ECONOMIC SALVATION NOT IN PRESENT POLICY

Manawatu Times, Volume 64, Issue 38, 15 February 1939, Page 3

ECONOMIC SALVATION NOT IN PRESENT POLICY

Farmers’ View of Import Control Regulations

CURTAILMENT OF PUBLIC EXPENDITURE

Considerable discussion took place at yesterday’s meeting at Marton of the Wellington Provincial Executive of the Farmers’ Union, on tho Subject of the import control regulations,’ after which the following resolution -was carried:—

“That while we recognise that some trade restriction may be necessary owing to tho economic position of the country, brought about by the policy of the Government, we affirm our conviction that our economic salvation does not lie in the present policy of the Government, and we believe that a curtailment of public expenditure is necessary to rehabilitate the Dominion’s financial position.”

In the course of the discussion Mr. Llovd Hammond (president) stated that the Ottawa agreement was of paramount importance to the farming community for the preservation of the spirit of that agreement meant a great, deal to the primary industry of the country. This aspect of the import control regulations was giving concern to the primary producer, and he understood that tho British Board of Trade was negotiating with tho Minister of Finance regarding the regulations and their possible effect on trade with the Dominion. There was something to be said in favour of tho action of the Government in taking steps to get out of the mess which it had got into, but the procedure adopted w r as open to question. If the British Board of Trade was unsuccessful in getting some satisfaction for those people who have hundreds of thousands of pounds invested in the Dominion, then it was going to affect primary producers very materially. He suggested that unless that satisfaction was forthcoming it would mean tho breaking of the Ottawa agreement, which would have far-reaching consequences in relation to our export trade to the Mother Country. Tho position at the moment was very complicated and was -worrying everyone —

Mr. G. E. Anderson (Taihape): Except Mr. Savage. Mr. Hammond: I don’t know; he seems to be worried, too.

Continuing, Mr. Hammond suggested that any breaking of the Ottawa agreement would be welcomed with open arms by the British farmer. It was quite evident that the British farmer was resenting the fact that New Zealand was under-selling him on the London market. The British Board of Trade had powerful support in its attitude over the import control regulations in the National Farmers' Union of Great Britain. The board had only to ask for that support and it would be forthcoming. The speaker hoped that the Board of Trade would be successful in. its negotiations and thus avoid any action which would tend to reflect upon our exports. Apparently, said Mr. Hammond, the Minister of Finance proposed to pay off the £17,000,000 loan due in England this year out of the proceeds of our exports. This would mean that the normal proceedure of buying goods with that money would not prevail. “That’s the point,” .remarked Mr. J. B. S. Dudding. “The Brifish exporter will not be satisfied with that. We should not allow such juggling without making some stand,” ho said. Mr. Hammond: What can you do? Mr. Dudding: The city interests are very concerned about the position and we should back them up.

Mr. D. Kilgour (Apiti) anticipated that like trouble would follow in England in tho event of a Labour success at the next British elections. Labour candidates were wooing tho country votes and tho conservative party in England was very much alarmed at tho situation.

Another point, said Mr. Hammond, was that the British Beef Council, which was mainly concerned in tho marketing and control of beef supplies, had recently taken over the control of mutton and lamb. While beef was tfio main concern of the council he did not think it w r ould have much sympathy with New Zealand mutton and lamb. The speaker was aware that the New Zealand Meat Board viewed with some apprehension this action of tho Beef Council.

Mr. D. G. Gordon drew attention to a recent cable from England announcing that the Minister of Agriculture was going to enforce restrictions on meat imports from the Dominions. The mutton position in New Zealand was serious and he thought that some effort should be made by the Meat Board to seek out a market on the Continent for our lowest-priced meat —ewe mutton. He considered that it would bo possible, with European countries on short rations, to negotiate for the sale of our ewe mutton in return for potash manures, which could be profitably used in New Zealand. This would relievo the market in England and would not interfere with British trade since England did not manufacture potash manures. Some system of barter might bo arranged which would help towards the disposal of our ewe mutton. He was not in favour of importing German motor-cars, or anything that England manufactured, from the Continent, but New Zealand could import potash in return for meat without disturbing relations with England. Continental countries wanted cheap meat and New Zealand could supply it in abundance at the moment.

On the motion of Messrs. Gordon and Dudding it was agreed to recommend to tho Dominion, executive of tho union

that it go into the possibilities of trading somo of our cheaper meat on the Continent, on a barter system, for potash manures. Following further discussion, the resolution abovo mentioned, concerning the import control regulations, was then carried.