BRITISH MARKETS FLOODED

Press, Volume LXIX, Issue 20987, 16 October 1933, Page 10

BRITISH MARKETS FLOODED

QUOTAS WANTED FOR SELF DEFENCE COMMENT BY CIIAIKMAN OF MEAT BOARD Comment on the British Government's policy of protecting British industry, which had led to the restriction, "or suggested restriction, on exports of primary produce from the Dominion, was made by Mr David Jones, chairman of the New Zealand Meat Producers' Board, in an interview with a representative of "The Press" on Saturday. Mr Jones, who has just returned from Great Britain, where he has been arranging meat shipping contracts on behalf of the Dominion, explained the problems to face which the British Government adopted its policy. He urged the consideration of the principles underlying it with the object of deciding whether a similar policy, especially In cereal products imported into New Zealand, might not be applied witn beneficial stimulus to New Zealand industry. "There lias been a great deal ot. criticism of the policy of the British Government to impose restrictions, but it was made plain to me in conferences with representatives of the Government or of "the Department of Agriculture that farming is the fourth largest industry in Great Britain, taking into account labour and production." said Mr Jones.

Wheat Duties. •'Three years ago in the House of Representatives I pointed out I hat critics of Ihe wheat duties in New Zealand, who freely stated that wc ought to import from the cheapest markets, and grow those things only which wc could grow to best advantage comparatively, forgot that if wc ceased t'o grow wheat we would be "rowing 1,000,000 more lambs, or their equivalent in butter or cheese, which would simply food the already oversupplied markets of Great Britain. The truth of that statement should be widely recognised to-day, and as Great Britain is endeavouring to safeguard her own growers, a fact that may reflect back on the Dominion, I think we should examine carefully the whole question of our importation of cereal products to see if it would not be more beneficial to the Dominion to produce all of them in New Zealand.

"Jt is not altogether a problem of free trade or protection in many departments to-day. Prohibitions have been enforced in so many countries in the world that they are being replied to by prohibitions in other countries which arc feeling the effects. The problem is one which the Dominion should examine closely, in an effort to ascertain to what extent it may be necessary to place a further restriction on imports that might be grown in the Dominion. This is Lhe method thai Denmark is using to-day to assist her producers. An Unprecedented Rush. "It is rather remarkable that in tlvj last three years Great Britain has so strengthened her protection." continued Mr Jones. "it is not purely the result of a decision of the old problem of free trade or protection, for Great Britain has been forced to defend herself against an unprecedented rush of primary produce and manufactured goods. Many countries in the woild. because of currency or financial difficulties, were forced to restrict or prohibit imports oi. certain classes of goods, and the only froe maiket remaining in the world, an.l the only one which could meet payment for the goods, was Great Britain. Thus the world's over-produc-tion was thrown on British markets, causing the disastrous fall in prices which, in the department of primary produce, the British .fanner has been unable to stand. He cannot live against the competition. "■'To a lesser degree the explanation applies to branches of manufactured goods, and it was the combined resulting harm in Great Britain that forced the British Government lo adopt a policy which would defend her own people. Where supplies were excessive and damaging to British industries, the Government is now taking strong action to counteract the pressure. "As to the success of that policy there is one outstanding instance. In iron and steel importations have dropped by 87 per cent, during the last 10 months and employment in that and other industries has increased rapidly. A further result is that all parties are now turning to protecting themselves. Whether that policy will be continued when conditions are back to norm.-.l is a question that time alon? will solve; but at present all the main political parties are supporting it. Dominion l'refcrcnce. "In our deliberations wctook up the attitude very strongly that Great Britain should give her Dominions freedom and restrict the foreigner only," Mr Jones concluded. "The reply to that is that Great Britain finds thai such a policy must be adopted gradually. Her trade with other countries is so extensive that she fears the dislocation which might ensue, and she considers the aim suggested can only be accomplished safely when taken in stages. The present export figures encourage Great Britain in that belief. It is easy for us to criticise Great Britain, but her problem is exceedingly difficult, and we in New Zealand should avoid haste in condemning the line she has taken."