DAIRY INDUSTRY

Nelson Evening Mail, Volume LXVI, 1 May 1934, Page 5

DAIRY INDUSTRY

THE POSITION TO-DAY REFUSAL OF BRITAIN’S REQUEST PLAIN TALK BY Mil COATES (By Telegraph—Press Association) AUCKLAND, This Day. The opinion that the position winch the dairying industry hud reached today was the result of the industry refusing to allow a discussion of the British request that New Zealand should co-operate in an effort to improve prices was expressed last evening by the lit. Hon. J. G. Coates in a speech at Papakura On all occasions when Britain made a special request, said Mr Coates, New Zealand should take it seriously, and discuss it. This had not been done. The Dairy Board had been divided in its opinions about “fifty-fifty,” and a division of opinion would lead to ruin. He did not want them to think he was blaming the Dairy Board. The Government might have been at fault. Today they were facing a crisis, and there was no alternative but for the Government to make a decision. \ It was essential to have the co-operation of the industry, but first of all the matter required leadership. “I have been accused of being one who advocates planning,” said Mr Coates. “I definitely am a planner. For the life of mo I cannot see how in the present economic conditions we will get anywhere unless we have a plan. It may mean the control of regulation, and it may leave the responsibility on certain shoulders, but we must have our policy and our programme.” Mr Coates reviewed the Ottawa- agreements, and referred to New Zealand’s exports to Britain of primary products. New Zealand overstepped the mark, ho said, and it was very unfortunate that we did. It was a case of too many cooks. An eagle eye should be kept on exports from New Zealand He thought that in the next few years there would be a very marked' development in chilled beef. They would need to be very wary of bringing about a breach between British and New Zealand agriculturists. As a result of the war the policies of the various countries grew' to be ones of the self-sufficiency of Britain, but nosy she said she had to look after her own fanners. Was it possible for these producers to be content to try to compete against other countries’ surpluses? All countries Were planning and New Zealand could not stand out. Whether they agreed with -quotas did not matter very much. Quotas were there, and they could not avoid them. They could make it difficult for the United • Kingdom, but they had no right to make it difficult. They must stand by the Motherland. They could not allow the gap to grow, but must make every effort to close it. By far the best plan for New Zealand was to endeavour to work with Britain on the basis.of quantitative regulation. “Britain i s just as good a place as Denmark for cows,” said Mr Coates, “and,they can increase their Cows in no time with a subsidy for surplus milk in Britain. Now Zealand in my opinion is up against an almost hopeless position as far as cheese is concerned.” As the result of the hesitating of the leaders of the industry refusing to allow the leaders of the Government to discuss the situation, the position had become disheartening, but they had to pull themselves out, and he thought they could do it. There was a warm feeling for. New ; Zealand at home, and it was up to the Dominion to co-operate. A cablegram had been despatched, and a reply was expected to-day as to what Britain was prepared to suggest. Mr Coates said there was no division in the National Cabinet to-day concerning Britain’s policy of promoting planned marketing. Political thought in Britain was more or less unanimous that this policy was necessary to lift the British farming industry out of the doldrums.

Mr Coates enumerated questions which the New Zealand dairying industry could ask itself when facing the problem of the future. There were two phases, organisation within the industry and organisation without. Its Government would call in the best advice. Once they had made up their minds what was to be done, then they must have tlie people driving along the same roads. In hia opinion there had been a great deal of loose talk about quota proposals. He urged them not to be misled by the proposal to give a subsidy. They knew Britain objected to a country which subsidised its exports directly. Their best course was to work in a direct line and in close association with Britain. By doing that they would be doing the best thing to help themselves. WELLINGTON, This Day. Questioned in regar to Mr Coates's dairy statement, Mr Eorbes said that so far no cablegram had come to hand from the British Government.