PREFERENCE BENEFITS.

New Zealand Herald, Volume LXIX, Issue 21100, 6 February 1932, Page 10

PREFERENCE BENEFITS.

NEW ZEALAND ADVANTAGE. PRIME MINISTER PLEASED. WAY CLEAR FOR OTTAWA. RECIPROCITY NOT PREJUDICED. [BY TELEGRAPH. —I'RF.SS ASSOCIATION.] CHRIST CHURCH. Friday. Gratification that dairy produce was not included among tho exemptions from the British tariffs, thus giving New Zealand a definite advantage over foreign exporters of butter and cheese, was expressed by the Prime Minister, the lit. lion. G. W. Forbes, this evening. "At tho last Imperial Conference." said Mr. Forbes, "the Dominions made it clear that they were not looking for protection for wool, as that was tho raw product on which the great woollen industry of England was based. But it was thought to.be a reasonable thing to ask for preference in regard to butter and cheese. I feel gratified that this has been done, as there has been a certain amount of anxiety among dairy producers. ''The preference given to the Dominions paves the way for discussion at the Ottawa Conference, which will now be entered into in the best possible spirit. The position of Empire free trade has not been in any way prejudiced, and we may ] hope to make mutually satisfactory arrangements regarding reciprocal trade." | Mr. Forbes stated emphatically that ! I New Zealand would at all costs be repre- i sented at the Ottawa Conference, but the ' Dominion's representative at the confer- j enco had not yet been decided. i VIEWS OF MERCHANTS. MOST BENEFIT IN FUTURE. STEADYING EFFECT ON PRICES. The opinion that New Zealand would benefit considerably in the future, although perhaps not in the immediate present, as j a result of the British tariff proposals, j was expressed by a number of primary produce exporters last evening. The proI posed duty will place all New Zealand exports except wool at a 10 per cent, tariff advantage over foreign imports into Britain. "Although ultimately the proposed British duty should be a very good thing for New Zealand dairy produce," said an exporter of butter and cheese, "I do not think it will benefit us very much at this juncture, owing to the heavy supplies of butter now reaching Britain. At the moment it is very difficult to forecast what will happen. As far as I can see, however, the duty will benefit us in the immediate future to the extent of stopping any decline in price. Supplies of Butter. "It all depends on supply and demand. This season, with Continental countries confronted by the German tariff difficulty, England seems to be the only market open for Continental butter. In addition, there have been good seasons in New Zealand and Australia, and with these heavy arrivals on the British market I cannot see how we can expect a greatlyenhanced price. Ultimately, as the season affects the volume of production, the duty will be a distinct benefit to us. At any rate, it has put us in a 10 per cent, better position than before." The opinion that the duty was a step in the right direction, but that the real adjustment would be made at the Economic Conference at Ottawa, was expressed by another business mail in close touch with the dairy produce position. " While I do not think we should expect too much from it," lie said, " the tendency should be to make New Zealand produce more attractive in price to the British consumer. Influence on Prices. " I do not think there will be a very marked immediate effect. There may be a slight firming and then a steadying down process after a day or two. Arrivals on the British market are heavy, and, after all, we can only get what the consumer is willing to pay. I think that probably a lot of Danish butter will continue to enter the British market and that, instead of the public paying more for it, the Danish farmer will be content to receive less." " The New Zealand frozen meat industry should now find itself in a much more favourable position in relation to competition from the Argentine," said a leading meat exporter. " The Argentine has the advantage over New Zealand of an exchange depreciation of 15 per cent. Five months ago it was 30 per cent. This new move should help New Zealand very considerably toward making up some of this leeway. Argentine producers have been able to cut prices, but the new duty should nullify the benefit of this to a great extent. Interest in Dominion Good.". •'I do not think there will be any marked effect on meat prices at Home, but the spirit which has brought about the proposal for the duty will also encourage an interest in Dominion goods on the part of the public. Tho duty should help our lamb to some extent, and if no great influence is noticeable at first a tremendous influence should make its presence felt ultimately." "On the facte of it the duty should be of considerable assistance to New Zealand fruit producers, but the ultimate result is difficult to see at present," said a leading fruit and produce merchant. "The Continent, which now takes New Zealand fruit, may see fit to retaliate, and (his may offset any benefit. "At present New Zealand eggs do not appear in the picture and [ do not see any benefit to be gained by New Zealand in fiiat direction. Until wo pet cheap wheat we cannot compete in the egg market. From our point of view the hope of competing is worse at present 1 owing to the large wheat surpluses in ' other parts of tho world.'" 1