DAIRY INDUSTRY.

Auckland Star, Volume LXIV, Issue 16, 20 January 1933, Page 8

DAIRY INDUSTRY.

MR. W. GOODFELLOW'S VIEWS. REDUCTION IN" COSTS URGED. Addressing dairy farmers at Whangarei on January 9 on "What New. Zealand Should Do," Mr. William Goodfellow, who attended the Ottawa Conference as a member of the expert delegation attached to the New Zealand Ministerial party as official adviser in respect to the dairy industry, said what was required in the Dominion was not temporary assistance for the farmer by means of inflation of currency or exchange, or even a subsidy in exports to be paid with borrowed money, but a permanent reduction in farming costs. Farming, he said, was a great national industry and must be made sufficiently attractive permanently to absorb the increasing population. The cities were already too large in view of the greatly reduced income.

Some improvement in prices was to be expected, but dairy produce would in all probability be down permanently to a pre-war level. Therefore, unless all duties were heavily reduced and the cost of manufactured goods thereby substantially reduced, the farmer would not only lose the 10 per cent exchange premium, but might be compelled to pay the cost of a duty on produce entering the United Kingdom which would completely neutralise any benefits he would otherwise receive as the result of a rise in prices.

"New Zealand," Mr. Goodfellow said, "should carry out the Ottawa agreement forthwith by a drastic all-round reduction on Customs duties and especially in favour of British goods; sell all suitable Government land and amend the law to allow native lands to be sold. All such land to be sold by the Government by auction for cash and with improvement clauses; further substantially reduce the cost of Government, county council and municipal expenditure."

Mr. Goodfellow expressed the opinion that unless the British manufacturers were given a reasonable opportunity to supply New Zealand requirements the produce of the Dominion would be subject to a British import duty of at least 10 per cent within three years.