DAIRY PRODUCE CRISIS

Northern Advocate, 20 April 1933, Page 6

DAIRY PRODUCE CRISIS

FARMERS’ UNION TENETS QUOTA PRINCIPLE FATAL. SPIRIT OF OTTAWA. FULL EFFECT DEMANDED. (Special to “Northern Advocate.”) WELLINGTON, This Day. The executive of the New Zealand Farmers’ Union yesterday discussed the dairy produce crisis and passed a resolution strongly condemning any support of “the fatal principle of quotas.’ ’

It urged that the spirit of the Ottawa agreement bo given full effect, and that all rural interests should adopt a common platform, standing on the agreement, and demanding that it be interpreted in the spirit in which it was intended, namely, offering Britain such tariff adjustments as would secure reciprocal advantages from the continuation of it.

The president, Air W. J. Poison, M.P., said the restriction of exports Avould lead to stagnation in the industry and would also give to its development a. chock which might become permanent. It would probably mean the repudiation of the country’s obligations and might lead to serious internal trouble. 1

“I say here that the Ottawa agreement means what it says,’’ said Mr Poison, “and that it is the only means by which we in this dominion can hope to recover our position. Me have got to tho point when we have to offer Britain something in exchange for what she is prepared to offer us. New Zealand cannot afford to admit the principle of quotas. We have to say to the British people; ‘We will offer a quid pro quo. We will stand on the Ottawa agreement and see that it is put into effect on the principle which you undoubtedly intended when it was signed.’ ” If that were not done Britain would adopt a plan to help her own farmers, and the consequences, as far as NeSv Zealand was concerned, would ])c “too horrible to contemplate.’ ’ Possibly; For Few Months.

Mr Poison said that they might have to agree to some form of quota for a few months, but it should be only a temporary expedient. He Avas informed by the Dairy Board that it Avas standing firmly to its decision to oppose any restriction on exports. Further, it intended again to approach the Government urging ! a reduction in tariffs on British goods coming into Noav Zealand. Mr R. H. Feist commended the Dairy Board for having taken a long view of the quota question. It Avas obA r ious that the glut at Home Avas not as -severe as Avas stated, as a large proportion -of the population was not getting all- the Ncav Zealand produce it. Avanted.

Mr L. Hammond thought there was a difference betAveen restriction and quotas. The could not tolerate both. If butter Avent doAvn to 45/ or 50/ something drastic Avould have to be done. Perhaps it was not. Aviso to condemn restrictions, Avhich might, later be found advantageous.

Mr R. S. Chadwick said it must bo understood that New Zealand could not have it both ways. Could it bo seriously suggested that New Zealand could keep its surplus produce until the British people could consume it? The great failing was on the part of Now Zealand in not taking, its quota of imports. Mr 11. L. Mcllsop said a commensurate reduction with the raised exchange should have been made in tariffs.

Mr Poison said that something could be done to prevent the export of -second-rate and whey butters. There were 1000 tons of second-rate and 1250 tons of whey butter produced annually in New Zealand which should never be allowed to go out of the country. Another suggestion which he thought worthy of consideration was the making of bread with 50 per cent milk and 50 per cent water as liquid constituents. A good deal had been said, continued Mr Poison, about tariff adjustments in connection with exchange. The rest of the community had to realise the fact that the farmer had to be helped for the good of the rest. They could not Jive today without inflation, because other countries had adopted it. Whether the principle was a good one or a bad one ho was not prepared to

DIFFICULT PROBLEM, TO KNOW WHAT TO DO. Mil COATES’ ADVICE. (Special ro “Northern! Advocate.") DAPGA VILLE, This Day. “It is possible that in rejecting regulation of exports to the United Kingdom we are doing the wrong thing. We must keep iu mind the attitude of the British farmer, and it ifl clearly in our own interests to work in co-operation with the Government of the United. Kingdom.’’

This statement was made by the Minister of Finance, the Rt, Hon. .1. G. Coates, in an address at, Ruawai yesterday, when dealing with the export of butter and the proposals for regulating supplies to Britain. The whole position should be examined with care, he said. The opinion of the Dairy Produce Board, in which was invested considerable power and industry, and which was the voice of the industry, would have the careful

consideration of Hie Government. It

was up to the producers and the country as a. whole to look very carefully into the problem and to examine alters native possibilities. , It was a problem, he went on, to know whether it would be wise to regulate exports to the United Kingdom to raise the prices, or prevent a further decline. The policy suggested was one of balancing supplies with market requirements. Tho method of regulating production by supply and demand was one that caused much hardship and "was in many ways unsatisfactory. In Britain there was a growing tendency to accept regulation of quantities for the purpose of maintaining more orderly marketing conditions. ’ This development was one which New Zealand could not afford to ignore. PARLEY IN AUSTRALIA. UTMOST SECRECY. NO DISCLOSURE TILL END. (Received 9 a.m.) SYDNEY, April 19.

Tho New Zealand and Australian delegations conferred again today ami are to continue their discussions tomorrow. The utmost secrecy is being observed, and the delegates, interrogated separately, were not prepared to disclose the trend of the discussions. However, an official statement is expected at the close of the conference. The “Daily Telegraph’’ says that Australia and New Zealand have not yet reconciled their viewpoints on tho question of the restriction of the exports of butter to tho United Kingdom.

. Apparently both are opposed to the principle of the restriction of Empire blitter, but there are other phases, or side issues, upon which agreement has not been readied. A Melbourne message states that Mr Massy Greene left for Sydney to attend the Federal Cabinet meetings, at which a trade agreement with New Zealand will be discussed. RUSSIAN SUPPLIES. CURTAILMENT EFFECT. (Special to ‘‘Northern Advocate.”') AUCKLAND, This Day. Auckland firms in the butter export business sec in the embargo on the importation of Russian butter into Great Britain some prospect of relief for the over-supplied British market, and they said today that, at first sight, it seemed the embargo might be beneficial to New Zealand, but, on the other hand, the supply and demand on the Continent might be eo altered that the benefits in the Home market would be neutralised.

Germany and other Continental countries have of recent years imposed restrictions on the importation of butter, and this has led to an increase in the am oiint, of Continental butter which' has boon sent to the English market. Should Russia find Continental markets for the butter which she can no longer send to England, the exports of ether European countries to,Britain may increase and thus maintain the present excels supply. The following table shows the butter exports, in tons, of the principal countries to Groat Britain during the past three calendar years, the periods ending December HI: — 10112. 10111. 10.10. Russia 16,415 20,218 8,271 New Zealand . 100,517 00,750 78,501 Australia ... 01,4(32 77,011 47,577 Denmark .... 120,184 121,102 115,028

The total imports from all countries Avere 422,454 tons in 1932, 403,558 tons in 1931, and 341,422 tons in 1930.

lIIKURANGI COMPANY. ADVANCE PAYMENT AT SD. For the March supply of butterfat the Hikuraugr Dairy Company, Ltd., Avill make an advance payment today at the rate of 8d per lb for finest quality, which Avill absorb £11,700. In the corresponding month last year, Avhcn the advances Avcre at'the rate of KUd for finest, the amount distributed Avas £11,140.

FREE STATE BOUNTY. APPICABLE TO EXPORT. (Received noon.) DUBLIN, April 19. The Irish Free State Government has granted an export bounty of £1 11/ per cAA’t for creamery butter, and £1 7/ for factory and farm butter after April 1. ' MAUNGATAPERE ATTITUDE. RESTR ICT.TON OPPOSED. At a meeting of directors ot the Mnungatapere Co-operative Dairy Company, held on the 15th inst., the following motion Avas adopted: “That this meeting strongly opposes any proposals to restrict exports of dairy produce.”