TRADE POSITION

Otago Daily Times, Issue 22448, 18 December 1934, Page 6

TRADE POSITION

AUSTRALIA AND NEW ZEALAND A CANDID OPINION BRITISH EXPORTER PENALISED In supporting a proposal made by Mr A. C. Cameron at the meeting of the council of the Dunedin Chamber of Commerce last night that the Government should be asked for a definite statement jyith respect to the trade position between New Zealand and Australia, Mr A. H. Allen indulged in a candid expression of his views as to what New Zealand's attitude should be.

Iu introducing the subject, Mr Cameron stated that members would have noticed from the cable messages published in the newspapers that the mission of the Minister of Finance (Mr J. G. Coates) and the Minister of Industries and Commerce (Mr R. Masters) on their visit to Australia had proved ineffective. "Everybody seems to be in the dark as to the position immediately prior to their visit," he, said, "and it is desirable that we should know immediately after their return what has been done."

Mr Allen stated that it must be borne in mind that Australia had been steadily robbing Britain of her market in New Zealand for many commodities which she had formerly supplied. "Australia seems to have us in the palm of her hand," he added. "So long as she chooses to keep the rate of exchange on London at 25 per cent., New Zealand is bound to adhere to that exchange. If we dropped the rate to 15 per cent., that would give Australia an additional advantage of 10 per cent, in selling goods to the Dominion. We all know that the prosperity of this Dominion depends very largely upon the Mother Country buying more of our commodities and paying higher prices for them. So long as we continue to buy from Australia and to rob the Old Country of her market for goods which she previously supplied, how can we expect her to buy more from us? The position is serious, and we should back up the Government as far as we can in resisting the encroachment that the Australian producer is making on these markets. We should ' let the Government know that it should not yield to Australia until that country does something for us. Whereas Australia is able to buy potatoes from us at from £2 10s to £4 per ton the people of the Commonwealth are paying from £lB to £2O per ton. They say our potatoes are diseased. They are not diseased. It is purely a political move. So long as that continues New Zealand should keep a stiff back and refuse to do business with Australia." Mr Cameron said that if the chamber had the full information on the subject it could discuss the matter reasonably. At present it was in the dark. It was decided to ask the Government through the Associated Chambers for a statement of the position. Mr Allen stated after the meeting that, to meet the exchange position to which he had referred, it might yet be necessary for the New Zealand Government to surcharge Australian invoices with an amount equal to the difference in exchange between New Zealand and London. Then the amount of the Australian invoice plus that surcharge would become the amount for duty, so that the landed cost of Australian goods imported into New Zealand would not be less than the landed cost of similar goods from Great Britain.