BRITISH QUOTA SYSTEM.

Press, Volume LXIX, Issue 20918, 27 July 1933, Page 9

BRITISH QUOTA SYSTEM.

! ' ♦ jEFFECT ON NEW ZEALAND ! LOCAL INDUSTRIES. j MR HUTCHINSON'S REPLY TO iarmlm; interests. 1 That the tune nacl conic for a radical change in the Dominion's attitude towards its secondary industries was the opinion expressed by the president of the Canterbury Manufacturers' Association (Mr F.L. Hutchinson) when he reviewed before a meeting of the executive of the association last night the effects of Great Britain's determination to protect her own agriculturists by imposing quotas upon imports of primary produce. "This country must be prepared to face quotas and tariffs and exchange problems and to reconstruct its affairs to meet the new world conditions," Mr Hutchinson declared. "This cannot be done by striking at our second greatest source of national wealth, and the only economic system that can cope with unemployment—our secondary industries." His remarks were warmly endorsed by all present. "Considering the happenings of the last month," began Mr Hutchinson, "the most, important is tingland's continued determination to safeguard her agricultural industry. Our concern this evening is with the effects of this broad policy upon New Zealand's future. Until lately the Homo market has been practically unlimited at very remunerative prices. The result has been an immense stimulation of production in primary producing countries until the United Kingdom markets have become too glutted to give an adequate return, even to the low-waged English agriculturists. English statesmen have resolved that this state of affairs shall cease, and that English agriculture, after years of neglect, shall be adequately safeguarded from outside competition! Britain's Position. "England's abandonment of free trade principles is at the root of this national movement, and unemployment is a spur to its practical application. Englishmen now realise that the problem must be tackled at its source or unemployment will become a permanent social disease. There is also an awakening to the terrible financial drain upon a country which does not use its own resources to the fullest possible extent, and England realises what she herself can do if prices were adequate. If her own prices ross even a little above the normal, poultry and pig farms would spring up all oyer the country: land at present lying waste would be cultivated, and grass lands come again under the plough, and an enormous increase in all produce would follow." It was as well to face these facts, continued Mr Hutchinson, and to consider the reaction of such a Movement upon New Zealand's industries if the old unlimited primary produce markets were gone for ever and exports were put upon a quota system. Like a business concern, the Dominion should take stock of its position, and look for some fresh channels of development to take the place of the lost business. The expansion of manufacturing industries, he maintained, offered the maior way of making good the losses in the primary industries, whose future, if dependent upon exports. could never recover their formp'* importance. There had been a strange and perverted view in the Dominion that because it was not manufacturing for exuort its secondary industries did not add wealth to th» country, and a st.ill more illogical view that through tariff protection its industries were a burden upon the community. Rise of Secondary Industries.

The Hon. W. Downie Stewart had stated that "tariffs were originally created, not in pursuance of any clearly defined national policy of protection, but lor revenue purposes," and that under the protection thus afforded the secondary industries of various sorts came into existence. These industries were now accused of being an incubus and a burden, and the cause of much of the farmers' troubles. Persons go even so far as to say that tarifts were maintained for the sole purpose of protecting these industries and that they tfiould be abolished, and overseas goods allowed to swamp our local markets. The peisons employed in these industries, according to this opinion, were to find work in other, not specified, occupations, to come down to a serf level of living, or to Starve. "What after all have the primary industrialists done to justify ''•heir virtual dictatorship of a policy which decides the fate of the major portion of New Zealand s people? asked Mr Hutchinson. "In the decade 1021-30 we imported £450,700,UUU and exported £491,877,000—-an excess of exports of £38,177,000. This excess was quite inadequate to meet interest on loans which were therefore met out of borrowings. Our national local body debt rose by p 103 772,189 in the same ten yeais, so that there was ample money to ! draw upon. It appears thercfore that practically the whole of the money received for primary produce wa?s£ent on in,ports, and what have we to show for it to-day. It a sobering thought to realise how little help these immense sums of money have been to the farmers themselves, and to the country generally. Who among the farmeis and Government m these days eared if real industry was neglected, while rnnnev could be borrowed? What farmer needed to trouble about his mortgage and debt to the loan company while good prices were to Idol f °The Country now was looking for new ways of reconstruction atid rehabilitation, and fundamentally there was only one way by em Dloying its own people in P r °d u cFng its own requirements. Other r-nimtries were moving on thebt and New Zealand must lollow it it cannot lead- » «««! IJSmplcte orientation oi prevalent ideas. "Narrow, Selfish Attempt." «We must manufacture as much as is Possible, and way Sy will unetnployand money begin to

trv there would be an immediate revival ol' all internal trading, and the great primary producing industries would find their own salvation in that of the country generally. No section of a community can find success through destroying another section, and the farmers certainly will not find salvation in a narrow, selfish attempt to sacrifice the secondary industries in bargaining for a larger share of the quotas which England may be able to allot to the Dominion.'' Mr Forbes had stated in a cable: "Mr Elliot (British Minister for Agriculture) did not mention the Anglo-Mew Zealand trade position, nor has any British Minister in any way raised the question. On the contrary, Great Britain has expressed every approval of New Zealand's preferential treatment for British goods.'' He had added: "The present movement for the regulation of dairy products in Great Britain arises solely from the British farmers' dissatisfaction with the low prices for dairy products, owing to the glutted market, which is due to excessive importations from abroad." "We are glad that Mr Forbes has further evidence of the good feeling of British statesmen and manufacturers towards this country, and that there is no desire on their pari that our manufacturing industries should be sacrificed," said Mr Hutchinson. "Finally, let. mc say that this country must be prepared to face quotas and tariffs and exchange problems, and to reconstruct its affairs to meet the new world conditions. This cannot be done by striking at our second greatest source of national wealth, and the only economic system which can cope with unemployment."