NO TARIFFS

Poverty Bay Herald, Volume LXII, Issue 18760, 17 July 1935, Page 5

NO TARIFFS

: N.Z. MUTTON EXPORTS

AGREEMENT CONCLUDED

SATISFACTORY- TERMS

AN EXPANDING MARKET

(Special to the Herald.)

WELLINGTON, this day

Information rcceivod by the Government from the Minister'of Finance, the Rt. Hon. J. G. Coates, indicates that the agreement reached with the British Government in regard to New Zealand's exports of mutton and lamb is even more satisfactory than was» suggested by the cabled report of Mr Walter .Elliot's statement in the House of Commons.

The main effect of the agreement so far reached is that 'New Zealand mutton and lamb will not be subject to either a duty or a tariff by Britain, anil, instead of there being a restriction of the quantities that may be exported, the Dominion Will be entitled next year-to an increase of 10 per cent over the exports for 1934, the principle of the Dominions being given an expanding s'barc of the New Zealand market thus having been adhered to.

Negotiations in regard to beef shipments are still proceeding, but this does not affect New Zealand nearly so much as mutton and lamb, and official quarters now view the position far more optimistically than they did even a few weeks ago.

SAVING TO DOMINION The acting-Prime Minister, Sir Alfred Eansom, in announcing the information received from Mr Coates,

expressed gratification at tho results that had been obtained from the long N discussions, and expressed the opinion that the Dominion had every reason to feel satisfied with the outcome. "Following negotiations with the Imperial authorities by the- Prime Minister, Mr Forbes, and the Minister of Finance, Mr Coates, in London," said Sir Alfred, "Mr Coates has concluded a mutton and lamb agreement with the United Kingdom and Australia. This agreement, from New Zealand's point of view, must be re- ' garded as satisfactory. ■ "First, he has secured an undertaking from the United Kingdom Gov- • ernment that no levy or duty will be placed on our mutton and lamb. This means that some hundreds of thousands of pounds will be saved by the New Zealand producer. "Some months ago the British Government proposed that in order to subsidise their beef producers, a levy would .be'placed on all meat imports entering the United Kingdom. Beef prices were low, whereas mutton and lamb prices were satisfactory. The British problem was the beef problem, vet tho proposal in effect was that our ' mutton and lamb producers were to foe penalised in order to subsidise British home-grown beef. The British Government further stated that the only alternative to a .levy was ,a drastic - quota on imports. -■'•.■■ . - "IT IS GOOD NEWS" '

'' This then was the dilemma 'facing our meat .producers —we werjb offeree! a choioe between a levy, which wouid press more 'heavily on New Zealand than on any other Dominion, and a quota, which would drastically reduce our exports to the United Kingdom. "This .brings me to my second point," continuod Sir Ali'rcu. " Not onlv has our delegation saved hundreds of thousands of pounds to New 'Zealand bv securing that our export mutton and lamb shall not be taxed, hut it has «lso secured a quota for 1036 which will allow for over■lO per cent on the arrivals of New Zealand mutton and lamb in the United Kingdom in 1934. If the maximum amount of mutton.and lamb arranged for 193 b is exported, it will be a record year. "We feared a levy or heavily restricted quotas. The news now cabled savs that there will be no levy and a definite agreement for regulated expansion. It is good news. shadow of restriction is lifted from our mutton and lamb. We can only •hone that the beef question, when finallv settled, and this is expected shortly, will be just as satisfactory. FARMERS JUBILANT "The agreement, in my opinion, is an eminently satisfactory pne, Mr W. J. Poison, M.P., president of the New Zealand Farmers' Union, declared m the comment he made on the cabled summary at the conference of delegates oi branches last, night. . . "It was never expected by any of us who had seen the correspondence passini on this matter, and had been in touch with the details, that we would secure an-agreement as satisfactory as this one is. This agreement is going to mean a tremendous amount of money to the producers of this country." Commenting on the provisions of the agreement as announced by the cable nr'*h»ge, he said that for the last six months of 1975 Australia would send a larger proportion of mutton and lamb than m 1936. The reason was thai New Zealand was practically at the end o) its season, whereas the season was jusl getting under way in Australia. The figures for next year gave a true comparison. New Zealand's quantity on this 'basis represented the peak export production of the country at a time when Ihe stock of sheep was considerably larirer than at present. .'■ '"There is no prospect that we will he aide to send more than is allotted to us," he said. "Virtually there is no restriction." * • It was decided to send a cable message congratulating the'Dominion representatives on their success.