DAIRY PRODUCE

New Zealand Herald, Volume LXXII, Issue 22172, 27 July 1935, Page 13

DAIRY PRODUCE

IMPORTS TO BRITAIN GOVERNMENT'S POLICY DUTIES OR LEVIES POSSIBLE British Wireless RUGBY, July 25 Questioned in the House of Commons to-day regarding the Government's policy for milk products, the Minister of Agriculture, Mr. Walter Elliot, replied that the Government would review the dairy produce situation fully before next March. However, as to the problem created by butter and cheese imports the Government was of the opinion that should conditions warrant continued assistance to the home industry it could be best afforded by a system of duties or levies, though the possibility could not be excluded that regulation of the market might sometimes be necessary. The incidence of any such duty or levy would be adjusted to maintain the existing, preferential margin for Empire supplies. The position of milk powder and condensed milk would receive separate consideration after a report by the Import Duties Advisory Committee had been received.

Under the Ottawa agreement the British Government is free after ' November 15 to impose either prefer--1 ential duties, or quotas upon dairy im--1 ports from the Dominions, i The relevant article states: —As regards eggs, poultry, butter, cheese and other milk products, free entry for New Zealand produce will bo continued for three years certain (from November 15, 1932). The British Government, however, reserves to itself the right after the expiration of the three years, if it considers it necessary in the interests of the British producer to do so, to review the basis of preference so far as relates to the articles enumerated, and., after notifying the New Zealand Government, either to impose a preferential duty on New Zealand produce, while maintaining existing preferential margins, or in consultation with the New Zealand Government to bring such produce within any system which may be put into operation for the quantitative regulation of supplies from all sources in the British market. The duties imposed on foreign dairy produce under the current agreement are: —Butter, 15s per cwt.; cheese, 15 F per cent ad valorem; unsweetened condensed milk and milk powder, 6s per cwt.; sweetened condensed milk, 5s per cwt. in addition to duty on sugar content. ~ OTTAWA AGREEMENT DOMINIiONS AND BRITAIN COMPARATIVE BENEFITS LONDON, July 25 The Federation of British Industries, in a survey of commercial policy, states that the Dominions have reaped more from the Ottawa agreement than has Britain. It adds that before the next Imperial Conference Britain must decide whether the treatment of the Dominions shall be based on reciprocity instead of continuing the free entry of goods, irrespective of the treatment British exports receive in the Dominions.