OTTAWA PACT

Gisborne Times, Volume LXXIII, Issue 11829, 10 January 1933, Page 5

OTTAWA PACT

WHAT IT MEANS TO THE NEW ZEAL AN D S \iEEPF ARMER.

PLAGES HIM IN SAFE POSITION

MR. DAVID JONES’S VTEW-

POINT.

(Special To The Times)

WELLINGTON, Jan. S

Mr. David Jones, '(chairman of the New Zealand Meat Producers Board), in a statement, says

“There is apparently a great deal of confusion in the minds of the sliecpfarmers of the Dominion as to what the Ottawa agreement really means, and what will lie its likely effect on prices and production in the Dominion.

“There are those who do not like a quota and say we should have obtained a duty instead. Mr. Coates and the New Zealand delegation tried to get both, but we were informed that a duty on meat was not politically possible, and in any case a duty in itself would not have stopped the huge supplies from being thrown on the British market and further demoralising it. My Board realised i ll the latter part of last year that unless we could obtain some drastic restrictive measures on foreign supplies there was no ray of hope for the slieepfariner of the Dominion, and we shaped our policy for Ottawa with that object in view. “Let us consider the probable effect on the Dominion if New Zealand’s object had not been obtained. Last season we exported nearly 50,000 bead of beef and sundries and 1,435,000 fat ewes. When we were at close grips with this question at Ottawa the prices in Britain for the above classes of meat were so low, and the outlook for the future so dark-, with the quantities of meat coming forward from all sources, that it was debatable whether the prospect would justify exporting most of this meat. The price of the meat for local consumption would have been affected in a similar manner. This is the picture we want to keep before us when wc are trying to gauge tbe value of the Ottawa agreement. In a letter just received from my Board’s London manager be says: “In the case of • ■ uid quality and first grade 2’s lamb;, the advances during the first fortnight in November bad been upi to lid per lb: the whole of this advance was due to the British Government scheme of curtailing supplies. One penny per lb. on the total meat shipped from the Dominion for last season would be £2,400,000 in New Zealand currency.

“The restrictions that have been placed on foreign meat entering Britain are very heavy, and the importance of this will be better appreciated when we realise that i 6 per cent of the total imported meat into Britain comes from foreign sources, and 21 per cent, from British possessions. The definite policy has now been laid down that ail ever increasing share of this trade will he reserved lor Empire meat with y declining amount from foreign sources. “The Ottawa agreement places New Zealand in this sate position, that we have a definite, and, we believe, an adequate quantity allotted to us, and this yearly quantity is definitely fixed and cannot be altered without consent. The foreigner is in a different position : bis quantity is definitely reduced, and further reductions may be made if the necessity of the market demands it. The Meat Board has always regulated tlie shipments of meat. und our position will be strengthened now because we shall be acting in co-operation with the British Government with our London manager on the committee. Let me illustrate this point because it might easily lead to confusion: say, if, in the opinion of the New Zealand Government and the Meat Board in conference with the British authorities, it was deemed necessary some time, say, tiiis year to somewhat restrict shipments for a month or two, that would nut affect the total quantity wo could ship in the year: it would be merely an adjustment of shipments to assist the market, and wo would only agree to this if we obtained satisfactory safeguards from the other Dominions.

“The agreement definitely has for its object the maintenance of sound values. Britain saw her fanners must ho adequately protected or that great industry could not exist. The policy of restriction and guidance appeal’s to be achieving that object,; the sales of new season’s, meat are very satisfactory. After the restrictions wei'o imposed Victorian lamb under 36 lbs, rose to Gjd, land bus remained at Old to G 3-Sd ever since. New Zealand lamb is usually worth at least one penny per lb more. “The cost of freezing, shipping, etc., from delivery at the works to selling on Smithiield, including one month’s storage in London is about IKd per lb. (including skill, fat and exchange)—that is what it will cost tbo farmer if he consigns bis own meat..

“No one can successfully forecast prices, but the British moat market has never been so protected and controlled* with the object of maintaining prices as to-day. This is being done in the interests of the farmer, and ho should bo careful to sec that be obtains the advantages that ai’o being intended l'or him in his time of difficulty.’’