MARKET FOR ONIONS.

New Zealand Herald, Volume LXVII, Issue 20620, 19 July 1930, Page 14

MARKET FOR ONIONS.

DOMINION GROWERS' PLEA.

PROTECTION AGAINST IMPORTS

EFFECTS OF FORWARD DELIVERY. [RY TELEGRAPH. —SPECIAL REPORTER.] WELLINGTON. Friday. .Adequate tariff protection against the importation of onions from the United .States and Japan was urged on the Prime Minister, the Hon. 0. W. Forbes, to-day by a deputation of Auckland and Canterbury onion growers. .An unusual feature of the case stated was that the foreign article was not undercutting the New Zea land product, but that, merchants, by accepting heavy forward deliveries of irn ported onions, refused to buy New Zealand onions until foreign storks had been cleared, fn promising to 'investigate the questiop the Prime Minister said he would like to see the New Zealand growers supplying the local markets for as long as possible each year. Introducing the, deputation, Mr. J. N. Massey, M P. for Franklin, said the New Zealand growers had been handicapped because of the unsatisfactory prices they had been obtaining. Hugo quantifies of overseas onions had been "dumped" on the local markets prior to the opening of the New Zealand season, and the deputation asked the Prime Minister to consider a request for greater protection. In the Pukekohe district a number of growers had ploughed in their crop 3 rather than harvest them, while in other rases ridiculous prices like £2 10s and £3 a ton had been received, whereas the cost of production was about £6 a ton. Japan and America. Mr. 0. T. Parvin, of Pukekohe, said that while the quantity of imported onions from Australia and Canada had fallen off during the period from 1927 to 1929 the quantity from Japan and the United States had greatly increased. In 1927 the amount imported from Japan and the United States was 610 tons, valued at £5752, but Inst year the amount was 2294 tons, valued at £22,279. Jhe United States had closed the door against New Zealand wool, butter, meat and other products, the duty in the case of onions being £9 a ton against New Zealand and Australia.

The trouble was that merchants were importing under forward delivery arrangements, and while the local onions were equal in quality to those imported and were much cheaper, they could not be disposed of. The suggestion the deputation wished to make was that while the price of New Zealand onions was not above £8 no imports should be allowed. After the price of the local product exceeded £3 Canadian and Australian onions should be allowed in at a duty of £1 a ton. However, in the case of America, it was suggested that the duty should be £9 a ton, as was enforced against New Zealand onions imported into America. Reciprocity with Australia.

The Australian duty on Japanese onions was £6 a ton, and it was urged that New Zealand should raise the present duty of £1 against Japan to the Australian level. As New Zealand was in process of negotiating a reciprocal treaty with Australia, the time seemed opportune to discuss with Australia the application of a similar duty against American onions.

The Prime Minister: Would you be able to keep the New Zealand markets supplied all the year round' Mr. Parvin: 1 feel we could do that. If we get protection, we will be able to go in for a larger acreage and to arrange for cool storage accommodation. In endorsing Mr. Parvin's remarks, Mr. D. Good, of" Marshlands, Canterbury, pointed out the peculiar difficulties of the Canterbury growers. Twenty years ago Canterbury was virtually the only oniongrowing district in the Dominion and consequently supplied the North Island market. Since the development of the industry in the Auckland district Canterbury growers had to stand by until the onions produced there had been consumed. Supplying Local Market. Mr. Good was confident that New Zealand growers could supply the local markets until October, after which it was suggested that Canadian and Australian importations should be allowed. In the past there had not been satisfactory cool storage in Canterbury, but a freezing company hac*l now promised to see whether it could not provide such accommodation, which would allow of the local onions being held until the end of September in perfect condition. The representations of the deputation were endorsed by Mr. R. W. Hawke. M.P. for Kaiapoi, and Mr. D. Jones, M.P. for Mid-Canterbury. The Prime Minister said he wouto be pleased to investigate the matter. What was usually asked for was protection against low-priced imports, but in this case the circumstances seemed peculiar, in that protection was sought against the importation of a product priced much higher than the local article. He could not see why merchants should prefer to pay such prices so greatly in excess of the price of the local product. However, he would like to see the local growers able to supply the New Zealand market and he would soe what could be done.