DAIRY LEVIES LOOMING

New Zealand Herald, Volume LXXIII, Issue 22355, 28 February 1936, Page 10

DAIRY LEVIES LOOMING

An answer to a question in the House of Commons serves as a reminder to New Zealand that the British trade agreement with Denmark expires on April 24, or less than two months hejice. Unless a new agreement is concluded in the meanwhile, Brititin 1 will then be freed from the restraints imposed by the Danish and Ottawa pacts from imposing duties or levies on imported dairy produce. The present tariff applies to foreign produce .only. The President of the Board of Trade, Mr. Runciman, informed the Commons that arrangements are being made for further negotiations with Denmark. British export trades, and particularly coalmining interests, will no doubt work for a continuation of an agreement on the present lines. On the other hand, the agricultural party will seek to gain more protection for home producers against Danish dairy competition and hag also been asking for more shelter against Dominion imports. The finances of the national milk pool are seriously prejudiced by the low prices British farmers arc receiving for the surplus over requirements, which is manufactured into butter and cheese. It was this embarrassment, then much less pronounced, which prompted Mr. Baxter's visit to New' Zealand in 1933, in an effort to have the Ottawa agreement varied by the admission of quotas. Since then British opinion has moved away from food restrictions, and the Government has declared its adhesion to the import levy policy, • the proceeds of the levies to be earmarked to assist British farmers. A determined effort to have this policy applied to dairy produce is to be expected as soon as the Danish agreement expires, thus freeing the British Government's hands. In the present state of the market, such a levy would fall, not on the British consumer, but on the Dominion and foreign suppliers. Even a small levy would cost New Zealand farmers dear x So far Mr. Savage's Government does not seem to be awake to the issue. It is high time active steps were being taken to safeguard this' Dominion's interests.