BUTTER MARKET

Dominion, Volume 27, Issue 184, 3 May 1934, Page 4

BUTTER MARKET

Mr. Goodfellow’s Review COMMENTS OF MR. COATES Dominion Special Service. Auckland, May 2. Statements regarding the British butter market made by Mr. W. Goodfellow in his monthly market review were referred to by the Minister of Finance, Rt. Hon. J. G. Coates, in an interview before his departure from Morrinsville. There was probably no one who had a better grasp of the dairy industry in New Zealand than Mr. Goodfellow, said Mr. Coates. His advice was at all times valuable, but it seemed that he was becoming concerned chiefly with the trading and marketing aspects rather than the producing side of the industry. It was the producer, and particularly the small producer, who was entitled to the consideration of the Government. The dairy-farmer had never before needed ■ direction and assistance as he needed it to-day. Mr. Goodfellow’s point-was that the price factor was gradually reducing world production and . would bring about its own cure, which, would be better than an artificial, scheme of raising prices by restriction. It was to be inferred, said Mr. Coates, that a reduction of world production by the unchecked price factor was Mr. Goodfellow's/ view of the natural form of restriction, but it would only restrict production by forcing off their land small farmers who were unable to cope with the low price levels. The dairy industry was of such economic importance to New Zealand that safeguards were imperative. “Mr. Goodfellowpays a.tribute to the Australian High Commissioner, Mr. S. M. Bruce, as a very smart poMticlan. and far too clever a man for New/Zealand’? political representatives;’*■ Mr, Coates continued. “These are personalities, and as such can be very safely- ignored. An accusation that the persistency of the Government in the matter, of restriction may be due to political pressure from the New Zealand secondary industries is quite unfounded. Suggestions that they are trying to force a quota on the Government and that this would be an excuse for further delay in the matter of tariff reduction are nothing more than a pack of falsehoods. The whole matter with regard to the secondary industries is one for the Tariff Commission, which will make recommendations to the Government.?’

The position, summed up by Mr. Coates, was that at the moment New Zealand had unrestricted access to the dairy produce market of the United Kingdom, but it was a market glutted and over-supplied, and at an unpayable price. How better could the difficulties be overcome than by mutual discussion of the position between the two Governments?