TARIFF POLICY

Wairarapa Times-Age, 8 June 1938, Page 7

TARIFF POLICY

OUTLINED BY THE PRIME MINISTER

NO GENERAL REVISION THIS SESSION.

EXTENSION OF TRADE AGREEMENTS.

(By Telegraph—Press Association.) WELLINGTON, This Day.

The Government’s tariff policy was defined by the Prime Minister, the Rt. Hon. M. J. Savage, in a statement issued yesterday as a result of references to the protection of local industries at the expense of United Kingdom manufacturers. The Government, said Mr Savage, did not propose to review the general Customs tariff schedules during the coming Parliamentary session. In cases of extreme urgency in the national interest adjustments might be made in individual items.

“Apart from the question of revenue, the Government’s tariff policy is designed first to encourage the development in New Zealand of manufacturing industries suitable to the Dominion; secondly, to foster trade with countries within the Empire; and thirdly, to develop trade with foreign countries which offer markets for the Dominion’s products,” said Mr Savage. “In considering the extent to which the tariff should be utilised as a means of affording assistance to industries, regard must necessarily be had to the economic aspect of each industry concerned. It is necessary also to consider the position in relation to trade with other countries, particularly the United Kingdom, which provides an essential market for our primary products. NEGOTIATIONS WITH BRITAIN.

“The tariff, therefore, in general, aims at affording an adequate measure of protection for New Zealand industries while at the same time permitting manufacturers in the United Kingdom a reasonable opportunity to compete in this market with local manufacturers. This is the principle which was endorsed at Ottawa and which this Dominion will observe so long as the existing trade agreement with the United Kingdom remains in force. The negotiations commenced last year for a revision of the agreement are still proceeding. “This principle, it will be noted, does not preclude the adjustment of existing duties in respect of goods imported from the United Kingdom, where circumstances render such steps necessary. x “In view, however, of the disturbing effect which it is recognised frequent tariff changes have upon trade, it is not intended that adjustments in respect of individual items should be made except where action is called for as a matter of extreme urgency in the national interest. Except in cases such as that mentioned, it is proposed to withhold consideration of the tariff until such time as the schedules generally can be reviewed. No steps in this direction are proposed during the forthcoming session of Parliament. “Should, however, complaints be received in the meantime from New Zealand manufacturers that their interests are being prejudically affected by importations from the United Kingdom or elsewhere, each case will be carefully investigated and considered on its merits. TRADE WITH FOREIGNERS. “In so far as the tariff may' be used to foster trade within the Empire, apart from observing the principle already given effect to of granting preferences in favour of Empire products, the Government will continue its policy of extending trade with various countries within the Empire by means of 'trade agreements with those countries. ‘'With respect to trade with foreign couhtries, the Government, by means of concessions under the tariff, has recently completed trade agreements with Germany, the Netherlands, and Switzerland. These agreements, the former particularly, render possible the development of a considerable trade with those pountries in this Dominion’s products. ' Negotiations with a view to the conclusion of similar agreements with France and the United States of America are contemplated, and the Government will pursue this policy, recognising the necessity to develop export markets wherever possible.”