Untitled

Progress, Volume XVII, Issue 3, 1 November 1921, Page 53

The Tariff. No tariff ever presented to a Parliament met wfth complete acceptance, for the whole business is one of conflicting interests. The revision proposed by the Government this session is a great disappointment to the secondary industries of New Zealand, but under the exceptional conditions, we fail to see how the Government could meet the requirements of this class. There is more than a suspicion that protected industries in New Zealand have consistently followed the policy of charging for their products all they could get, and not attempting to give to the New Zealand consumer full advantage of the supply of cheap raw material in the country. This experience is being brought out by speakers in the Financial Debate in Parliament, one member quoting as an example the fact that farmers were obliged to sell hides, a raw material for boots, at a fixed price, less than world’s parity, yet the New Zealand product kept close company with the high prices of the imported articles. The recent tariff exhibition by New Zealand manufacturers ended in a feelim? of disappointment because the Government had not given the exhibitors protection with a lavish hand. The results of this exhibition must, however, be of permanent benefit, for it conclusively showed the public, apart from the legislators, how efficient are many of our secondary industries. Our own opinion is that the Government’s comprehensive scheme of cheap hydro-electric power is going to do more Rood to the secondary industries of the country than any extension of protection, so long as manufacturers in New Zealand are saved from the pernicious effects of dumping. It seems very attractive to the consumer to get certain articles, now and again, at "bargain rates,” but dumping, as long experience shows, is always followed by extremely high prices, once the local industries have been starved out of existence by the competition of the dumper. We notice that the tariff makes no change in the duties relating to timber, but the anti-dumping proposals which will in due course come to light in a Government measure will be welcomed by the New Zealand timber millers, who should take care that timber, rough and dressed,

and also joinery, is included in the schedule of the Bill. Trade with Britain. Some months ago we took to task H.M. Trade Commissioner in New Zealand for attempting a defence of the British manufacturers’ shrewd, but dishonest action in unloading enormous accumulations of orders upon an unsuspecting colonial public, just before prices broke from boom to slump. The operation created a very bad impression in the minds of Dominion business people, who are still suffering from financial stringency as a consequence. It seemed to us that if the British Trade Commissioneras seemed to be indicated by his defence of the Home traders—regarded this as a perfectly justifiable proceeding, then he and his clients ought to be enlightened upon the other side of the position. It is with pleasure that we can now record that although Mr. Dalton did his best to stem the tide of vigorous criticism of , the British traders in New Zealand, he was presenting a diff rent aspect to the British manufacturer, to whom he made plain that the methods followed had created a bad impression. Mr. Dalton contends that the piles of orders to “ship as soon as possible” should have been more closely supervised by the importer, as these orders remained on the books. He points out that the receipt in New Zealand of "slump” news immediately affected the buying nubile, and an almost entire cessation of general buying cynchronised with the time when very large shipments of goods began to arrive. “During the second half of the year,” he explained in his annual report, " every ship brought full cargoes of Roods to New Zealand, and it was not long before financial resources were exhausted? In many cases the goods arriving were deliveries in execution of orders which had accumulated on the books of manufacturers over a long period. In the absence of financial facilities many importers were unable to take up their documents, and many goods had to be left in bond; retail sales became the order of the day, and in some cases auction sales of newly-landed goods were the only recourse for those responsible for their importation. Even the

largest firms in New Zealand have found it very difficult to carry on with stocks accumulating, with banks pressing for reduction of overdrafts, and with no apparent outlet for the goods arriving. The seriousness of. the situation can hardly be under-estimated, and it says a great deal for the old-established firms here that they have been able to weather the storm as they have.”

The Forestry Service. Forestry policy is not suffering to-day from under-advertisment. The work of the New Zealand Forestry League is getting the public well interested in the question, while the new Forestry Department seems quite capable of displaying its advantages in cold print. The first annual report of the Department presented to Parliament contains much interesting information about possibilities. It is explained that the past year has been one of preparation, but that the year to end on March 31st, 1923, will be one of fruition and results. The Department has secured a fairly large staff, and some of its immediately practical applications have been in the direction of emphasising the fact that there are varieties of New Zealand timber suited for nearly all commercial requirements. Numerous inquiries regarding other specialised uses of various timbers indicate that the local markets show preference for the New Zealand manufactures where available rather than for the imported article. The work of advising on such inquiries is, however, states the report, hampered by the lack of information regarding the physical and mechanical properties of practically all the New Zealand grown timbers. This state of affairs, coupled with the length of time required to obtain a report on such matters as wood-pulping, stresses the necessity of establishing a forest products laboratory to conduct such research. If any evidence were needed of the fact that timber millers were not given the same opportunity of charging “world parity” prices the Forestry report provides it :—“ The demand for timber during the year was not reflected in prices, as would ordinarily be the case under usual trade conditions, for during the whole period the prices have been subject to control by the Board of Trade, so that a review of prices in relation to the year’s trade conditions is not called for. This, of course, refers only to trade within New Zealand, for it is quite well known that the prices secured for timber exported to Australia during the greater part of the year were considerably higher than those permitted to be charged locally.”

A Drastic Bill Modified.

There has been so much wanton and careless destruction of valuable timber in New Zealand through forest fires, etc.,, that the Forestry Commissioner, Sir Francis Bell, submitted to Parlia-

meit a measure which provided very drastic penal- , ties for this class of offence. However, the Forests?! Bid had to be submitted to the Lands Committee,!

which is strongly representative of the farming interests in the House, with the result that the really drastic clauses were torn out, or reduced to a very unoffending shape from the point of view of prospective law-breakers. One year’s imprisonment or a fine of £IOO was frequently indicated in the penal clauses of the Bill as it went to the Lands Committee, but the fine was reduced to not exceeding ” and the possibility of imprisonment almost completely removed. It was sought originally to give, forest rangers power to arrest trespassers, but this was simply thrown out by the Committee. The farmers on the Lands Committee nrght have had some Testification for toning down the penalties in general, but they showed complete class Prejudice in their own interests when they deleted, without any alternative provision, Clause 40, which made it an offence to unlawfully depasture stock (which is very destructive to the growth in a forest reserve), or to hunt game, liberate animals, or to occupy, clear or break up any land for cultivation or other purpose in a reserved area. This class of offence ought certainly to be prevented, and we hope to see the House, when it deals with the Bill, insert another clause which at least some semblance to the original. Although it is the general practice in Canada and America to conscript all labour in vicinity of a forest fire, to get the outbreak in hand, the Forestry Department showed bad judgment in suggesting a conscription proposal to the New Zealand Parliament, especially as it did not provide any satisfactory guarantee that the conscripted labour would be properly paid. Of course the Lands Committee threw out this clause, which helped to create the impression that the Bill had been drafted without proper appreciation of New Zealand conditions. However, a measure to protect our forests is badly needed, and we hope it will be something more substantial than the remnants of the. Forest Bill left by the Lands Committee. Ft is reported, as we go to press, that the Bill will secure a further—and let us hope a more discriminatingoverhaul by another Select Committee specially appointed for the purpose. Certainly a mistake was made in leaving it to the mercy of a collection of members mainly interested in securing land for settlement as cheaply as possible. Though many farmers are enthusiastic advocates of a sound forestry policy, quite a number show absolutely no realisation of the value of any growth but_ grass, except for shelter purposes. The many scenic reserves created in all parts of New Zealand have suffered badly through this unenlightened attitude. Farmers have allowed stock to break through the reserve fences, eat the undergrowth, and generally prepare it for a first-class burn,” which has duly come off. Then the devastated “scenic” asset has stood forlorn for a few years, until the farmer has demonstrated to

* J ~ , —XCLXIIIV.I lias ucinuilbirclica LO the local Land Board that the reserve is Quite useless as a scenic asset, and he is then allowed to (make a complete clearance.