Holland Predicts Rise In N.Z. Food Prices

Northern Advocate, 6 April 1948, Page 5

Holland Predicts Rise In N.Z. Food Prices

HAVANA CHARTER EFFECT .

CHRISTCHURCH, Tue. (P.A.). —Big increases in the prices of foodstuffs and other staple commodities pi’oduced in. New Zealand were likely when the Havana Trade Charter was ratified if a comment by Mr Nash was to be taken' at its face value, said the Leader of the Opposition (Mr Holland) at a party meeting last evening. ■ i

Mr Holland was referring to what Mr Nash had said about the conference decision on subsidies. paid to producers to enable prices to be kept down on the home market, and he pointed out that this involved prices paid in New Zealand for butter, bread and locallymade clothing and footwear. “LOOSELY WORDED” “I have been very interested in reading Mr Nash’s statement on the results of his long sojourn in Havana,” said Mr Holland. “The statement is couched in the loosest possible terms and much of it appears to be contradictory. “Nobody can quarrel with the objective of freer world trade, but the thing that puzzles me is how one can reconcile greater freedom of world trade with retention of such restrictive practices as import prohibitions and similar controls.

“It appears that the precious principle of Imperial Preferences is to be seriously curtailed, but . further comment on this score must be withheld until the full agreement is available for closer examination.” ESCAPE CLAUSES . Mr Holland quoted the London Economist, which had said: “At one time the charter was said to contain five articles with 55 escape clauses.” ‘This appears to be an important feature of recent international agreements,” an escape clause for almost every undertaking,” continued Mr Holland. “We all remember the famous agreement signed by New Zealand that import restrictions would not be used to protect home industries to the disadvantage of trade with Britain. “That agreement is observed mainly in the breach.”

Mr Holland further quoted the Economist: “Each of the five main questions has been covered by complicated and almost unintelligible compromise clauses.”

There was, however, one statement by Mr Nash which was of the greatest importance to New Zealand. It was one of the few comments written in clear and definite language, said Mr Holland.

Mr Nash, at a Press conference in Wellington on Saturday, had said: “A limitation was proposed on subsidies and a country was not allowed to subsidise its bwn producers to enable commodities to be sold to its own people at a lower price.” butter, bread up? “If that means what it very clearly says, the price of butter to the New Zealand user will probably be upwards of 2/6 a lb and a 41b loaf of bread'will go to something like 2/-,” declared Mr Holland. “There will also be a big increase in the price of woollen goods, because the Government has at present to meet a very substantial part of the price of raw wool by way of subsidy.

“For the same reason a big jump can be expected in the retail price of boots and shoes.”

Mr Nash had apparently agreed that New Zealand should no longer subsidise local production in order to sell more cheaply on the home market. “This appears to be one of the few provisions without an escape clause,” Mr Holland added.