THE ORANGE TRADE

New Zealand Herald, Volume LXXI, Issue 21911, 21 September 1934, Page 10

THE ORANGE TRADE

The New Zealand public is not likely to accept as readily as Mr. Coates the statement that no unreasonable profits are being made out of the South Australian oranges now being imported under a month to month restriction system. It is difficult to believe that, notwithstanding the overhead, oranges selling retail at four and five for a shilling are not giving an excellent return somewhere. As far as consumers are concerned, it does not matter who is reaping the profit, for it is inevitable when the supplies of a commodity in demand are restricted, that opportunity will be taken somewhere on the line between production and distribution to turn the situation to pecuniary advantage. Mr. Coates has again explained the reason why restrictions were imposed. It was to retain bargaining power in respect of the export of other products of the soil, notably potatoes, to Australia. The Federal election provided the Australian authorities with a plausible excuse for the delay in getting to grips with the matter. Mr. Coates, however, should not be too patient or too credulous. At present he is playing the cards for the Australian Government in this orange business. So long as oranges are being purchased and* the growers are obtaining a satisfactory return, there will be no Australian effort to reach finality in an agreement which", so far as potatoes are concerned, will have political reactions for some of the representatives of Victoria and Tasmania, one of whom is the Prime Minister himßelf. The New Zealand potato and vegetable grower, under the circumstances, is entitled to export these commodities to Australia when a market is available. If, however, the Federal authorities continue to hang fire in the matter of reciprocity the New Zealand Government will be justified in exerting pressure through other classes of merchandise. It probably would not require more than a threat against some of the manufactures of Australia to end the trouble. Mr. Coates should meet the Australian authorities in a manner that is forthright and uncompromising. They understand that attitude quite well.