PRIMARY EXPORTS

Otago Daily Times, Issue 23514, 31 May 1938, Page 9

PRIMARY EXPORTS

ADVISORY COUNCILS MR GOODFELLOW’S VIEW “ these advisory councils are a menace, as they are liable to become semi-official and thereafter undermine the negotiating powers of both the New Zealand and British Governments,” said Mr W. Goodfellow, in reply to a statement made in Wellington by Mr W. W. Mulholland, president of the New Zealand Farmers’ Union, in reviewing proceedings at the Empire Producers’ Conference in Sydney recently. “ The British Government represents the whole population, not only the 10 per cent, who are producers, but also the remaining consumers, who require ample and increasing supplies of New Zealand produce at reasonable prices.” said Mr Goodfellow,

Mr Goodfellow said he regretted to say that Mr Mulholland’s statement was both untrue and rather unfair, but this was probably due to the latter’s lack of knowledge of the dairy industry. “The businesses with which I am associated cannot be adversely affected by the establishment of commodity councils,” Mr Goodfellow said. “ Therefore, my objections are not personal. Empire Dairies, Limited, does not sell Australian dairy produce in the East. It is a company registered in London and its trading in Empire products is confined exclusively to the United Kingdom. Amalgamated Dairies, Ltd., sells New Zealand dairy produce exclusively in active competition with Australia in the East.

“My strong objections to the suggested Empire dairy commodity councils in London are based on experience and knowledge of marketing. The National Farmers’ Union of the United Kingdom, which put this idea forward in Sydney recently, is a wellorganised body with considerable political influence. It represents about 10 per cent, of the population of Great Britain, who are mainly dairy farmers supplying milk to the remaining population. The union first proposed this idea at Ottawa in 1932, and later it sent a representative to New Zealand to endeavour to arrange a voluntary quota. “They then persuaded Major Elliot to tax Empire butter and cheese by 10 per cent., but when Empire representatives objected the British Government provided a milk subsidy instead. Finally, the union ' brought the plan up again in Sydney. “ For New Zealand to join an Empire producers’ council to meet in London and also an international dairy producers’ conference would be extremely unwise and simply asking for trouble. The real objective of the National Farmers’ Union was to set up machinery to provide for a restriction of New Zealand exports to the United Kingdom in future. “ Compared with the other Empire countries, New Zealand is in a very weak position to negotiate for a quota with a population of only 1,500,000 and with exports to the United Kingdom of butter, cheese and pork about double in tonnage those of all the other Empire countries combined,” Mr Goodfellow concluded. “There could be no possible gain to the New Zealand dairy farmer from such a council. The work and expense of the Dairy and Meat Boards would be duplicated, but this is a small matter compared with the probable demand by the National Farmers’ Union for a quota or tariff on Empire butter and cheese in a depression.”