DAIRY INDUSTRY

Timaru Herald, Volume CXXXVII, Issue 19830, 20 June 1934, Page 4

DAIRY INDUSTRY

FREE TRADE INQUIRY DEBATE IN THE COMMONS ' (From Our Own Correspondent.) LONDON, May 11. The debate in the house of Commons on May 7 on the inquiry of the New Zealand Government regarding a mutual free trade agreement between Britain and the Dominion was disappointing to those who are genuinely interested in the furtherance of Empire trade relations. It was disappointing largely because the discussion, opened by the Liberals under Sir Herbert Samuel, developed into a polemical argument on protection, free trade, foreign agreements, and the restriction of production, whereas the real issue underlying the inter-Govern-mental correspondence, namely, the position in the British market of the Home, Dominion and foreign producers respectively, and of the British manufacturer in the New Zealand market, was generally overlooked. While Mr Thomas was right in saying that the Dominion Government’s intimation was not an oiler, but an inquiry made on behalf of a “section of the people,” his reply does not seem to have altogether satisfied M.P.’s on either side of the House, and a part, at least, of the Press remains frankly critical. Mr L. S. Amery summed up what is a fairly widespread opinion when he said that “the **ew Zealand Government would not have dreamed of associating itself with the inquiry had it net been prepared to take it up seriously.” Mr Thomas is to state his case again and answer questions at a forthcoming meeting of the 1922 Committee, which has a membership of 400 Conservative M.P.’s. Meanwhile, though the “free trade” issue has petered out. the Press and public generally seem to be deeply interested in the further development, rather than the restriction, of trade with the Dominions generally and New Zealand in particular. A great deal will, therefore, depend on the New Zealand Government’s attitude towards the proposed reduction of tariffs on British goods when it assembles to consider the Tariff Commission’s report at the end of June. The New Zealand Government’s free trade “gestures” or “inquiry” was. indeed, well worth while, and should it extend real trade advantages to Britain after its revision of tariffs, it will be difficult for the Imperial Government to ask New Zealand, in return, drastically to curtail her dairy exports when the Ottawa agreement expire in June. 1935. Case Against a Quota There are many other considerations against Empire restriction which are continually being brought before Government representatives, and through the Press, to the public, by those who are interested in the Dominion’s welfare. Following the publication of their letters to the Press, both Sir Archibald ‘Weigall and Mr George G. Mitcheson, M.P.. contributed useful articles to periodicals in which they effectively stated the Dominions’ case against the quota—Mr Mitcheson in “Milk Industry” and Sir Archibald Weigall in the “Empire Review.” Mr Mitcheson pointed out that the Import Duties, introduced in 1931 to help the Dominions to secure a larger share in the British market, have not had the result of restricting foreign imports. These, on the contrary, have risen from 4,070,031 cwt. to 4,177,851 cwt. in the intervening two years, and they are now increasing at an even greater rate. This unforseen increase in imports is, as he pointed out, the real cause of the present glut on the market—a thing which is only now being realized, even by members of the Government. A number of M.P.s supporting the Government —notably Mr Amery—are becoming frankly critical of the uneconomic working of the trade agreements which Britain has lately contracted with foreign countries, frequently at the expense of Home and Empire primary producers. The Conservative Parliamentary Agricultural Committee was deeply concerned at the evidence submitted to it the other day by Mr Dynes Fulton and Mr H. E. Davis, respectively deputy chairman and London manager of the New Zealand Dairy Produce Board, evidence which indicated the extent to which Denmark and Holland subsidise the butter they export to this country. The Committee’s statement to the Press received wide publicity, and the ; matter has since been brought by Sir ' Percy Hurd before Dr. Burgin, Secretary to the Board of Trade, with a re- ! quest that the Government should take ■ measures to protect the interests of ' Home and Dominion producers against , competition of this kind.

The Shipping Standpoint Shipping interests have not yet expressed their opinion on the proposal to restrict Empire production, though a strong protest may be expected from them should the Government announce any definite plan. The Waiwera, the Shaw Savill Company's new 12,000 ton cargo liner, and the second of the ten new ships to be completed for the Dominion food trade, was launched the other day at Belfast. As Mr F. E. Rebbeck. chairman of Harland and Wolffe, Ltd., the builders, remarked: “The completion of this ship marks a turning-point in Belfast's depressed shipping industry.” The New Zealand Dairy Produce Board’s sales campaign in Birmingham and Wolverhampton is now nearing its end, and a general poster and display campaign has meanwhile been opened in London, the Transport Board’s omnibuses being used as an effective instrument for advertisement. In the grocers’ competition in Birmingham there were 350 entries, and 160 in the Wolverhampton competition —gratifying totals in both cases. The Board will shortly turn & activities northward by launching a concentrated sales campaign in Glasgow—a port whose value to the Dominion’s trade is rapidly increasing.