The Timaru Herald TUESDAY, MARCH 27, 1934. ACTING TOGETHER.

Timaru Herald, Volume CXXXVII, Issue 19758, 27 March 1934, Page 6

The Timaru Herald TUESDAY, MARCH 27, 1934. ACTING TOGETHER.

Mr Stanley Bruce’s confession on his return to Australia that “the only market that can meet the needs of the Dominions is the English markets,” will no doubt cause Australian and New Zealand producers some moments of deep contemplation. “It is imperative,” added the returning High Commissioner, “that Empire countries should act together.” This view is supported by other political heads of overseas Dominions, who like Mr Bennett of Canada, have from time to time stressed the vital importance of “buying from members of the family.!’ At the moment, however, the air is being rent with obviously inspired propaganda directed at any measure of preferential treatment being accorded overseas Dominions by way of favoured treatment in the markets of the United Kingdom; indeed, it is frankly suggested that the successive trade returns for New Zealand, revealing a rapid contraction of imports from overseas, ought to be taken into account in determining the fiscal arrangements between the Homeland and the producing countries. The latest official figures show that the Dominion enjoyed a favourable balance on two months’ operations—January and February—aggregating £6,526,000. In other words New Zealand imported goods to the value of £4,804,000 in two months, while the value of the Dominion’s exports sent overseas (principally to the Homeland) totalled £11,329,000 in value. Manifestly, the decline in the importation of overseas goods has been due in a measure to the imposition of the exchange rate, which has operated against the manufacturers in England, At. the conference convened by the Government of New Zealand, to tackle the problem of the economic instability of the dairy industry, the Prime Minister disclosed the efforts made by the Government to lift the dairying market out of the dolldrums of unremunerative prices into better days. It is now reported that the New Zealand Government asked the Imperial Government whether the adoption of a practically free tariff on British goods would enable New Zealand to obtain the free entry of her produce to the English market. The British Government had replied that tariff and quota problems were quite separate and Britain is already committed to a policy of the regulation of imports. Changing conditions create new problems and demand new methods. The cable messages this morning indicate that the modern fashion of eating less meat has beefi emphasised again by the Smithfield market report. This market in 1933 received 456,413 tons of meat and poultry provisions, the lowest for six years, and a decrease of 10,867 tons compared with last year. From all the principal sources the meat supply has decreased, except Australian frozen meat and South African chilled meat. It is encouraging to note, however, that the butter market is partly optimistic, but buyers of Australian at 75/- c.i.f. and New Zealand at 76/- are difficult to find; and of course Danish butter is selling at more payable rates. Mr Forbes has repeatedly warned the dairying industry that it must now indulge in the carefully planned handling of what is obviously a very difficult question: Following the recent conference Mr Forbes said it was realised that It was little use approaching the British Government unless New Zealand had a specific plan for improving the position of the industry. The British Governmen had made it plain that the next move must come from New Zealand, and the New Zealand Government felt that it was for the board, as representing the industry, to submit specific plans to Cabinet before Cabinet gave its approval to the sending of a delegation to visit the Homeland. When the board had prepared its plan, it would submit it to Cabinet, which would then decide the best course to pursue.

Inspired newspaper jiropaganda in the Homeland is already interpreting the decision of the Imperial Government, in relation to New Zealand’s position in the markets of the United Kingdom, as the impending doom of the Ottawa agreements. As a matter of fact, the situation created by the British Government’s reply to New Zealand’s suggestion, should bring into the forum of interimperial discussion all phases of existing trade relationships between all parts of the Empire, because as Mr Bruce says the solution lies in acting together; and to act together means, as Mr Bennett puts it, that the policy of buying from members of the family must be practised as well as preached.