MR WALSH APPEALS TO U.K. TRADE UNIONS

Press, Volume XCVII, Issue 28540, 20 March 1958, Page 12

MR WALSH APPEALS TO U.K. TRADE UNIONS

Aid Sought For Stand Against Dumping

(New Zealand Press Association) WELLINGTON, March 19. "An appeal to British trade unionists to stand by New Zealand in her present economic crisis and to support her stand against the dumping of dairy produce in the United Kingdom has been made by the Federation of Labour through its president, Mr F. P. Walsh Mr Walsh in his article says New Zealand can meet fair competition in her export trade. But if unrestricted dumping in the British market continues New Zealand’s only remedy will be to make bilateral agreements with countries which would gladly supplant Britain in supplying goods to this country. Mr Walsh addressed his appeal to Sir Vincent Tewson, secretary of the British Trades Union Council, and to Mr Hugh Gaitskell, Leader of the Opposition in the House of Commons. To assist them in making its contents as widely known as possible Mr Walsh is sending Sir Vincent Tewson and Mr Gaitskell 1000 copies each of his appeal.

Mr Walsh said in Wellington today that the messages he had sent to London were endorsee’ by the council of the Federation of Labour at a meeting on Monday “In making this appeal to British trade unionists the federation realises New Zealand is facing one of the most severe crises in its history—a crisis that will affect every man, woman and child in New Zealand,** he said. Mr Walsh cabled his messages to Sir Vincent Tewson and to Mr Gaitskell yesterday. A cabled reply from Sir Vincent Tewson to-

day said Mr Walsh’s appeal would be considered by the national council of the Trades Union Congress on April 9. The airmailed copies of Mr Walsh’s appeal will be posted to London this week as soon as they have been printed. Mr Walsh handed a copy of his appeal and of the covering letters to the Minister of Finance (Mr Nordmeyer) yesterday. Mr Walsh’s letter, addressed to Sir Vincent Tewson, reads as follows: “I am sure many people in Britain will recall New Zealand’s attitude when Britain encountered a balance of payments crisis immediately after the war We were, at that time, rationing ourselves in meat and dairy produce, not because we lacked these commodities but so that Britain could have more. Aid To Britain “Further than that, there arose in New Zealand a great popular movement called the ‘Aid to Britain campaign.* I had the honour to be its chairman and I can testify to- the sincerity of New Zealanders and the economic sacrifices they were prepared to make to Help the people of Britain when help was needed We voluntarily rationed ourselves well beyond official rationing and then sent millions of food parcels. “In 1947, New Zealand made a gift of £l2 million in cash, together with £1 million worth of food, to the British Government to help her out of her balance of payments difficulties. “Throughout the war, we sold our produce to the United Kingdom at prices considerably lower

than those paid by Britain to other countries, and to enable us to do so we took economic measures—subsidies and wages stabilisation—to cut down costs. “At that time too, we had the opportunity to sell our dairy produce, at very high prices to European countries. You were short of supplies so we gladly sent practically all our butter and cheese to you. selling at prices far below what we could have got elsewhere. Attlee's Appeal “These things were done in response to an appeal from the British Prime Minister (Mr Attlee) who said in a message to our Prime Minister (Mr Fraser):— “ ‘Any steps which can be taken to increase and accelerate supplies of dairy products, meat and animal fats, would be a contribution of the highest importance in the present emergency. A major factor in our present difficulties is the big rise in the price of food imports generally. You have, in general, been able to avoid a comparable rise in the price of Zealand products while still ensuring a fair return to your producers by your policy of price control and stabilisation. You can help us greatly by maintaining this policy and by keeping to the lowest possible figure consistent with your internal stability the prices which you ask us to pay.’

“We ask you to remember our response and to understand that Commonwealth ties have not been regarded by our people as hollow slogans,” Mr Walsh’s letter continues. “Nor do we think they are to the mass of the people in

Britain. But lam afraid we are becoming increasingly aware that to some business and political interests in the United Kingdom the neccessity for some substance to Commonwealth sentiment is seen only as one-way traffic. Indifference “Indifference by the United Kingdom to our present problems will, I fear, lead to regrettable scepticism about the mutuality of Commonwealth relations.

“New Zealand is facing at present an economic crisis of which the improvement or otherwise will be closely affected by attitudes in the United Kingdomattitudes not offly of Government leaders and of city businessmen but of the people generally and of trade unionists in particular. “As president of the New Zealand Federation of Labour, which represents almost all the trade unionists in this country, I am seeking the sympathetic understanding and help of the working people of Britain, trade union members, farmers, manufacturers, and other friends of New Zealand.

“The facts of the crisis are that our sterling reserves have fallen to £45.5 million —well below the safety margin of £135 million—a level which was specified by a Royal Commission two years ago. The rapid depletion of our reserves is due to the high level of imports last year and a continuing fall in the prices for our exports—dairy products, meat and wooL We have been forced into severe restrictions on the goods we. import. , “Today, prices for oiir produce and our financial reserves are still falling. This is the most menacing economic crisis in New Zealand since the depression of the early thirties and threatens the welfare and living standards of our people. The problem has been inherited by the Labour Government which has recently taken office. “The British people can help by understanding that one of the largest contributory factors to our difficulties is the dumping of dairy produce into the United Kingdom by such countries as Finland, Hungary, Sweden, Poland and the Argentine. These countries are deliberately selling large quantities of butter and cheese at prices far below domestic prices. Their own people would have to buy butter and cheese, if indeed they could afford them, at a price two or three times higher than the price for their own dairy produce dumped in Britain. Questions “We ask three simple questions,” writes Mr Walsh: “Would any of these dump-

ing countries allow butter to be exported to them from the United Kingdom so as to give their housewives butter at United Kingdom prices? “Why should the economy of a loyal Commonwealth country such as New Zealand and its standard of living be seriously prejudiced to preserve the unreasonably high level of domestic prices in countries which have not attempted to supply the United Kingdom in periods of shortage? “And why does the Government of Britain not see that continuance of her present policy will hold her to ransom in the next period of shortages? “New Zealand can face fair competition, but this unfair, trading is substantial enough to be a real threat to our welfare—and not only our welfare but that of British farmers who, like ourselves, have applied to the Board of Trade for the imposition of anti-dumping duties. “Moreover, our reduced ability to buy British goods affects many workers in British industry. To New Zealand trade unionists, this dumping looks like ‘scabbing’—an unpleasant word for a pernicious action. To us it is on all fours with the abuse of labour under ‘flags of convenience’ —a practice now notorious in shipping. “We ask that British trade unionists should give us their fraternal support in New Zealand’s representations against dumping. We feel that we are not asking too much. We want your

active interest and support in protecting New Zealand from a form of economic warfare being directed against us by countries to whom Britain has not the same obligations as she has to New Zealand.

One Remedy “If unrestricted dumping is allowed to continue and we cannot obtain a reasonable price in the United Kingdom, we have only one remedy. “We will be driven into the position of having to make bilateral agreements with countries that will be prepared to pay us a reasonable price for our produce. There are several countries which would welcome the opportunity of bartering motor-cars and all sorts of industrial goods that you normally supply for our exports. “With the serious financial position in which dumping places us we will have no option but to do this even though we would much prefer to continue buying from you. “We do not seek high or unreasonable prices for our butter and on a fair trading basis will ; always supply you at prices that I will allow your housewives to buy butter well below what it 1 costs in any other European I country,” Mr Walsh concludes.