Bay of Plenty Times. THURSDAY, SEPTEMBER 22, 1932 OTTAWA AGREEMENT.

Bay of Plenty Times, Volume LXI, Issue 10921, 22 September 1932, Page 2

Bay of Plenty Times. THURSDAY, SEPTEMBER 22, 1932 OTTAWA AGREEMENT.

The commercial agreement arranged a.t Ottawa between the British Government and the New Zealand Government appears at first reading to be quite satisfactory, yet it is just possible that some of the secondary industries may ultimately suffer, but that would be to the advantage of the country. In Article S it is provided that the New Zealand Government shall undertake an inquiry into the existing protective duties, and where necessary to reduce them as ppeedily as possible to such a level as will place the United Kingdom producer in the position of a domestic competitor. That is the protection afforded to the New Zealand producer and shall be on a level which will give the United Kingdom producer full opportunity of reasonable competition on the basis of the relative cost of economical and efficient production. In the Article following it is provided that United Kingdom producers be given an opportunity to put forward their views at any inquiry.

The protection enjoyed by the secondary industries appears now to be impaired, for they must compete, or to put it another way, the British producer must be put on a level of competition with the New Zealand producer, and as the former is capable of mass production and the New Zealand has no such facilities, consequently he must suffer from the competition. Any nquiry in respect of import duties cannot now be undertaken independently, for the British manufacturer must be given the opportunity of stating his views at such inquiry. I In addition to these provisions the surtax on certain British goods is to be abolished, and the primage duty must be lowered or rescinded as soon as financial circumstances permit.

These provisions will enable the Dominion to buy more British'goods, and as these must compete with locally made goods on fair lines there is every probability that the consumer will accord preference to British goods. For this comparatively minor concession the British Government has agreed to impose duties on such primary products as butter, cheese, condensed milk, milk powder, apples, pears, honey, eggs, meat and meat products and a variety of oth-

er commodities. The duties on dairy produce and frozen meat are the principal concessions, but it Is difficult to see how New Zealand will gain anything much. We will still have to compete with Australia in the dairy produce market, and Australia is not such a competitor as can be ignored. We score as regards lamb, but it must be remembered that we have been the principal supplier of frozen lamb to the British market. We get an advantage also with respect to honey which should now stand a chance of becoming an important item of our export trade. Taking a sordid, £ s. d. view of the Ottawa agreement we should say the immediate honours are with Britain. In the long run, however, it will be found mutually advantageous.