LEVY FAVOURED

Taranaki Daily News, 8 March 1935, Page 5

LEVY FAVOURED

MEAT INDUSTRY HELP

WHITE PAPER IN BRITAIN

QUOTA THE ALTERNATIVE

GOVERNMENT VIEW GIVEN

DOMINION PREFERENCE By Telegraph—Press Assn.—Copyright. London, March 6. A White Paper on the meat imports says that it is the Government’s firm intention to safeguard the position of the United Kingdom livestock industry. The only practicable means at present available is a drastic reduction in imports from all sources. If, however, the Dominions concerned and Rhodesia and Argentina will consent to the necessary variatior... of their agreements, it will be possible to deal with the situation by the imposition of a levy with or without a measure of supply regulation. The question therefore arises whether with the consent of the Governments concerned the levy should be imposed forthwith as an alternative to a drastic reduction in imports. The White Paper points out that the world depression has caused a disproportionate fall in the agricultural prices of meat, which had been specially affected by expansion of overseas production, and in some cases stimulated by subsidies.

It was clearly impossible for the British Government to acquiesce in a situation threatening to ruin the British livestock industry. Britain’s net production of meat had remained practically unchanged for 25 years. The population in the meantime had increased by 10 per cent., but the agricultural population had declined by 14 per 1 cent., while meatimports from all sources had increased by 33 1-3 per cent.

The development of inter-imperial trade was admittedly of primary importance, but, as the Empire was unable to absorb even a major part of Britain’s exports it was essential that foreign countries should take a substantial part of it LONG TERM SOLUTION. The British Government’s opinion is that a levy on imported meat with preference for the Dominions will afford the best long-term solution of the problem. The possibility cannot be excluded that additionally some regulation of the market may be desirable in the interests of producers at particular times but the Government regards as a satisfactory permanent arrangement a system under which responsibility for the regulation of the market would rest with it alone. The view is that the British Government’s intervention should be limited to the collection of the levy and application of the proceeds to the home industry leaving the overseas producers themselves to regulate their exports. Failing an agreement on the levy, the Government has no alternative but to take steps to regulate during the existing agreements the quantities of imports to the extent necessary to restore livestock prices to a remunerative level.

In order to give the Governments concerned a further opportunity to consider the problem Britain is continuing the subsidy temporarily but -the Government has no intention of either- doing so indefinitely or acquiescing in the ruin of the livestock industry. The Government desires at the earliest moment to operate the levy system with preference for the Dominions, leaving oversea producers to regulate their own exports. Questions therefore arose whether the Governments concerned would consent to an immediate levy on imports as an alternative to a drastic reduction of imports, which otherwise would be necessary, or whether the import regulation should cease from the date of the imposition of the levy or after the transitional period during which moderate regulation would be maintained. Finally it had to be decided whether the levy should be imposed on all meat or only beef, veal and live cattle. PLEDGE TO ELECTORS. In the House of Commons, Mr. J. H. Thomas, Dominion Secretary, in answer to a question on the tabled White Paper, made a statement almost identical with the views expressed. Sir Percy Harris asked. “Have you consulted Mr. Runciman on the subject as he gave a pledge to the electors not to tax meat?” Mr. Thomas replied that the White Paper included Mr. Runciman’s views. The Australian Press Association says that the White Paper makes tin situation regarding meat imports more lucid than at any time during the past three or four months of the discussions. It may be assumed that Britain’s preference for the levy, as clearly expressed in the White Paper, is due to the country’s general antagonism to quota schemes. Mr. W. E. Elint’s policy obviously is to allow the imports of meat to find their proper - level under the combined influence of a levy and the undesirability of depressing the market by excessive supplies, which exporters must regulate among themselves. While the situation is now easier to grasp it cannot be described as much more hopeful. There can be no certainty regarding the general Empire adhesion to a policy of a levy instead of a drastic quota system, while Argentina will not lightly forego her advantages until the expiration of her agreement.