POTATOES AND MR. NASH

New Zealand Herald, Volume LXXV, Issue 23129, 30 August 1938, Page 10

POTATOES AND MR. NASH

While potatoes continue scarce and dear in Australia, the New Zealand market is glutted and South Island growers must either accept unpayable prices or allow their crops to rot and accept a total loss. The melancholy facts follow on the complete failure of Mr. Nash, in making the new trade agreement with Australia, to obtain any concessions for the potato growers. The agreement, concluded on March 1, granted local industries higher protection against Australian competition over a wide range of articles, but did not restore the lost outlets in Australia for New Zealand primary products, of which that for potatoes is the most important. On the other hand Australian oranges are being admitted to the Dominion in much larger quantities. Farmers are entitled to ask in these circumstances whether their interest as exporters was not subordinated in the Australian deal to that of the manufacturers and whether, on the general question of tariff policy, the Government is not showing itself willing to risk reprisals in export markets in its anxiety to protect the artificial conditions it has created for town workers. In the present case of potatoes, the growers have further cause for complaint because Mr. Nash buoyed them up with expectations of disposing of part of the surplus.crop overseas. It is true small quantities have been or are to be exported, but not sufficient to steady the local market. Meanwhile growers, relying on Mr. Nash's assurances proving of real worth, have held stocks and are now faced by the collapse of prices. The Minister would have done better not to intervene at all, except he has taught himself and others the lesson that the pretence of market omnipotence wears thin when attempting to trade overseas.