EXCESS OF SUPPLIES

Hawera Star, Volume LII, 20 February 1933, Page 7

EXCESS OF SUPPLIES

LATE EDITION

DAIRY PRODUCE MARKETS PROPOSALS FOR RESTRICTION ( ■ . FAVOURED BY TRADERS. TEN PER. CENT. REDUCTION. (United Press Association —By Electric Telegraph Copyright.) Received 11.30 a.m to-day. LONDON, Feb. IS. The ib'Utter position has not improved. Consumption remains as good as might be expected when tihe best Australian and New Zealand -butters are retailing at lOd a. pound and even less in some quarters, but even this brisk 'consumption is insufficient to absorb the available supplies and stocks 'herenow are estimated to be approximately 110,000 tons. * .

As one leading firm i-epors, with the production of Australian and New Zealand running well ahead of last year, buyers feel there is no need for worry about the future. The report adds that owing to the restricted quotas and high tariffs the Continent consumption is very bad, especially in Germany, so there is practically,no export trade from the London market.

The question of a reduction of imports of butter is attracting much attention and many traders consider such action desirable. Their view is expressed by . “Commission Agent,” writing in a trade newspaper, who sayrt there appears to be only one solution present low prices. “If Den\rvJK: would! iredulee -manufajcrtjure 'by HO per cent, and cease shipping surIplus quantities which are not required Jy the English market prices would certainly be 10s to l-5s a cwt higher,” he continues. “The some remark applies to the Colonies.”

INFLUENCE OF EXCHANGE * POLICY > BUSINESSMEN’S STATEMENT. ' WELLINGTON, Feb. 20. The New Zealand Businessmen’s Committee lias issued a statement that it is reasonable to assume the London proposals, regarding the restrictions of New Zealand butter imports into the United Kingdom have been influenced by the New Zealand Government’s action in depreciating New Zealand currencv and “.thus effecting at least a moral breach of the Ottawa agreement.” “" The opinion is expressed that the Dairv Board’s suggestion that New Zealand duties on English manufactured goods should immediately be reduced by 15 per cent, to counterbalance the" artificial raising of the exchange rate is impracticable and carries a grave menace to New Zealand secondary industries and the unemployment position. The committee urges the Government immediately to communicate with the British Government to ascertain whetner this threat to the New Zealand export position could be met by a i-econsideration of the present exchange policy. The committee considers that the British Government should also be assured that the .New Zealand customs tariff will be reviewed in the terms of the Ottawa agreement at the earliest possible moment.