RESTRICTION DECLINED

Taranaki Daily News, 18 February 1933, Page 7

RESTRICTION DECLINED

NEW ZEALAND BUTTER EXPORTS

DECISION MADE BY DAIRY BOARD

TARIFF CONCESSIONS ADVISED

THE New Zealand Dairy Produce Board has declined to recommend the restriction of exports of butter to Britain owing to the impossibility of restricting production. The board asks the .Government to reduce the tariff on British goods to the extent of the increase occasioned by the recent rise m exchange rates. It is claimed that New Zealand farmers use British manufactures as extensively as do British farmers and are therefore entitled to the same consideration m the Brittsn markets. The board desires to see free trade brought about between Britain and the Dominions.

DISCUSSION BY THE BOARD

CONFIDENTIAL TELEGRAMS

CONSIDERATION OF FUTURE

DAIRYING DEVELOPMENT

By Telegraph.—Press Association. Wellington, Last Night. At a special, meeting of the Dairy Board to-day consideration was given to confidential cablegrams received from London embodying the suggestion that restrictions should be placed upon the quantities of New Zealand butter entering the British market. In a statement made subsequently Mr. W. A. lorns, chairman, said:— “While the cabled suggestions are of a confidential nature it can be indicated that their effect, if adopted, would be to restrict Australian and New Zealand exports on to M basis below that of the 1932 exports. Restrictions on a higher percentage basis are also being suggested in respect to foreign countries. These proposals arose out of the negotiations now proceeding In Britain for trade agreements between Denmark and Argentina, amongst other countries, with Great Britain. ' ‘Tn view of the importance of the issue of Dairy Board requested the attendance at its meeting of Mr. W. Goodfellow, who was the official representative of the New Zealand dairy industry at the Ottawa Conference. A full analysis of the situation as it obtains both in relation to the present stock position and the future development of the country was entered into, after which resolutions were passed which were later conveyed to the Government by myself as chairman of the board and Mr. Goodfellow. To these representations the Prime Minister, the Minister of Finance and the Minister of Agriculture gave careful consideration with a view to communicating with the High Commissioner in London. The proposals for restriction made so far are tentative only and have not been made officially to the Government. AGREEMENT AT OTTAWA. “Under the Ottawa agreement,” stated Mr. lorns, “New Zealand was accorded unrestricted entry in respect to butter and cheese into the British market for a term of three years (duties of 15s per cwt. bn butter and 15 per cent, on cheese being accorded against non-Empire countries), while in return for this assured market New Zealand undertook (1) to remove the surtax obtaining on British imports into New Zealand; (2) not to increase, and as soon as possible abolish the primage duty of 3 per cent.; (3) to revise the tariffs against British goods as soon as possible in order to accord the British manufacturer in general an equal opportunity for sale in New Zealand’s domestic market. “After full discussion the Dairy Board unanimously reached the decision that as it was impossible to restrict the production of dairy produce within New Zealand the board could not agree to any restrictions being placed upon our annual exports of dairy produce to the United Kingdom. “The board was further unanimously of the opinion that the only sound policy for the future welfare of the Dominion was to aim at the attainment of free trade between the United Kingdom and New Zealand prior to the expiry of the term of the Ottawa agreement To that end the Government was urged at once to reduce the duty on British goods to the extent of the increase caused by the recent increase in the exchange rate. “The impossibility of imposing any restrictions upon production in New Zealand was emphasised. New Zealand is a young country which is still very far from having attained the maximum de-

velopment. The country has been developed in roads, railways and hydroelectric facilities by capital borrowed from Britain. The obligations thus undertaken could be met only by unstricted opportunity for internal development Restrictions upon production and output would inevitably react upon the Dominion’s capacity to meet loan obligations, and thus affect the British investor. . . , “Restrictions upon the British market cannot be met by the development of alternative outlets, As things are at present there are no alternative outlets of moment available to New Zealand for dairy produce. The United Kingdom offers New Zealand the only feasible outlet beyond its own local market, which absorbed only 20 per cent, of the total production, with limited possibilities of increased absorption. “The New Zealand farmer, owing to the stage of his development, is probably as big a buyer of British manufactures as the British farmer, and on these grounds is entitled to as much consideration as the British farmer in the' protection of his market. The desire of British political and farming interests to protect their own agricultural producers from glutted markets is recognised, but the special needs of New Zealand as distinct from the more fully developed Continental countries and other parts of the Empire with different fiscal policies aiming at selfdependence have to be taken into consideration.”

INCREASE IN PRODUCTION.

SHIPMENTS TO GREAT BRITAIN.

Of New Zealand’s total production of butter, amounting to 104,200 tons during the twelve months ended July. 31, 1932, 96,984 tons went to Britain, this huge quantity representing over 98.70 per cent, of the Dominion’s total exports. For the previous year, 1930-31, New Zealand’s exports to Britain totalled 90,364 tons, so that the 1931-32 figure represented an increase of 6620 tons. The latest figures, covering the six ' months of the current season to the end of last month, show that New Zealand’s exports of butter to Britain were 63,067 tons, as against 50,906 tons for the corresponding six months of the 1931-32 season, an increase of 12,161 tons, or nearly 24 per cent. Shipments of butter from Australia to Britain during the twelve months ended July 31, 1932, totalled 83,923 tons (only 14,309 tons less than those from New Zealand), as against 67,247 tons tor 1930-31, an increase of 16,676 tons, or over 24.79 per cent. For the six months ended January 31 Australia’s exports of butter to Britain were 59,686 tons (only 3381 tons less than from New Zealand), as against 50,350 tons for the corresponding period of last season, an increase of 9336 tons, or 18J per cent. These figures indicate a huge increase in the exports of butter from New Zealand and Australia alone during the last 18 months. Imports of butter into Britain from all sources increased from 290,950 tons in 1926 to 403,550 tons in 1931, and last year the quantity was very much greater.

DIFFICULTY OF DISCUSSIONS.

DESIRES OF THE DOMINIONS.

By Telegraph—Press Assn.—Copyright. Rec. 10 p.m. London, Feb. 17. Discussions with the object of restricting the Dominions’ dairy produce exports are proving difficult. Dominion representatives are urging that foreign exporters should undertake substantial reductions, but Mr. Walter Runciman, President of the Board of Trade, is anxi-. ous not to prejudice the current trade treaty negotiations with Denmark and Argentina, particularly as Britain wants to increase her foreign exports. Mr. Runciman’s free trade convictions are believed to be the main obstacle, but. Conservatives desire the minimum of interference' with the Ottawa agreements, even voluntarily.