DAIRYING CRISIS

Evening Star, Issue 21708, 1 May 1934, Page 8

DAIRYING CRISIS

MUST WDRK WITH BRITAIN NO VACILLATION POSSIBLE STATEMENT BY MR COATES [Per United Press Association.] AUCKLAND, May 1. The opinion that the position which the dairying industry had reached today was the result of the industry refusing to allow discussion of the British request that New Zealand should co-operate in an effort to improve prices was expressed by. Mr Coates last evening in a speech aU ? Papakura. On all occasions when Britain a special request, said Mr Coates, New Zealand should take it seriously and discuss it. This had not been done.The Dairy Board had been divided in its opinions. Ho did not want them to think he was blaming the Dairy Board. The Government might have been at fault. To-day they were facing a crisis, and there was no alternative but for the Government to iuake a decision. It was essential to have the ’ co-operation of the industry, but first of all the matter required leadership. “ I have, been accused of being one who advocates planning,” said Mr Coates. “ I definitely am a planner. For the life of me I cannot see how, in the present economic conditions, we will get anywhere unless we have a plan. It may mean control or regulation, and it may leave the responsibility on certain shoulders; but we must have our policy and our programme.” Mr Coates reviewed the Ottawa agreements, and referred to New Zealand’s exports to Britain of primary, products. New Zealand had overstepped the mark, he said, apd it was very unfortunate that we did. It was a case of too many cooks. An eagle eye should be kept on exports from New Zealand. He thought that in the next few years there would be a very, marked development in chilled beef. They _ would need to be very wary of bringing about a' breach between the British and New Zealand agriculturists.As a result of the war, the policies of the various countries grew to be policies of self-sufficiency. Britain now said she had to look after her own farmers. Was it possible for 'these producers to bo content to try to compete against other countries’ surpluses? All countries were planning,' and New Zealand could not stand out. Whether they agreed with quotas did not matter very much. The quotas were there, and they could not avoid them. They could make it difficult for the United Kingdom, but they had no right to make it difficult. ' They must' stand by the motherland. They could not allow the gap to grow, but must make every effort to close it. By far the best plan for New Zealand was to endeavour to work with Britain on a basis of quantitative regulation.“Britain is just as good a place as Denmark for cows.” said Mr Coates, “ and they can increase their cows in no time with a subsidy for the surplus milk in Britain. New Zealand, in my opinion, is up against an almost hopeless position as far as cheese is concerned.”- ~. . As the result of the hesitation of the leaders of the industry and their • refusal to allow the Government to discuss the _ situation, the position had become disheartening, but they had to pull themselves out, and he thought they could do it. There was a warm feeling for New Zealand _ at Horae, and it was up to the dominion to co-oper-ate. A cablegram had been despatched,and a reply was expected to-day as to what Britain was prepared to suggest. Mr Coates said there was no division in the National Cabinet to-day concerning Britain’s policy of promoting planned marketing. Political thought in Britain was more or less unanimous that this policy was necessary to lift the British farming industry out of the doldrums. Mr Coates enumerated the questions, which the New Zealand dairy- » ing industry could ask itself when facing the problem of the future. There were two phases—-organisation within the industry, and organisation without. The_ Government would call in- the best advice, and once it bad made up its mind what was to be done, then they must have the people driving along the same roads. In his opinion there had been a great deal of loose talk about the quota proposals. He urged them not to be misled by the proposal to give a subsidy. They knew Britain’ objected to a country which subsidised its exports directly. Their best course was to work in direct line and in close association with Britain. By doing that they would be doing the best thing to help themselves.