PRESSURE DENIED.

Auckland Star, Volume LXV, Issue 103, 3 May 1934, Page 8

PRESSURE DENIED.

CABINET AND MANUFACTURERS REPLY TO MR. GOODFELLOW. According to the Rt. ITon. J. G. Coates, Minister of Finance, there is 110 truth in the charge that the pioquota policy of the Government is the result of dictation by the New Zealand manufacturing interests. In replying at Morrinsville last night to statements concerning the butter outlook contained in the monthly trade review of Mr. William Goodfellow. managing director of Amalgamated Dairies, Ltd., the Minister said there was probably 110 one who had a bcttci grasp of the dairy industry in New Zealand than Mr. Goodfellow. His advice was at all times valuable, but it seemed that he was becoming concerned chiefly with trading and marketing aspccts rather than the producing side of the industry. Mr. Goodfellow's point was that the price factor was gradually reducing world production and would bring about its own cure, which would be better than an artificial scheme of raising prices bv restriction. It was to be inferred, said Mr. Coates, that the reduction of world production by an unchecked price factor was Mr. Goodfellow's view of a natural form of restriction, but it would only restrict production by forcing off their land small farmers who were unable to cope with low price levels. The dairy industry ivas of such economic importance to* New Zealand that safeguards were imperative. "The accusation that the persistence of the Government in the matter of restriction may be due to political pressure from New Zealand secondary industries is quite unfounded," said Mr. Coates. "The suggestions that they arc trying to force a quota on the Government and that this would be an excuse for further delay in the matter of reduction are absolutely without foundation. The whole matter with regard to the secondary industries was one for the Tariff Commission, which will make recommendations to the Government. "The position, summed up, is that, at the moment, New Zealand has unrestricted access to the dairy produce market of the United Kingdom, but it is a market glutted and oversupplibd at an unpayable price. How better can difficulties be overcome than by a mutual discussion of the position between the two Governments?"