QUOTA DANGER.

Auckland Star, Volume LXV, Issue 5, 6 January 1934, Page 6

QUOTA DANGER.

DAIRY INDUSTRY.

"ENLIGHTEN BRITISH PUBLIC"

AUSTRALIAN SUGGESTION.

The suggestion that Australia and New Zealand should "anticipate the coming British attempt to impose a dairy quota," by means of a campaign designed to enlighten the British consuming public, was made by a writer in the ; "'Sydney Morning Herald" on January 2. Since the beginning of December .the campaign in Britain in support of quota restrictions on imports of dairy produce from the Dominions has been carried- on with renewed energy, the. writer said. Possibly its supporters see in the continued weakness of the market in the face of heavy production a situation favourable to their cause, both at home and in the producing Dominions. It is certain, also, that recent activity in Australia and New Zealand expressive of the determination of both countries to strengthen their marketing organisations, and with that object, to co-operate with each other more closely than they have hitherto done, is looked upon with little favour in certain quarters. This, it is probable, has also some bearing on the matter. . |

But whatever the reason, the fact is clear. Even the successful delivery at the Smithfleld market of a small shipment of chilled beef from Sydney recently was seized upon as a sufficient pretext for' an outburst of righteous indignation against us for flooding Britain with our products, to the imminent ruin of the home producer. In this, however, the restri;tionists appear to have somewhat over-reached themselves. Previously they had enjoyed, almost unchallenged, both Ministerial sympathy and powerful Press support. Their latest efforts, however, seem to have raised doubts, and some of the most influential newspapers in the United Kingdom have adopted an attitude which suggests a suspicion on their part that there is "a nigger in the wood-pile." The "Manchester Guardian," while saying that, with the Minister for Agriculture in his present mood, the agitation to reduce dairy imports will probably be successful, Australia and New Zealand being "persuaded to agree," expressed the opinion that there must be something wrong with the British manufacturers if they are unable to produce butter and cheese in competition with the Dominions and Denmark, "especially as Australia and New Zealand liave licavv transport costs and there is no sweated labour there." British Government Criticised. At the same time, the London "Evenins Standard" editorially condemned what it described as "the Government's propaganda against Dominion exports," and pointed out that despite the fact that Denmark is still sending to Britain more butter than any other country in the world, "public attention is still sedulously being directed to the 'threat' to British dairymen from the Dominions." Drawing attention to Australian and New Zealand purchases from Britain, which are greater than tliose of Denmark, the "Evening Standard" charged the Minister with ignoring "these facts when attacking Dominion exporters who, with the British producer, must pay for the folly of foreign trade agreements." Criticism such as this suggests that at last a realisation is dawning in Britain that the arbitrary restriction of Dominion dairy imports will not prove the panacea for the evil of low prices its advocates claim. If this is so, the moment seems favourable for a detailed representation in Britain of the views of the Dominions on the subject. In discussing the problem, the responsible authorities in both Australia and New Zealand do not seem sufficiently to have allowed for the probability that consumer opinion in Britain is favourable to _ their case, and if aroused to "the point of articulate expression, must powerfully influence the Government's policy. Its exploitation as a reply to the quota propaganda would be a perfectly legitimate defensive measure, and one, moreover, which the London representatives of the Australian and NewZealand dairy export boards could very well undertake effectively. The whole quota proposal is based upon the theory, propounded by the National Farmers' Union of England and Wales and its enthusiastic spokesman, Mr. Thomas Baxter, that a reduction of imports from the Dominions would materially raise prices. Recent experience, however, shows that to be effective in the expected direction, restrictions would have to be so severe as to render their imposition impracticable. In a cable to their New Zealand agents early this month, a leading firm of Tooley Street importers stated that the recent higher prices for butter had reduced consumption by about 1200 tons weekly, making lower prices necessary. The accuracy of this interpretation of the position is supported by the fact that, as the price of butter rose and its consumption fell, both the consumption and price of margarine rose. Price Limitations. These movements clearly indicate large a part of the present British butter imports >is consumed by people who cannot pay high prices and who, in default of cheap butter promptly go back to margarine. Apparently, Dominion butter can only compete successfully with margarine when sold retail at between lOd and 1/ a pound. Admittedly this is an unpleasant fact for Dominion producers, but in the absence of an alternative outlet for the very large quantity which any attempt to raise prices at would inevitably leave on .their hands, it must be accepted with as good grace as possible. r In these circumstances, the disastrous effect on Dominion producers of a successful issue to the quota campaign is obvious. The Australian High Commissioner in London (Mr. S. M. Brucc) recently demonstrated his recognition o; this. His efforts to protect his country's interests could, however, be very much strengthened if definite steps were taken by the Dairy Produce Board, preferably in conjunction with the New Zealand authorities, to anticipate the coming British attempt to impose the quota, bv means of a campaign in Britain designed to enlighten the consuming public as to the facts of the position and the gravity of the issues. In this way it should be possible, if not completely, to avoid restrictions, at least to ensure that their I whole burden is not thrown upon the | Dominions. ' i When the quota was first proposed, it was stated that foreign imports were to be proportionately restricted by at least twice the percentage imposed against the Dominions. Recently, how- ! ever, the foreign exporter has seldom ' been mentioned by the quota advocates, and even then in a manner strangely apologetic. This, surely, is a danger signal which should not be overlooked.