MEAT FOR BRITAIN

Hawke's Bay Tribune, Volume XXII, Issue 258, 14 October 1932, Page 6

MEAT FOR BRITAIN

FOREIGN QUOTA RESTRICTION EFFECT ON DOMINIONS. SUPPLIES AND PRICE LEVEL. Wellington, Oct 18. The Rt. Hon. J. G. Coates prefaced his recital, in the House to-night, of the details of the Ottawa meat agreement with a reference to the abnormal increase of supplies to the United Kingdom maket, giving the figures for the past three years. These reflected not the normal course of trade, but the distress and forced offering of abnormal supplies at prices regardless of the cost of production. “To cope with the abnormal conditions just described, abnormal measures are necessary,” said Mr Coates. “New Zealand sought, as a long-term measure, a preferential position in the United Kingdom market, to be secured by means of a tariff on foreign supplies with free entry for the products of the Dominions. To supplement this, as an emergency measure, we suggested the imposition of a quota against foreign supplies. At the present time the meat imports of the United Kingdom have the following origin: Foreign, 76 per cent.; Empire, 24 per cent. Our contention was that there was ample scope for increasing the Dominion’s share, and this was not disputed. Moreover, the New Zealand proposals were accepted as the basis of the agreed requests advanced on behalf of all Dominions to the United Kingdom. “His Majesty’s Government in the United Kingdom were unable to accede to the request for a tariff on foreign meat. The statement, widely published in New Zealand, that they were prepared to impose such a tariff, and that it was rejected by us is contrary to fact. At no time were the United Kingdom representatives at Ottawa prepared to contemplate a tariff on meat, * REGULATION OF IMPORTS.

“While unable to impose a tariff on foreign meat, the Government of the United Kingdom were prepared, and, indeed, in the interests of their own producers, they were determined, to apply a scheme for the regulation of imports. The objective of the scheme as expressed in our agreement is a twofold one: to raise the price of meat to a remunerative level, and to progressively increase the share of the home producer and the Dominions in the United Kingdom market. “So far as pig products are concerned—in which New Zealand : s interested as a potential exporter and by reason of the bearing of these products on the meat market generally—finality has not been reached. At the moment the whole situation is being surveyed by a commission especially set up for the purpose in the United Kingdom. But we are assured that a substantial reduction will be made in imports of foreign bacon supplies and that the Dominions will acquire an increasing share in the United Kingdom market. “Mutton and lamb are the meat products in which New Zealand is most directly interested at the moment, and recent increases in the supply on ‘he United Kingdom market have exceeded the capacity of the market to absorb them. The competitors of the British Dominions are mainly the South American Republics. Their mutton and lamb exports to the United Kingdom, while substantial in volume, do not constitute a large proportion of their total meat exports; they are interested mainly in chilled beef, and in this line our southern dominions are unable to compete. REDUCING FOREIGN IMPORTS. “By the agreement made at Ottawa, His Majesty’s Government in the United Kingdom agree to reduce the imports of foreign mutton and lamb by the following percentages, as compared with the total for the twelve months ending June 30, 1932: Quarter ending March 31, 1933, by 10 per cent; June 30, 1933, 15 per cent; September 30, 1933, 20 per cent; December 31, 1933, 25 per cent; March 31, 1934, 30 per cent; June 30, 1934, 35 per cent; and thereafter at not less than 35 per cent for the period of the Ottawa agreement, i.e., for five years in all. “Foreign frozen beef is to be subject to the same percentage reductions as those just mentioned. Chilled beef imports from foreign sources are to be regulated so that no increase beyond the quantity for the year ending June 30, 1932, will be permitted. “An alternative method of expressing the agreement in relation to the imports of foreign meat is given as follows:—Statement showing the maximum quantities of foreign meat to be allowed to be imported into the United Kingdom during each quarter of the period January 1, 1933, to June 30, 1934, expressed as percentages of the quantities imported in the corresponding quarters of the twelve months ended June 30, 1932.—Frozen mutton and lamb: January-March, 1933, 90 p.c.; April-June, 85; July-September, 80; October December, 75; January March, 1934, 70; April-June, 65. Frozen beef (carcases and boned beef): 90, 85, 80, 75, 70, 65. Chilled beef: 100, 100, 100, 100, 100, 100.

NO REDUCTION of n.z. exports. “No reduction is to be imposed on any exports from New Zealand. We have, however, agreed, as set out in my letter to Mr Baldwin, to give early in each export season a reliable estimate of exports by weight of mutton and lamb. In consultation with the representative of the New Zealand Meat Producers’ Board, we have given an estimate for the season which is just commencing. The purpose is to assist in orderly marketing of supplies in the United Kisgdom. It is manifestly fair as between one Dominion and another that substantially similar conditions should Apply to all, and the Ottawa agreements satisfy this requirement. We are not to exceed the estimate given. “It is impossible for anybody to mathematically calculate the precise effect on prices which will result from regulation of supplies. But it can be assumed that such regulation will tend to raise prices to a remunerative level. The United Kingdom Government are able, in accordance with the agreement, to safeguard the interests of consumers; and the plan adopted will, it is believed, be beneficial to producers without detriment to consumer*.”