THE New Zealand Herald AND DAILY SOUTHERN CROSS THURSDAY, NOVEMBER 12, 1936 BRITISH DAIRY IMPORTS

New Zealand Herald, Volume LXXIII, Issue 22574, 12 November 1936, Page 12

THE New Zealand Herald AND DAILY SOUTHERN CROSS THURSDAY, NOVEMBER 12, 1936 BRITISH DAIRY IMPORTS

Although on his visit to London Mr. Nash will be concerned with securing the best terms obtainable for all New Zealand items of trade, it is probably more than a coincidence that, in the interviews published this morning, the Minister of Marketing refers specifically to one item only —dairy produce. Butter and cheese slipped into the background in negotiations with the British Government after the unfruitful mission to the Dominion of Mr. T. Baxter in 1933, a year after the Ottawa agreements were signed. On the other hand meat has been the subject of almost continuous negotiations for the last two years, with the result that last July Britain defined the basis on which she would trade with the Dominions and foreign countries. In this department it remains for Mr. Nash to finalise the arrangements so far as New Zealand is concerned and settle the actual details. The bargain struck by Mr. Coates in London 16 months ago is due to expire on December 3, but, with policy defined and negotiations at a forward stage, Mr. Nash should have ample time to conclude the details of what is expected to be a long-term pact. As to dairy produce, there have been, so far as is known, no British official statements bearing directly on the import trade. Speak- ; ing from the standpoint of nutrition J and national health, Mr. Baldwin ' and other Ministers have favoured \ increased consumption as the soundest 1 policy for the people and, in the long run, for British farmers. These latter, however, are by no means satisfied I with the existing state of affairs j under the Ottawa agreement, which j permits the free and unrestricted ! entry of Empire dairy produce. They ■ have a large and increasing surplus of milk over liquid requirements, a surplus manufactured into butter and cheese for which they demand protection from the competition of imports. The Ottawa duties on foreign butter and cheese are regarded as ineffective. Having defined its policy in relation to the other main items of food imports, the British Government may be expected to turn to dairy produce. From what direction the approach will be made is at present uncertain, and the more so because Mr. W. S. ' Morrison has but recently succeeded | Mr. Walter Elliot at the Ministry of • Agriculture. Mr. Morrison has yet to make a statement of his policy. ' Nevertheless, decisions on dairy i imports cannot long be delayed. I Most of the trade agreements with foreign countries have expired, the two most important, those with Argentina and Denmark, being at present in suspension. The same is believed to apply to certain of the Baltic dairy producers. So far as the Dominions are concerned, Britain has been at liberty to vary the Ottawa agreements in certain specified ways at any time after August 20, 1935. The agreement in chief is due to expire, subject to denunciation at six months' notice, on August 20 next. But, in respect to dairy produce, the British Government reserved the right after August 20, 1935, if it considered it necessary in the interests of the British producer to do so, to review the basis of preference, and either to impose a preferential duty on Dominion produce while maintaining existing preferential margins (against foreign produce), or impose all-round quotas. Britain has not attempted to exercise this option, probably because until recently her hands were tied by the foreign pacts. In any case, she undertook not to make any change without notifying and consulting the Dominions, a pledge renewed to Mr. Coates when he was in London last year. Now that Britain is free to act, what will she propose 1 Mr. Elliot's policy of quotas, the economics of scarcity, is largelydiscredited. On the other hand the idea of improving national nutritional standards has won remarkable acceptance among all parties, persuaded by the figures, the science and the eloquence of Sir John Orr, and the enthusiasm of the Minister of Health, Sir Kingsley Wood. When, therefore, in his first interview on English soil, Mr. Nash spoke of Britain's butter consumption in relation to the standard of human needs approved by nutrition experts, he was sowing seed in ground already well tilled. He mentioned an increase of consumption by 50 per cent as a possibility. In that case Britain would have to come on the market for an additional 240,000 tons of imported butter, a possibility of enormous significance to New Zealand as a whole, and the Auckland Province in particular. Nor should it be considered impossible, if it be remembered that British imports have increased by 50 per cent since 1929. A second similar increase would raise consumption per head from 251b. to 37Jib., or 2Alb. less than present sonsumption in New Zealand. The British people would no doubt be quite willing to rise to the Dominion standard, the obstacle being purchasing power. If they are to continue increasing the individual ration—it was only 1411b. in 1924 butter must continue to be sold at reasonable prices. Mr. Nash's policy should be, therefore, to preach the economics of abundance. Whether that fits in with his ideas for " rationalising Empire trade," for orderly and ordered marketing and planning, is open to doubt. He appears to have it in mind to deal with Britain in quantities, just when the threat of quotas is diminishing. It will be interesting to see how he proceeds in London and what progress he makes with the British Government.