The Wanganui Chronicle. THURSDAY, JULY 20, 1950. THE BOARD OF TRADE

Wanganui Chronicle, 20 July 1950, Page 4

The Wanganui Chronicle. THURSDAY, JULY 20, 1950. THE BOARD OF TRADE

'y'HE contemplated move by the Government to set up a Board of Trade is expected to be evolved out of the Committee which has already been established to deal with import licenses for the coming year. On this committee is a representative of the manufacturers of New Zealand and this direct representation in one respect has prompted the farmers to ask for a representative of thejr own on the new body which is foreshadowed. The argument seems to be this: If the manufacturers, who are desirous at all times of securing tariff protection for industries, have a direct representation on the Board of Trade the farmers, who are interested in exporting unprotected produce of the land, should be equally entitled to such direct representation. There is no gainsaying this argument if it is to be pursued upon these lines. But the lines are wholly wrong. The Federated Farmers should not press for a representative of the farmers on the Board of Trade because if they succeed in this they will be beaten in the effort to secure the preponderance of advantages. Those who recollect how sorry was the showing of the farmers’ representation before the Tariff Revision Commission when that representation was completely outmatched by the manufacturers’ advocate, Mr. Mander, should not forget that experience. Farming is a specialised industry and it does not qualify men for such work as taking part in an overall supervision of the trade and commerce of the country. Without these qualifications the farmers’ representatives would be outmatched at every turn. Past history shows the folly of farmers attempting to match themselves against experts in other fields. Should the farmers’ representative by some good fortune prove to be one hundred per cent, efficient what would be the effect of his labours? It would simply cancel out the efforts of the manufacturers’ representative. In other words there would be two advocates, one pulling in one direction and one pulling in another direction and the activities of these two advocates inside the Board itself would only carry the case from the open hearing of any application to behind scenes. Thus would public confidence in the Board of Trade itself be undermined. Decisions would depend upon the efficiency of one advocate or the strength of his personality upon the other members of the Board over that of the other advocate and to the extent that one or other representative was successful the judicial quality of the Board of Trade would necessarily be impaired. The fundamental factor in respect to the personnel of the board of Trade when it is set up must be that it is composed of wholly impartial men, men whose inteiests are in no way involved neither in the promotion of the welfare of the farmers or the manufacturers, neither of the importers nor of the exporters. They must necessarily be consumers, but they should not be out of the class of the general run of consumers. Such men must, t Qiefore, ha'Ye a financial position which is served or preserved ?" • Jw tl,e promotion of the general well being of the communf , en ’ a, }d on l ,v en > w ill the public be entitled to entertain l" e ., lee ' )n K , eonfid en«? in the members of the Board of Trade. It the Board of Trade is itself to be but a battle ground for pressure group interests then it would be much better if it were not ret up at alh The farmers instead of asking for special representation on a body such as the Board of Trade should be insisting now that the body m question should be wholly justified by reason of the nature of its personnel. This personnel should be both impartial and judicial in mind It does not follow that the memlx-rs must be wholly lawyers. Indeed there is no particular point in including a lawyer at all. Nor does it follow that the Board should be composed wholly of businessmen. What is wanted more than anything elre is men who are trained to take a wide view of the interests of the country as a whole and if such men are secured to serve as members of the Board of Trade the farming interests will be much better protected from imposition and injust'ce than by having a nominee on the Board. Further, the farmers will by such advocacy gain in-public esteem by putting a more acceptable view before.' the country than by endeavouring to justify one black provide a second black as a counterpoise. Two blacks never yet made a white. BUTTER FOR DOLLARS gOME revision has already been agreed to concerning the agreement made for the bulk purchare of New Zealand butter by the United Kingdom Government. This revised basis enables New Zealand to sell butter beyond the previously stipulated 3 per cent, of exports to other than the United Kingdom market. The <r>*stion which naturally arises is: What other markets are there for this product? The most important market,.provided New' Zealand can find entry is that of the United States of America. The high prices paid for butter in that Republic make the prospect of high prices and permanent demand appear to be almost dazzling. But that is precisely where the Catch lies. The dairying industry of the United States has been enlarging and with a greater consciousness of the value of milk products the demand is likely also to increase if the market is rightly exppited. The exploitation of the United States market from the sellers’ angle is beyond the resources of New Zealand and so the butter from this Dominion which is to find its way into the American market will have to go there under the aegis of some merchandising organisation. The sales will be to the wholesale trade only. Prior to the Great Depression the United States used to import butter from Canada, but when the depression resulted in a curtailment of consumption of butter on the North American continent down went the demand and up went the American tariff against Canada. Canada’s position was difficult. -She used to export her summer surplus and depend upon supplies from New Zealand to help her out during the winter. When the United States market was lost to Canada she had a surplus which enabled her to meet her requirements in winter time from supplies accumulated during the summer. Thus it was American action which lost New Zealand her Canadian market. A liberalising of trade relations in the North American Continent is desired by New Zealand. It would be interesting to learn what action has been taken in recent years by Ihe New Zealand representatives in Washington and Ottawa to attain that desired state of affairs.