IS TROUBLE COMING?

Evening Post, Volume CXIII, Issue 36, 12 February 1927, Page 11

IS TROUBLE COMING?

THE POTATO EMBARGO TARIFFS AND.FRIENDSHIP-:. "Evening Post," 12th February. It is a curious fact that the decision of the Acting-Prime Minister of the> Dominion (Mr. Downie Stewart) to ihippse dumping duties on Australian flour coincided with that of the Federal Government to prohibit imports by Australia of potatoes from New Zealand. In the case of flour, it appears that consumers' interests have received less consideration than those of the farmer and flourmiller. The dumping duties are to be imposed when Aubtralian flour is considered to be too cheap in order that the New Zealand miller can. obtain his price for flour, and the farmer obtain his price for wheat from the miller. As for potatoes, the Federal Government's action, it is said, is dictated by the danger of introducing to Australia a disease to which it is alleged New Zealand potatoes are liable. •'•'"-' -The question of the immunity,.or otherwise, of New Zealand potatoes from disease is fox- experts to decide; but it is interesting to recall what happened last year, when some New Zealand potatoes were slapped' to Melbourne. They were not landed, as departmental inspection revealed the presence'of "'corky scab" disease, and the tubers were returned to consignors. In Sydney, however, where heavy shipments from the Dominion were received, no fault was found with the potatoes. Those importations prompted growers in. both. New South Wales and Victoria, to protest against the incoming of supplies from the Dominion, and this was largely because outside'competition was resented. As a fact regulations issued have been in force'for some time, but, owing to small potato' crops in: Australialast year, importations, of potatoes were allowed, provided, of course, that the produce conformed to the requirements of the health authorities. -, ' DOMINION; GOVERNMENT. ACTS. This latest exclusion.of their, produce from Australia affected New Zealand, po-tato-growers in two -ways. It barred them from a potentially remunerative. market, outside the Dominion, and, .consequentially, a. good market, in. New .Zealand.'by the reduction., of supplies to the extent of-the export. : .■::.'-■:". : -.-..,. The Dominion "Government was got: to' •work as quickly as" possible..'lt protested against the prohibition,-. Inquiries •as to the reasons for-the , embargo - were sought. from ,th.c.. Commonwealth^ Govern-: ment. The difficulty over negotiating this i question with the Commonwealth" is that while on the one hand one section of New Zealand producers demanded an' outlet in' Australia, another section demands complete protection from Australian wheat and .flour.: New- Zealand potato farmers recalled that in seasons when-there ; was a surplus of onions-in .Victoria and low. prices ruled,, growers, found .a profitable outlet for part "of the surplus in New Zealand. ■..■•' A considerable quantity of! Australian flour has been sold to :New Zealand this year, and the prices accepted have been largely below the home consumption price of flour in Victoria. It appears to be generally agreed in-the trade in-Australia that there is justification ■ for flour being sold for • export: at concession rates, but the disparity, between, the prices at which flour, is sold, there and those received from: New Zealand calls for comment.'. It is reported that business has been done at as low as £11 a ton free on board Melbourne, while, the price of new season's flour was £13 a ton, delivered Melbourne or suburbs. It has since been lowered in Sydney to £12 ss. '. .AS MIGHT BE EXPECTED. \ The "Argus," Melbourne, in referring to ;this, selling of flour ,to New 'Zealand at •prices much below what is demanded from consumers in Australia, declared that "the Federal Ministry loses ho- opportunity of applying a dumping, duty on goods imported into the Commonwealth when bought at below the home:consumption price in the country of-origin, and New Zealand is justified in treating imports of Australian produce similarly. In future, however, the Dominion will apply the dumping duty on/Australian flour when sold in .that -direction at concession rates. Millers in Victoria and • other States have practically-been inviting New Zealand to take, action in this respect, as .the. Margin of prices has been particularly "wide." In all these negotiations it will be noticed that the consumer in both New: Zealand and Australia is left entirely out of the business, which is confined' to. the Government on, the one hand and special producing' interests—potatoes,'. -" wheat; flour,. ■ or. any.-- other":, product on the. .other. .-'When :.-, Nature •■ is ■. in a -bountiful -m00d,.-as ..she -has.- been in Australia, in. regards to .wheat, -producing interests are so strongly, organised • or■ -. in the way of .organisation that the consumer shall not get the"benefit of. abundance; but he must necessarily, pay more in times of .scarcity. ; . INTERNATIONAIivVIEWPbINT. ; However, it is :nbt the consumers' point of view or interests.thatarenQW under consideration.,-. There is-another, an-interna-tional, aspect"of the whole-matter:of urging and imposing.higher, arid yet higher duties, dumping .'duties',' and", embargoes. Governments "tp:day. appear .to b.e .'only too ready to appease the clamour, of special (not general) interests to forge and wield economic weapons, that:.can. have but one result upon other Governments, namely, to provoke them to do likewise. American farmers have been..Successful in getting 6d per pound duty—tax or toll on consumers for benefit of .producers—imposed on New Zealand butter in common with other butter;. Australian dairy farmers are insisting for a higher;-if necessary a formidable, duty to be.imposed on butter from New Zealand; New. Zealand threatens to saddle Australian flour With dumping "duties; and Australia has totally. excluded New Zealand potatoes. Whether the people of the Commonwealth and" the Dominion as a whole want: the-goods—one the flour, the other the potatoes—at a price in conformity with the consumer's purse and having regard to: the abundance of production of the'articles—seems to ..be quite beside the point-so far as the respective Governments are concerned. But what is endeavoured to be pointed out here is that the. free, smooth current of trade is disturbed and retarded; and friendliness between; nations brought about by the easy interchange of products. for the mutual benefit of their peoples at large is being made more and more difficult; And this as between Australia arid New Zealand, in common with other nonBritish, non-neighbouring, countries.