The Daily News. THURSDAY, DECEMBER 1, 1921. THE TARIFF.

Taranaki Daily News, 1 December 1921, Page 4

The Daily News. THURSDAY, DECEMBER 1, 1921. THE TARIFF.

The discussion in the House on Tuesday on the general question of policy with regard to amending the tariff, although furnishing small proof of the ability of members to assist the Government in the very difficult, task of tariff re-/ vision, brought out one or two points well worthy of consideration. There'appears to still exist differences of opinion as to what the real aim of the revision should be—protection, increased revenue, or both. Primarily, the tariff is a source of revenue, but it. is also a means whereby local industries can be protected and fostered, even though the prices of commodities are thereby raised to the purchasers. Apparently the present revision has in view both these objects as well as the encouragement of trade within the Empire. In expressing the opinion that everything possible was being done for the encouragement of the manufacturing industries in the Dominion. Mr. Massey said he never believed in the practice of raw material being sent away to be manufactured and brought back in its made-up state. Obviously this is a sound policy, yet it is quite as necessary that the producers’ interests should be studied. They are entitled to get the best price offering on the world’s markets for their goods, and while patriotism is most commendable, if it militates against profit it soon withers. At the same time protection of local industries may go too far in the direction of encouraging profiteering, so that it would be necessary to safeguard protection by the limitation of profits if the public are to have their interests studied. Mr. Wilford mentioned the- candle industry, which is directly connected with the by-products of the freezing works, and he asserted that, instead of being protected, it was at the mercy of certain overseas firms. There is no reason why all the candles and soap required in this country should not be made here, but it would mean the adoption of an enterprising policy on the part of local manufacturers, and pjobably a certain, amount of research work before the industry can be placed on a satisfactory footing. It is really questionable if the time is ripe to establish such an industry in New Zealand. It is generally agreed that Imperial preference is advisable. At the same time currency fluctuations, particularly as regards Canada, raise serious difficulties, besides affecting prices, while each of the other Doihinions naturally has its own views on this tariff matter, and it may not prove by any means so easy as it should be for these views to be brought into harmony. It is, of course, possible to arrange a common policy, yet the probability may he as remote as the actuality. There should be a general endorsement of Mr. Massey’s opinion in favor of a more frequent revision of the tariff, and the. suggestion made by the Leader of the Opposition for the appointment. of a tariff hoard is worthy of consideration, as it would enable every emergency to be met, provided it is constituted in such a way as to merit confidence. It would certainly be preferable to the autocratic method of Orders-in-Council, which give the Government a power that does not accord with democratic principles. Parliament will need to closely examine those “drastic provisions to deal with dumping,” referred to by the Premier. During his absence in England cases arose in which the powers under the War Regulations Act. were most unwisely used, and it is in this direction ‘ that Orders-in-Couneil are harmful. Moreover, the bolstering up of some industries cannot be defended. There is much force in Mr. Holland’s contention that the House should lay down a definite principle on which the dumping duty should be imposed, and mH leave it to the Minister to make the law. Admittedly the Government’s position is difficult, mainly owing to the complications connected with international currency That is all the greater reason why the Government should have -the assistance of a, permanent tariff advisory board. Because Australia and Canada make use of Orders-in-Conneil that is no reason why New Zealand should follow an objectionable example. It is not a question ot trusting the Government, but the adoption of a businesslike policy for meeting special eases and eireumstanees. Ministers are quite as prone io err in judgment or be swayed by influence as are people in less exalted positions, so that when it is possible to avoid mffivse or abuse of power that is the, coursfi which should be taken. |

THE CEMENT CHARGES. As was expected from the evidence given, the Commission’s report upon the charges made by the member for Stratford in regard to the operations of the cement combination exonerates the Board of Trade from blame and the cement people from operating in restraint of trade or doing anything prejudicial to the interests of the public in general. The Commission $1 so states that the price of cement had not been

unreasonably high during the period in question, and that the closing of the Golden Bay works was inevitable whether the agreement had been reached with the northern cement companies or not. -Mr. Masters evidently was animated by a desire to serve the public in this matter. He thought an injustice was being done the shareholders of the Golden Bay Company and the public generally,, and the charges he brought were so serious ae to demand a full and impartial enquiry. The finding, how rever, satisfactorily explains the whole postion, and shows how careful a member of Parliament must be in sifting and weighing his facts before levelling charges against others. At the same time, there can be no question that cement was, and still is, altogether too dear. Cost of production certainly is very heavy, particularly of coal, which enters largely into the manufacture sf cement. Were the manufacturing for the whole of the Dominion concentrated in one works, instead of being distributed over several, costs should come down, and cement be made available at a reasonable rate. In 1916 it was stated by a gentleman prominently associated with, the Dominion works at Whangarei —the largest works of their kind in New Zealand —that' if the works could be maintained at their full capacity cement could be manufactured for 30/- per ton at the waterside. Coal, wages, etc., have increased considerably since then, but it should be possible to turn out cement at the works at £3 to £4 per ton, providing our informant’s estimate in 1916 was correct. Cheap cement would be a great boon to the Dominion, not only in respect of building but of roading, and it is hoped the time will come when through consolidation of interests, and efficiency of manufacturing, cement will be available at much lower prices than obtain to-day.