Donald Rod: Questions for Oral Answer — Questions to Ministers 
Donald Rod: Questions for Oral Answer — Questions to Ministers 
[Volume:610;Page:7988] 
8.  
ROD DONALD (Co-Leader—Green) 
 to the  
Minister of Commerce 
: How is the tariff review she is due to present to Cabinet this month taking into account the comments of the Acting Minister of Commerce Hon Trevor Mallard on 11 May 2000 that “it is senseless for New Zealand to attempt to lead the world into a tariff-free playing field without ensuring that other countries reciprocate”? 
Hon LIANNE DALZIEL (Minister of Commerce) 
: 
 The terms of reference for the review incorporated four matters that the review was to have regard to. Those included encouraging reciprocity by New Zealand’s trading partners with regard to the lowering of tariffs. This issue is being taken into account. I should though point out to the member given the way his question was framed that I am not expecting to report to Cabinet by the end of this month. 
Rod Donald 
: Will the Minister now extend the current tariff freeze for a further 5 years in the light of the United States Government’s statements yesterday that it has dropped its push for zero tariffs; if not why not? 
Hon LIANNE DALZIEL 
: No. I am due to report to Cabinet so Cabinet can make a decision on the future of the tariff environment in New Zealand. 
Mark Peck 
: Why did the Government freeze tariffs in 2000 and why is it important that a decision be taken this year rather than waiting until 2005? 
Hon LIANNE DALZIEL 
: The Government recognised the need for a period of stability which is why we froze tariffs for 5 years until 2005. However it is now important that we make decisions so that businesses can plan for the post-2005 tariff environment. 
Rod Donald 
: As part of the review has the Minister visited and talked with clothing workers in places like Lower Hutt and Levin about the effect that even the threat of tariff cuts is having on their job security; and why will she not rule out any move to zero tariffs right now to give those businesses the security they need to keep those jobs safe? 
Hon LIANNE DALZIEL 
: As I said to the member the question of encouraging reciprocity was only one of four matters. The other three related to promoting the development of prosperous and internationally competitive industries encouraging regional development and reducing economic disparity and abiding by New Zealand’s international commitments and actively participating in multilateral and bilateral trade negotiations. I am not prepared to make any statement in respect of our commitment to go to zero. 
Sue Bradford 
: Is cutting tariffs and forcing clothing workers out of jobs this Government’s real Jobs Jolt and is she concerned that those redundant workers will then be forced to relocate in order to get the unemployment benefit if they are unlucky enough to live somewhere that the Ministry of Social Development deems to be a no-go area for employment? 
Hon LIANNE DALZIEL 
: I think it is very important that the member takes into account all the matters that I have just raised. I have met with the unions that represent the textiles footwear and clothing sector. The point has been made more than once that we already have one of the lowest tariff regimes in the world and that the final shift ultimately to zero which will happen at some point in the future will not make a significant difference. There have already been closures associated with the rush that was implemented by the previous Government. That is not the indication that sits with the final phase-out of tariffs. 
Rod Donald 
: Is the Minister asking for a new analysis to be carried out after the Infometrics report commissioned as part of the tariff review was found to be flawed because it simply assumed that the trade balance would be unaffected by cuts in tariffs when we all know that in the real world reductions in tariffs result in an increase in imports? 
Hon LIANNE DALZIEL 
: My reading of that report indicated there was not a suggestion that there would be a reduction in the numbers of people employed in the textiles clothing and footwear sector but that it suggested there would be a reduction in the increase in employment in that sector.