems to be the only oak open. PETER SIMPLE.

IN THE MARKET PUCE APPLES AND PEARS FIRMER POULTRY SHORT Apples are meeting with a slightly i better demand. Repacked Nellis and Coles pears are also makinu bigger money. Ample suoplies of vegetables fnd a steady market. Firm valies rule 'or poultry, which is short supplied. Quiet though steady business is wcorded from most sections of city mart* Fruit is meeting -with a slightly better 1 sale, due, no doubt, to the wsnaer weather experienced over the last week I A large percentage of waste is round it Delicious apples, and this accounts fcthe comparatively high price auked tor this fruit by retailers. Supplies of cauliflowers are falling air * j and the market is gradually hardening B Heavy supplies of cabbages and celery a.re coming forward. Green peas Bah* firm values at from 25s to 2£s 6d a sad c»r from 2s 6d to 2s lOd a ib. Poultry is short supplied, and prion ! 1 high. Any good quality birds are ksoafcr ~ sought after. Prices under the hammer at to-lxTi auctions in the City Marts ranged aft ! follows: c FRUIT Apple:;.—-Delicious, 7s to 9s a cast Hawke’s Bay Sturm era, 9s to lOs ft Granny Smith, 11s to 12s; Dougherty, tt 6d to 8s; Kennerleys May, 9s to 9s tt. Pear s.—Neills, repacks. Its to 17* i c 1 case; Coles, 10s to 14s; P. Barry, 7s C£ to Os <»d. Oranges.—Repacks, Island, 17s fid to ISs a case ; local sweet, 7s Gd to Ss ft Lemons.—Local, 6s to 14s a case. Tomatoes.—Cook Island, 13s a cast. ’ . Tree Tomatoes.—4s 5d to Va (d a css* Cape Gooseberries.—6d a lb. Grapes.—Sydney white, 8s to lte aciß If Banjmas.—Repacked, 2F»s to 30s a cast ■( VEGETABLES Potatoes.—Southern, 7s to 7s 6d a tret; I new, 2d to sid a lb. Kumeras.—lsland, 9s to 10s a cwt; T**> W-., ranga, 10s 6d to 12s 6d. Pumpkins.—Ordinary. 7s to 10s a cwf Crown and Triumble, 12s to 16s. Swedes.—ls t. a to 2s a bag. Onions.—Australian, repickcd, 10* to 11s | r. cwt: Southern, 6s to i's. Cabbage.—2s to 5s a sack. Cauliflower.—3s to 10s a sack. Lettuce.—2s tc 7s 6d a case. Rhubarb.—3s to 4s 3d a do*. Spinach.—9d a bundle. POULTRY Ducklings, lid to Is 2d; hen axd chickens, 16s to 24s day-old chicks, lid ® is 6d; prime heavy' cockerels, & to Ms prime lighter cockerels, 6s to 7s; fltff ; cockerels, 5s to 6s; heavy hens, 5s to W lighter hens, 3s 9d to 4s 9d; rocstif*. to 4s 6d; ducks. 3s 6d to 4s 6d; pußet* 6s 9d to 8s; drakes, 4s to 4s 3d; yoba; drakes, 6s to 7s; Muscovy ducks, S* te--5s 9d; Muscovy' drakes, 5s Id to I* 94, goblers, 14s to 20s; turkey hens, 7f 64 tells.