DANGER OF THE DANE

Poverty Bay Herald, Volume LXI, Issue 18348, 16 March 1934, Page 6

DANGER OF THE DANE

ENGLISH MILK GUARANTEE EQUAL TO 2/9 LB. OF FAT A MIGRATION FEARED There is a danger of the Bane gaining control of the English (fflrynig industry, to the detriment of New Zealand farmers, if tlie English scheme of guaranteed milk prices continues for any great length of time while the market rates for butter remain as low as they are at present. This opinion was expressed to-day by Mr. J. If. Sunderland, secretary of the Kia Ora Co-operative Dairy Company, Limited, who returned this morning after attending the Dairy Conference as a representative of the Gisborne district. In an interview to-day, he said that the guarantee of 5d and 6d per gallon for milk was equal to 2s 9tl pei lb. of Imtterfat, while taking the whole of the milk supplies into consideration the guarantee was equal to 2s 2d per lh. of Iju(tor-fat to the English farmer. Figures made available showed that 66 per cent, of the milk was consumed ns milk, 15 per cent, as butter, 10 per cent, as cheese, 3 per rent, as cream, and 6 per cent, as sundry milk products. While the average return under the scheme would equal 2s 2,1 per lh. Imtterfat to the English farmer, it was pointed out that the cost of production was three, times as great as in New Zealand. ft is generally enneeded that the cost of producing butterfat in the United Kingdom is approximately three times-that of the cost ,in this country. His impression was that as England is making a back-to-the-land movement this is affecting the Danish producers equally as well as those in our Dominion. The Danes, being within a short distance of the British market, may be tempted to transfer their farming activities by taking up land in the United Kingdom. Foreign manufacturing interests have already adopted this course in order to bring their goods under the schedule of British manufacture.

Whilst the general tone of the conference was far from being optimistic, Mr Sunderland agreed with the expression of one delegate that the position regarding the dairy industry will he improved immediately the nations ■gree to a settlement or writing off of war debts. When this is done England will once again devote her energies to her former industrial policy. This will leave ample scope for the Dominion to continue the extension of her primary products. New Zealand could not expect to receive special treatment at the hands of the Imperial Government. Her policy, was such that all the Dominions should be placed on an equal footing. The Rt. lion. J. G. Coates emphasised this point in a discussion on the question of reducing tariffs on imports from the United Kingdom. 'lt was pointed out that the placing of tariffs on imports from the United Kingdom by the Dominion Governments was simply a domestic arrangement. New Zealand had a good example in the Ottawa agreement in that whilst Australia had much higher rates on the importation of the British manufactured article than New Zealand (had, equal treatment was provided to both Australia and this Dominion.

With regard to the resolution passed that a Government subsidy of -d per lh. should he paid to producers, Mr Sunderland said he hud strongly supported the alternative suggestion that a loan should he made to the industry in preference -to a subsidy, point ing out that ,a subsidy at this stage to the dairying industry would further antagonise the British farmer. The alternative proposal provided for a repayment to the Government by the dairying industry when the general average of butterfat exceeded lOd by at least id. Then the Government could collect a levy of id per lb. until the full amount of the advance was repaid. The matter had been placed in the hands of a committee consisting of Messrs. Waite, Poison, lorns, Grounds, Agar and Duncan for consideration before being submitted to the Government.

One of the proposals put before the conference, by Mix - . Sunderland was that the Government or the Dairy Board should make a determined attempt to increase winter production, for only by that means would the country he able to prevent large peak arrivals in the United Kingdom. He knew that stored butter from New Zealand did not greatly deteriorate by being kept an additional few weeks, but the more effective means would be to encourage winter dairying by the payment of an additional advance during May, June, July and August. The question of derating of farm lands as a means of assisting the industry had been referred to a committee to which Mr. Sunderland had been appointed. The matter would be carefully investigated and the deliberations of the committee would be submitted at a later date.