BUTTER FOR CANADA

Taranaki Daily News, 24 July 1931, Page 9

BUTTER FOR CANADA

AUSTRALIA’S OBJECTIVE. CAPTURING WHOLE TRADE. In explaining the Canadian-Australian trade treaty to the Federal House of Representatives, Mr. P. Moloney, Minister Of Markets, devoted considerable attention to the butter question. Prior to September, 1930, he said, Australian and New Zealand butter was admitted to Canada at 1 cent per lb, but dumping duty was imposed on Australian butter and not on New Zealand. This allowed New Zealand to capture the Canadian market completely. Butter was one of the products on which the duty was not considered by Canada to be sufficient to protect her •own industry. Owing to pressure from dairying interests the duties were increased to 8 cents, 12 cents and 14 cents, under the British preferential, intermediate and general tariffs. New Zealand butter was thus brought under the increased duty of 8 cents, and was also subjected to the dumping duty, with the result that New Zealand could do very little business with Canada.

The action recently takep by New Zealand in bringing Canadian goods underher general tariff would probably result in New Zealand butter being made liable to tlie general tariff of 14 cents. If the new treaty had not been entered into Australian butter entering Canada would undoubtedly have also been brought under the British preferential tariff of 8 cents. By the new proposals Australian butter would be admitted at 5 cents, with the additional advantage of being free from dumping duty. It would, therefore, have an advantage of at least 14s per <Kvt over that of New Zealand. H was agreed, with the concurrence of the Australian Dairy Export Control Board, that Australian exporters of butter aliould not seek to sell in Canada at less than the price of Canadian butter.

Australia’s objective was to cater for the supply of that quantity of butter which Canada required in excess of her own production, which for the year ended March, 1930, amounted to over £2,8'00,'OOO, and of which New Zealanc supplied over £2,700,000 worth. With the advantages secured by Australia under the terms of the new treaty she was now afforded an excellent opportunity of meeting Canada’s import requirements. The statement by Mr. Moloney that the general tariff of 14 cents will probably be applied to New Zealand butter is arresting. The Budget introduced by the Canadian Government early in June included several provisions designed to enlarge the Government’s powers to vary the customs tariff. One bf these proposed that the Government should have power by Order-in-Council to withdraw the benefits of the British preferential tariff from any country other than Great Britain.