TARIFF, September 13.
Ove subject of great interest was dealt with by Sir William Lyne, Commonwealth Minister of Trade and Customs, in the Budget speech which he made in the House of Representatives at Melbourne on August 8. It appears from the new tariff, which the Minister laid upon the table at the end of his speech, that Australia has spontaneously "introduced a scheme of preference in favour of Great Britain; and though, perhaps, the terms ure less favourable somewhat than what would have been conceded if any reciprocity had been given still something has been accompli ed, and preference to British goods over all foreign manufactures is an accomplished fact. The Commonwealth, however, evidently does not wish to pose ax a philanthropic Government desirous of favouring Home goods at the expense of its own interests; and though Sir William Lyne—claimed that Australia wished to introduce preference without bargaining in any way, still the new Tariff is admittedly more protectionist than preferential on the whole. It is estimated that the preference will affect the import refurls to the extent of £1,250,000, while deals with 153 separate items. At the first glance the new regulations do not appear to favour British goods to any great extent though the preference actually works out at an average of over eleven per cent. Indeed, in ome instances, British producers will pay a slightly increased duty. But there are two strong points in favour of the new scheme: the goods upon which the preference given include all the chief articles of import from Great Britain to the Commonwealth; and Foreign exporters catering for the Australian trade will be required to pay a practically prohibitive duty. During the last decade European manufacturers have secured a large percentage of the trade, for it appears that the proportion of Australian import trade. which ix in the hands of British firms, has fallen from 71.3 per cent. in 1891- 95 to 58.3 per cent. in 1901-05; while that of foreign countries has risen from 17.1 per cent. to over 28 per cent. And while anxious to promote local industries it is evident that the Commonwealth intends necessary purchases to be made ut Home. The articles fa-youred, moreover, include all the staple lines of from Great Bri the other European countries and it ix improbable that Australian manufacturers will lieable to meet. the demand for those goods for Recognizing the necessity for the various States to procure large supplies of small arms no duty is placed on British weapons, although strong agitation is being made to establish more small-arms factories in the State capitals.
The following exumplex will illustrate the principal increases shown in the rate of duty, together with some of the reductions. But the fact must not be lost sight of thut an ad valorem duty is much more sutisfuctory to the manufacturer than one of local valuations.
Wearing apparel, woollen or silk, for which the duty was twenty-five per cent. is now forty per cent (ad valorem) for Home manufactures and fifty per cent. for foreign Military equipment, side arms ote., of Home manufacture carry a fifteen per cent. ad tulorem duty, against twenty-two and a half per cent for the foreign article. The old tariff on this line of goods was ten per cent local valuation. Steam engines and machinery of that class, the old duty was twelve and a half are now charged twenty-thirty per cent. adr. to and other manufactures, This class of goods important upon the list of articles to which preference is accorded; und but very little competition will he met with from Australian manufacturers, Jewellery, another valotwenty per and forty per cent.
ish and foreign exporter In the matter of arms the British exporter should be duly gratified; for whereas the old tariff claimed a duty of fifteen per cent. fixed rate of ten and eleven shilling, respectively, on each double barrelled shot gun has now been intro duced, and other weapons are dutiable at the same ratio. For the y best makers the old duty was higher than is the new.
In considering this tariff as a diplomatic measure it should not be forgotten that the Australian states men who drafted the new article had to consider both the British Exporter and the Australian munufucturer, who was supported exacting Labour Party. To have by the powerful but somewhat
proposed a scheme of preference showing a wholesale reduction of duty would have uronsed the antagonism, both of the Labour Party, whose policy a pledged vote, in accordance the feeling expressed by the major ty ut caricas meetings, on all ques tions of importance; and protectionists, of whom Sir William himself the nominal chief. But hy.a diplomatic concession to each the British and Australian manufacturers are brought into active but agreeable rivalry to the ater exclusion of outsiders. The Labour Party, loyal though selfish, rejoice a measure which, it considers, will secure to Great Britain all trade which the young industries of Australia are incapable of band ling; and the Freetraders are probably the only persons who feel aggrieved. But the desire for a preferential tariff had become so acute, that even a Freetrader would hesitate to face the electors and condemn the measure. That Great Britain and all herlurge self-zoverning colonies are not participating is clearly no fault of Australia; for at the Imperial Conference Mr. Deakin, of al} the representatives there, was most eager to come toa definite agreement of some kind.
Text read from the printed page and cleaned; old type leaves the occasional error.