THE FROZEN MEAT INDUSTRY

Otago Daily Times, Issue 21645, 16 May 1932, Page 5

THE FROZEN MEAT INDUSTRY

BRITISH QUOTA PROPOSAL

REPRESENTATIONS BY SHEEPOWNERS. The following statement has been forwarded by Mr J. S. Jesscp, on behalf of the New Zealand Sheepowners’ Federation, to the Prince Minister and the members of the Government composing the Ottawa Committee of the Cabinet: Proposals are now on foot which, if carried through, may vitally affect the great industry on which to a very large extent for the past 30 years the prosperity of the Dominion has depended. The advent of refrigeration has done more than any other single cause to promote prosperity in New Zealand. Sheep farmers have steadily devoted their attention to developing in the main an export of frozen lamb, arid by steady concentration have brought the quality of the Dominion’s product to such a pitch of perfection that it challenges comparison even with the British homeproduced lamb. Now that the fiscal system of the United Kingdom is in course of reconstruction, it behoves those in, power in New Zealand to watch carefully that proposals are not agreed to which may tend to destroy or diminish the tremendous lead which New Zealand has established in the production and export of prime lamb, for on the continued expansion of this industry to a very large extent our prosperity must depend. Proposals have been put forward that \this Dominion should agree to, indeed should advocate, the introduction, side by side with a tariff, of a “ quota ” system. We are strongly of the opinion that the proposal is the most dangerous one which has yet been suggested in connection with any revised proposals affecting the trade between New Zealand and the Old Country. There is no doubt the argument has been very well elaborated, and what is called “quantitative regulation of imports ” has been put forward in a very enticing manner. There is a vast gap indeed between any tariff proposals and any system of quantitative regulation of imports, A tariff may be imposed either for the, production of revenue, or to protect an industry in any country. Quantitative regulation of imports cuts right across the normal operation of all principles of commerce and the laws of supply and demand, and clerirly means nothing more or less than the socialisation of industry and production. It is proposed to take out of the hands of business men the regulation of thA production and marketing of their produce, and depend upon politicians and committees to regulate arbitrarily over a large volume of commodities. The quota would be governed by committees, and immediately would grow up huge Government departments with all the weaknesses .of such bodies. It would simply be another instance of business being controlled by politicians or committees, with power to make 'decisions of far-reaching effect and affecting large sums of money invested in the industry of this country. Moreover, it would deliberately lend itself to manipulation on a huge scale. The proposal is so far-reaching that it is almost inconceivable how lightheartedly it has been supported by some politicians. No business stands alone. If quantitative regulations of the amount which can be imported into the United Kingdom can be made with respect to meat, they can, be equally applied to butter, cheese, wool, tallow, pelts, or any other commodity which the Dominion exports. It is the most dangerous proposal which has ever been suggested in connection with'New Zealand trade. There is another phase of this question which we would like to point out. This specious quantitative control, as it is called, is being enthusiastically supported by the Socialistic and Communistic groups in England. They recognise it as a long step forward in the direction of the socialisation of industry. They have secured the backing of the British farmer, or rather they have caught his imagination. There is not the slightest doubt that, if the proposal goes through with the support of this Dominion (by fay the largest exporter of frouen lamb to the United Kingdom), we will have struck such a blow at the New Zealand meat industry as will almost tend to destroy it, unless ,re can open up markets in foreign countries. Instead of tending to promote good feeling within the Empire, it is likely to .prove a fruitful cause of disruption.

An adjustment of tariffs, giving preference to those portions of the Empire which give preference to the Old (%untry, and a small measure of preference to foreign countries which trade extensively with the United Kingdom, is the only sound and reasonable basis on which this Dominion can safely negotiate for changes in the present system. . • The original proposals were:— A free list for dominions' and Crown colonies giving preference to British goods; A small tariff for dominions not giving preference; An intermediate tariff for foreign countries giving preference to Britain; A full tariff against countries not

giving preference. We are strongly of the opinion that they stand to-day as the only sound and safe basis, so far as this Dominion is concerned. Any proposal not based on the laws of supply and demand, which gives the right to a committee or Government department to restrict the output of New Zealand’s most important export, will mean definitely the deathblow to further expansion or development of that industry in this country. It will lead eventually to complete and 1 utter dissension between the farming industry of Great Britain and that of New Zealand. The weapon is too powerful and too dangerous to be brought into being with the advocacy and consent of those representing the Dominion of New Zealand at the all-important Ottawa Conference. .