EXPORTS TO BRITAIN

Evening Post, Volume CXVIII, Issue 53, 31 August 1934, Page 13

EXPORTS TO BRITAIN

DAIRY PRODUCE POSITION

RESTRICTION PROPOSALS

Considerable space in the New Zealand Dairy Board's annual report is devoted to British proposals to limit exports of cheese from New Zealand to Great Britain. The board's reply to these proposals was to the effect that the suggestion to reduce New Zealand export of cheese by 10,000 tons per annum would penalise IsTew Zealand only; lead to Itirgu. increased exports of" butter, and damage the New Zealand dairy industry as a whole. This reply was made through and with the approval of the Government. Subsequently a conference of dairy Interests was called. The Prime Minister and other members of Cabinet addressed that conference and submitted cables exchanged between the New Zealand and British Governments. These indicated that with the British Government the question of restrictions was not an immediate problem,' and they confessed to having an academic interest only, this by reason of the fact that they had already made provision to assist the British dairy farmers by guaranteed advances of 5d per gallon in summer (April to September) and 6d per gallon in winter (October to March) in respect of milk manufactured into cheese : in farms. It is estimated that the guarantee will cost the, Exchequer between £1,500,000 and £1,750,000 per annum. The scheme contemplates a return to the Exchequer of the amount advanced in this way to be spread over ■ two years commencing April 1, 1936, if the price for .cheese is then at a reasonable level. The Exchequer would provide £750,000 spread over four years, for launching a campaign for a cleaner and purer milk supply and the cleaning up of all herds, and to contribute on a 1 £ for £ basis with the Milk Marketing Boards up to £500,000 pei- annum for two years to a milk publicity campaign subject to an approved programme, including provision for supply of milk to schools at reduced, rates. "That," Mr. Forbes said, "ends the argument in regard to regulation." • A number of resolutions were passed by the conference, the: principal beirig a Government subsidy on all butterfat to provide,for.an average payment for the season of lOd per pound, a delegation be sent overseas to confer with British dairy farmers' and also the British Cabinet; 'a Royal Commission be set up to investigate tho affairs of the industry. BOARD'S ATTITUDE. The board, on the invitation of the Prime Minister, conferred ■ with him and other members of Cabinet regarding tho proposals vput forward by the conference. Cabinet insisted that if the board could.not agree to quantitativo restrictions they must be prepared to put forward some other plan which would bring relief to the dairy farmers. The board's attitude was that in view of the unsatisfied demand in many countries, tariffs and restrictions on foodstuffs were wrong in principle. In tho discussion with Cabinet the board put forward suggestions for improvement of the industry, such as organisation of the local market and the need for further legislation, the necessity for the stimulation in local consumption of milk and cheese, more diversified farming, co-operation with the British Milk ■ Marketing Board with possible assistance in.;.a "Drink More Milk" campaign, increased advertising, and finally, it supported the resolution of the conference that only by a subsidy could immediate relief be given to dairy faimers. The Prime Minister and Cabinet Ministers, however, considered that some action was,necessary''.to increase prices overseas. . Strong pressure was brought .to bear, upon the board, who were very much opposed to any suggestion of quantitative restrictions. Finally, after protracted discussions, the board by a narrow.majority agreed to a resolution that if'eventually no other alternative is offering which will improve nest season's price levels, it must accept the principle of quantitative restrictions. At that point the conference with Cabinet concluded. • RESTRICTIONS OPPOSED. "There can be no. doubt that the industry generally is, by an almost overwhelming majority, opposed to quantitative restrictions," states the board's report. "Members of .Cabinet have not hesitated to publicly criticise the board regarding the stand it took- in connection with this wholes question;,?' In the Now Zealand Gazette of May 3 it was officially announced that the Government had decided to" set up a Commission to inquire into the affairs of tho industry. That Commission has taken evidence and has yet to make its report.