BRITAIN'S TARIFF

Evening Post, Volume CXIII, Issue 32, 8 February 1932, Page 8

BRITAIN'S TARIFF

EFFECT ON DOMINION

STIMULUS TO DAIRYING

COMMERCIAL VIEWS

(By Telegraph.) (Special to "The Evening Post.")

DUNEDIN, This Day

The effect of Britain's protective tariff upon the primary producers of 'New Zealand was discussed by business men, and though they admitted the duty would give some assistance, it was pointed out that other factors had to be considered before a prediction could be made that New Zealand's primary industries were on tho way back to normal.

"Prices for cheese and butter have been very low recently, and the assistance that the duty will give, though small, will help materially," said the manager of a leading mercantile firm. He said that he would not be surprised if the outcome of the Ottawa Conference extended a greater measure of protection for Empire products, and it was to be hoped it would. The Dominions would have to reciprocate. "From the point of view of New Zealanders, the thing that affects us most is the exchange question," he proceeded. If the Government allowed exchange to take its normal course, there was not the slightest-doubt that the rate would go considerably higher than it was to-day. It would have done so last year but for the fact that +he Government borrowed ' £5,000,000 in London and also borrowed £4,000,000 in short-dated Treasury bills, making a total of £9,000,000, which meant adding that amount to our income. If that had not been borrowed last year nothing could have stopped exchange going to a much higher level, which would have resulted in an improve-, ment in New Zealand money as far as farmers' produce was concerned. THE RIGHT TREND. "A protective tariff will certainly act as a stimulus to the New Zealand dairying industry," said a leading exporter of dairy produce.- He explained that the 10 per cent, duty would mean an increase on the present price ruling for New Zealand butter of Id per lb, and if people desired to purchase Danish butter in preference to the Dominion product they would have to pay another lid per lb. There were factors which had to be considered in addition to a protective tariff, but he. was satisfied that the trend of the present duty was the right way. . He did not think it would mean an increase in exports this year, but expressed the view that it would have- a tendency to increase production here eventually. . From a consumption point of view in England I he did not think it would, make much difference, because foreign countries still had to sell their product and might be able to meet the New' Zealand price and still keep the market down, which they would not have, been able to do had the tariff been made more than 10 per cent. It seemed to him that it would take more than this to bring the dairying industry back to normal. The producer had still to get his costs down. !