THE QUOTA THREAT

Evening Star, Issue 21518, 16 September 1933, Page 9

THE QUOTA THREAT

OUR TRADE WITH BRITAIN UNRESTRICTED ENTRY SOUGHT FOR PRIMARY PRODUCTS HEW ORGANISATION AIMS AT FREETRADE ■Tho serious threat of the quota sysjbem to the exportation of tho dominion’s primary products to tho markets of Great Britain was stressed yesterday afternoon at a meeting held at tho Chamber of Commerce lor the purpose of placing before those present, principally representatives of tho dairy industry, the aims of the New Zealand Producers’ and United Kingdom Manufacturers’ lleciprocal Trade Federation, a new organisation that was stated by the chairman (Mr James Begg) to be seeking tho unrestricted importation of gnr produce into the Homo markets by encouragement of reciprocal trade. During tho afternoon an interesting address was given by Mr L. A. Paish, 0.8. E., H.M. Trade Commissioner in New Zealand, who referred to the difficulties of tho British farmer and manufacturer, and asked for consideration of their point of view as well as jjur own. AIMS OF THE ASSOCIATION. Mr Begg expressed pleasure at the presence of representatives of the dairy factories. The new association, ho said, had been formed with the object of forwarding tho idea of reciprocal trade between New Zealand and Great Britain. It had arisen partly in connection with the limitation by quota of their exports to Great Britain. It would be very serious, particularly to the dairy trade, if the exports of produce were limited. The same remark applied to tho meat and to other products. Tho application of quotas would mean the alteration of the whole policy of this country —a policy which had been in existence for fifty years or more. It would mean that there would bo no further settlement, and probably a groat deal of the present settlement would have to be abandoned. It would be an extremely serious thing for such a country as New Zealand—a country which depended more than any other country upon its export trade. There was also the fact that no other country in the yrorld depended so much upon one market as Now Zealand depended upon the market of Great Britain. They quite realised that freetra.de with New Zealand was an impossibility at the present time, but it was their ultimate aim. It could be reached by stages. Freetrade instincts were still very strong in the Old Country, and, even if imports into Britain were to be restricted, they hoped those instincts, once reciprocal trade were developed, would be strong enough to ensure that New Zealand exports would bo admitted without restriction. At all events, that was the aim of the association. As dairy producers were particularly interested they were glad to have the opportunity of hearing their views and asking them to join up. A THREAT TO DEVELOPMENT. Mr F. Waite stated that the greatest threat to the development of New Zealand was the proposed restrictions of exports. Those who were interested in the development of the dairy produce and meat industries knew how difficult a problem it was. The marvel was that since tho introduction of refrigeration Great Britain had taken year after year all tho butter, cheese, and lamb they had cared to ship. In New Zealand they had taken a lot of things for granted. They had relied—and still did rely—on tho British taxpayer to provide the naval defence for their produce on the high seas. They h- d never paid their fair share for that, and they did not do so to-day. Then, Just as illogically, they had asked Britain to take in all their produce free, while they had imposed substantial tariffs against many lines of goods manufactured in Britain. They were now face to face with a real problem. “ Trade is naturally free, and was subject only to the restriction of distance and other natural obstacles,” said Mr Waite. “ But just when science is overcoming these difficulties high tariffs and quotas are raising all kinds of barriers. Since the war the volume of international trade has shrunk by more than one-half. Great Britain —of all the greater Powers —is absolutely dependent on overseas trade. Britain cannot live to herself alone, and to a very high degree neither can Now Zealand. A quota is already operating against New Zealand beef, and the New Zealand Government lias been definitely approached in refernce to quotas against dairy produce. Next week a representative of tho British Farmers’ Union will arrive in .Wellington to discuss with New Zealand farmers the possibilities of some harmonious, workable scheme for restriction of our export*. True, • under the Ottawa agreement, we may argue that we have two years in which to make up our minds. But in dealing with our best—almost gar only—customer we will be well adyised to seriously consider and come to reasonable terms before the day when ym have lost our ability to negotiate. ’ r British workers cannot buy our dairy produce and meat if we do not use the goods they manufacture,’’ he continued. “1 do not wish to raise the nationalist cry; I am not one of those who believes that we should refuse to trade with countries outside the Empire. But, as tho World Conference baa broken down, wo should hasten to do what we can in a practical way as soon as we can. We should use British tracks to collect our cream and British separators to skim our milk. Wo must all plead guilty to having been lax in the past. Now we have to mend our ways. British trucks can now be had at competitive prices. What a great thing it would be to bo able to say: ‘ Every pound of butter-fat in New Zealand is collected in British trucks and on British tyres,’ or ‘ all our milk is separated by British separators.’ The British manufacturer is now definitely catering fcr our needs. It will pay us to reciprocate. Do not lot us wait for legislative action. Let every dairy farmer who realises the seriousness of the position insist on getting British goods.” “ If we want Great Britain to take our dairy produce in without restrictions then wo are -very unreasonable if we are not prepared to allow free entry of many classes of British goods,” concluded Mr Waite. “ Most of our secondary industries could work without protection against Britain to-day. [Whether we like it or not, we must )nake adjustments—and that soon. As Major Elliot, the British Minister of Agriculture, said recently ‘ these are not problems of politics, but problems of bread and butter and common sense.’ If wo wish to get _ reasonable treatment from Great Britain we must hasten to reciprocate to the full.” A MATTER OF LIFE AND DEATH. Mr Begg remarked that this federation was not a local institution. It priginated in .Wellington and spread to

Auckland, Christchurch, Dunedin, and Invercargill, and there were now twelve or fourteen branches in towns throughout the North Island. They wished to get those interested in dairy factories interested in this movement—it was a matter of life and death to them. Mr S. Bowman spoke of the plight of fanners generally, and expressed the opinion that the dairy people would whole-heartedly endorse what the chairman had said. More than half the people in this country did not realise what quotas meant. Mr Begg suggested that if New Zealand had offered freetradc to Great Britain ten years ago their goods would have been admitted free to Britain. But if that offer were made to-day it possibly might not be accepted. However, he believed that it was probable that New Zealand could arouse the froetrado instincts at Home and receive an assurance that whatever restriction was put on others it would not be put on Notv Zealand. It was worth doing some work to achieve that. MR PAISH’S ADDRESS. Mr L. A. Paiah said that, as representative of the British Government in New Zealand, he was naturally pleased to see the formation of an association that endeavoured to obtain a greater flow of trade between the dominion and Britain. It was his work to stimulate the interchange of goods and services between the two countries He would not touch upon the question of exchange, and he also felt that ho would bo on delicate ground if he dealt with the subject of quotas. Mr Paish .went on to say that he had just returned from England, and he must confess he was not too happy about the position at Home and its attitude towards New Zealand. New Zealand had in the past been what one might have called the most favoured nation in the British Empire. He had been asked why that was so. Why did tbev think so much of New Zealand at Home? Ho had traced the reason to the splendid behaviour of the New Zealand troops at Home during the war. In England he found a great many disgruntled manufacturers ami traders who did not think things were as good as they might he. After all, Britain was largely a manufacturing nation, and New Zealand was mostly concerned with the production of foodstuffs. There seemed no reason why that should not get down to an agreement beneficial to both sides. Ho had hoard a lot at Home about the difficulties New Zealand was placing in the way of shipping of British goods to tlve dominion. Mr Paish referred to the visit of the Lord Mayor of London to welcome a ship which had arrived with New Zealand produce, and said it had been suggested to him that he should organise a deputation to meet a ship arriving at Wellington in ballast. (Laughter.) They knew that ships were going Home with New Zealand produce and returning to New Zealand in ballast. They could understand why British manufacturers could not urge their work people to buy New Zealand butter and lamb when a fairly blank wall was tip against them in this dominion. There had been a good deal of feeling about the exchange among the manufacturing classes, said Mr Paish. He wanted to impress, if he could, upon New Zealand producers, dairy producers or not, to tell the exchange story as they saw it._ At present, quite incorrectly, the British manufacturer was looking upon the exchange as an increased tariff against British goods. He know that was not true, but the story on the other side was not being told with sufficient • emphasis. Mr Paisli said be did not think anyone liked quotas. At the same time he thought the New Zealand farmer would ho tlve first to say that the British fanner ought to have a chance in it is own homo market. The British farmer was fighting countries both in the Empire and outside with depreciated exchanges that gave the exporter a certain amount of help. He was also fighting a number of countries which subsidised exports at the expense of local trade. That in the ordinary manufacturing world was called *' dumping.” There was an increasing cry against dumping from within and wittvnut the Empire. It did not a|«ply to New Zealand, but it did apply to other countries in the Empire. If that were continued quite a spirit of antagonism would be growing up. Ho would like them to look at the matter from the British point of view. The British farmer was having a bad time, and something had to he done to put him right as well as the people all round th« Empire. Mr Paish said it used to be said that British manufacturers did not make goods to suit the New Zealand market", but the position bad greatly changed in the last few years. For instance, a cream separator could be obtained from Britain quite up to standard, and trucks could be supplied that admirably suited conditions here. Motor cars were also made to suit New Zealand conditions, with a hill-climbing capacity equal to anything they would be required to do here. Addressing his remarks to New Zca land farming interests, Mr Paish said they should tell the story of the exchange and why it was necessary to put it up and maintain it. The Government in its wisdom decided to put the exchange. The people at Homo, however, did not understand it, and lie thought it was up to the people here to explain, not publicly, but in their private correspondence, to the people at Homo. He was sorry to see so many New Zealanders going before the Tariff Commission and doing their best to vilify English manufacturers. The English manufacturer had to sell his goods all over the world. In most countries he had no possible help by way of preference, and ho could not he such a dirty dog as he was often made out to be. If they could do anything to deprecate that sort of thing he hoped they would do so. Such things were reported and did not add to the good name of New Zealand at Home. At Home they had had a number of shocks. The exchange was one, the cut in interest was another, and then there was talk about increased duty going on their goods. In conclusion. Air Paish said that in writing Home he put the Now Zealand point of view. Ho was the only representative of the Government of the United Kingdom in Now Zealand, and his instructions were to treat Now Zealanders in exactly the same fashion as ho treated an Englishman. He was at their service as much as lie was at the service of members of his own country. (Applause.) FURTHER DISCUSSION. Mr Begg said that they were indebted to Mr Paish for his remarks. They quite realised that British manufacturers did not altogether understand the dominion point of view or its difficulties. He did not propose to go into tho question of exchange, but they could realise that an exporter to New Zealand would resent that, lie hoped that everyone interested, and tho dairy people particularly, would join up in the association and help them achieve closer and better trade relations between Great Britain and New Zealand. The consummation of ilioir object would at least minimise the difficulties of the exporters to-day. Mr Bowman said that they were certain of getting plenty of support from

the farmers, and a good deal from the retailers, too. Ho then brought up the formation of branches in Oumani and Balclutha as centres of their respective districts. The Chairman intimated that the formation of branches would be proceeded with, and after a short discussion Mr Paish was thanked for his visit, Mr Waite adding that it was a great help to have contact with one who saw both points of view.