1931

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fixed price which would represent a gross saving of at least 25 per cent. calculated on the then price of brimstone sulphur, viz., £6 per ton." He estimated it would reduce the trade balance with U.S.A and divert to England approximately £500,000 annually, and pointed out that the regular arrival of cargo vessels laden with pyrites from Europe would provide increased freight space for what and wool and thus have a favourable influence upon freight rates to Europe.

Unfortunately for Western Australia the influence of the zinc producing mines at Broken Hill and of the Lake George mine in New South Wales was too strong and the application was refused. The loss to Western Australia, particularly in regard to transport of wheat and wool overseas, was appalling. At present the Federal Parliament is dealing with the Tariff Schedule and there are numerous instances where duties are increased threefold, and the undoubted effect must be to increase the cost of living and of primary production.

The internal price level was 172 last year compared with 100 in 1913, and while farm goods prices have dropped to the low pre-war level, th farmer must still pay high post-war prices for the implements of production and the finished goods he buys. In other countries finished goods prices are dropping to the same level as farm goods. The huge tariff in Australia however keeps up the price of finished goods, even though farm products have touched pre-war levels. The following index table shows just how the high tariff has kept up the price of finished goods while farms prices have dropped:—

1911 - Base - Farm —100 ... Finished — 100. 1926 - Jan - Farm —181 ... Finished —171. 1927 - Jan - Farm —169 ... Finished —172. 1928 - Jan - Farm —181... Finished —175. 1929 - Jan - Farm —180 ... Finished —175. 1930 - Jan - Farm —158 ... Finished —178. 1930 - July - Farm —146 ... Finished —182. 1930 - Sept - Farm —129 ... Finished —182. 1930 - Oct - Farm —125 ... Finished —183. 1930 - Nov - Farm —118 ... Finished —184. 1930 - Dec - Farm —116 ... Finished —183. 1931 - Jan - Farm —117 ... Finished —188.

In every country efforts are being made to reduce the costs of living and of production. Here in our Parliament we are engaged in fruitlessly discussing tariff duties the effects of which must still further imperil our economic future.

With Russian competition it is difficult to estimate the possibility of profitably growing wheat in Australia under the best of economic conditions, but with the intolerable and unjust burdens imposed on him under our present economic conditions his position seems quite hopeless. What sane man will continue production if the value of the product is consistently less than the cost of its production? But Western Australia must continue the industry; any cessation would result in the country reverting to pre-settlement conditions; moreover, owing to the great developments that have taken place in recent years in scientific knowledge and of labour-saving machinery, I feel sure that under a low tariff policy and freedom from Government interference in industry, Western Australian farming could be made a very profitable occupation even in competition with Russian.

"If you can get back to pre-war position." says Professor Richardson of South Australia, "so far as the ratio of internal prices to export prices is concerned, and provided we can maintain our research and educational services, we can grow wheat in competition with the world."

In the West it is even of greater importance that our ration of internal prices must conform more to export values, as our whole future depends on the successful development of our primary industries. This applies equally to gold mining as to wheat growing, and possibly in a lesser degree to other industries, but we cannot afford, after the huge Governmental expenditure in railways, water supplies and other services, and the years of labour and the large capital expenditure by our farmers, to permit the State and the farmer to be ruthlessly destroyed by false economic theories and conditions, and I firmly believe that unless these conditions are drastically altered there can be little hope of successfully carrying on the wheat growing industry in our State.

But there is also another and very important phase of the effect of this high tariff madness, and that is the question of markets. We are a debtor nation and must export to pay our interest bill. Moreover, the export trade is the great balance wheel of any country's progress. We cannot sell unless we buy, and in the development of our State we produce for overseas markets. Australia exports to France an average of from 15 to 19 millions annually; to Germany 9 to 12 millions; to Italy about 5 millions; to Japan 11 millions a year. Is it possible the people of those countries can view with equanimity the barriers we place against trade with them. We have lost a valuable trade with Fiji, owing to the excessive duty imposed on their bananas. New Zealand has made reprisals in her Tariff against us; one particular instance is in regard to macaroni, of which there was a fairly large export trade from Melbourne. The New Zealand tariff on this item is British free, Foreign 20%., Australia 30%. France is making tariff reprisals against us, so also has Germany. To whom, then can we sell our wheat, our fruits, aye, and to some extent, our wool, if the doors of these great countries are closed against us?

In a recent speech in the House on the Woollen duties I quoted the statements made in Natal by a British manufacturer, who, owing to the drastic retrospective nature of some of our legislation cost him his market here and the loss of many thousands, stated that he had expended some £30,000 in the installation of new machinery to enable him to utilise South African wool in his factory in future, instead of Australian wool.

The closed door policy we have created must create enmity, friction, and misunderstanding among the various peoples who purchase our products. At the World's Economic Conference, held at Geneva in 1927, at which some 50 nations, including Australia, were represented, it was resolved "No machinery for the settlement of international disputes can be relied upon to maintain peace if the economic policies of the world so develop as to create, not only deep divergencies of economic interest between the different masses of the world's population, but sense of intolerable injury and injustice."

In the framing of our Tariff policy we have been guilty of intolerable injury and injustice to those who are purchasers of our products; we also have deeply offended our neighbours in New Zealand and Fiji, while here in Australia we are offering up to sacrifice those great basic industries which have produced the real and only true wealth of the country, under the extra ordinary delusion that by restrictions in trade and commerce, and by the exploitation of the many by the few, we are adding to the wealth, prosperity and happiness of the nation.

To any intelligent observer it should be clear that the general policy of Australia has been in direct opposition to the development of the great natural potential wealth of the nation by ever increasing costs of production.

That embargoes on essential goods, high tariff duties, subsidies, bounties, experimental industrial legislation, navigation restrictions, excessive transport freights on land and sea, all combine to penalise the producer.

That the primary producer has to sell his product overseas in the markets of the world at overseas prices, while the manufacturer is sheltered by high tariff walls and can adjust his prices to meet the increased cost of production.

That such a policy is contrary to all economic laws, and fails in justice and equity to those whole production produce the real wealth of the country.

That the illusion that primary production is a source of wealth, of unlimited taxable capacity, is being rudely dispelled in the minds of those who think nationally yet at the present time this Parliament is heaping up heavier and more restrictive tariff imposts.

That if primary production fails, the nation is destroyed.

Mr JOHN HENRY PROWSE, Member for Forrest, Western Australia, desires to express his entire agreement in every respect with the contents of this affidavit.

AND I MAKE THIS SOLEMN DECLARATION, conscientiously believing the same to be true, by virtue of Section 106 of the Evidence Act, 1906.

DECLARED AT CANBERRA, in the Federal Territory, this 11th day of June, 1931, before me —

(Sgd.) H GREGORY. (Sgd.) W.M. NAIRN,

A Commissioner for Oaths in the Supreme Court of Western Australia.