GOVERNMENT ACTION

Evening Post, Volume CXVII, Issue 103, 3 May 1934, Page 12

GOVERNMENT ACTION

MR. COATES'S SPEECH

NEED FOE CO-OPERATION

The opinion that it was for the Government and not trade and sectional interests to rectify the position of the dairying industry was expressed by the Minister of Finance (tho Bt. Hon. J. G. Coates) in an address at Morrinsville on Tuesday evening. A full report of the speech, dealt with briefly in "The Post" yesterday, appears in tho "Waikato Times." The Minister, who spoke for over two and a half hours, was given an attentive hearing for the most part, but there were occasional outbursts of jeering, banter, and interjections. At times Mr. Coates rose to the occasion and scored a laugh off an opponent. ; The Dairy Board, said Mr. Coates, had been so divided on important issues that no resolutions were passed except on th© casting vote of tho chairman. The dairy; industry had had its sajr.;'

It had strenuously fought any suggestion that there should be a regulation of imports into the United Kingdom. While he did not pretend to know all about the problem he felt competent to voice an opinion which should be seriously considered by those engaged in tho industry.

"Impulso will get tho country nowhere against the hard facts which are standing in tho way," said Mr. Coatcs. 'Much can be dono by co-operation. There aro two problems, external and internal." It was essential that the best quality produce possible be produced, ho continued. There had to be a clean, wholesome raw product before it reached the factory. Another factor for consideration was the economic situation of the industry. It was questionable whether tho present overlapping and waste in certain localities could not be avoided. He also referred to tho chaotic state of the local butter market which should bo rectified. Any weak links in the chain should be strengthened. Ample hot and cold water on the farm, -was another important matter, and the Government would find what capital it could in order that farmers would have that necessary qualification in order that the highest grado commodity could be manufactured. POSITION IN" BRITAIN. Mr. .Coates explained the effect of recent legislation in Britain. Individualism had been abandoned and British agriculture was-now working definitely according to a plan on cooperative lines. Ho quoted figures showing how the quantity of various primary products had been increased since agricultural reorganisation. Was it likely that Britain would, carry'out its new policy or abandon it? \ Mr. Coates claimed there had been a gradual progress of self-sufficiency in all producing countries. ' Britain's exports to foreign countries had decreased enormously owing to the tariffs, embargoes, and quotas of those countries! New Zealand had to consider how it could best meet the changed circumstances. Another factor to be taken into account was the great decrease in British shipping and the corresponding increase in the tonnage •of foreign shipping. Nations for their own protection and progress had built their own ships. At Ottawa the New Zealand delegation advocated the restriction of foreign imports into the United Kingdom. It asked for a quota against those foreign goods and a greater preference to New Zealand goods. Mr. Baldwin, replying to the request, said Great Britain was a world trading nation and would make the best agreements possible with foreign countries. It was emphasised by the British Government that all sources of supply must be taken into consideration. If an unlimited supply went on to the British market it was impossible to maintain the price-level. NEED FOR URGENCY. Mr. Coates emphasised the need fox urgency in dealing-with the situation. It was unwise to wait for world monetary parity. There was no doubt that production had outstripped marketing and in the United States production was being restricted to raise the price level. If that was being done in America and England there was an equal need in. New Zealand. A voice: "What about thousands starving for want of butter and cheese? • Mr. Coates replied that wages could not be raised until the country's leading industry could show a profit on its production. When the great volume o£ dairy produce was considered it was heceasary to ask whether there was a capacity sufficient to deal with it. "We .cannot get away'fro the fact that some countries can pay an artificial price for produce and export the surplus to the1 United Kingdom," added Mr. Coatos. "We are solely dependent on the United Kingdom market. We have to say whether we can or cannot push Danish butter off tho market. We should, however, consider our power to compete, which is much less than that of countries like Denmark, Russia, and Latvia. Australia, even, is in a different position from us. Let me tell you that Australia's farming methods have improved out of sight and she has limitless resources. Another point to be remembered is that much of our dairy produce consists of cheese." _ After traversing recent developments in connection with suggested quantitative restrictions, Mr. Coates emphasised that New Zealand's efforts should be concentrated oh securing as much as possible of the United Kingdom market. A voice: And buy more British goods. Another interjeetor suggested a change in the monetary system. "That will not affect the price we are getting for our butter in England, which will get lower and lower while you aretalking about suggested changes in the monetary gystom," replied Mr -■";■■■• BLOW TO DOMINION. He considered that Britain's decision to subsidise milk converted into cheese in England was one of the greatest blows New Zealand had received, since the Dominion exported 100,000 tons' of cheese annually to Britain. Such an action would prove very serious unless some remedial steps were taken in New Zealand. Worse still was the spirit of antagonism which ' was developing between British and New Zealand farmers. Were not their interests in common and more in common than those of the manufacturers of the United Kingdom and the New Zealand farmers? Captain P. Colbeck: No, certainly not. Mr. Coatos replied that that remark showed very loose thinking. It was totally erroneous to believe that anything dono in New Zealand would change political thought in the United Kingdom: The only traditional and sound course for New Zealand to adopt was to keep in step with the Motherland.

A voice: And.buy from her. Mr. Coates: Yea, I agree. (Applause.) Another interjeetor: What with? (Laughter.)

The Minister said the British Empire was forced into restrictions and embargoes because the world had followed that policy. The question of rectifying the position was not one for trade and sectional interests but for tho Government.