QUOTA PROPOSAL

New Zealand Herald, Volume LXX, Issue 21462, 8 April 1933, Page 13

QUOTA PROPOSAL

OPINION NOT UNANIMOUS RESTRICTION OF FOREIGN FURTHER MOVE IN LONDON The question of the limitation of butter supplies to Britain remains the dominating influence in the market. Several private cablegrams have been received from London, and opinion is not unanimous among importers. A Press Association message despatched from London on April 6 states that Australian and New Zealand butter importers have appointed a deputation to meet the Minister of Agriculture, Major W. E. Elliot, to ask for a restriction of foreign supplies. In the meanwhile, the estimated arrivals of Danish and other Continental butters in Northern England are now 50,000 weekly in excess of the figures fo. 1932, and are seriously affecting the demand for Dominion butter. Following the recommendation cabled frcrni London that New Zealand producers should 'adopt a voluntary quota system, the New Zealand Producers' Co-operative Marketing Association, Limited, at the request of its factories, cabled its London office for its view upon the question. The following reply has been received and circulated:—"lmporters' Association here has cabled Exporters' Association your end suggesting a recommendation that the New Zealand producers should accept a quota system as a partial remedy of the present market difficulties. Our opinion and also that of other Tooley Street houses is that a quota or any other policy to bo adopted is one entirely for decision of the New Zealand producers, and not Tooley Street."

More detailed information was also sought by Amalgamated Dairies, Limited, whose London manager has now advised in reply that a number of importers dissent from the terms of the cablegram recently sent to New Zealand from the Importers' Association. The company was also informed that the cablegram was framed by a small committee. For the five months ending February, 1933, as compared with the previous year, arrivals of butter into the United Kingdom were 9000 tons less foreign, and 9000 tons more Empire. Re-exports were down 11,000 tons, which constituted the excess stock over last year. The cablegram to Amalgamated Dairies further stated it was not anticipated that the total Continental supplies during the next six months would exceed last year's figures. In answer to its inquiry the company was informed that its presumption was correct, namely, that recent cablegrams were propaganda issued by interested parties, including those companies directly concerned and financfally interested in foreign trade, and those interests which wore holding: a considerable quantity of Australian and New Zealand produce. The message added that without restriction prospective New Zealand quantities could be marketed, but the price would depend on the quantities of butter received from the Continent, and the development of the present Australian dry weather; also • what steps could be taken to advertise Empire butter. It was estimated that butter restriction of 24,000 tons from all sources would raise, prices over the year from 5s to 6s per cwt. The company's London manager further stated he was co-operating with other interests in an endeavour to get New Zealand and Australian importers to agree to fix a minimum sale price to the end of April, thereby preventing further and unnecessary reductions.

ORIGIN OF PLAN BRITISH FARMERS' PLIGHT OPPOSITION BY DAIRY BOARD [by telegraph—OWN correspondent] NELSON, Friday "It is quite clear that the British Government, if it adheres to the Ottawa agreement, cannot impose restrictions on Empire produced butter and cheese for another two and a-half years," said Mr. T. C. Brash, secretary of the New Zealand Dairy Produce Board, in an address at a meeting of dairy farmers at Brightwater. "It has to be admitted, however," he continued, "that the very low prices ruling in London for butter and cheese are spelling ruin for British farmers. "The suggestion to restrict the quantities of butter and cheese being imported has arisen from the report of the commission set up to organise the milk business in England and Wales. This commission has recommended the establishment of a control board under an Act of Parliament and the indications are that the Act will come into force. If it does the milk of over 3,000,000 cows comes under the control of the board and can only be sold to distributors by the board. Included in the report of the commission there is a strong recommendation that restrictions shall apply to the importation of nutter and cheese to enable the price of milk to bo kept up. "The board's London manager and the High Commissioner for New Zealand have been associated with all the discussions on this problem in London and have made the most vigorous protests. The board has carefully considered the restriction proposals and fully realises the seriousness of any action of that kind. It is not prepared to be stampeded into agreeing to the suggestions which have been made.

"Whatever may be found necessary in the future the board is unanimous in its decision to oppose restrictions at present. A delegation of the board is meeting the Australian Dairy Board in Sydney on April 18, and the wholo question will be fully discussed at that conference. The New Zealand Dairy Board will,meet the day following the return of the New Zealand delegates from the Sydney meeting."