Talking Straight

Sun (Auckland), Volume IV, Issue 1080, 18 September 1930, Page 9

Talking Straight

CONVERSATIONS IN CANADA

New Zealand Butter Duty

MR. FORBES SPEAKS OUT AT OTTAWA

CONVERSATIONS between the Prime Minister of New Zealand, the 11011. G. \V. Forbes, and the Canadian Government with a view to securing renewal of the trade agreement between the two Dominions, are arousing keen interest in Canada today, particularly in view of yesterday’s increase in the butter duties. Commentators state New Zealand butter will still enter Canada because of its superiority and the reliability of supply.

United I*. A.—By Telegraph — Copyright Reed. 10.20 a.m. OTTAWA, Wed. Conversations are in prospect with a view to the formation of a new trade agreement between Canada and New Zealand following the arrival today of the Prime Minister of New Zealand, the Hon. G. W. Forbes. “X have accepted the invitation of the Canadian Government to eater into conversations with a view to the arrangement of a new agreement,” Mr. Forbes said, “and I am looking forward to meeting the Prime Minister, Mr. R. B. Bennett and his colleagues.” “Eight cents a pound duty on New Zealand butter will be prohibitive insofar as exportation to Canada is concerned.” Mr. Forbes declared in an interview later. He hoped an arrangement would be reached under which some adjustment might be achieved. “But considering that the duty was put on just as we landed at Ottawa,” he added, “the situation does not look too hopeful.” WILL LOOK ELSEWHERE New Zealand, however, stood prepared to discuss matters. The policy of New Zealand was to encourage trade with those nations which traded with her. If such nations said they did not value New Zealand's business, then the Dominion would have to look elsewhere, notably in the United Kingdom. If prohibitive duties were imposed on imports from New Zealand, the Prime Minister continued, obviously such one-sided trade could not con# tinue. New Zealand had to export produce in order to pay for her imports, and 20 per cent, of the Dominion’s butter exports were sold in Canada. Regarding the decision of New Zealand in withdrawing the preference extended to Canadian automobiles, Mr. Forbes declared the Canadian manufacturer still had 15 per cent, preference over the United States. Mr. Forbes met Mr. Bennett and several Cabinet Ministers earlier in the day. Mr. Forbes is the guest of Viscount Willingdon at Government House. Mr. Bennett the Prime Minister, evidently is anxious to lose no time in implementing his promises to the electors about butter, which was an issue at the elections, but there is a strong conviction here that butter will be placed on a four cents rate, leaving the producers’ organisations to whittle down the profits. It is not doubted here that New Zealand butter will continue to enter Canada owing to its superior quality and the inability of the Canadian dairymen to meet the all the year round demand. PROTEST IN HOUSE The Canadian House of Commons this evening defeated by a majority of 54 an amendment moved by the

former Prime Minister, Mr. Mackenzie King, to postpone for six months the Government’s measure to amend the Customs Act with respect to the dumping clause. As a protest against the Government tariff proposals, Mr. W. Mackenzie King moved his amendment to the motion to go into Committee of Ways and Means. He stated: “The House regrets the Government has seen fit. at a special session called to deal only with unemployment, to propose great increases in Customs taxation on a wide range of commodities, under circumstances which preclude the House and the country from securing adequate information regarding proposals, and which prevent Parliament discussing themV •‘ln the opinion of this House the tremendous increases in taxation proposed will not end unemployment, but will inevitably Increase the cost of living and also increase the cost of production in the primary industries —agriculture, fishing, mining and lumbering—thus making it more difficult for Canadian producers. These industries meet world competition in marketing their products.” Speaking on the tariff proposals Mr. Mackenzie King said: “I wish to protest in the strongest language possible against Ihp time at which the amendments to the Customs tariff have been brought down and the circumstances under which they have been introduced. TIME INOPPORTUNE “The Government is seeking expedition so that members can go to the Imperial Conference.” Common decency and courtesy alone would demand that any changes in the tariff against Empire goods might Lie left over until after the Imperial Conference. The importation into Canada of goods from Russia, and particularly coal, may be stopped if an amendment to the Customs Act, moved by the Prime Minister, Mr. R. B. Bennett, becomes law. He proposes to prohibit the importation of goods from any country that is not a party to the Treaty of Versailles. The dumping duty in the tariff resolutions tabled in the House of Commons is 50 per cent. On importations from Australia under the trade pact the special duty will not exceed 15 per cent, ad valorem. Discrimination against any country is conspicuous by its absence in the revision of the tariff schedules. Where the rates are increased they are increased right across the board, taking in general, intermediate and British preference tariffs. The increases in the aggregate are slightly more in the general and intermediate than in the British preference, but on the whole there is no wide divergency. The House of Commons later gave the third reading to the Government measure to amend the Customs Act in respect of the dumping clause.