and if we cannot solve the problem of marketing while we are here, then inevitably we must go back to our own country and seek some other solution. We recognise that any other solution must seriously limit our development. If we cannot find markets we shall be able to go forward only very slowly, but at least this will relieve us from a menace we are faced with to-day as a result of what we have already done and what we have in prospect. Consequently one would have to look at what one has to sell, and find a market for. This would mean looking round the world to see if there was not somebody with whom a bargain could be made so that the produce could be disposed of. Policy of Tariff Preference for British Goods. During the last few years in Australia we have had many requests that we should enter into reciprocal arrangements with different countries. These countries offered to give us very great advantages in their markets for our primary production in exchange for advantages they sought in our markets for their manufactured goods. We have rejected all those requests and have refused to listen to them. We say that the whole basis of our trading policy is to try to ensure, as far as we can, the Australian market for the British manufacturer. But one must stress (and I am sure everybody would desire that one should stress) the point that while we are determined to pursue that policy in the future as far as we possibly can, our own economic necessities might drive us into a position in which, to some extent, we should have to relax it or we should be bringing disaster to our own country and to our own people. It is, therefore, necessary to consider whether such a relaxation would matter in the very least to Britain-whether it would matter if we removed these advantages we are giving her in our markets. On many occasions I have heard it stated that the preference we give to Great Britain is of very little value at all. I recognise that that view is not generally held, but there is quite a body of opinion that expresses itself in that way. I think one need only look at the facts to establish quite clearly that it would be very unfortunate from Britain's point of view if Australia were driven to the point where she could not give such favourable terms to Britain as she does at the present moment. Value of Australian Preferences to the British Manufacturer. Now, in the year 1922-23 the actual amount of the Preference which was given to British manufactures imported into Australia was £7,600,000. In addition to that, an effort was made to ascertain the value of the sentimental Preference given by Australia. A great number of public bodies and large enterprises and others were circularised with that object in view. The conclusion arrived at was that it would be something in the region of 2 million pounds. Those figures are very large, but in addition to that we have passed anti-dumping legislation to safeguard the British Preference and to make sure that it will be effective against competition from countries with depreciated currency. I do not wish to go very far into that aspect of Preference, or the protection where there are depreciated currencies. I will merely tell you two facts about it; one is that in cases where it is found necessary to safeguard the preference given to British manufactures, as against the manufactures of a country with depreciated currency, the basis on which duty is levied on the latter is the domestic market value in Britain of similar articles of British manufacture; the other is that under our anti-dumping legislation, rather more favourable protection is given in some instances to British manufacturers than to our own people. I pointed out to Parliament that it seemed to me rather an extraordinary position to be taking up to be protecting somebody else rather better than one is protecting one's own people. The figures I have quoted-£7,600,000—are the actual figures. They can be gathered from the trade statistics. Most of you who have followed the controversies that have taken place in this country will probably remember that when Mr. Deakin and Sir Joseph Ward were pressing this case of Empire Preference, one of their critics said: "If Mr. Deakin and Sir Joseph Ward can show that the Preference we were giving was worth 1 millions by way of Preference as a figure to take by way of net profits to the manufacturers of Britain, there would be something in it," and he almost implied he would be in favour of it if that were the position. I daresay the Preference given would amount to a net profit that is not very far short of the Preference we are giving now. I think therefore that we have certainly arrived at the point where that challenge which was thrown out could very well be taken up. Over the whole of the Dominions the Preference which Britain received was somewhere between 10 million and 11 million pounds, and I personally cannot believe for one second but that this must be of the very greatest value to British manufacturers, and I think anybody who considers the position must also recognise it. It must be of value to the British manufacturer if those goods are going into Australia. It must provide employment for the people of Britain, and it must to a very great extent aid you in the problems you are faced with to-day. As far as individual manufacturers are concerned, I have spoken to many of them, and they all say that the Preference is of very great value, and we are constantly, as a Government, receiving representations urging us to maintain the Preference which Britain at present enjoys. I think that the Board of Trade could probably give us some information on that point, because they have no doubt ascertained from the manufacturers of Great Britain whether this is a Preference that is of value to them and whether it is aiding them in their manufacturing industry at present. Chairman: There is no difference of opinion as to that. Mr. Bruce: I need not labour the point. I may say that both the Federation of British Industries and the Association of British Chambers of Commerce have made very handsome acknowledge ments of the benefits British industry has received. I do not wish to labour this aspect of the matter, but I think it is essential, at the start of this Conference, that we should have the case set out as it is and show what the whole thing means. I would now like to give a few statistical details of the specific trades which have obtained advantages under this Preference. In regard to these particular Preferences and the particular industries, for 1920-21, the figures show :— One must also remember that the history of the past shows that these Preferences have been of some value. In 1882, the value of Australia's imports from Britain was 20,984,1627.-and in 1906 it was 20,228,8361. That is a period of twenty-four years, during which the trade was practically the same. The year 1906, as a matter of fact, was rather an abnormal one, the figures for 1905 being only 16,991,0091., so that over that whole period Britain's export trade to Australia did not increase but remained about stationary. During the same period, however, Australia's total imports did not remain stationary. In 1880 the imports into Australia amounted to 24,622,000l., but in 1906 they had increased to 44,745,000l., so that over the same period, during which Britain's trade remained about the same, if indeed it showed no decrease, the imports into Australia had increased by over 20 million pounds. All this increase took place with foreign countries, which were able to extend their trade with Australia although Britain could not. Preference was introduced in 1906, and between 1906 and 1913, the position changed, British imports increasing from the 20,228,8361. already mentioned to 34,471,2691., and in the latter year Britain was supplying 63 per cent. of Australia's import trade. During the war, owing to the fact that supplies could not be obtained from Britain, the percentage that Britain supplied of Australian imports dropped to 46 per cent. In 1920, the Australian Parliament passed a new tariff under which largely increased Preferences were given to Great Britain. We wished to help Britain to regain her place in our markets, if we could possibly do so, and the action taken was certainly effective, because by 1920-21, the percentage of British imports was restored to 64 per cent. of the total trade. I think these facts indisputably show that the Preference is of value, and it will be a most unfortunate thing if anything is done to interfere with it. Value of Dominion Markets to Great Britain. Another point I think we have to establish is that the Dominion markets have a value to Great Britain. The export figures for the United Kingdom in 1922 were: Europe 311,026,8471. and the Dominions 285,780,6491., a balance in favour of Europe of 25,246,1981., but of the exports of United Kingdom produce and manufacturers, the Dominions took 270,404,8021. and Europe 247,655,2661., a balance in favour of the Dominions of 22,749,5361. I think those latter figures very clearly show the value of the Dominions trade to Great Britain, because practically the whole of the amount that they take represents direct British manufactures which are providing employment and helping the general economic situation here. The exports from the United Kingdom to the different parts of the world are probably familiar to most of you, but I will quote them: : VALUE of the Total Exports of Produce and Manufactures of United Kingdom to India heads the list, of course. In 1913, she took 70 millions; in 1922, 91 millions. Australia, in 1913, took 34 millions; in 1922, 60 millions. Those are the two Dominions I am taking, but other countries with which Britain trades show increases. The United States, for instance, shows an increase from 29 millions to 55 millions; France from 28 millions to 48 millions, and Canada from 23 millions to 25 millions. These figures show a comparison between the Dominions and some other big countries, and later I propose to give you the actual per capita amount that the Dominions take, as against foreign countries, from Britain. The estimate that I have here, and which I think is of some interest, shows what percentage of the exports to different countries from Great Britain consists of manufactured production. The problem of to-day in Great Britain is to find employment in her great manufactures. The table I am now reading sets out that 95 per cent. of what Australia imports from Britain is manufactured goods; India, 945 per cent.; Canada, 80 per cent.; the United States, 69 per cent.; France, 58 per cent.; and Germany, 52 per cent. But an aspect that I think we have to consider in estimating the value of these markets is the percentages over a period. of years of British exports to foreign countries as compared with the Overseas Empire. In 1901, Britain exported 62 per cent. to foreign countries and 37 per cent. to the overseas Empire. In 1922, the figures were 60 per cent. and 40 per cent. I also give the intermediate figures : PERCENTAGE of Total Exports of Produce or Manufactures of Britain. These at least show that we are taking at this moment a very substantial part of the trade. Personally, I am certain that we could do very much more and, of course, as I will show later on, the value to Britain of exports to the Dominions is considerably greater than the value of exports to foreign countries, but before I do that, I would like to put on record and bring under the notice of the Conference the development of Dominion markets over the last forty years and also to try and stress the point of their possibilities. The following figures show the overseas trade of the different Dominions : £ 1880 1901 1921 £ £ 50,000,000 29,000,000 18,000,000 15,000,000 92,000,000 71,000,000 55,000,000 28,000,000 246,000,000 296,000,000 510,000,000 132,000,000 88,000,000 1,026,000,000 £ £ 112,000,000 These figures show a very considerable development and growth, and I venture to say that, if there had been any statesmen in 1880 who could have visualised the development and growth of the Dominions trade, they would have given very serious thought to the question of concentrating upon Dominion trade and Dominion expansion, and of seeing whether that was not the best way to develop British industry generally. As we look back upon the position, I think that thought must cross our minds to-day. Surely, if we view it in that way, we ought to consider whether we are going to lay ourselves open to a similar charge a generation hence when people look back and see what we did-an increase from 112 millions to 1,026 millions, while we made no really serious effort to develop the Empire at all. The Empire has merely developed of its own initiative Up to date there has been no concerted plan and, I venture to suggest, no real and genuine effort. If we took the matter in hand |