MUST HAVE A PLAN

Evening Post, Volume CXVII, Issue 75, 29 March 1934, Page 10

MUST HAVE A PLAN

MARKETING PROBLEM

TARIFF ON N.Z. PRODUCE

. Regarding- the proposal to send a delegation toEngland, Mr.'T. A.: Winks, Government representative on the" New Zealand.Dairy Produce Board, told'a "Hawera Star" reporter that it. was .useless to do so until-New Zealand bad a plan to pufforward for consideration at Home. ; Mr. "Winks had just returned to Hawera from attending the conference^ in •Wellington' between Cabinet and the Dairy Board. He was not at liberty to: say much about the discussionsj but te-iva's not revealing:any secret when'he said that the subject of price-raising, whether by means of a subsidy or a quota, had exercised •them all very much. Personally he had come to .the- conclusion that New Zealand could 'not do better than suggest a tariff on her-own "produce at the British end;: the ."proceeds' to-be expended ;6n a :SubsWy for the British producer. .''Quotas may be an easy way out so far as the United Kingdom Government is •concerned','but in'my opinion the disadvantages are"greater than the gains," said Mr. Winks. Vln- the first place, the question is, what to-do with the 25,000 tons" 6f surplus butter? We cannot use it in this country, and Ac Eastern markets :are undeveloped for so large, a quantity to be dumped at once. ■ I doubt also whether the Australians would allow us to appropriate their rights there without a 'struggle, and it would undoubtedly lead to friction be tween-the two countries, and maybe undoi much- of the 'friendly" relations tlmt exist between ourselves and Australia at present. : '"In^the evetit of otir making a contract^ with, some other country to' takp Mir,-immediate ■ surplus are we not in isnger of losing the market in the united Kingdom? In the event'of a shortage there arising out of unforeseen circumstances,1 such as drought, changing ;from butter •to sheep,- cattle; cropping, or" many' other avenues open to farmers ;th'e "world ■'. over, there might ariseja:n, increased demand. If we were not' in a I position-: to fill Britain's requirements,: sonic -other country would sqon- hop in, and when we tried to' get baek^we would find considerable difficulty in doing so. ' ' "SEEP HIM QUIET." "The question is to retain.our niarket r and- keep the British farmer quiet. If vweV allow- him -to wake -up to the possibilities.of.his.own.soil, the United Kingdom market will not require our produce. 'I say keep him contented with some form of subsidy. He. is now receiving a subsidy. I think we would lie- well- advised -to ■ continue to. pay him , tliaf money if the. Imperial Government decided to stop paying - Mm; ?' ■ .His -proposal was, continued Mr. Winks,; that; the Imperial. Government should levy a tariff against all dairy produce with a preference to Empire countries, and a further preference 'to -New Zealand', if possible, on account of the■; preference England enjoyV here, the'money so raised to-be paid to the English: farmer by way' of subsidy. During the times of plenty and much unemployment, the tariff would necessarily be- high, • but it. could 'be arranged on -a. sliding scale and as the value rose on the English.market the tariff- would ~be lowered and . perhaps vanish altogether, when the- English farmer was getting a reasonably good return for his produce. . SURVIVAIi OF THE PITTEST. J'l.fully, recognise that the- suggestion': will .not' raise ' the . price ' level afc present dn; ■. existence- nor;have I heard of any scheme that will. do so, but it willrhave the advantage of at least- getting rid of, our produce, which in . my'opinion is most important;" continued Mr. Winks.- "I-am afraid it is going to be .a case. of the. survival of-the .fittest. I: can see no prospect of raising the price level by the scheme submitted; by Mr.. Dickie,, because you still have, the- 25,000 tons .to be sold somewhere/and it must come; into competition1 with the" main supply, thus keeping prices at a low level.'- Another point is that the Imperial. Government is not-jibw concerned about quotas. At the. moment they .will allow any quantity to. be: admitted, 't > the United Kingdom- and will still go on paying the. subsidy to the farmers until the expiration of the Ottawa. Agreement."