MARKET OVERLOOKED

Evening Star, Issue 21903, 14 December 1934, Page 14

MARKET OVERLOOKED

AMERICA’S RETREAT FRCM TRADE NATIONALISM OPENING FOR NEW ZEALAND PRODUCE MR JESSEP’S VIEW In the course of a statement to sheep farmers at Napier last night Mr J. S. Jessep, vice-president of the New Zealand Sheep Farmers’ Federation, spoke strongly on overlooked opportunities for a market for our produce in America. Mr Jessep said:— . On August 11 last I pointed out to sheep owners at Gisborne the real and imminent nature of the disaster which threatened New Zealand producers through the restriction of our English market, and the outstanding importance of negotiating trade treaties to open new markets. Four months have passed, during the greater portion of which Parliament was in session and dealing—for the mst i part—with matters which, while ho doubt of some domestic importance, could have relatively trifling effect on the real prosperity of the dominion. Proposals were formulated to “ further investigate " trade channels overseas, but no negotiations of importance have actually been opened up with foreign countries. During this process of preparing to ido something an event of outstanding importance to New Zealand occurred in America. Two months ago .the" United States Secretary for State announced in unequivocal language the necessity of America’s retreat from trade nationalism.

The greatest potential additional consumirig market in the world for New Zealand primary produce is in America. These two facts—the existence of.that great. maarket and the United States plain invitation to trade—together constitute a factor of the most profound, real, and direct significance to New Zealand. But they appear to have been completely overlooked. There is no evidence that the Government has grasped the opportunity knocking so loudly at New Zealand’s door. -Even the Press, which is usually more acute than Governments' in its perception of such things, does not appear to have expressed any great interest in the potentialities .of the United States position. Everyone appears to have got bushed in a wilderness of words and hypothesis on the question of overhauling the dairy industry. But where is the point 1 of setting up a vast machinery to spruce up the dairy industry and increase the quantity and quality of its output: when all'the time the walls of. its market are slowly but inexorably closing in on it? That would be a sound and businesslike proceeding ihat the same time proportionate attention were given to the Question: of where we are going to sell the bigger and better products of our farms.' ; But no definite action is being taken to that effect. OTHER TRADE, TREATIES. Other dominions,-on the other band, have not been so slow to accept America’s invitation, and to see generally to it that there is somewhere to sell their produce now that the British market is no longer an unrestricted, one. During the past four months a trade treaty has been announced between Canada and France'. A trade treaty has been announced between* Australia and Belgium. There/ are indications that a trade arrangement has been made between South Africa and Germany in connection with wool, and one is foreshadowed between' Australia and Germany. The Argentine have, ever since the first _ intimation by Great Britain, that its imports were likely to be restricted, been negotiating with America. And what has New Zealand, which is more completely than any of them dependent on an unrestricted market, done to help itself out of its dilemma ? It has been very busily engaged setting up machinery. for still greater production. Certainly we occasionally look up from our.preoccupation with this pastime to prattle about ‘‘ setting up a board to explore' oversea markets.” There is no need to “ explore ” for a market. The is there. Now, at once, to-day, America could absorb all the butter, cheese, and meat we could send her. The only reason why she does not is that there is a tariff barrier against us. Meat producers in the dominion have a vital interest in discovering the reason for the Government’s inaction and in moving it to action. With'the continual doubt that now exists as to the possibility of disposing of their produce, the pastoral industry is being affected at its very root. The security of the industry is threatened. How can this be otherwise, when we continue to depend on a market that is not fully open to us ?

I am glad to see that the Minister of Agriculture has affirmed that only Governments can deal with Governments, and it is devoutly to be hoped for the good of the country that that attitude will be maintained, and that the responsibilities of Government will not be shifted to the shoulders of boards or commissions when the Government finally moves in this matter. As I pointed out in August last, the North Island has already had a bitter fore-taste of what market restrictions mean with respect to beef, ' boneless beef, and bobby calves. I regret to note that Mr Acland is reported to have said at Belfast that these restrictions were forced upon New Zealand. I am afraid that he and the Meat Board know only too well with whom the responsibility rests that these restrictions were ever put into force in connection with beef products. Mr Acland is also reported to have repeated this platitude that Britain is our best customer, etc., and “ the British people were the people New Zealand would have to study.” This apparently means that, being clearly told by Britain that she regrets she cannot take all our produce, we in New Zealand, are to calmly see our. great pastoral industry not only cease to expand, but commence to decay. We are to rest on the childish assumption, that New Zealand, if she reduces tariffs and makes reciprocal treaties with other countries for that proportion of her produce which Britain clearly indicates she cannot take, will antagonise. Great Britain. Or, to put it another way, if, by arranging new markets we can retain our solvency and so continue to pay our debts to. Great Britain, the British people will look upon it as an unfriendly act. BELATED AWAKENING. It looks as if, by the time New Zealand wakes up to the dire necessity of finding alternative outlets, we shall find that prior treaties made by pur niore enterprising competitors have closed the door to New Zealand. The recent experience of Mr Coates and Mr Masters in Australia should arouse attention to the fact that Australia is, and must always remain, one of our main competitors. Why, therefore, should we give preference to Aus-

tralian manufactures when by import* ing the same front other countries w« could find an outlet for some of our, produce? It may interest North Island producers to know that whereas New Zea* land boneless beef and hobby , calves were for a time totally shut out, and then seriously restricted on the English market, Australia, because she hadi [made a more liberal estimate of her, probable shipments of meat, took advantage of the position and for that first time in history packed bobby calves, and, incidentally, , shipped ait better prices than previously to wellestablished New Zealand markets ini Great Britain. The same applied to boneless beef. Surely it is not too much to hope,now that the menace, of restricted markets is taking definite shape- in London, that the Government will realise the vital and urgent necessity.of negotiating to facilitate the entry of our; produce into other markets'. The matter is of sufficient- importance to engage fully the energies of a Minister of the Crown, and for him to be relieved for twelve* months of all other duties. As indicated by tha activity of other / dominions” who realise^ what restricted trade, will mean, potential markets exist in: many countries. . _ ' Political reasons have forced English’ politicians to protect British farming interests, Are we to wait. until such necessity forces England to shut tha door closer on dominion andforeign farmers? I repeat, and wish to-empha-sise with all the force I may,,-that wa will have a bitter awakening, when Wa realise that, while, our numerous boards; have been advocating that we should Hang like crying -children on the skirts of England, our competitors have completed trade treaties which preclude our entry into markets which might hava been available to New Zealand producers. I again repeat that the most urgent work” before New Zealand is to enter into negotiations for reciprocal trade treaties wherever there is a possibility of finding an outlet for any of our surplus products.