QUOTA ON BUTTER

New Zealand Herald, Volume LXX, Issue 21473, 22 April 1933, Page 13

QUOTA ON BUTTER

GOVERNMENT'S POLICY

PROPOSAL BEING DEBATED INDICATION _BY MR. COATES An indication that the Government was considering whether it might not bo preferable to agree to a restriction on tho imports of. New Zealand butter into the United Kingdom for a limited period was given by the Minister of Finance, the lit. Hon. J. G. Coates, in addressing the Auckland Creditmen's Club yesterday. Mr. Coates made it clear that he was not speaking from any determined viewpoint, and his references to the problem were mainly/ made, in a series of questions, which indicated that his views on the subject were still tentative. Discussing tho Ottawa agreements, Jfr. Coates pointed out that the prico of lamb had risen from 5d at the time tho agreements were made to about 6}d now, while the outlook for wether mutton and beef was better. Had much hardship followed the restrictive methods agreed to at Ottawa? So far as Mr. Coates could see, the results had been quito successful. Prob/em of Raising Prices Examining the effects of tho duties placed on f<)reign primary products, Mr. Coates said the duty of lss a cwt. on butter gave New Zealand butter to-day an advantage of 22} per cent ad valorem over the foreign product. He could not say that the results, as far as butter was concerned, had been successful, although similar methods had certainly put Dominion fruit-growers on a better footing. " I am not speaking from any determined viewpoint," said Mr. Coates, " but I do consider the solution of our problems will be assisted materially if we can raise piices. Is it possible to kdopt much the same method in regard to the export of butter as has been adopted in regard to meat? The butter agreement will be overhauled in about two years from now—not that the duties will be interfered with, but the whole question will be reviewed. " Is the United Kingdom likely to say at the end of two years that it has had enough of its market being knocked about by tho importation of Empire and foreign butter? The agriculturists in Britain produce only about 40,000 tons of butter a year, but it seems that the United Kingdom is determined to give its farmers a greater opportunity to produce more for the British market. Shilling a Pound Prospect " restrictions on butter be effective? For many years Britain has been trading with neighbouring European countries, and those old ties will not be lightly severed. As I understand the matter, representatives of the butter trade in London discussed the position with representatives of the various Dominions. The authorities in England virere then asked what could be done to raise the prices of this commodity. If we are unable to get satisfactory prices we must become dangerously near to the point when we will be unable/to meet our responsibilities with Britain. I mean no more and no less than just that. " Can we restrict the amount of our butter imports into Britain for a year or two? I do not think it necessary to reduce production. I am now using imaginary figures. Could we sell 110.000 tons in the United Kingdom instead of 115.000 tons? The pay-out now is 7d or 8d a lh., and if it were in gold it would be only about 3£d. If we could get Is for 110,000 tons, we would have to see what we could do with the 5000 tons for, say, three years. The suggestioh is that" the foreigner would be restricted two tons for our one ton.

" The thought I want to leave with yon is that this is a vital matter. The problem at the moment is to know how farmers are to pet credit. It is thoroughly worth while examining this question. It is an important question which is of practical concern, not only to the farmer, /but also to the trader dependent upon him."