QUOTAS AND THE TARIFF

Otago Daily Times, Issue 22197, 26 February 1934, Page 8

QUOTAS AND THE TARIFF

No useful is served by the reiteration of the statement that the imposition by Great Britain of a quota upon the importation of dairy produce, if it takes place, will be an act of retaliation upon New Zealand for the delay on the part of the Dominion in fulfilling the undertaking, made at Ottawa, to revise her tariff. On the contrary, a disservice is being rendered to the dairy farmers by conveying to their minds an impression for which there is not any foundation in fact. It may be regarded as unfortunate that New Zealand has not yet fulfilled her promise so to reduce the protective duties on uneconomic industries as to admit British manufactures on a competitive basis. It cannot be reasonably doubted that some British manufacturers have been seriously disappointed by the delay that has occurred. But the Minister of Customs has said on more than one occasion that it was at the specific request of the British Government, with the view of enabling manufacturers in the United Kingdom to make representations to the Tariff Commission, that the inquiry into the existing scale of duties was not instituted at an earlier date. The assurance which Mr Coates has offered on this point must be accepted. Nor does there seem to be any justification for the assertion that the British Government will not impose any quota if New Zealand can show that she has earned out her share of the Ottawa agreements. The producers who are' being led to believe that the question whether there shall or shall not be a quota restriction on the importation of dairy produce into Great Britain are being deceived. There seems to be no relation whatever between the one thing and the other. If a quota should be imposed when the Ottawa agreements expire, it will be not because the New Zealand Government has not made tariff concessions to British manufacturers but because it is part of the settled policy of the British Government to protect the agricultural industry at Home. It is probable that this policy would not be affected even if New Zealand were to offer a complete freedom of admission to British goods. The prospect that there may be a restriction of imports of New Zealand' dairy produce in the United Kingdom after the next produce season has come to an end cannot be regarded with any

feeling other than one of deep concern. The argument, however, upon which a policy of restriction, if it is adopted, will be based is not one that can be soundly disputed in a country that shelters industries of its own behind a protective wall and that in a modest way imposes quotas of its own. It will certainly conflict with the interests of New Zealand if a quota is imposed, but any suggestion that the British Government should be asked to sacrifice the interests of the agriculturist at Home in favour of those of the dairy farmer in the Dominion condemns itself at once by its pure selfishness.