3 PER CENT CUT

New Zealand Herald, Volume LXXVI, Issue 23275, 18 February 1939, Page 14

3 PER CENT CUT

MUTTON AND LAMB ACTION BY BRITAIN Of EMPIRE SHIPMENTS FOREIGN QUOTAS REDUCED

LONDON. Feb. 16 The president of tlio Board of lrade, Mr. Oliver Stanley, announced in the Houso of Commons to-day that "in order to safeguard tlio stability of the markets" imports of frozen mutton and lamb from New Zealand and Australia will bo 3 per cent below those of last year. Imports from foreign countries will bo 10 per cent less than the present quotas. Mr. Stanley added that the decision had resulted from tho failure of the Empire Meat Council to agree on tho current year's restrictions of imports necessitated by the very low prices obtained last year for homo-produced meat. Heavy Stocks in Store Increased homo production had not been accompanied by a fall of imports. A further increase in home-produced mutton and lamb was expected in tho current year, yet cold-storage stocks were abnormally high. Mr. Stanley said tho Government had advised New Zealand and Australia of the extent of the restriction, which might necessitate alterations in shipping space already booked. The Meat Council would continue to function and would watch tho effect of tho restrictions on tho market. Mr. Tom Williams (Laliour —Don Valley, Yorkshire), asked if Mr. Stanley was satisfied that tho restrictions of imports would bring an increase in British mutton and lamb. Ho pointed out that the restriction of beef from Australia and from tho Argentine had not helped the prices of home-produced beef. Providing Reserves Mr. Stanley replied that tho Government believed the restriction of mutton and lamb would benefit tho homo producer., Restriction was necessary to prevent an obvious glut. There had been a declino in tlio prices of home-produced beef, but it would have been more serious if no attempt had .been made to regulate imports. Questioned regarding tho necessity for large reserves of frozen meat in wartime, Mr. Stanley said tho Government thought tho best reserve was a flourishing sheep stock industry in Britain. DEPENDS ON SEASON SERIOUSNESS OF RESULT MR. MULHOLLAND'S OPINION SYDNEY CONFERENCE FINDING £BY TELEGRAPH —PUiSS3 ASSOCIATION*] CHRISTCHURCH, Friday "The reduction may not be seriously effective," commented Mr. W. W. Mulholland, president of the New Zealand Farmers' Union, in reference to tho action of the British Government regarding meat imports. The effect probably would not bo serious this year. Tho consequences to the Dominion of the restriction would depend on tho ultimate production, ho said. Tho indications had been that there would be some slight falling off in production. "I do not think that 3 per cent will be regarded as being a heavy reduction," said Mr. Mulholland. "Whether it is light or heavy depends on tlio season. If production gains 10 per cent, then all our stuff could not bo sold." A reply was mado by Mr. Mulholland to a statement by Mr. E. W. Gough, a former New Zealand farmer who is now a member of tho English National Farmers' Union, that he anticipated tlio application of quotas against each of tho Dominions and colonies on lines suggested at the Empire Producers' Conference at Sydney, the leader of which, Sir Reginald Dor-man-Smith, was the new British Minister of Agriculture. "Nothing was suggested by tho conference in Sydney of any quota against the Dominions," said Mr. Mulholland. "Either Mr. Gough's remark was misunderstood or his reference is to what the British delegation suggested, but which was not agreed to by the conference. The British delegation agreed to the finding of the conference, which deliberately omitted all reference to restriction, quota or any form of import duty, and so on."