NEED TO PREPARE

New Zealand Herald, Volume LXXI, Issue 21793, 7 May 1934, Page 10

NEED TO PREPARE

AUSTRALIAN ATTITUDE SPEECH BY MR. LYONS MARKETING PROBLEMS ASPECTS OF THE; QUESTION A statement regarding restriction of exports was made by the Prime Minister of Australia, Mr. J. A. Lyons, in a speech at Hurstville, Sydney, Inst Monday evening. "The Cojnmonwealth Government lias always been opposed, and is still strongly opposed, to the policy of restriction of production and export," said Mr. Lyons, "and, in the interests of Australian primary producers, tho Government will not institute regulation of the export of butter and meat, unless, and until, it is absolutely necessary." Tho Government, however, Mr. Lyons continued, saw the virtue of preparing for the necessity which might arise because of the policies of other countries, including the United Kingdom. The Government was. therefore, considering aspects of the whole problem.

Mr. Lyons said that tho aspects the Government was considering were: — (1) Tho best means of organising Australia's primary industries to meet the position; (2) the basis for consultation with tho United Kingdom and the other Dominions; and (3) the possibilities of finding other markets, in tho event of British policy leading to a reduction, or stabilisation, of purchases of butter and other goods from Australia, below Australia's capacity to produce them. Organisation Question Dealing with tho means of organising Australia's primary industries. Mr. Lyons said that tho Government regarded it as essential that all industries likely to be affected should be adequately organised to meet the position. Tho Government had in mind the rationalisation of agricultural marketing, to cnablo tho industries concerned to adopt the same attitude toward adverse marketing conditions as would be displayed by well-organised secondary industries. If, despite tho efforts of the Government, definite limits were imposed upon tho sale of Australian commodities, by the partial closing of what was to-day tho only free market, organisation of industry was preferable to the chaos which would be tho only alternative.

"The British Government has not yet made any proposal, nor has tho Commonwealth Government," said Mr. Lyons. "When the time comes for the consideration of quotas, tho initiative about quantities will actually rest with Britain. In order that tho Commonwealth Government may bo in a position to negotiate with Britain, it has invited tho collaboration of tho States, and tho industries concerned, in the consideration of principles and methods. All of this work is preparatory, and does not involve any commitment." Securing Other Markets

Tho regulation of imports by tho United Kingdom might not mean a diminution of supplies from Australia below the present volumes, but might check further .expansion. If, therefore, owing to tho protection of British agriculturo, and tho commitments of tho United Kingdom in her foreign treaties, Australia was limited in the British market, it must do its utmost to securo foreign markets. That involved bargaining on a wide scale, and tho Government was already engaged 011 that task.

Mr. Lyons emphasised that it was clear from all the statistical facts that Australia would be faced in tho near future with decisions of the utmost importance in agricultural marketing. "Since tho Ottawa agreement," he said, "(lie Dominions have l:#d favoured conditions in the British market, but, in the meantime, European countries have increased their import restrictions, and supplies of foreign fcodstufis on the British market have not declined to the same extent as if other markets were available. Increased supplies of butter from tho Dominions, and the maintenance of foreign supplies have depressed tho market, with disadvantage to British and Dominion farmers."