THE QUOTA

Northern Advocate, 10 November 1934, Page 11

THE QUOTA

Question of Qualities

NEW ZEALAND'S EXPORTS FACING THE PROBLEM * QUESTION OF SURPLUS WARNING BY MINISTER [From Our Parliamentary Special.'} WELLINGTON, This Day. Significant references to negotiations which are now proceeding in London regarding the regulation of food imports into Britain were made by the Minister of Finance, Mr. Coates, when discussing the Agricultural (Emergency Powers) Bill yesterday. He wished, he said, to create an atmosphere which justified this class of legislation in the light of what was facing New Zealand. “This very day we are discussing a short-term and at the same time a long-term arrangement for two years, not because we want it, but because the sterling market says to us that it wants to know our quantities in total and specified types .of produce that we are sending to the United Kingdom market for the next two years. Then immediately someone has to say: What quantity of each thing has to be sent? and argument has to take place as to what consideration shall be given various types and weights, and it is a limited quantity. You cannot move past it. You are bound to have a surplus, and what are we to do with it? Markets have to be organised.” Mr. W. E. Parry (Labour, Auckland Central): “That is very interesting.” The Minister: “Yes. You say the Government can do it. but unless the community recognises the change in the economic circumstances it is open to most terrific criticism in so far as interests can use prejudices to say that the Government should have done this or that, and what different arrangements could have been made.”

Mr. W. Nash (Labour, Hutt): “Referring to the Executive Commission, is it not a full-time job?” Mr. Coates: “Abolutely. There is no question about it.” The Minister pointed out that the proposals were being considered for the export of all classes of beef to Britain. Two definite steps were being taken, one to get an extension of the present agreement for three months, and the other to get an extension for two years. They had to consider the question of definite quantitative restriction.

Mr. Poison: “In order to give immediate assistance to the industry it is necessary to have some organisation?” Mr. Coates: “Definitely.” “No matter how necessary it is to give assistance to the dairy farmer, or to any agriculturist, it would be very unwise to do so until we are able to handle it,” he continued. “The position is that we may be called on at any moment to consider the question of quantities. It may be quite wrong to bring this into the discussion, but prejudicial remarks have been made, and they were that this has been forced upon us. It was not. The thing is a clear-cut decision, made after the most careful calculations as to whether it would be wise to do this to-day. The best interests of New Zealand have not been served, because we have been hostile to Great Britain and have not tried to meet her conditions and to meet the sterling market.”

The Minister added that the changes which had taken place in the world, as far as New Zealand’s primary products were concerned, were not of New Zealand’s making. Other countries had placed limits on what, they would take. For instance, Germany took 250,000 cases of apples from New Zealand last year, but not one this year. What would the effect of that be? It could only cause these commodities to increase on the sterling market. Effect of Subsidy. Dealing with the position as far as subsidies were concerned, the Minister said that if a subsidy were paid the moment that there was a change in

the market price there would be a rush of commodities to that market, and everything would, be upset. Mr. Walter Nash (Labour, Hutt): “But you can deal with that.” Mr. Coates: “Yes, but we have not got as far as that yet.” 1 He added that there was strong public feeling in New Zealand in favour of going back to the old policy of laissez faire, but the Government wanted to try to meet the difficulties that existed in this and other countries. Something had to be done, and he did not care how it was done as long as it was done. The country had into a period of control, and other countries had gone further. Marketing Outlook. Mr. Coates said the present legislation affected only those produce boards which had legislation affecting them. If the boards desired to be brought in, that could be done, but it would have to be of their own volition. Was the country in a position to say what or how financial means should be provided to give the assistance that was asked for? What would happen when the industry was reorganised was another matter. He agreed that the commission’s work was a full-time job. The only way the small man’s interest could be looked after was by the appointment of the commission to have efficient organisation. Many marketing problems, such as quantiles and quotas, had to be considered. He thought the position the country was facing was being lost sight of, and in order to give the assistance required it was necessary to have organisation provided in the bill. New Zealand’s best interests had not been served, because she had been hostile to Britain and had not been willing to discuss matters with her. The present position was not of New Zealand’s own making, but was made by other countries, who were imposing quotas, quantitative regulations and similar things. New Zealand had put herself in a position to meet the changed situation.