DUTIES ON BUTTER

Taranaki Daily News, 6 September 1935, Page 14

DUTIES ON BUTTER

BRITAIN’S FUTURE POLICY. LESSON FROM BACON TRADE. A statement that the British Government was now opposed to quotas and restrictions on the importation of dairy products, and favoured import duties, was made in a report to the Australian Dairy Produce Export Board by Mr. T. Flpod Plunkett, chairman of the board, who has been investigating conditions abroad.

Mr. Plunket stated that the protracted negotiations on the meat question prevented the discussion of butter and other dairy products, which was deferred until next year, when the treaties between the British Government and foreign countries would expire. In any case, the Dominions were protected under the Ottawa agreement, which provided that if any duty be imposed on Dominion butter, then the duty on foreign produce would be automatically increased by the same amount.

“The British Government” is now opposed to quotas and restrictions, and is favourable to the imposition of a duty on imports—the revenue thus obtained to be given to producers in Great Britain to compensate them for competition from oversea countries,” said Mr. Plunket. “The case of bacon proved that quotas increased prices to consumers without compensating advantages to producers in the United Kingdom, and that foreign countries under the quota system obtained more money for the smaller quantity they exported. The Danes state that the restriction on bacon imports saved their farmers from financial embarrassment, and they are now relying more on the pig industry than dairying.” Mr. Plunlcet said that the imposing of a duty on dairy products raised a very serious problem in the Dominions, and it was pleasing that members of the New Zealand Dairy Board would confer with the Australian board on this and other matters. It was essential that Australia and New Zealand should adopt a common policy.