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18 PUBLIC RECORD OFFICE, LONDON

Fourteenth Day.

9 May 1907.

IMPERIAL STUTAX ON FOREIGN

IMPORTS. (Sir

Robert Bond.)

92

to-day is about 35 per cent., and I could not recommend to my Parliament Farther, the importations an increase of that tariff by even 1 per cent into the Colony are principally from foreign countries. One of our largest. importations is salt for fishery purposes and is obtained from Cadiz. This per at the present time passes in duty free, and the imposition, even of I cent., might not only lead to retaliation on the part of our Spanish and Portuguese customers, but the tax would fall heavily upon the very poorest of the population, namely, the fishermen. There is another large foreign importation, namely, flour. Part of our importation comes from Canada, but a considerable portion of it, highest grades, comes from the United States of America. That now passes in duty free, and the imposition of even 1 per cent. upon the principal food of the poorest people of the Colony, would The other articles naturally be resented and be regarded as oppressive.

of foreign importation, upon which the proposed tax would fall, would Forty-five per cent. of the total be meats, pork, bacon, butter, sugar. imports of the Colony consist of food, and these are derived to a large extent The policy of my Government is to from the United States of America. reduce the tax on articles of food. The fact then that a very large proportion of our food supplies has to be imported from the United States, and our fishery supply of salt from Cadiz, renders the position of my Colony, as I have previously remarked, totally different from that of any other Colony, Under these circumstances I regret that I cannot support the proposal that is made.

Mr. DEAKIN: If I had taken fuller advantage of my opportunities when opening this debate instead of curtailing my remarks to spare time for the Minister I should have avoided some of the criticismus, even of my friend If he looks at this proposition, he will see I have Sir Joseph Ward. suggested the 1 per cent. only as a measure, so that it would be quite possible for New Zealand or any State in a similar position not to impose Under the second clause of The 1 per cent. at all or impose any surtax. the first paragraph "or an equivalent contribution made by each of the legislatures," it would only be necessary for New Zealand to find her 20,000, or whatever the sum is, from her own revenue, without a surtax at all. I am sure that misapprehension was due to my omission to explain the details of the proposition at length. 1 only submitted it, of course, to assert or suggest a principle and not as a final proposition which could not be amended. I admit, however, that Sir Joseph's criticism and the criticism to which it has been subjected by others show that this percentage

It is needless upon foreign goods is open to serious criticism.

But again it was the same misreading of the pretend that it is not. resolution which led Sir Joseph to speak of the possibility of the 1 per cent. duty falling upon British goods instead of upon foreign. That would not be possible under the terms of this resolution at all. First of all, you need not have your surtax on foreign goods unless you like; but you cannot have it on anything else. You can take it out of general revenue. cannot impose 1 per cent. on anything except on foreign goods, and need not impose that if you prefer some other means of finding the money.

Sir JOSEPH WARD: Yes, I see that is so.

to

You

Mr. DEAKIN; Sir Joseph's criticism was entirely sympathetic, as was that of most other Colonial inembers of the Conference. Having regard to the general character of this resolution and the nature of the subject, I had not even worked out the figures as to what a 1 per cent, contribution 1 stated yesterday, and stated again to-day, on several occasions that

was.

93

I put in the 1 per cent. instead of leaving a blank, simply in order that the Fourteenth Day. principle of co-operation might be discussed. I mentioned that one-half per I do not waste the time cent. might do if this measure were thought proper.

of the Conference on merely abstract resolutions. But it does appear to me, as Mr. Moor very well put it, that we are likely to separate without having I thought was wise, and have not altered come to practical conclusions. my opinion that it was necessary to submit some broad proposition in order that we might learn from the members of the Government of the United Kingdom, whether they had in their minds any scheme for Imperial action at all, or for an Imperial fund other thair the separate schemes which may be proposed from time to time for a steamship service, or a cable service, or any- I have not been able to elicit even that. On the thing of that character. contrary, I have been met with the usual opposition criticism which we hear so often in Parliament upon a proposition of this sort, when the object is to hurry it conveniently out of the way. I do not object to that. I am sufficiently accustomed to it. But I also appreciate its motives. If the representatives of the Government here had really in their minds any scheme at all, this would have been the time when they could have triumphantly produced it and explained it. I do not mean that they would have brought down details—but they ought to have submitted a plan showing us some possibility of an advance upon our present casual disunited methods of combining for particular purposes here and there. That imperfect method exists and will exist. We do not lose it because we consider whether it cannot be improved upon. My object was to insist upon the need for improvement and only to suggest one means for its improvement. I was not taking a course foreign to the purpose of this Conference, but strictly in line with it. We have not succeeded in getting consideration for preferential trade. I wanted to know if we could not get consideration for something else which did not involve the fiscal principle at all--some method of union for united action. This proposition may be as faulty as you please. I drew It has at least made our position it in terms sufficiently loose on purpose. here quite plain.

Sir JOSEPHI WARD: May I suggest altering the last part and leaving the first part out, in order to try to get a decision in only a general way to the effect that this Conference recommend the Legislatures affected with the general purpose of fostering the industrial forces of the Empire so as to promote its growth and unity to provide contributions with that object. If you move something like that, and leave it to us to put amounts on our respective Estimates for the consideration of our Parliainents, we are all right.

Mr. DEAKIN : I think there is a good deal to be said for what you

propose.

Sir JOSEPH WARD: I do not want to propose it.

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Mr. DEAKIN I quite understand. But I am not complaining in the least degree of any criticism that applies. I only say the attitude of Ministers shows they have not made up their minds on this question at all. They simply say: "Bring forward à particular proposal and we will look at it. We knew that before. That is a very admirable attitude, the purely negative attitude they always have taken and always will take, and the attitude other ministers in the same quandary always will take-I am not finding fault The answer is, with that. I have asked, "Can we do anything more?"

· We cannot do anything more."

Mr. LLOYD GEORGE: I never said anything of the sort. To bring forward a proposal which will involve our contribution of 43 millions as against your 100,0007, with no scheme, no plan of spending, not a glimmer

1 49446.

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9 May 1907.

IMPERIAL SCRTAX ON FOREIGN IMPORTS,

(Mr. Deakin.)