The Daily News. TUESDAY, AUGUST 1, 1922. RECIPROCAL TARIFF RATES.

Taranaki Daily News, 1 August 1922, Page 4

The Daily News. TUESDAY, AUGUST 1, 1922. RECIPROCAL TARIFF RATES.

If the principle of trade within the Empire is to be of any real value, it is obvious there must he a just measure of reciprocity between the Dominions. The latter differ from Britain by reason of their reliance on protective duties, whereas Britain’s policy is mainly based on free trade. When introducing into the Federal House of Representatives the agreement for reciprocal Customs duties with New Zealand, Mr. Rodgers claimed that the agreement provided for special preferential rates on 130 items, and for British | preferential rates on all other lines. It is significant that he also stated the balance of trade was overwhelmingly in favor of Australia, “which would reap a substantial benefit from the agreement.” There is no reason to doubt the truth of that statement. It is probably due to the fact that Australia is manufacturing to a far greater extent than New Zealand. If the bond of unity of the Empire is to be strengthened, there must be a corresponding policy of give and take among the self-governing peoples, particularly the peoples living so closely together as those of Australia and New Zealand. Of course both Dominions need as much revenue as ■ they can obtain, and the Customs ! affords an easy means of obtaini ing it. But, protection in both I countries is carried 4° absurd I lengths in some eases, and has had a verv potent effect in raising the I cost of living. The result of Mr. I Stewart’s bargaining is, according ! to his statement, that Australia takes New Zealand off her foreign tariff, grants a lower tariff, and i free entry for certain goods, New Zealand acting similarly, but taking care to fully protect those New Zealand productions “which l’e- | quire special protection.” It, will I be noticed that among the items which Australia is to admit free is I timber. Some concern will proI bably be felt at the stimulus thus given to expedite the loss of the small remaining stock of New Zealand timber, but the position is that we are at present. dependent upon imports from Australia for practically all our piles for wharves, posts for electric lighting, telephones and telegraphs. and hard woods. Australia. on the other hand, has few or no’soft woods like white pine, or superior, easily worked timbers like kauri, rimu or tolars. The remaining kauri timber in our northern bush, by the way, is mostly in the hands of Australian I capitalists, the headquarters of the biggest kauri timber company in the north being in Melbourne, i There would be no occasion to I go to Australia for our piles and ! posts had we in the past been alive i to our needs and planted suitable eucalypti trees, that do so won-

ilerfully well in New Zealand, and particularly in Taranaki. We should like to see all overseas timber, bulk aud sawu, particularly Oregon pine and hardwood, on the free import list, for our supplies are diminishing at a considerable rate, whilst reafforestation is proceedingly disappointingly slowly. Concurrently prices are advancing until very soon it will be cheaper to build in brick or concrete than wood. The tariff on boots from Australia does not . seem to be altered, no doubt because any lowering would affect local manufacturing interests. This penalises the New Zealand public. The Australian manufacturers have very successfully specialised in bootif and shoes, which are put on the market at very reasonable prices, much lower than the imported article, and of better quality. Australia has also specialised in the manufacture of leather goods, from ladies’ bandbags to saddles and belting, but. in the new tariff the duties range from 2.5 to 45 per cent. The fact is that these heavy duties on necessary articles penalise consumers and add to the cost of living. The eost of living, as well as taxation, is lower in Australia than in New Zealand. Whilst we continue to increase th|’, duties on common articles of use through the Customs, we cannot expect costs to fall: rather the reverse. The reciprocal tariff treaty with Australia, taken as a' whole, however, is an improve -nient on the former tariff arrangements whereby both countries treated each other as foreigners. It shoyved a distinct lack of business acumen and statesmanship on the part of the Australian politicians to have placed New Zealand in the same category as countries outside the British Empire, particularly when the balance of trade was so much in their favor, and invited the retaliation that was quickly forthcoming. To our minds, the goal to be aimed at, by both countries is free trade as far as possible, and cheaper freights and fares. The countries have interests in common, and everything to gain by facilitating commercial intercourse. They also have dangers in common, the chief danger at present, being the sparse populations of both countries and the teeming hordes not so far away, starving oftimes for lack of food that can be grown in such abundance in our fertile lands.