A.—s

249

considerable portion of the trade of Great Britain now in foreign hands, her position would most certainly be assured. What, however, is her actual position? Excluding wool, Australia supplies considerably less than 3 per cent, of the goods imported into England, while the share of the foreign countries amounts to 80 per cent.; and even if wool be included, Great Britain's imports from Australia do not exceed 4f per cent, of the total. Is there any point of view from which this condition of affairs can be deemed natural or desirable '. The question that is coming home to Australia is : Can the Commonwealth without preference in the British markets retain even its present trade? And the answer undoubtedly is that without fresh efforts and a new policy it cannot. Foreign countries, by means of liberal shipping bounties and concessions in railway tariffs, are already placing their goods in competing markets at lower rates than Australia can do under present conditions, and one country at least,' Denmark, Australia's most formidable competitor in the supply of butter, has a concession of low freights for its produce on certain British railways. This concession, with others of an equally important character, enables the Danish farmers to compete successfully with the products of British origin. It is apprehended that even our present small outlet in Great Britain will he effectually threatened, so tTiat if we are to retain our present markets, it is most essential that we should get at least as favourable concessions as foreign countries obtain. If we are to expand our markets, and to place ourselves beyond the reach of foreign aggression, preferential treatment must be obtained. Preferential trade would enable Australia to secure a large portion of the British trade, many lines of which are now largely or exclusively in foreign hands, with the result t hat there would be a more rapid development of the territory of the Commonwealth, an increase in its population and wealth, and a large increase in its home market for manufactures, to the manifest advantage of those engaged in various forms of productive industry. Upon the enormous gain to the Empire as a whole from the settlement, population, and development of its immense territories, it is unnecessary to dwell. There are no such opportunities elsewhere, and there is urgent need of their immediate utilisation. We are and shall continue to be far your best customers. Taking some of the items in which Australia is interested, the opportunities for expansion will be clearly seen. There is imported into Great Britain annually butter to the extent of 207,000 tons. Of this large quantity, 155,000 tons comes from foreign countries and 52,000 tons from British possessions, Australia's portion being but 24,000 tons. Under a. preferential duty it is most probable that the British possessions could secure half the trade now in foreign hands. If Australia obtains only one quarter of that new trade she would be able to add to her exports 19,000 tons of butter valued at 2 millions sterling, which would mean the direct employment of 41,000 persons. The import of cheese into Great Britain, which is almost entirely in the hands of Canada, amounts to 6,350,000/., to which Australia contributes to the extent of 1,000/. only. Here again is an opening for trade which preferential treatment would greatly widen. The imports of wheat and flour into the United Kingdom amount to 411 millions sterling annually, and of this quantity Australia sends only 4,300,000/. Given a certain market, such as would be open to us if Great Britain granted a slight preference on wheat, we might easily expand our imports to four-fold their present average, and send away 70,000,000 bushels every year. Of other grains, principally oats, barley, and maize, the imports of the United Kingdom are valued at 29 millions sterling, to which Australia contributes an insignificant 9,000/. There is no reason why we should not export maize, which grows well in New South Wales and Queensland, as well

33—A. 5.

Kighth Day. 30 April 1907.

Preferential Trade. (Mr. Deakin.)