THE H.B. TRIBUNE FRIDAY, MARCH 16, 1934 THE DAIRYMEN’S CONFERENCE.

Hawke's Bay Tribune, Volume XXIV, Issue 80, 16 March 1934, Page 4

THE H.B. TRIBUNE FRIDAY, MARCH 16, 1934 THE DAIRYMEN’S CONFERENCE.

The conference of dairymen, called at the Prime Minister’s suggestion as an alternative to setting up a commission of investigation, has been sitting in Wellington for three days now in close . consultation with him. There can be no doubt that the course indicated by Mr. Forbes has served a very good purpose. This may be said if only in the way of waking the dairymen as a body up to a sense of their own responsibilities to themselves and to the country, instead of adopting the customary plan of running to the Government to get them out of all their troubles. The Prime Minister has placed the position very frankly and clearly before them and pointed out that there are not a few respects in which the future of the industry lies very much in the hands of those engaged in it. At the same time he has expressed what is doubtless a really heartfelt sympathy with them and a desire to assist them in ©very reasonable way. The result of thus throwing them upon themselves has been that the discussions have taken a much more practical and the proposals a much more practicable shape than is usual at gatherings of the kind. Mr. Forbes was happily able at the outset to ease the position very materially by announcing that the British Government had decided to press no further just now its proposals for a voluntary modification of the Ottawa agreement on a quota footing. It was the better able to do this because the measures taken in the Old Country for the organisation and regulation of the home industry were working some substantial relief to the dairy-farmers there, at least equally as hard put to It as our own. This, however, does not necessarily mean that the authorities there are in any way pleased with the New Zealand dairymen’s hard and fast insistence upon the carrying out of the Ottawa agreement’ to the letter and in opposition to British plans for raising prices to a level payable to both British and Dominion producers. The true inference no doubt is that the British Government recognises the technical right, despite changed conditions, of the dominion dairymen to reject any suggestion for variation of the agreement and therefore withdraws it after giving full opportunity for its acceptance. No doubt at the back of their minds the incident will be regarded as a warning not to be forgotten- when fresh arrangements come to be made. There can, of course be no question as to the serious doubt- , fulness of the quota system, with a necessary implication of reduced production, as a remedy for

the situation that has arisen. On the face of it there is involved a retarding of the natural run of development in new countries. It is one to be entertained only as a last recourse and to provide a temporary stimulant to market prices, and it was in this way alone that the British Government regarded it. In any event, so far as concerns the Dominion, this phase of „ the controversy may be consider--13 ed as dropped for the time being. We must, however, always bear it in mind as possible of revival when the Ottawa agreement runs '■ out some eighteen months hence, though we may hope that by that ~ ] time conditions all round will . have ehanged for ths better. What the dairymen have to realise is that in the meantime their first aim must be to see that their products, both butter and cheese, 3. are of such a, character and - quality as to command success in t s competition with rival producers i- nearer the main market. This is a matter that is entirely in their own hands and one that, accord--1; ing to many reports, demands img mediate attention. Then, having regard to the continually increasing output both - here and in Australia, it is quite manifest that, while the receptivity of the British market may perhaps be substantially augmented, others markets will also have to be found. It will obviously be far better to incur losses in opening these up than in forcing upon the British market an excess of s supply that must necessarily tend to keeping prices at an unre-, munerative level. In this respect, too, our own Government may' reasonably be expected to render substantial assistance to whiclij even over-burdened taxpayer® ’ would raise but little objec/ihJ On the question of a, naked! ■ sidy or price-guarantee ; the conference there would, 1 ever, in all likelihood be 1 considerable difference of 1 among the general body of ' payers, many of whom, the ■ men must remember, have i quite as hard hit as • and that, too, without any I sible prospect of governmental I relief. On the other hand, the I I suggested alternative of Treasury® ■ advances to bring current return ’ j to a living level and to be repaid > when market prices improve may ■ well be thought worthy of serious consideration within reasonable . limits.