QUOTA DEMAND

Taranaki Daily News, 14 July 1933, Page 7

QUOTA DEMAND

PRODUCTION REGULATION GREAT PRESSURE IN BRITAIN SUMMONING OF DELEGATES “RUINOUSLY LOW PRICES” i DIFFICULTY OVER OTTAWA By Telegraph—Press Assn.—Copyright. ' London, July 12. The British delegates suddenly summoned the Dominion delegates to a meeting in connection with “the regulation °f production and marketing.” The British agriculturists are so urgently demanding action through the House of Commons that the Government is endeavouring to extend the mutual restrictions already applied to meat, desires further temporary reductions of meat imports and dairy products, particularly butter. Australia and New Zealand might even have to consider reducing preserved milk exports. It is understood that the Ministers are pressing the Dominions, but they cannot enforce* the measures owing to the Ottawa agrement. Undoubtedly further restrictions would rouse the Australian and New Zealand farmers, besides leading to difficulties when the Ottawa agreement terminates. The negotiations are at present secret, but it is hinted that all the Ottawa agreements may be subject to controversy. , The House of Commons approved of the review of the Government’s agricultural policy presented by Mr. W. E. Elliot, Minister of Agricillture. The Minister took a grave view of the consequence of a continuance of low prices for primary products. DESPERATE STRUGGLE. While the Government’s proposals had eased the situation in some respects, they were still engaged in a desperate struggle. He examined the work of the wheat quota and the probable effects of the brewers’ undertaking in increasing the use of home-grown barley, and announced that there was every reason to believe that a satisfactory arrangement concerning the 1 importation of 1 Canadian oats could be reached. A marketing scheme for sugar beet to take effect when the subsidy ended next year was under preparation, and international co-ordination of sugar marketing was being discussed by the London Conference. » The Government was prepared to limit but not to reduce sugar growing in the United Kingdom. Mr. Elliot, after referring to the arrangements for marketing potatoes, fruit and hops, said that the beef producers were engaged in a desperate struggle against ruinously low prices. Although importations had been reduced and fat cattle prices had advanced eight per cent, since the autumn the position was still far from satisfactory, and further limitations would have to be imposed. Th? price of sheep, on the other hand, had increased 34 per cent, in the same period. Imported pig meat to the extent of 49,000 cwt had been taken off the market without a disturbance of the retail market. POWERFUL INFLUENCES MOVE TOWARDS RESTRICTION. DAIRY PRODUCE TAKEN FIRST. (Special to United Press Association, New Zealand). Rec. 5.5 p.m. London, July 12. General approval has been accorded by most sections of the Press to Mr. W. E. Elliot’s speech in the House of Commons. This is a clear indication of the strength of the movement behind the quota proposals in cases where it can be shown, as the Minister sought yesterday to do, that application of the principle is necessary to raise the prices of British produce. It is . also increasingly onvjous that very powerful political influence is at work to bring about a limitation of imports as the best way to help home farmers. Mr. Elliot is at present concentrating on dairy produce, with regard to which he declared stable conditions in British dairying could be reached only if overseas supplies were regulated. He also stated that there must be further limitations of imports of beef. The Irish Free State is apparently apprehensive as a Bill recently introduced into the Dail at short notice is designed to meet the quota system in Britain. The Bill gives power to the Free State Minister of Agriculture to regulate the export of any agricultural product falling under import quotas in an ycountry so as to secure for Free State exporters the maximum benefits permitted by such' a system of control. The latest development of the control system applies to fish, a provisional ■ agreement having been reached between Britain and Germany for the regulation of fish supplies by German fishermen to the British market. -QUOTA WOULD BE DISASTER’ MR. W. GOODFELLOW’S ADVICE. MUST SECURE FREE MARKET. Auckland, Last Night. Referring to the cablegram from London regarding the proposed restriction of dairying imports Mr. W. Goodfellow, managing director of Amalgamated Dairies, said the Minister of Agriculture in Britain, Mr. W. E. Elliot, was a keen advocate of restriction, as a means of helping the British farmer. The meat and bacon restrictions had undoubtedly proved beneficial, mainly due to the fact that Britain produced 50 per cent., of the beef for her own requirements and a very large quantity of other meats. A butter quota would not have the same result as the main business of the dairy farmers of the United Kingdom was the supply of fresh milk to tire 46,000,000 inhabitants of Britain. Butter manufacture was indeed a small industry in Great Britain, and the rise in butter prices caused by restricting imports would be of very small benefit to the suppliers of fresh milk, whose surplus milk was used for butter manufacture. That a quota restricting exports from a country like New Zealand would be a national calamity went without saying, and the repercussions of such an act would be so serious as to warrant the nrediction of financial disaster. Mr. Goodfellow said he could say i- hi<; own personal knowledge tnat farmersTf the United Kingdom had grievance against both and New Zealand. They regarded the 25 per cent, exchange simply as a dump-

ing measure which placed United Kingdom fanners at a disadvantage in the ftatter of competition for the Home market. Further, the British manufacturer had complained bitterly at the Australian and New Zealand policy of fostering local industries and thereby virtually excluding British imports. A New Zealand business man who had recently visited the Midlands had informed him that he found it unpleasant to admit that he, came from New Zealand on account of the unpopularity of the Dominion’s existing policy of restri cling imports. “The Government should at once cable Mr. Forbes,” said Mr. Goodfellow, "and ascertain exactly upon what terms New Zealand could retain a free market for its produce in the United Kingdom. This should be secured at once, no matter what the cost.” DAIRY BOARD OPPOSITION "POLICY OF A MAD-HOUSE.” MINISTERS’ STAND COMMENDED. Auckland, July 13. The Dairy Board is definitely and fixedly opposed to any restrictions whatever. ’ ■ '

“It would be the policy of a madhouse to suggest acceptance of a quota for dairy products as far as New Zealand is concerned,” said Mr. W. Grounds, a member of the Dairy Board. He said that from to-day’s Press cable it seemed possible that the move originated, from Poland and was “inspired.” The Dairy Board, having ascertained the attitude of Mr. G. W. Forbes and Mr. R. Masters some time ago, had communicated with them commending their stand. OBJECTION FROM FARMERS VITAL NEED FOR FREE MARKET. CABLE SENT TO MR. G. W. FORBES. Wellington, July 13 The quota cablegram received by the Press was read to-day at the Farmers Union Conference, which passed a resolution vigorously opposing any Government step in the direction of curtailing or restricting the export of primary produce by way of a quota or otherwise, the conference considering any action m this direction inimical to the best interests of the Dominion. The resolution continued: “Free and unrestricted entry of our products into the British market is so vital to the prosperity of the Dominion that negotiations should be entered into with the British Government to ascertain cn what terms this privilege could be secured and what concession should be made with a view to obtaining it, and we suggest that in order to obviate any suggestion of quotas oh our primary products we should endeavour by every means to develop free trade with the Homeland. A committee was appointed to came Mr. Forbes setting out the farmers viewP °Mr.' J. G. Coates, Acting-Prime Minister, said that no official intimation had been received that the Ottawa agrements were the subject of controversy.