EXPORT QUOTAS

Otago Daily Times, Issue 22353, 29 August 1934, Page 5

EXPORT QUOTAS

THE FARMER’S PROBLEM EFFECT ON IMPERIAL RELATIONS ADDRESS TO SHEEPOWNERS’ FEDERATION (Special to Daily Times) . ' WELLINGTON, August 28. Describing the quantitative restriction of exports as the most difficult of the problems facing the farming community at the present time the president of the New Zealand Sheepowners’ Federation (Mr H. D. Acland) in his address to the; annual meeting to-day discussed the whole question from the point of viewlof Imperial relations, expressing the fear that the dominions might yet be compelled to enter into trade agreements with foreign countries with a view to encouraging the importation of New Zea land produce. “ To my mind, the most difficult problem facing sheepowners at the moment is that of the policy of exclusiveness adopted by countries who previously allowed the importation of our products, but who in recent years, owing possibly to stress of economic circumstances, in most cases, and to an evident desire in others to return to a condition of national self-sufficiency, are apparently determined as far as possible, to curtail imports from other countries to a minimum. The attitude of the federation in connection with this restriction of imports so plainly stated before the Ottawa Conference was held, has been fully justified by subsequent events, and td-day a most disquieting situation has been reached as between ourselves and our principal customer, Great Britain, as a result of the quota system introduced at Ottawa. It would appear that in its anxiety to assist the British farmer the Imperial Government has lost sight of the necessity for maintaining the food supply of Britain as far as possible from Empire sources.”, ■ EFFECTS OF RESTRICTION The reciprocal trading arrangements made with the Argentine and Denmark since the Ottawa Conference were cases in point. As a result of these, the Ar gentine had been given practically Dominion status, but without the obligation which the dominions had ' been glad to shoulder in the past, of being considered part of the great British Imperial family in times of both war, and peace. The result of the continuance of the policy of restriction of quantity of primary pro-, duce from countries such as ours to the British market, would'be disastrous not only to New Zealand producers, but taking the long; view, might possibly become equally so jto'Britain, as the dominions, would be forced to attempt a policy of self-preservation, through reciprocal trade treaties with foreign countries. This would ■ mean, if forced to it, that they must, to a certain extent, give preferential treatment with pegard to tariffs to foreign countries, as an inducement to them to take that proportion of their, primary produce which Britain refused to admit.' This would mean that it would be much more difficult for the British manufacturer to hold the Dominion markets for British exports, and apart entirely from any question of Imperial sentiment, and viewed solely from a business-viewpoint, would, in the long_ run, be mutually to the dominions and Great Britain-herself. Imperial unity appeared at the moment to be at a discount, but he was afraid there was grave risk of the dominions Being antagonised by an economic policy which must,have, both political and social reactions bn relations between countries comprising the 'British Commonwealth. TWO ALTERNATIVES * There would appear) he said, to be two alternatives. First, to. speak plainly to Britain/ explain New Zealand’s position with respect to the possible inability to meet, its debt service commitments except by the expanding of output of primary •produce, in the hope that '■■the'.-British would .apprecate that- with. Ne# -Zealand supplying 'only approximately 2$ per cent, of beef products consumed in Great Britain, that a 10 per cent., or even a 25 per cent., reduction in quantity of the 24 per cent, mentioned would be of such infinitesimal advantage to British farmers as not , to be. worth :the risk of antagonising the , whole of the population of what was admittedly, one of, if not the most, loyal of British dominions. , •

The ■ other was for producers in the Dominion to meet the situation as far as was humanly possible with a view to giving the British Government every chance of trying > out •; ifs new policy by endeavouring to reduce the weight per carcass for export; to an averagewhich would take up the margin of gross weight by .which exports were required to be reduced uhder, the British policy; He would suggest that ..this might be worth; consideration-by producers. For, instance, if the average weight of lambs for export had ■ been 34Jb in previous years,' then a reduction in weight ot lambs per head might possibly be aimed at, and a maximum carcass weight of lamb for export be set,: with a view to reducing the gross tonnage of exported meat to the required extent. (The principle to be . applied,; of course, to all other classes of meat for export where possible.)- ... * . UNITED STATES MARKET .' ; v . " You are no doubt -well aware,” he said, “that our Prime Minister, and his colleagues interviewed Mr Roosevelt With this object in view on their way back to New Zealand from, the Economic Conference, at which time the ' United States law prohibited the making of trading agreements with foreign countries for the importation of, foodstuffs into America. Since their visit ■ legislation lias been passed in the ■ States authorising the President to enter into such agreements. ; Until the British Government have definitely decided to what extent they intend to restrict imports of our produce we are not in a position to know how much margin we may expect to have for export to other countries, and, in addition, until our tariff schedule has been ratified by Parliament no basis for discussion from a tariff point of view will be available. I hope that our federation will urge upon our Government the nec-ssity, following the ratifi-cation-by Parliament of the new tariff schedule; (or giving serious consideration to the advisability of immediately sending representatives to the United States with a view-to'arranging, if possible, for reciprocal trade relations to be established between the Dominion and the “There will, of course, be many difficulties to be overcome should an attempt be made as suggested. For instance, in 1927-28, when the Meat Board sent its shipments of beef and lamb into the United: States, there was such an outcry among farmers there that the Government were forced to bring in restrictive legislation to comply with the insistent demands of the farmers’ representatives in Congress for protection against the importation of foreign produced foodstuffs, and I remember at that time, with what trepidation the position was | viewed by the large American meat t companies—Armours, Swifts, and others I —and how necessary they thought it to I be to keep themselves and their businesses in the background in view of the clamour throughout the country -against meat trust methods and the importation of foodstuffs produced at comparatively low costs in foreign countries. _ The balance of trade between the Dominion and the United States, has also been heavily against the'Dominion.” With regard to the present position of holders of beef for export, Mr Acland said he was of the'opinion that in view of the shipments of quarter beef having been temporarily held up until the position between the British and New Zear land Governments on the quotas for the next six months had been finalised,- that it would be only reasonable and fair to arrange for relief to be given to those who had - suffered loss through the temporary hold-up .to the extent at least, of a remission, of .the charges for storage, j in those eases where -it could be shown i that beef, which would otherwise have been shipped, had been held up on. ac--1 count of the British Government’s requirements. Admittedly this had been done in the interests of - the whole of meat-exporters.

and I.was satisfied that at no time since the Meat Board had been established had there been such a clear case for the Meat Board’s funds to be used a s legitimately for purposes of adjustment in those cases where hardship coidd be shown to have resulted, than was the case with regard to the present position as affecting exporters of quarter beef. He thought it only reasonable to suggest that a moratorium with regard to storage charges on quarter beef should be arranged with possibly an arrangement to refund to the i companies concerned any extra costs due to the additional time required to hold beef in store until ' shipment could be arranged for under the terms laid down by the British Board of Trade. In tlijs connection, he would say that our quarter beef was being shipped <oday in large quantities, and it was hoped that by the end of this year, the amount of this season’s quarter beef held m store on, account of exporters, would be nil. The prohibition of bobby calf veal for export, and boner beef, did not represent a great loss to the dairy industry, u they set off against the increased quantity since 1932- (9443 tons) of this very low priced product (approximately Jd per lb) the 14,000 tons increase in the quantity of pork from the dairy industry in the two years following the Ottawa year, valued at from 5Jd to Old per lb. This question would be fully discussed at the meeting, but he hoped that no hasty decisions would be made which might possibly prejudice New Zealand’s position on th« British -* market.