DUMPING PROTEST

Press, Volume C, Issue 29587, 9 August 1961, Page 14

DUMPING PROTEST

Govt. Seeks Action

(N.Z. Press Association) WELLINGTON, „ August 8' The Government has instructed the High Commissioner in London (Mr T. L. Macdonald) to ask the British Government to impose anti-dumping or countervailing duties on butter imported from France, Ireland, Finland and Poland. The Minister of Agriculture (Mr Hayman) said tonight that the Government was taking this action, with the complete agreement of the dairy industry. New Zealand butter had been selling at £250 a ton—£6s below the guaranteed price—on the London market since the third week in February. In the last quarter of 1959 New Zealand buttei- was selling in London at £4lO a ton. “The reason for this deterioration is not hard to find,” said Mr Hayman, “During 1960 marginal European suppliers resumed exporting their surpluses to the United Kingdom, and shipped 30,000 tons more than in 1959. “Because of favourable conditions. production in western Europe in the first half of 1961 has increased, with the result that butter from marginal suppliers has continued to pour into Britain at an even greater rate than in 1960. As much as 18,000 tons were shipped to Britain by these suppliers during the first quarter of this year and it is probable that similar quantities were offered for sale in the second quarter. “All butter from marginal suppliers is sold on the British market at considerable loss. The difference between the selling price and the price paid to the producer is met by government subsidies. “French butter, for example, was being offered at around £244 a. ton at the end of May, whereas the Wholesale price in Paris at the same time exceeded £5OO The loss of over £250 a ton was borhe by the French consumer and taxpayer. “Irish butter and New Zealand butter sell at about the same price in Britain, but Irish butter sells for £466 10s a ton in Dublin.