A.—s

352

Tenth Day. 2 May 1907.

because it was regarded as perhaps a little difficult to collect so small a sum as 1 per cent, from a great variety of imports, it is perfectly possible for the Government and Parliament of the United Kingdom if they so prefer to provide their quota by a grant equivalent to the amount that would be raised by a duty of 1 per cent, if levied. I want to put the fiscal question right out of consideration in this connection, and want to recognise the difference in the situation of the Mother Country, but if you are going to undertake Imperial purposes it must be done more or less by expenditure of what may be termed Imperial funds. Mr. LLOYD GEORGE : It does not matter to the Colonies how we raise our contribution. Mr. DEAKIN : Not the least. Mr. LLOYD GEORGE : How we raise ours is entirely a matter for ourselves. Mr. DEAKIN : That is what lam trying to point out. This is at least a possible and practical proposal for raising funds for the various purposes to which reference has been made. Otherwise you will cast us upon our resources, each of us going to our own Parliaments to propose, so far as we share in them some expenditure which would require to be made upon any new combined effort for a better steamship service, better cables, for the Suez Canal project — about which T long since communicated with the Imperial Government, and upon which my friend Sir Joseph Ward has made a bold proposition. Wherever the funds have to be found, the question of finding them will be met in all the different parts in the same way, with the possible exception of the United Kingdom. If common action could be devised by which certain funds were raised and set apart, that would simplify Imperial action and make for unity. Mr. LLOYD GEORGE : I do not think so; I do not think it would simplify it at all. Sir WTLFRTD LAURTER : I would not be prepared to agree to that proposition of yours, Mr. Deakin, to lew a special duty for a special purpose. We have iust fixed our tariff, and it has cost us months of very hard work. We have fixed our duty on the scale which we think most acceptable and most convenient to our people with the point of view of the revenue first of all and other expenses incidental to the revenue. Now, I would not be prepared, as far as Canada is concerned, to lew either 1 per cent, or any sum at all above what we have done. If the view 7 we entertain of having a better service between England and your country. Australia, through Canada, is to be viewed favourably, and T hone it will be. we should have to take our share of the burden, and we should be prepared to take a general share, but if in addition to the tariff which has cost us months of labour to prepare we were to add another 1 per cent, or any amount at all it might mean a considerable disturbance. Sir William Lvne, who is accustomed to frame tariffs, knows how difficult it is to adjust a tariff with regard to the exact amount the old tariff can bear or the exact amount it cannot bear, and 1 or 2 per cent, sometimes gives rise to very serious discussion. Sir WTTJJAM LYNE : I thought this was only a proposal with regard to foreign goods.

Imperial Surtax on Foreign Imports. (Mr. Deakin.)