THE QUOTA CONTROVERSY.

Taranaki Daily News, 27 September 1933, Page 6

THE QUOTA CONTROVERSY.

It can at least be said of the visit of Mr. Thomas Baxter, representative of the National Farmers’ Union of Britain, that it should clear away any misunderstanding of the position as it appeals to the farmers he represents and those in New Zealand who depend for their livelihood on the success of the dairy industry. Judging from Mr. Baxter’s statement at New Plymouth last night, his mission is not to evolve a policy, but to explain one already determined upon in Great Britain. Subject to the limitations of the occasion, for the determining discussion must of course be with the Dairy Control Board, the of the policy of the United Kingdom was put succinctly and clearly by Mr. Baxter. He admits he is seeking benefit for the farmers, of Britain first, and he believes the ill effect of the restriction upon New Zealand’s output of cheese proposed for that purpose is causing more perturbation in the Dominion, than is warranted. Upon that point it is to be hoped Mr. Baxter will be as definite in stating the. grounds for his belief as he is in stating the case for immediate restriction. He can see no possibility of adopting the policy of imposing quotas on foreign countries and exempting the British Dominions, on the grounds that if such a restriction were placed on imports of, say, butter from Denmark, the gap thus created would be immediately filled by the Dominions, and Britain would be no better off. There is also the factor that the demand for Danish produce is definite and must be supplied lest the consuming public become restive and prevent the protectionist policy of Great Britain from continuance. The task of the New Zealand industry is to find some way in which a quid pro quo for an open market can be given by the Dominion. Mr. Baxter can see nothing but restriction of supplies .as a‘ practical means of raising prices to a level which will make cheese production in Great Britain profitable to the farmer. He thinks it may be only a temporary limitation of output, but the trouble is that such policies have a habit of increasing rather than diminishing in scope, especially when they have a definite bearing upon a politically-devised fiscal system. The industry will await with the keenest interest the outcome of Mr. Baxter’s discussion with the Dairy Board at Wellington on Saturday.