The Sun 42 WYNDHAM STREET AUCKLAND FRIDAY, JANUARY 24, 1930 PROTECTION OF LOCAL INDUSTRY

Sun (Auckland), Volume III, Issue 879, 24 January 1930, Page 8

The Sun 42 WYNDHAM STREET AUCKLAND FRIDAY, JANUARY 24, 1930 PROTECTION OF LOCAL INDUSTRY

ALL those who honestly desire to see New Zealand go forward in the development of her land and manufacturing industries will applaud the Government for its timely action in imposing a dumping duty on jams from South Africa. The essential measure of protection, which is as reasonable in scope as it is ill purpose, lias the distinctive merit of helping local fruitgrowers as well as factory workers. It is exactly the kind of tariffprotection which calls for expansion in this country—a soft dumping ground for all manner of oversea products. Some querulous opposition to the Government’s decision has been raised on the plea that sueli protection of New Zealand fruitgrowers and manufacturers may provoke in the other Dominions some measures of punitive retaliation on our agricultural exports. No one need become frightened of exaggerated shadows. A study of the Dominions’ trade shows clearly that each Dominion which has accepted and practises tariff protection as an essential aid to the development of manufacturing industries has not hesitated to safeguard its own industries. If any comparisons should be made at all this country has not erred in lack of generosity. It has been extremely fair and reasonable in all of its tariff dealings with its sister Dominions. Canada, Australia, and even the Union of South Africa, may be tempted on occasions to resent New Zealand’s protective policy—most of which in practice is nothing more than a method of securing revenue—but if these Dominions look at the balances of their trade with New Zealand they will find ample reason for resisting the temptation to become viciously punitive in tariff retaliation. In any case tlie first duty of the New Zealand Administration is to safeguard the interests of its own producers and manufacturers. So far, that duty has not by any means been overdone. As a general rule successive Governments have been much more dutiful in good intention than in developmental action. The United Ministry is to be commended for undertaking the belated task of protecting local industry against the dumping of South African jams on the New Zealand market. Quite obviously the Government has not been impulsive in decision. It has acted on the advice and first-hand knowledge of an official investigator who went to South Africa last year and made a special study of the development of the Union’s export trade in jams. Conditions there clearly convinced the Government’s expert representative that a practice of dumping jams into New Zealand called for a measure of restriction. According to the statement that has been made on the subject by the Minister of Industries and Commerce, the Hon. J. B. Donald, “it was found that practically all tlie jams had been sold for export to New Zealand at prices which warranted the imposition of dumping under the Customs Amendment Act, 1921.” On the strength of that evidence it has been decided to levy a dumping duty equal in amount to the difference between the current domestic value of the jam and the actual selling-price to the importer. It is a reasonable restriction to impose. Of course, it may be argued by those who have no sympathy with the interests of Ideal manufacturers and fruitgrowers that the bulk of South Africa’s jam exports to this country is not yet enough to warrant restriction. The rapid expansion of the trade is sufficient proof as to the need of a reasonable measure of protection against it. Within four years the dumping of South African jams has increased from 3,5281 b to 769,0731 b. The present importation may be valued approximately at £20,000 a year. This, relatively, is not a prodigious sum, but in the existing conditions of unemployment the amount would provide relief work for a hundred men for a year. It need not be pretended that tlie projected imposition of a dumping duty will smother the trade in jams from South Africa, but it at least should serve as an appreciable check to its rapid and menacing growth. Many people with a palate for the sweet products of the veld doubtless will pay more for humouring their taste, but many others will find it more profitable to be content with the excellent jams made in their own country. And in their contentment they will have the additional satisfaction of knowing that every jar of New Zealand jam they consume means better times for fruitgrowers and more work for factory industrialists. In the meantime the Government need not be dismayed by the protests of Free Traders and opponents of local manufactures.

A FUND IN IDLENESS

FOIt some vague reason, quite beyond the comprehension of practical business men, a sum of money amounting to more than £50,000, and dedicated to tlie relief of hardship and distress, lies dormant in New Zealand. Throughout a difficult period, with successive governments straining mental and material resources to provide relief for the unemployed, a small fortune has stagnated, swelling gradually with interest accumulations, but accomplishing no useful task—merely adding to the bulk of the Dominion’s unproductive wealth. Such is the present position of the generous quota allocated to this country from the funds of the British Red Cross Society. Its ultimate fate appears to be dependent upon the stubborn whims of two controlling bodies whose policy of inaction has continued, apparently with serene indifference, for a decade and more. When the war ended the balance of the joint fund inaugurated by the two patriotic bodies to meet the exigencies of the times amounted to £1,826,000. This surplus was placed in the hands of a joint committee in Britain, and the money returned, in just proportion, to the various parts of the Empire whence it came. The public of New Zealand had responded magnificently to extensive appeals and the Dominion’s residuequota was £54,500. This was received by the then GovernorGeneral, Lord Liverpool, and handed over to an incorporated society embracing the New Zealand branch of the British Red Cross and the Order of St. John. Despite the very definite understanding that this sum was, and is, available by the sanction of the Imperial Parliament for the relief of civilians and ex-service-men, apparently no serious or fruitful effort lias been made to release it for the practical welfare of the communities who brought it into being. In 1926 an attempt was made to have the fund administered, but it failed to pass beyond a documentary stage. Early last year Sir John Hewett appealed strongly for the devising of a reasonable programme of expenditure on charitable works. Despite his persuasion and authoritative advice, a year has passed and nothing constructive has been accomplished or even started. The only development is a statement by Sir James Gunson, president of a joint committee in this City, who has issued the rather significant assurance that Auckland is in no way involved in the “dispute.” 4 In view of the chronic procrastination that exists, and the genesis of this tied-up fund, the New Zealand public is justified in demanding a clear explanation of this dispute which is denying tlie relief funds of the country a sum which would prove to be a most acceptable contribution.