PROSPECTS GOOD

Dominion, Volume 30, Issue 47, 19 November 1936, Page 12

PROSPECTS GOOD

New Zealand Produce In Britain * SIR J. PARR’S OPINION England Prosperous, But Bad Times May Come By Telegraph—Press Association. Auckland, November 18. A prediction that for the next two years or so prices in England for meal, dairy produce and wool will be good, was made by Sir James Parr, former New Zealand High Commissioner in London, who returned to Auckland in the Rangitata. Sir James sounded a note of warning to producers, however, to build up a reserve during the next two or three years against the bad times which, it was anticipated, would follow when Great Britain curtailed the enormous expenditure which was at present stimulating industry. “I left Great Britain prosperous.” said Sir James. "Nearly all staple industries are doing well, and unemployment is going down steadily. Tlie purchasing power of the people is higher than it has been for years past. Foreign Dumping Stopped. “There can be no doubt that Great Britain’s recent tariff measures have stopped foreign dumping and many industries have doubled their output, but there are now other factors in play. For instance, there is not a large town In Great Britain in which new buildings are not going up. and this building boom will continue for a year at least. Further, there is clear evidence that many more ships are going to be built, including the new sister-ship to the Queen Mary, which will substantially, help shipbuilding vards. but the main factor during rhe next two years will be the boom in rearmament. It is only just beginning, and will not peach its peak for a year Vet. All this will affect New Zealand prices. It will mean, without doubt, that for the next two years or so. New Zealand prices will be good for meat, dairy produce and wool. We may safely bank on that.” Australian Competition. Sir James pointed out that New Zealand had come to regard Denmark ns its great competitor In dairy produce. This year, however, New Zealand had beaten Denmark in quantity. New Zealand should realise that Its big competitor was Australia. Eleven years ago. when he first went to England as High Commissioner. Australia sent about one-fourth of the quantity of butter to England that New Zealand sent. Next year, given a good season. Australia will eclipse New Zealand in quantity, and the quality of Australian butter was improving every year. “At all costs New Zealand must keep up its reputation that the best produce comes from the Dominion.” added Sir James. “We have too much at stake to do otherwise than maintain the highest quality in our exports. Unfortunately some of oiu dairy factories are inclined to'be negligent and to give the Dominion product a bad name. I would especially ask the dairy produce indus-t try not to let down the Dominion by 1 sometimes sending away an inferior product. Need to Create Keserves. “I ought to say that some of the leading economists predict that when Great Britain’s enormous expenditure ceases in the directions I have indicated, the country will be in for a poor time, so that our producers should endeavour to build up a reserve during the next two or three years against bad times. “I have been High Commissioner at a time when we have had to struggle hard against heavy quotas and tariffs being imposed on our produce by the Mother Country in order to give the British farmer' a chance to make a good living. So far we Lave succeeded, tlie threatened duties on meat and butter having been kept at bay. The British farmer is not at all pleased with the results of Mr. Walter Elliot’s agricultural policy, and 1 predict that now Mr. W. S. Morrison has taken Mr, Elliot’s place the English farmer will renew his agitation.”