Australian prices are f.o.b. Melbourne; the Canadian price includes delivery in Western Canada, including freight averaging 1,000 miles. Galvanised corrugated iron is quoted:—

Great Britain, 24g. in bundles, per ton—£11 to £11 5s.

Sydney ("Herald," 26th May), 26g. in bundles, per ton, £30 5s.

Perth (recent quote "West Australian") per ton £31 5s.

In an Auckland paper of 22nd April, 1931, a retailer, is advertising 26g. galvanised iron, 5ft. to 8ft. lengths, at £20 19s. 6d., and the same advertisement No8. galvanised fencing wire at £14 12s. 6d. per ton.

The duty on galvanised corrugated iron is now 110s. per ton British, and 150s. per ton foreign. In 1913 it was 20s. per ton British, and 30s. per ton foreign. There was an absolute embargo on its importation, now removed, and the farmer to provide shelter for his implements and produce must pay the Australian price or be muleted in heavy duties.

Fencing wire in 1913 was—British free, foreign 5 per cent. In 1922 a bounty was granted on its manufacture in Australia, and now it is British 52s., foreign 170s. per ton and bounty demolished. Plain galvanised wire No. 8 is now quoted f.o.b. Antwerp or Bremen £6 5s. per ton. I understand Melbourne price to-day is from £18 12s. 6d. to £19 18s. 6d. for foreign wire; Australian made No.8 black £17 15s., galvanised £19 5s. 6d. per ton Melbourne.

Barb Wire.—The duty on this in 1913 was 10 per cent. British and 20 per cent. foreign. The present duty is 68s. per ton British and 180s. per ton foreign. The Australian made is quoted as 12 gauge £22 7s. 6d., 14 gauge £23 17s. 6d. Sydney. German quotation, April, No. 12, £8 12s. 6d. per ton.

I might here state that a comparison of prices in Germany of 2nd April, 1931, quotations f.o.b. Antwerp or Bremen—

                                                                       April, 1913.                        July, 1913
                                                                       £      s.   d.                         £      s.    d.

Plain Galvanised Fencing Wire, No. 8 - 6 5 0 7 10 0 Barb Wire, No. 12, Galvanised - 8 12 6 10 0 0 Galvanised Wire, No. 8 - 5 12 6 6 5 0 showing that prices in these goods are even below pre-war price level, even as wheat is to-day. The following is a list of certain good affecting agriculture upon which an absolute embergo is imposed:— Barb Wire Cultivators Harrows Stump-jump Ploughs Drills Reaper Threshers Horse-drawn hay Rakes Chaffcutters and Horse Gears Scarifiers Bolts, Nuts, Nails while also on a long list of items a surcharge of 50 per cent. on present duties is also imposed to which has to be added the primage dues of 4 per cent.

On the agricultural machinery on which an embargo is imposed, the West Australian farmer has to pay freight from the East, which until recently averaged 12 per cent. on costs, but Mr Ferguson, of the Sunshine Works, Victoria, now informs me that he has been able to get that reduced to 6.88 per cent.

I have been supplied with a list of Sunshine prices, copy of which I attach, which shows that plant which would cost £1,080 12s. in Melbourne would cost £1,154 19s. 6d. Perth. But nearly every country in the world admits agricultural machinery is duty free. Wages in Canadian factories are over 25 per cent. higher than in Australia. We have greater natural resources, and there seems no reason why Australia should not be able to compete with Canada and the U.S.A., the natural protection alone constituting a very solid protection. Further, it must be noted that in addition to the duties shown on the Tariff Schedule, there is the primage of 4 per cent., the Sales Tax of 2½ per cent., and an exchange value of approximately 33 per cent., and my experience has been that the manufacturer usually keeps his price when possible at a small margin below that of the imported goods. And in fixing the Customs duty the Department miss no point in assessing the value for duty. In an invoice, say, for goods of an ad valorem value of £100, 10 per cent. is added and duty charged on £110. With a duty of 60 per cent., which at present is a very moderate one, the duty would be £66, to which on many items is added a surcharge of 50 per cent., equal to £99 duty plus primage of 4 per cent. on £100—£103, plus a sales tax on £203, and in several instances, prior to the sales tax being computed, 20 per cent. on the whole amount was added, thus making the tax on goods invoiced at £100 no less than £243 plus exchange, freight, packages upon which duty has to be paid, insurance, etc.

To give a couple of special instances, let me quote copy of a Customs invoice on the importation of Brake Drums for Motor Trucks, the invoice value of the goods being £23 0s. 7d.—

                                                                                  £      s.    d.

Customs duty by weight, 93lbs, at 2s. per lb. 93 12 0

Customs duty on casing 0 2 1

Primage 1 0 6

Sales Tax— £ s. d. Value of Brake Drums 23 0 7

Casing 0 6 4

Customs Duty 93 14 1

                                      117    1     0                            

Plus 20 per cent. 23 8 2

                                      140    9     2  at 2½%     3   10    1
                                                                         £98    4   10

Another on shipment of gears for motors on which the Customs duty was 4s. per lb. the impost was £72 14s. On good the invoice value of which was £35 16s. 9d. May I add that I had an instance recently where a consignment of goods from Java for making children's hats costing the importer £180 had duties demanded of approximately £3,000. This, however, had been amended recently.

In almost every country in the world fertilisers are admitted duty free. All recognise the great value of intense culture and its wonderful aid in the production of wealth. On a recent shipment of nitre fertilisers on which the duty was 25 per cent. the importer assured me that by Customs methods the duty totalled 33 per cent. For a long time your Western Australian members have made repeated efforts to have fertilisers admitted free of duty, but so far without effect.

In the bush there are many pests, the rabbit being one of the worst. In 1913 rabbit traps were admitted British free, foreign 10 per cent. At present the duty is 10s. per dozen or 45 per cent. British, and 15s. or 60 per cent. foreign. Popular brands cost in England 8s. 6d. and 12s. per dozen. The former I am authoratively informed is sold be the country storekeeper in Australia at 27s. 6d. per dozen. Sheep dip has a duty of from 25 per cent. British to 35 per cent. foreign. While sprays and every form of insecticide carry heavy imposts.

In addition to all the direct charges made through the Customs the farmer also has to contend with the indirect added costs due to the cost of living, of production, and of transport. As the duties on clothing, boots, foodstuffs, etc., add to the cost of living, so also does it add to the cost of production and of transport. High duties on iron, steel, copper and timber add to the cost of railway material and rolling stock, and a computation I made some two years ago showed that in Australia there has been an increase in railway freights of approximately 60 per cent. since 1913, and yet the railways show enormous losses. While the freight charges on wheat and super have kept at a low freight charge it must be borne in mind that it is the producer in the country who bears the burden of increased rates, whether inwards or outwards, and the effect of the general increase has been to increase his costs.

Here may I point out the efforts we made—unfortunately without success—to have pyrites admitted duty free. At the present time Western Australia is wholly dependent on the U.S.A. suppliers of sulphur for use in the manufacture of superphosphates. When an application was made before the Tariff Board urging the recommendation that pyrites should be admitted duty free it was pointed out by the representative of the Rio Tinto Mine "owned by a British company that subject to pyrites being admitted duty free they could guarantee sulphur requirements for a long term of years at a