MR COATES’S REVIEW

Grey River Argus, 19 September 1932, Page 5

MR COATES’S REVIEW

OF OTTAWA DECISIONS Better Preference Margins FOR FIVE YEARS. (Per Press Association), WELLINGTON, September 18. Interviewed on his arrival to-day from Ottawa, Mr Coates expressed pleasure at being back some weeks earlier than anyone had been able to anticipate. The conference had lasted only four weeks, an unusually short time for such an assembly. This had meant a rush of work, and had allowed little free time, but it was satisfactorily to be back at one’s post. He said: “Now that Parliament is meeting in three days’ time, I am preparing to lay details of the Ottawa agreement before the House. I expect that, as soon as the Address-in-Reply is out of the way, we shall have ready in printed form a report of the Conference, and copies will be distri buted to members to enable discussion to take place in the light of full information. Perhaps the best way to see the measure of success of the Conference is to call to mind how intense our disappointment would have been if it had failed, or where we would have stood in regard to New Zealand exports to the United Kingdom if the Conference had not been held.’’ BRITAIN’S NEW FISCAL POLICY. “The position was that a general customs duty covering butter, cheese, milk products, fruit and other products which we export had been imposed by the United Kingdom, temporarily and until the 15th of November this year. Our exports were exetnpt from that duty, but, had it not been for the Ottawa agreement, that tariff would have fallen on our exports in November. Thanks to the Conference, they are to remain free of duty, while competing imports from foreign countries carry a tariff that will give New Zealand substantial preference*. Then the margin of preference has been increased on many important New Zealand products. The highest rate previously was ten per cent. Under the agreement concluded at Ottawa, a preference of fifteen per cent, or thereabouts is to be granted on our butter, cheese and other milk products, fruit, eggs and honey. This means a fifty per cent, increase on the former margin of preference. Another valuable and novel feature of the agreement is that preferential margins are guaranteed to continue in favour of New Zealand for at least five years. The duties on competing foreign products, it is agreed, “shall not be reduced .except with the consent of His Majesty’s Government in New Zealand. ’’

NO MEAT TARIFF. “A different method has been adopted for assisting the meat producers of the Empire. The United Kingdom undertakes to regulate its imports from foreign countries of all meat, including bacon and pig meats, beef, mutton and lamb. These are to be restricted to an extent that is set out in black and white in the agreement, and the two-fold purpose is to raise the prices to a remunerative level and to increase the Dominions’ share in the meat market of the United Kingdom. To-day the Dominions supply only 24 per cent, of the United Kingdom’s meat imports. Foreign sources, supply 76 per cent, of Britain’s meat. That is a position which can and will be improved. Furthermore the meat markets of the United Kingdom, particularly in the past year or two, have been flooded with imports of bacon and other meats, which have been shut out of the Continental markets. This led to a disastrous price collapse, and to a waste of supplies beyond anything the market could absord. In short, the meat position was one which no tariff could correct, in any case, as far as meat was concerned. It was made perfectly clear to the Dominions at Ottawa that the British Government could not at the present time contemplate any tariff on meat. Reports to the contrary, statements to the effect that the Dominions rejected an offer of a tariff and insisted instead on the regulation of the quantities of the meat imports, while the British Ministers opposed this plan, are utterly false and misleading. This is one of the misunderstandings that have been conveyed to the people in New Zealand. The arrangement between New Zealand and Great Britain on the subject of meat is set out in a letter which I addressed to Mr Baldwin. This letter, except for a few sentences (which must remain confidential, pending certain negotiations with foreign coun tries), I shall release at an early date. ’ ’

“It must be expected, and every reasonable person will agree that New Zealand, for her part, should exrend some reciprocal advantages to Britain. Certain changes on the customs schedule have been agreed to, and these will be brought before Parliament during the session. They cannot, of course, be disclosed in advance, but I am confident the House and the country will be well satisfied when the list is made known. We have agreed also to remove the primage duty on United Kingdom goods, when financial conditions permit, and to remove the surtax from the United Kingdom goods at once. LIMIT ON N.Z. PROTECTION. The Agreement provides that the existing margins of preference in favour of Britain up to 20 per cent, will be retained. “Wo agree that the protection to our local industries will not exceed the level required to safeguard economical, efficient production. By no means all of the value of Ottawa can be measured in the terms of tariff preferences

and customs schedules. The Conference covered a far wider field than that. The raising of the level of our prices was recognised as a matter of first importance. No matter what we may do to stimulate trade in imperial channels, this trade must be conducted at profitable price levels. With prices where they are to-day, this is largely impossible, with the result that we have industrial stagnation and unemployment. It is, of course, desirable that the world price level should bo raised, but, short of that, the sterling prices in which we are paid for our exports and in which we must meet our overseas obligations must be raised and stabilised. The Conference agreed upon a policy to achieve this end. ” Meat Agreement DETAILS REMAIN SECRET. WELLINGTON, September 18. The actual terms of New Zealand’s meat agreement with Britain will not be released for some time. The leader of the Dominion’s delegation at Ottawa. Mr Coates, stated to-day, however that he would make a statement on this question at th e civic reception in the Town Hall on Tuesday. Mr Coates was able to confirm the report that there would be no restriction on New Zealand's exports of mutton and lamb to Britain such as the restrictions that have been accepted by Australia. He said that it was also incorrect to say that in other respects, the New Zealand and Australian agreements wer P identical. Tn reply to a question, Mr Coates, however, said that he was unable to explain the full terms of the New Zealand agreement at the moment, for the reason that Britain yet intended to negotiate with the other countries whose exports of meat to Britain would be affected by the Ottawa agreements. Britain, he said, hoped to be able also to make favourable trading relations with her foreign suppliers, and, in the meantime, the terms of the Ottawa conclusions would not be published.