NEW TARIFF

Taranaki Daily News, 29 July 1922, Page 5

NEW TARIFF

TREATY WITH AUSTRALIA. PROPOSED RECIPROCITY AGREEMENT ALL ROUND CUT IN DUTIES. INCREASED REVENUE EXPECTED. By Telegraph.—Press Associativa. Wellington, Last Night. The Bill to ratify the Customs reciprocity agreement with Australia was introduced in the House this afternoon by Governor-Gen-eral’s message. In committee, the Hon. W. Downie Stewart (Minister of Customs) explained the terms of the provisional agreement. He thought it might at first sight appear rather elaborate, but this arose from a desire to safeguard all the industries concerned. It did not appear to him that any of the existing standard rates met the needs of the two countries in the peculiar intimacy of their relations, hence the need for a more explicit treaty. Australia had never before granted reciprocity with any of the self-governing Dominions, whereas New Zealand extended such tariff to all. New Zealand’s policy of generosity gave rise to a feeling that it was unfair to continue this if we received no similar treatment from other British countries. He, as Minister, had not cared to disturb the policy that had been followed for years, but when Australia brought in a new tariff last year, and as a result of the fact that it gave no concession to New Zealand, the latter decided to force the issue by putting Australia on the foreign tariff. If Australia had at any time given New Zealand her British preferential tariff, New Zealand would have accepted it. BREAKING TARIFF WALLS. In the absence of any concession, the consensus of opinion of Dominion manufacturers was that Australia should be put on the foreign tariff, in order to provide means for negotiation to break down Australia’s high tariff walls. When he conferred with the Federal Minister of Customs the latter offered to put New Zealand on Australia’s British preference tariff if New Zealand extended its British preference tariff to Australia.

He (Mr. Stewart) rejected this, as Australia’s scale of preferential duties was higher than New Zealand’s. Australia offered concessions which appeared lower than given any other country, but he again rejected these, as they did not promise any chance for New Zealand manufactures to compete with Australian. Eventually an agreement was reached on lines briefly as follows:

Australia takes New Zealand off her foreign tariff, grants us admission to Australia on a lower tariff and free entry for certain products. We in return reduce duties accordingly, except in cases where New Zealand productions require special protection. The items for which free entry was secured into Australia included fish, timber, hay and chaff.

The Minister then detailed items on which concessions Had been secured from Australia on imports from New Zealand goods of British origin, transhipped or reexported from either country, to be admitted under the British preferential tariff of both countries.

Touching on wines, he said there had been for a long time a grievance among Australian growers that South African wines had an unfair advantage over theirs in New Zealand in the matter of duty, and complaint was made that in some cases travellers represented African as Australian. Therefore the duty on Australian was substantially reduced and an added impost put on African. The reciprocal treaty with South Africa was abrogated by New Zealand, as it was found to operate almost wholly in Africa’s favor. It was also found that American tobacco was being made up in Africa and re-exported as Boer leaf, getting the advantage of the reciprocal tariff. INCREASE IN RECEIPTS. The Minister thought the result of the new tariff would be an increase in Customs receipts, because since Australia put on a : foreign tariff her trade with New Zealand • had fallen away very considerably. In ari riving at the agreement, his object had i been to fix duties so they would not con- | stitute an impassable barrier to our entry I into Australia, nor so low that they would ' enable our market to be flooded to the i detriment of local manufacturers or producers. Mr. Wilford (Leader of the Opposition) suggested that in view of the importance of the subject a longer time than a week should be allowed before the House discussed it, so that the industries affected would have opportunities to make representations if the schedule affected them detrimentally. The Prime Minister thought the proposals in the agreement would prove satisfactory. In the past Australia and New Zealand had not worked together as well as might be, and he hoped this tariff agreement would mark the beginning of a new •era of co-operation. He thought the proposals would be accepted by the House, and if any particular section required revision it could be made the subject of negotiation by the Minister of Customs. It ' should be sufficient to delay further consideration of the measure till Thursday next. The Bill was then read a first time. SUBMITTED IN AUSTRALIA. BENEFIT FROM AGREEMENT. By Telegraph.—Press Assn.—Copyright. Received July 28, 10.10 p.m. Melbourne, July 28. In the House of Representatives, Mr. Rodgers submitted the agreement for reci procal Customs duties between Australia and New Zealand. He explained that the agreement provided for special preferential rates on 130 items set out in the schedule, and for British preferential rates on all other lines. Mr. Rodgers added that the balance of trade was overwhelmingly in favor of Australia, which would reap a substantial benefit from the agreement. The agreement would be of great value to wine-producers and citrus fruit-growers, but he regretted that dried fruits were not included. —Aus.-, N.Z. Cable Assn.