DAIRY PRODUCE

New Zealand Herald, Volume LXXII, Issue 22191, 19 August 1935, Page 11

DAIRY PRODUCE

LIKELIHOOD OF LEVY REQUEST FOR CONSULTATION FRUIT EXPORT AGREEMENT FOREIGN SUPPLIES DANGER [by telegraph—OWN correspondent] •WELLINGTON", Sunday Referring to the statement made on his return to New Zealand from London this evening to the discussions with the British Government on the subject of dairy produce, the Minister of Finance, Mr. Coates, said:— "In November, 1935, the British Government is freo in terms of the Ottawa Agreements either (1) to impose a duty on Empire dairy produce, or (2) to introduce quantitative regulation. For the three years since 1932 neither of these could be done without our agreeing, to waive our Ottawa rights. In the first case a margin of 15s a cwt. (15 per cent on cheese) must bo maintained during the period of the Ottawa Agreements in cur favour. It happens that agreements with Denmark and other European countries—the 'black pacts,' which are current until the end of 19$G —prevent the United Kingdom from increasing the duty on their butter above 15s a cwt., hence ours must remain free till then, in the absence of an agreement by foreign countries to waive tho los maximum. The intentions of the British Government, which on the present showing will involve a levy on all produce, Empire included, rather than regulation of supply, have been indicated to us generally, and a letter from the Dominions Secretary makes a formal record of the matter. "Our request has been that beforo so important a matter is decided upon it should be the subject of consultation to which we are a party. The British Ministers, tho Prime Minister," and the Dominions Secretary, on July 17, and the Minister of Agriculture on July 18, agreed to this. "Australia and New Zealand, through their producers' boards, agreed on the respective aggregate supplies of fresh apples and pears to be exported to the United Kingdom. As a sequel to this, it remained to ensure that the market would not be spoiled and the Aus-tralian-New Zealand agreement undone in its effects by an unlimited flood of foreign imports. That this should be attended to was the substance of our 1935 requests to the British Government."