THE POTATO PROBLEM

New Zealand Times, Volume LI, Issue 11785, 22 March 1924, Page 5

THE POTATO PROBLEM

AUSTRALIA AHD N.Z. MINISTER, AGAINST FURTHER INCREASE OF DUTY. “PARLIAMENT MUST DECIDE.” “I have noted the report of the meeting of potato-growers held in Christchurch, ’ ’ said the Minister for Agriculture (the Hon. W. Noewortliv) to a “New Zealand Times” representative, “and can sav at once that the allegations that the Prime Minister and myself have not done our best in the true interests of potato-growei's, and other producers, are absolutely and eutiiely unwarranted. By way of contrast, one of the criticisms lately levelled against the Government is that it is a Farmers’ Government and that farmers’ interest! are always placed first by it. The real fact of the matter is that tli© Government endeavours to act on lines calculated to further the best interests of the Dominion, with duo regard to the legitimate claims of th© various sections of the community; and as regards what if has done for the producers of th© Dominion I am quite content to leave tho judgment in their hands. AN ABSOLUTE EMBARGO? ‘ ‘Now as to th© potato question: 1 have been pressed by some growers to impose an absolute embargo upon th© importation of Australian potatoes. But what would that mean? It could only mean one of two things, viz., an arbitrary shutting out of Australian potatoes, obviously aimed at entirely eliminating any competition with oiir own growers, notwithstanding tho measure of tariff protection already existing; or else an open retaliatory measure against Australia for prohibiting th© importation of New Zealand I potatoes. But, on this last point, j Australia bases her action on the. existence of disease in New Zealand potatoes; whereas the very careful examinations which have been made of Australian potatoes here, and the inquiries made in Australia, have hitherto failed to elicit, any evident© of disease in Australian potatoes of a nature which would warrant prohibition of import. The Government has made strong and repeated efforts to get the Australian restrictions removed, or at least modified, but without success, in 6pite of the fact that the disease in question (known as ‘powdery scab’) is not a serious one, and is not widespread in the Dominion. The action of Australia in this matter does con stitute a very serious grievance with growers, for which there is undoubted justification. Ido not blame the po-tato-growers for asking that we shut out their potatoes altogether. But the Government has to take a brood view of the question, and it must be remembered that in one way and another Australia takes a good deal of our primary produce. To give two or three instances: Within the last year or so our languishing export beef market was relieved by the exportation of a large number of fat cattle to Melbourne; butter has been shipped across; and practically tbo whole of our surplus hams and bacon have found a good market there. “RETALIATION OUTS BOTH WAYS.”

“It must be remembered that when it comes to retaliation it can be made to cut both ways; -and the only proper oourse to adopt is to act on sound lines compatible with the maintenance of good relations with a neighbouring country, with which w© have in operation a reciprocal -tariff treaty. To now impose an absolute embargo upon Australian potatoes would be unsound, and Ido not intend to do it. The Christchurch meeting resolved that the present duty of £1 per ton should be increased to £3 per ton. Whether this can be done must be left to Parliament to decide, end 'I will be quite prepared to place the position before Parliament. It is true that a special duty can be imposed under conditions of special emergency; but. even if ibat were intended to be done, our tariff agreement with Australia would necessitate the giving of six months’ notice beforehand. “I have been making inquiries into the position, and so far as I can gather, the lowest price at which Australian potatoes are being landed is equivalent to a value of about £6 6s per ton f.o.b. Lyttelton for New Zos- . , potatoes. This Australian price is for prompt shipments only, ana apparently forward shipments are quoted at a higher rate. Other shipments have cast more, and the latest quotas tion I have been able to hear of indacates an increased price for prompt shipment. Very little business is being done between Wellington and Australia, and it seems probable that the New Zealand crop will shortly nave the whole Dominion market practically to itself. This is what it looks like. THE AUSTRALIAN EMBARGO. , “So far as the Australian probibjtion of New Zealand potatoes is ranoerned, another attempt is being made to get it removed or modified, and a responsible officer of the department, who is leaving next week for Australia, will go fully into the whole question with the authorities there, and 1 sincerely hope that this effort will he successful.”