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Hawera Star, Volume LIV, 4 May 1934, Page 4

EXPORT RESTRICTION

MR. GOODFELLOW’S CHARGES MR. COATES’ SPIRITED REPLY NOT INFLUENCED BY -SECONDAtRY, INDUSTRIES AUCKLAND, May 2. 'Statements regarding the British, butter market made by Mr W. Goodfellow in his monthly market review were referred to by the Minister of Finance, t'he Rt. Hon. J. 'G. Coates, in an interview before his departure from Morrinsville. There was probably no one who had a better grasp of -the dairy industry in New Zealand than Mr Goodfellow, said Mr Coates. His advice was at all times valuable, but it seemed that ho was becoming concerned chiefly with tlhe trading and -marketing aspects rather -than the producing side of the industry. It was the producer, and particularly the small producer, who was entitled to the consideration of the 'Government. The dairy-farmer had never before needed direction and assistance as he needed it to-day.-Mr Goodfellow’.s-point was- that- tho price factor was gradually reducing world production and would bring about its own cure, which would -be better than an artificial scheme of raising prices by restriction. It was to be inferred, said Mr Coates, tnat a reduction of world production by tlhe unchecked price factor was Mr Goodfellow’s view of the natural form of restriction, but it would only restrict production by forcing off their land small farmers who were unable to cope with the low price levels. The dairy industry was of such economic importance to New Zealand -tnat safeguards were imperative. “Mr Goodfellow pays a tribute to the Australian High Commissioner, Mr S. M. Bruce, as*a very smart politician and far 'too clever a man for New Zealand’s political representatives,” Mt Coates continued. ‘'‘These are personalities, and as sucli can be very safely ignored. An accusation that the -persistency of the Government in the matter of restriction may be due to political pressure from the New Zealand secondary industries is quite unfounded. bSuggestions that they are trying to force a quota on the ‘Government and that this would be an excuse for further delay in the matter of tariff reduction are nothing -more than a pack of falsehoods. The whole matter with regard to ‘the secondary Industrie's is one for the Tariff Commission, which will make recommendations to the Government.” The position, summed up l by ALr Coates, was that at the moment New Zealand had unrestricted access to tho dairy produce market of the United. Kingdom, but it was a market glutted and over-supplied, ana atanunpayablo price. How .better could the difficulties he overcome than by mutual discussion of the position between the two Governments?