SHACKLED INDUSTRY

Sun (Auckland), Volume I, Issue 196, 8 November 1927, Page 9

SHACKLED INDUSTRY

AUSTRALIA’S FISCAL POLICY ASSAILED

PROTECTION AND CONTROLS

By Cable.—Press Association.- —Copyright Reed. 11.25 a.m. SYDNEY, To-day. Sir Lennon Raws, a prominent Sydney business man, addressing the Constitutional Club, denounced high protective tariffs and extended borrowing abroad as dangers to Australia’s economic security. He described the enormous Customs revenue as a charge upon production, and an incentive to Government extravagance. Referring to the excess of imports over exports, he declared that as a result of excessive borrowing overseas and the high costs of production, Australia seemed to be moving in a direction opposite to that of the remainder of the world. Its local market was contracting as the cost of transport rises, whereas tlie movement elsewhere was toward expanding the area of the home market. Its costs of productions were rising, whereas elsewhere every nerve was being strained to reduce costs.

It was shackling industry with control boards, price-fixing associations, and the like in futile efforts to maintain prices, while other countries were looking for profit margins in reduction of costs, and were viewing price reductions with comparative equanimity, because they were ail incentive to increased consumption.—A. and N.Z.