Did Mr Nash At Havana Agree To Food Prices Rise In New Zealand?

Greymouth Evening Star, 6 April 1948, Page 2

Did Mr Nash At Havana Agree To Food Prices Rise In New Zealand?

(P.A.) CHRISTCHURCH, This Day. Big increases in the price of foodstuffs and other staple commodities produced in New Zealand were likely when the Havana Trade Charter was ratified, if the comment by the Minister of Finance, Mr Nash, was to be taken at its face value, said the Leader of the Opposition, Mr Holland, at a party meeting last evening. Mr Holland was referring to what Mr Nash had said about the Havana, conference decision on subsidies paid to producers to enable prices to be kept down on the home market, aild he pointed out that this involved prices paid in New Zealand for butter, bread, and locally-made clothing and footwear.

“I have been very interested in reading Mr Nash’s statement on the results of his long sojourn in Havana,” said Mr Holland, “and the statement is couched is the loosest possible terms and much of it appears to be contradictory. Nobody can quarrel with the objectives of freer world trade, but the thing that puzzles rpe is how one can reconcile greater freedom of world trade with the retention of such restrictive practices as import prohibitions and similar controls. It appears that the precious principle of Imperial preferences is to be seriously curtailed, but further comment on this score must be withheld until the full agreement is available for closer examination.” Escape Clauses Mr Holland quoted the London Economist, which had said: “At one time the charter was said to contain five articles with 55 escape clauses.” “This appears to be an important feature of recent international agreements,” continued Mr Holland. “An escape clause for almost every undertaking. “We all remember the famous agreement signed by New Zealand, that import restrictions would not be used to protect home industries to the disadvantage of trade with Britain. That agreement is observed mainly in the breach.” Mr Holland further quoted the Economist: “Each of the five main questions has been covered by com-

plicated and almost unintelligible compromise clauses.” Definite Language There was, however, one statement by Mr Nash which was of the greatest importance to New Zealand. It was one of the few comments written in clear and definite language, said Mr Holland. Mr Nash at a press conference in Wellington on Saturday had said: “A limitation was proposed on subsidies and a country was not allowed to subsidise its own producers to enable commodities to be sold to its own people at a lower price.” “If that means what it very cleariy says, the price of butter to Nev/ Zealand users will probably be upwards of 2s 6d a pound and the four-pound loaf of bread will go to something like 25,” declared Mr Holland. “There will also be a big increae in the price of woollen goods, because the Government has at present to meet a very substantial part of the price of raw wool by way of subsidy. For the same reason a big jump can be expected in the retail price of boots and shoes.” Mr Nash had apparently agreed that New Zealand should no longer subsidise local production in order to sell more cheaply on the home market. “This appears to be one of the few provisions without an escape clause,” Mr Holland added.