A STIFF PROPOSITION

Dominion, Volume 26, Issue 124, 18 February 1933, Page 10

A STIFF PROPOSITION

Major policy issues are raised in the resolutions passed by the Dairy Produce Board in defining its views on the tentative proposals that New Zealand should restrict her exports of butter to Great Britain. . . .., . First of all the Board declared that, as it was impossible to restrict New Zealand production, it could not agree to any export restrictions. Next it advocated, as the only sound policy for the Dominion’s future welfare, that free trade with Britain should be taken as an objective, to be realised before the expiry of the Ottawa agreement. As an instalment the Government was urged to reduce immediately duties on British goods in proportion to the increase involved in the higher exchange rate. It is not surprising that the Prime Minister should decline to comment publicly until he has consulted Cabinet and can make a considered statement on the issues raised. The Government has to decide first whether it will support the Board in standing on the Ottawa agreement, or attempt to meet the British suggestions. It is not an easy decision because to insist on the agreement may involve a hopeless glut in the British market and the collapse of prices. Moreover British negotiations with Denmark, Argentina and other countries would almost certainly be prejudiced. However hard New Zealand’s case—and it is almost a case of self-preservation—selfishness and insistence on treaty rights may not pay us now and is bound to be remembered in the future. Moreover the Government is urged by the Board, in lieu of accepting restrictions, to make large tariff concessions to Britain at once and aim at free trade between the two countries within three years. That would involve immediate budgetary difficulties by loss of revenue and perhaps loss of employment for New Zealand workers; and would probably also involve sacrificing some secondary industries to secure a primary market. Indeed the Dairy Board has framed a stiff proposition for the Government. Cabinet must weigh all the factors carefully and try to give an answer that will best serve the national interest. It will need the wisdom of Solomon to do so. No one will envy it its perplexities, but the country might well reflect on the load Cabinet is carrying. Every week brings a new problem. The Government should have all the support and co-operation citizens can give it and the House might well make a beginning by setting a less fractious and more helpful example.