GLUT IN BUTTER MARKET

Taranaki Daily News, 29 November 1934, Page 4

GLUT IN BUTTER MARKET

COMMENT BY SIR J. PARR

LARGE FOREIGN IMPORTATIONS.

“PERCENTAGE NOT EQUITABLE.”

PLIGHT OF NEW ZEALAND FARMER. Interesting comments on the glut in the butter market in England are contained in the Financial Times of October 24, a copy of which has been received by the Daily News from the High Comifiissioner. The comments were made by Sir James Parr in the course of an interview with the Financial Times shortly after the release ‘of the Dairy Commission’s report in New Zealand, and are featured in the newspaper. “Just think of 75,000 butter farmers ifl New Zealand mortgaged heavily and struggling hard while you in England are importing 47 per cent, of your butter from foreign countries,” said Sir James. “There are one or two outstanding facts I would like to emphasise. The first is that Britain has made about a dozen arrangements with European countries to supply you with more butter and for these countries to take your goods in return.

“But the aggregate purchases of these countries do not amount to very much when compared with what New Zealand and Australia buy from you. But you still take their butter while your own Dominions —your best customers —are impoverished and badly in need of your orders.”

Quite apart from any question of her domestic agricultural policy, England today was glutted with butter. In addition to the foreign supplies the British consumer was now getting the finest butter in the world from New Zealand at the lowest price ever reached,, but the producer was facing bankruptcy.

Butter, pointed out Sir James, was the Dominion’s principal export. The low Prices obtained meant that her finances would be embarrassed if quotas were imposed. The Government would find it impossible to pay interest on the £160,000,000 owing to Britain unless Britain took her meat and butter, as in the past. “It is claimed,” went on the High Commissioner, “that Argentina owes you so much money that you cannot afford not to import her meat. That country supplies 82 per cent, of the beef that comes into England, but she does not buy from you correspondingly; “When you are thinking of that, remember that New Zealand is not only relatively your best customer but she also has the most benevolent tariff in the world for British goods.. More than half the goods that arrive from Britain are imported to New Zealand free of all duty. “Australia and New Zealand have borrowed a great deal more from you than has the Argentine, and surely the payment of their interest is of equal importance. We are paying to the day, and our farmers are the. people who are providing the money. “If it is a choice between keeping the New Zealand farmer solvent or the foreign farmer solvent, should there be any doubt,” asked Sir James, “as to the course Great, Britain should pursue? That,” he stressed, “is the plain truth of the position.”