'MR. GOODFELLOW'S VIEWS

Evening Post, Volume CXVII, Issue 103, 3 May 1934, Page 13

'MR. GOODFELLOW'S VIEWS

REPLY BY. MR. COATES

' ; (By Telegraph), (Special to the "Evening Fost.") AUCKLAND, May 2. ■; Statements -regarding the British Tiutter market made last week by Mr. W. Goodfellow were referred to by the •Minister of Finance (the Rt. Hon. J. G. Coatos) in an interview before his departure from Morrinsville.

There was probably no one who had a better grasp of the dairy industry in New Zealand than Mr. Goodfellow, said Mr. Coates. His advice was at all •times valuable, but it seemed that he I was becoming concerned, chiefly with tho trading and marketing aspects rather than the producing side of the industry. It was the producer, and particularly the small producer, who was entitled to the consideration of the Government. The dairy farmer had never before needed direction. and assistance as he needed it today. Mr. Gbodfellow's point was that the price factor was gradually reducing world production and' would . bring .about its own cure, which would be better than an artificial scheme of raising prices by restriction. It was -to be inferred,' said Mr. Coates; that .a", reduction of world production by the unchecked price factor was Mr. Goodfellow's view of the natural form of restriction, but it would only restrict production by forcing off their land small "farmers" who were nnable to cope with the low price levels. The dairy industry was of such economic importance to Now Zealand that safeguards were imperatives ■• . "Mr. Goodfellow pays a tribute to the: Australian High Commissioner (Mr. S. M. Bruce) as a very smart politician and. far too clever a man for New Zealand's political representatives." Mr. ■ Coates continued. "These ' are per-, sonalitics, and as such can bo very safely ignored. An accusation that the persistency, of the Government in the matter of restriction'irfay be due to ...political pressure from tho.New Zealand secondary industries is quite unbounded. Suggestions that they are trying to force a quota on the Government and that this would be an excuse tor further delay in the matter of tariff 'reduction are nothing more than a pack : of, falsehoods. The whole matter with regard to the secondary industries i's one for the Tariff Commission, which will make recommendations to the Government."

( < ...Tho position, summed up' by Mr. .Coates, was that at the moment New Zealand had unrestricted access to the dairy produce market:of the United Kingdom, but it was a market glutted and over-supplied, and at an unpayable price. How better could " the difficulties bo overcome than by mutual disen^- ; sion of the position between, the two Governments?