THE DAIRYING INDUSTRY.

Otago Witness, Issue 3995, 7 October 1930, Page 15

THE DAIRYING INDUSTRY.

PREFERENCE TO BRITISH GOODS. AUCKLAND, September 29. In a cablegram which has been forwarded by the directors of the New Zea land Co-operative Dairy Company, Ltd., the Prime Minister (Mr G. W. Forbes) is urged to press for a tariff on foreign dairy produce entering. British territory in return for increased preference to British goods coniine into New Zealand. The message states that if this is not done the extremely low prices, especially for butter, will result in a permanent lower standard of living and will restrict the future progress of New Zealand. . “ The dairy industry is under no delusion as to the seriousness of the outlook for produce,” said Mr W. Goodfellow managing director of the New Zealand Dairy Company. “There is every prospect of lower prices owing to the present economic position, but what makes matters really serious is the rapidly increasin'* quantities of dairy produce going into the United Kingdom, an amply supplied market. Production is racing ahead of consumption in the United Kingdom while Empire dairy produce is gradually being excluded from other important markets. Mr Goodfellow said Australia and the United States had practically shut out New Zealand dairy produce, and the recent increase in the tariff in Canada would reduce shipments to that country by at least 10,000 tons during the coming season If the increase in the Canadian tariff was permanent the result would be a rapid increase in production in Canada

and exports from New Zealand would cease in about three years. The United Kingdom was the only large and dependable market ,for New Zealand produce. Mr Goodfellow said that unfortunately that market was also available for the surplus of the rest of the world, and the dominions would have to fight for the privilege of supplying the British consumer. Unless something Avas done to minimise competition a lower standard of living in the dominions would result. The only alternative in sight was for the British Government to give the dominions a preferential market by imposing a tariff on foreign produce. In return for this the dominions would have to be prepared to make a reduction in the tariffs on goods imported from the United Kingdom.

Mr Goodfellow said the United Kingdom could continue to buy the produce of the dominions only if they accepted manufactured goods in payment. Under the existing conditions the dominions were exporting practically the whole- of their produce to the United Kingdom and spending a substantial portion of the profits in the purchase of goods from foreign countries. Undoubtedly this was one of the main reasons for the excessive unemployment in the United Kingdom at the present time.