BUTTER GLUT

Evening Post, Volume CXV, Issue 94, 22 April 1933, Page 13

BUTTER GLUT

MR. COATES'S VIEWS

REASONS FOR QUOTA

THE PEICE FACTOK

(By Telegraph.—Press Association.) AUCKLAND, April 21, An indication that the Government ras considering the question of a restriction on imports of Now Zealand butter into the United Kingdom for » limited period was given by tho Minister of Finance (the Et. Hon. J. G. Coates), when addressing the Auckland Creditmen's Club today. Mr. Coates made it clear that he was not speaking from any determined viewpoint and his references to tho problem, were mainly made in a series of questions which indicated that his views on, the subject were still-tenta-tive. Discussing Ottawa agreements, Mr. Coates pointed out that the price of lamb had risen from 5d at the timo agreements were made to about 6jd now, while the outlook for wetner mutton and beef were better. Had much hardship followed the restrictive methods agreed to at Ottawa? he asked. So far as Mr. Coates could see tho results had. been quite successful. Examining tho effects of the duties placed on foreign primary products, Mr. Coates said that the duty of 15s a. cw_t on butter gave New Zealand butter today an advantage of 22} per cent, ad valorem over tho foreign product. He could not say that the results, as far as butter was concerned, had been successful, .although similar methods had certainly put the Dominion fruitgrowers on a better footing. "I am hot speaking from any determined viewpoint," said Mr. Coates, "but I do consider the solution of our problems will be assisted materially if •we can raise prices. Is.it possible to adopt much the same method in regard to the export of butter as has been adopted in regard to meat? The butter agreement "will be overhauled in about two years from' now. Not that the duties will bo interfered •with, but the whole question will be reviewed. POSITION IN BRITAIN. "Is the United Kingdom likely to «ay at the end of two years that it has had enough. of its market being knocked about by the importation of Empire and foreign butter? Agriculturists in Britain produce only about 40,000, tons of butter a year, but it seems that the United Kingdom is determined to give its farmers a greater opportunity to produco more for the British market. Would restrictions on butter be effective? For many years Britain has been trading with neighbouring European countries and those old ties will not be lightly severed. "As I u-derstand the matter, representatives of the butter trade in London discussed tho position with representatives of the various Dominions. The authorities in England were then asked what could be done to Taise the prices of this commodity. If we are unable to get satisfactory prices we must become dangerously near to the point when we Trill bo unable to meet our responsibilities with Britain. I lhean no more and no less than just that. Can we restrict the amount of our butter imports into Britain for a year or' two? I do not think it necessary to reduce production. I am now using imaginary figures. Could we 110,000 tons in the United Kingdom instead of .115,000 tons? The pay-out now is 7d or 8d a lb, and if it were in gold it would be only about 3Jd. If w» could get Is for, f 110,00,0, tons ,we would havß to see what we could do witk the 5000 tons. The suggestion is that the foreigner would be restricted to two tons for our one ton. The thought I want to leave with you is that this is a vital matter. The problem at the moment is to know how the farmers are to get credit. It is thoroughly worth while examining this r question. It is > an important question "Which, ia of. practical concern, not only to Che farmer but also to the trader dependent upon him." ,