NEW ZEALAND POTATOES

Evening Star, Issue 19198, 15 March 1926, Page 9

NEW ZEALAND POTATOES

TRADE WITH SYDNEY THREATENED INCREASE OF DUTY On Thursday (states the/ Lyttelton Times’) a message from Sydney was published to the effect that, speaking at Burnio (Tasmania), Mr .Hell, M.P., staled his intention of moving in Parliament for an increase in the duty against New' Zealand potatoes Irom £1 to £3 per ton in tho interests of the producers. The reason he gave was that a slump was feared on the Sydney market on account of the fact that orders for 3,000 tons of New’ Zealand potatoes have been placed this season. For several weeks past Christchurch merchants have been selling potatoes to Sydney, most oi them tor delivery in May, June, and July. Orders are still coining to hand, and several sales are reported this week. As lar as the Sydney buyers are concerned, some of this business may bo purely speculative, but the demand has continued so consistently that it seems almost certain that 'there will be a shortage of Victorian and Tasmanian potatoes in Sydney tin’s season and that Now Zea-land-grow’ii will be required. In that case the proposal to increase the duty against New Zealand potatoes is likely to meet with a good deal of opposition nn the other side, for the effect would probably bo to increase tho price, to the consumers.

vSuc.lt a proposal will also bo viewed very unfavorably by growers and merchants in the dominion. For several years, until last year, there was an embargo against the importation of New Zealand potatoes into New South Wales, allegedly on account of certain diseases with which they were supposed to bo affected. There was, however, a strong suspicion here that the embargo was put on more to protect tho Victorian and Tasmanian growers than to prevent tho introduction of disease. After representations to tho Australian authorities the efforts to have the embargo removed were successful last year, but certain restrictions wore imposed. The potatoes bad to he put into now .sacks, and each sack had to hear tho name and address of the grower. Further, the potatoes had to ho. accompanied by certificates to the effect that they were free from certain diseases, and also that there had been- no .signs of these diseases for a certain period on the land on which they were grown. These restrictions naturally give tho merchant who is shipping the potatoes a considerable amount of trouble, and it is estimated that they involve extra expense amounting to about £1 a ton. Tin’s moans that the price of potatoes has to bo fairly high in Sydney before it becomes a payable proposition for a New Zealand merchant to ship them there. Then, in .addition to tiie restrictions, there is the difficulty of getting direct shipments to Sydney from Lyttelton. The only regular boats that run go via other ports, and this involves delays which are liable to have a had effect on a cargo such as potatoes. Last year, when shipments of potatoes wore being made to Sydney, the Union Company put on a direct boat, but this is a matter of arrangement with the guarantee of a. certain minimum quantity of cargo, and it is not nearly so satisfactory as if there were a regular direct boat every fortnight or so. The difficulties in tho way of sending potatoes to Sydney are such that there are some local merchants who will not ho bothered with the business, even although tho price, offered is quite a good one, as for instance at the present (ime, from £S 5s to £8 10s a inn f.o.h. Lyttelton.

If tho duty against New Zealand potatoes is increased to a ton it would probably kill tho trade altogether unless (-here was a very acute shortage in Sydney. This would be unfortunate from tho point of view of tho Now Zealand grower, because business with Sydney helps to assure him getting a-payable price for his potatoes. The quantity t : u ney may not he large, but the fact that there is a trade has a si.imunu.nig tn-u on the local market. Merchants here do not consider it likely that the duty will be increased. There is a reciprocal tariff agreement between New Zealand and Australia, and if the duty on potatoes were increased the matter would probably not end there.