DOMINION INDUSTRY.

Manawatu Standard, Volume LIII, Issue 20, 20 December 1932, Page 7

DOMINION INDUSTRY.

EFFECT OF TARIFFS. STATEMENT BY MR COATES'. Per Press Association. WELLINGTON, Deo. 17. “I do not grudge any company its reasonable profits, but I believe by avoiding excessive protection and by correcting any undue margin in costs and prices we are helping to restore industry to a normal and profitable basis again,” said lit. Hon. J. G. Coates replying to a statement by the Canterbury Manufacturers’ Association. The association’s statement was in reply to remarks made in the House by Mr Coates to the effect that tlie prices of woollen goods made in New Zealand were excessive. It was stated in retort on behalf of tlie manufacturers that they were not afraid of competition from abroad, quality for quality. The reply by Mr Coates is as follows: —“It will be recalled that among the objections to New Zealand ratifying tlie Ottawa agreement, under which substantial and much-needed advantages are given to the Dominion, was the charge that local industry was being sacrificed. The alleged sacrifice was the removal of the surtax on goods imported from tlie United Kingdom and a few small reductions in tariff rates. The surtax was ninefortieths of the previous duty and, as lias been repeatedly proved, it was imposed for revenue purposes and not on the ground of additional protection. I did not believe, and it certainly was not shown, that the existence of any New Zealand industry was menaced by the tariff changes that were agreed to. I believe that a far greater menace to all industries arises from the general blockage in trade in which tariffs play a part, and Ottawa represented a welcome move toward the removal or lowering of the obstructions to trade. That is my general reason for insisting that the Ottawa agreement marked a forward move and for my looking nith some impatience on the petty objections that were raised against its ratification. “We agreed at Ottawa that New Zealand’s protective tariff against United Kingdom goods should be confined to those industries which were reasonably assured of sound opportunities for success, and United Kingdom producers are to be given an opportunity of reasonable competition on a basis of relative cost of economical and efficient production.’ These are the words used in the agreement. In my view it is in our own interests that such a test should he applied and that we should avoid drifting into the position of having such ridiculous and burdensome tariffs as those which some Dominions and many countries in tlie world have built up. “Here in New Zealand and elsewhere there is tho clearest evidence that wholesale prices have fallen to a much greater extent than retail prices. A move toward closing that abnormal gap is necessary if we are to adjust ourselves to the changed conditions. “I have always held that manufacturing within our own country should be encouraged, but in the interests of producers and consumers alike this should ho on a sound economic basis. Efficiently conducted industries and businesses have nothing to fear from the Ottawa agreement or from any action that might be taken to implement it.” In conclusion, Mr Coates said he appreciated tho part which local mills took in utilising New Zealand wool production and the importance of strengthening this to the utmost. At the same time the figures showed that only per cent, of our wool production found a local market and for tho disposal of tho great bulk of our clip the Dominion depended on sales to the United Kingdom.