DAIRY PRODUCE SUBSIDIES

Press, Volume XCVI, Issue 28440, 21 November 1957, Page 16

DAIRY PRODUCE SUBSIDIES

Effect On Sales In Britain (N.Z. Press Association—Copyright) (Rec. 11 p.m.) LONDON, Nov. 20. ' A “Financial Times” leading article today urged that something be done at the forthcoming talks between New Zealand and Britain to deal with alleged dumping of dairy produce and the growth of British production of butter and cheese under the cover of the milk subsidy. Something could probably be done to meet New Zealand views on the two practical points at issue, said the newspaper. “The disposal of agricultural surpluses will remain a problem so long as Governments subsidise domestic production for political reasons,” the “Financial Times” said. “It is high time that international agreement was reached on the dumping question, but until it is reached—and the European free trade area talks do not suggest that it will be reached easily—there is something to be said for considering the use of existing anti-dumping legislation when circumstances justify it. “This can hardly be done while our own position is so open to criticism. Milk production in the United Kingdom is still rising, in spite of last year’s effective cut in the subsidy and the fall in average price which automatically follows from excess production. “There are several possible ways of tackling this problem—a further cut in the subsidy; a reduction in the level of output eligible for subsidy; or a sharp increase in quality standards, the “Financial Times” said.