QUOTA DANGER.

Ashburton Guardian, Volume 54, Issue 91, 27 January 1934, Page 6

QUOTA DANGER.

PRIME MINISTEP REVIEWS. PRICE RISE IS NECESSARY. (Special to the “ Guardian.”) DUNEDIN, January 26. The necessity for a rise in the price of dairy produce to prevent the imposition of quotas by Britain when the Ottawa agreements expire was stressed by Air Forbes when addressing a large gathering at a complimentary luncheon to-day. The Prime Alinister pointed out that New Zealand had not gone so far off orthodox lines as had many other countries in measures adopted to meet the depression, but there had been a revolution of policy in Britain and.by legislation passed in 1930 and 1933 the Government there had assumed control of many of the products of fanners.

Milk and wheat were two examples. The British farmer now was getting 5s 9d a bushel for wheat, whereas the New Zealand farmer got 4s :6d, while French farmers were getting nearly 9s a bushel. That showed how the Governments of other countries wei e beintr forced: to assist tho industry. He did jiot bfelieve that New Zealand should adopt the radical policies put into operation by some other.countries. His opinion was that if industries, either primary or secondary, could run along on their own so much the better, but they had to recognise that the special conditions of to-day requned something being done. The increase in wool prices was worth about £6,000,000 to New Zealand, and tiiere would be an-, increase of a million or so from .the advice in meat prices, all of which would stimulate industry in the Dominion and should result in increased employment within the country. . . A Gruelling Time.

The dairy industry was having a gruelling time, said Air Forbes, and the continuance of low prices was a serious matter for .the country and the industry. The policy of the British Government was to bring in planned marketing by regulating imports and local production, holding the belief that this would 1 increase prices. It would be a serious matter for the Dominion if it were forced to limit the production of dairy produce, and tho reactions "would be felt in every branch of industry. That was why the. Government was so anxious for a rise in dairy produce prices. The Ottawa agreement prevented quotas being, imposed for the next two years, hut if at the end of .that time prices had not improved then regulations by quotas was almost certain to come.

Mr Forbes said he thought there was often a good deal of controversy between organisations representing the primary industries and' those, representing secondary industries, hut they should remember thafTthey had to have both in this country. In New Zealand they had built up a number of very creditable industries.. He realised that they were turning oat a first-class article, and he had no doubt that the products from the factories were up to the standard of factories in any part of the world.