BUTTER QUOTA

New Zealand Herald, Volume LXX, Issue 21471, 20 April 1933, Page 11

BUTTER QUOTA

OPPOSITION OF FARMERS MAINTAINING OTTAWA SPIRIT ADJUSTMENTS IN TARIFFS [bt TELEGRAPH—OWN" correspondent] •WELLINGTON, Wednesday The crisis which has arisen in regard to the marketing of New Zealand dairy produce in Britain was discussed by the Dominion executive of the New Zealand Farmers' "Union to-day. The president, Mr. W. J. Poison, M.P., said restriction would lead to stagnation in the industry, and would also give to its development a check, which might become permanent. It would probably mean the repudiation of the country's obligations and might lead to serious internal troubles.

"I say here that the Ottawa agreement means what it says," Mr. Poison said, "and that it is the only means by which we in this Dominion can hope to recover our position. We have got to the point when we have to offer Britain something in exchange for what she is prepared to offer us. Consequences Feared "New Zealand cannot afford to admit the principle of quotas. We have to say to the British people, 'We will offer a quid pro quo. We will stand on the Ottawa agreement and see that it is put into effect on the principle which you undoubtedly intended when it was signed.' " If that were not done, Britain would adopt a plan to help her own farmers, and the consequences as far as New Zealand was concerned would be " too horrible to contemplate." ' Mr. Poison said that after conferring with leading dairy farmers in Taranaki he had sent a telegram to Mr. Dynes Fulton, chairman of the Dairy Board, stating that the farming community generally supported his attitude regarding a free market and opposing the fatal principal of quotas. In reply, the board had stated it was standing firmly to its decision to oppose any restriction on exports. "Further," the reply stated, "we will again approach the Government urging a reduction in tariffs on British goods coming into New Zealand."

Mr. Poison said that they might have to agree to some form of quota for a few months, but it should be only a temporary expedient. A Demoralising Effect

Mr. R. H. Feist commended the Dairy Board for having taken a long view of the quota question. It was obvious that the glut at Home was not as severe as was stated, as a large proportion of the population was not getting all the New Zealand produce it wanted. -<• Mr. J. A. McLeavey thought the quota principle would demoralise the dairy industry. The British farmer was getting Is 6d per lb. for butter, and £35 for fat cattle, so the New Zealand dairy farmer could not be doing him much harm. Mr. L. Hammond thought there was a difference between restrictions and quotas. They could not tolerate both. If butter went down to 45s or 50s, something drastic would have to be done. Perhaps it was-not wise to condemn restrictions which might later be found advantageous. Mr. It. S. Chadwick said it must be understood that New Zealand conld not have it both ways. Could it be seriously suggested that New Zealand could keep its surplus produce/ until the British people could consume it? The great failing was on the part of New Zealand in not taking its quota of imports. Mr. H. L. Mellsop said a commen-' surate reduction with the raised exchange should have been made in tariffs. Keeping to First Grade Butter Mr. Poison said that something could be done to prevent the export of second rate and whey butters. There were 1000 tons of second rate and 1250 tons of whey butter produced annually in New Zealand which should never bel allowed to go out of the country. Another suggestion which he thought worthy of consideration was the making of bread with 50 per cent milk and 50 per cent water as liquid constituent. A good deal had been said, continued Mr. Poison, about tariff adjustments in' connection with exchange. The rest of the community had to realise thtf fact that the farmer had to be helped for the good of the rest. They could not live to-day without inflation, because other countries had adopted it. Whether the principle was a good one or a bad one, he was not prepared ta say.

Mr. Poison moved a resolution urging that the spirit of the Ottawa agreement be given full effect to, and strongly condemning any support of the fatal principle of quotas. The reso-. lution further urged that all rural interests should adopt a common, platform, standing on the agreement, and demanding that it be interpreted 111 the spirit in which it was \intended, namely, offering Britain such tariff ad-< justments as would secure reciprocal advantages from the continuation of it. The resolution commended the actios of the Dairy Board in regard to the question of quotas and offered the sup* port of the Farmers' Union in maintaining that attitude at all costs. The motion was carried unanimously^