"STAMPEDE MOVE."

Auckland Star, Volume LXIV, Issue 76, 31 March 1933, Page 3

"STAMPEDE MOVE."

RESTRICTIONS OPPOSED. BOARD SECRETARY'S VIEWS. (By Telegraph.— Own Correspondent.) WELLINGTON, this day. Supplementing his statement that an endeavour was being made by importers of Great Britain to stampede the producers of New Zealand and Australia, Mr. T. C. Brash, secretary of the New Zealand Dairy Produce Board, said that undoubtedly agreement to restrict exports would have an immediate psychological effect on the market; but in any case, the officially-proposed basiJ of restriction could not possibly affect the quantity position on the London market for months to come, certainly not to any marked extent before next January. It was, therefore, difficult to understand the London merchants' cables predicting imminent disaster unless the producers agreed instantly to restriction. Mr. Brash explained that tlie restriction proposals placed before New Zealand and Australia were for a reduction of 6 per cent in Kmpire butter and 12 per cent in foreign butter on the quantities exported during the twelve months ending June 30, 1033, which period was to be taken a3 the base year. Thus, as he had said, the quantities of butter arriving in Britain would not be reduced to any extent until the end of the present calendar year. Moreover, it had to be remembered tl'.nt what was proposed was a twelve months' quota, said Mr. Brash, and under it foreign countries would almost certainly dump their butter into Britain heavily for the first few months. Quantities could not be immediately restricted unless exporting countries were put on a monthly quota.

Dairy Board's Offer. Some months ago tlie New Zealand Dairy Board had offered to reduce shipment* by 1000 tons a month in respect of butter due to arrive in Britain during May-June-July, if Australia and other countries would similarly limit shipments; but this proposal was not entertained, and was actually described in certain quarters as unacceptable and undesirable. Mr. Brash said there was a marked similarity in all the cable messages cominjr from the "trade" in London, which indicated an effort to stampede New Zealand producers into immediate restriction. By their action the London merchants were doing much harm to the market. Buyers at Home did not appear to understand the real position in regard to the official restriction proposal*, and were adopting a waiting position. Then, again, some London merchants were financially interested in th'c dairying industry in Latvia, Eethonia, Argentina and other countries. Tn any cas», said Mr. Brash, the principle of'restriction was a dangerous one in its long-run effects. There was no certainty that, if we agreed to a 6 per cent restriction of exports now, the importing interest.? at Home might not come along later with a request for a restriction of 12 per cent or even more. The principle of restriction would spell stagnation for the dairying industry, since theie would be no chance of further expansion. It had to be remembered that the Government had dona everything possible to assist the dairy farmers of New Zealand to increase production and had encouraged them all the time to raise the yield of butter fat per cow and per acre.