BUTTER RESTRICTIONS

New Zealand Herald, Volume LXX, Issue 21468, 17 April 1933, Page 8

BUTTER RESTRICTIONS

Those who hoped that the abnormal condition of the British market for dairy produce would be met by quota restrictions applicable to foreign countries only, have been met by a definite refusal. The British Government has laid it down that national and international agreements prevent any further concessions being made than those already offered. The position therefore is that the preferential duty agreed upon at Ottawa stands. It has had little if any visible effect on sale conditions for Empire butter. If there is to be any limitation of imports, the Dominions will be affected by them as well as foreign suppliers; or, to put the position another way, unless the Dominions accept some measure of restriction on their shipments —they are guaranteed by the Ottawa agreements that there shall be none for some time to come without their consent —no quota will be established at all. Official opinion as expressed by the Dairy Produce Board is emphatically against accepting any restriction on New Zealand butter shipments. That decision, reaffirmed just before the holidays, leaves no more room for discussion in this country. The Government has undertaken to be guided by the board on this question. It has that body's conclusion in very definite terms. Delegates from the board are now on the way to Australia, where, incidentally, the 'dairying industry has expressed itself as being resolutely opposed to any restrictions. The purpose of the conference to be held is to co-ordinate shipments if possible, and thus to avoid such conditions as haVe complicated the position this season —heavy arrivals on a market already congested with supplies. It is a legitimate and desirable arrangement to make, one recom mended by the Imperial Economic Committee fully six years ago. By such organisation, by exploring new markets, and by creating goodwill in Britain through the encouragement of two-way trade whenever possible, there is more possibility of benefit than through the potentially dangerous device of quota restrictions.