BANANA TRADE

New Zealand Herald, Volume LXIX, Issue 21325, 28 October 1932, Page 12

BANANA TRADE

LIMIT ON IMPORTATIONS RESULT OF OVER-SUPPLY HELPING ISLAND GROWER ORDERLY MARKETING SYSTEM I Tny TKI-F.GIt.VPH —SPECIAL nKPOTITER] ■WELLINGTON, Thursday The announcement that the importation of bananas to New Zealand would be limited to 25,000 cases every four weeks from May to September, and to 30,000 cases during the remainder of tlio year, was made in the House of Representatives by the Prime tho Rt. Hon. G. W. Forbes, to-day, in answer lo an urgent question in which Sir. W. E. Barnard (Labour— Napier) asked whether tho quota system was being introduced in order to benefit importers. " Owing to the considerable over-supply of bananas to the New Zehland market, which resulted in ruinous prices and heavy losses to all supplying countries (including the Cook Islands and Western Samoa), the Government lias decided to limit the quantities to be shipped so as to allow importation into New Zealand of a total quantity of bananas equivalent to 25,000 'Fiji* cases every four weeks during the months of May, June, July, August and September, and 30,000 cases during the remainder of tho year," replied Mr. Forbes. "These quantities arc considered to be tho utmost that can be absorbed in the Dominion at a price that will enable the growers to supply. No proper indication of average prices can, of course, be obtained from the sales in October, November and December, when prices aro invariably higher than during tho remainder of tho year. "In the absence of some such agreement, many growers were on the point of being forced out of production, and the result would liavo been a shortage of supplies, with a corresponding increase in price to the consumer in New Zealand, followed by disturbing fluctuations both in supplies and in prices. " The position of growers in the Cook Islands and Western Samoa was most serious and tho Qoverumeiit was icluctant to' consider anything in the nature of a duty, which would be the only alternative to tho quota system. Tho present arrangement is considered to bo in the best interests of both the producers and consumers, who will each benefit by a system of orderly marketing." Mr. Barnard also placed on the Order Paper another question regarding bananas. Mr. Barnard said that tenders were called from Wellington, Auckland, Christchurch and Dunodiii, and he asked (1) whether tenders were not received from all four centres; (2) whether tho tender of Turners ami Growers, Limited, of Auckland, acting for themselves, Radley and Company, Limited, and A. B. Donald, Limited',.on behalf of the whole of New Zealand, was accepted, the reason given being that the department preferred to deal with a single purchaser; (3) whether tho price paid by tlio Auckland tenderers was not less than the average price of three Southern tenderers; (4) if so, what reason was there for the acceptance of such tender; (5) what was the accepted price.

APPROVAL OF MEASURE

CITY MERCHANTS' OPINIONS QUANTITIES QUITE SUFFICIENT Fruit merchants of the city expressed satisfaction with the step taken by the Government when Mr. Forbes' announcement was referred to them last evening. The opinion was generally expressed that importations had been much too heavy for the requirements of the New Zealand market, and gluts which had occurred at certain times previously had not only been damaging to the banana grower, but had also caused considerable loss to local growers of stone fruit. " The proposals will make for stability to the benefit of the producer, the consumer and the trade," said Mr. A. W. Allan, managing-director of Radley and Company, Limited. Air, Allan considered that too many bananas were being imported during the winter months alid the institution of the quota system would make the business a more payable proposition to everyone concerned. The public would nob be asked to pay too high a price during this period because the demand was usually considerably curtailed. The quantity of 30,000 cases fixed for the summer months was considered by Mr. Allan to be quite sufficient for the whole of New Zealand. During the early part of {his year supplies .were far too heavy for the market, and prices receded to a very low level. As a result, one or two producers had lost heavily in the business. When prices were normal, conditions in the market were .usually much healthier. The quantities fixed by the Government under the quota were also approved by Mr. E. C. Turner, of Turners and Growers. Limited, who stated that they were larger than recent arrivals. In February last, 60,000 cases were landed on I lie market jusfc at the time when the stone-fruit season was at, its height. As a result, prices' were ruinous in both classes of fruit. The measure would steady the market and avoid the possibility of upsetting the local fruit growers' market.