OTTAWA CONFERENCE

Waipukurau Press, Volume XXVIII, Issue 119, 14 May 1932, Page 2

OTTAWA CONFERENCE

Sheepowners’ Views

ON FROZEN MEAT TRADE. SUBMITTED TO CABINET. The following statement was made by Mr J. S. Jessep, on behalf of the New Zealand Sheepowners’ Federation, to the Hon. G. W. Forbes and members of Cabinet composing the Ottawa Committee. — Proposals are now on foot, which, if carried through, may vitally affect the great industry on which to a very large extent for the past thirty years the prosperity of the Dominion has depended. The advent of refrigeration has done more than any other single cause to promote prosperity in New Zealand. Sheepfarmers have steadily devoted their attention to developing in the. main an export of frozen lamb, and by steady concentration have brought the quality of •the Dominion’s product to such a pitch of perfection that it challenges comparison even with the British home-produced lamb. Quota System Opposed.

Now that the fiscal system of the ■■ United Kingdom is in course of re- | construction, it behoves those in power in New Zealand to watch carefully that proposals are not agreed to which may tend to destroy or diminish the tremendous lead which New Zealand has established in the production and export of prime lamb, for on the continued expansion of this industry to a very large extent our prosperity must depend. Proposals have been put forward that this Dominion should agree to, indeed should advocate, the introduction, side by side with a tariff, of a “Quota” system. We are strongly of the opinion that the proposal is the most dangerous one which has yet been suggested in connection with any revised proposals affecting the trade between New Zealand and the Old Country. There is no doubt the argument has been very well elaborated, and what is called “Quantitative regulation of imports” has been put forward in a very enticing manner. There is a vast gap indeed between any tariff proposals and any system of quantitative regulation of imports. A tariff may be imposed either for the production of revenue, or to protect an industry in any country. Quantitative regulation of imports cuts right across the normal operation of all principles of commerce and the laws of supply and demand, and clearly means nothing more or less than the socialisation of industry and production. It is proposed to take out of the hands of business men the regulation of the production and marketing of their produce, and depend upon politicians and committees to arbitrarily regulate over a large volume of commodities. The Quota would be governed by committees, and immediately would grow up huge Government departments with all the weaknesses of such bodies. It would simply be another instance of business being controlled by politicians or committees, with power to make decisions of far-reach-ing effect and affecting large sums of money invested in the industry of this country. Moreover, it would deliberately lend itself to manipulation on a huge scale. The proposal is so far-reach-ing that it is almost inconceivable how light-heartedly it has been supported by some politi-

cians. No business stands alone. If quantitative regulations of the amount which can be imported into the United Kingdom can be made with respect to meat, they can be equally applied to butter, cheese, wool, tallow, pelts, or any other commodity which the Dominion exports. It is the most dangerous proposal v.bich has ever been suggested in connection with New Zealand trade. Socialisation Aspect There is another phase of this question which we would like to point out. This specious quantitative control, as it is called, is being enthusiastically supported by the Socialistic and Communistic groups in England. They recognise it as a long step forward in the direction of the socialisation of industry. They have secured the backing of the British farmer, or rather they have caught his imagination. There is not the slightest doubt that, if the proposal goes through with the. support of this Dominion (by far the largest exporter of frozen lamb to the United Kingdom), we will have

struck such a blow at the New Zea-

land meat industry as will almost tend to destroy it, unless we. can open up markets in foreign countries. Instead of tending to promote good feeling within the Empire, it is likely to prove a fruitful cause of disruption. Tariff Adjustment An adjustment of tariffs, giving preference to those portions of the Empire which give preference to the Old Country, and a smaller measure of preference to foreign countries which trade extensively with the United Kingdom, is the only sound and reasonable basis on which this Dominion can safely negotiate for charges in the present system. The original proposals were:— A free list for Dominions and Crown Colonies giving preference to British goods; A small tariff for Dominions

not giving preference; An intermediate tariff for foreign countries giving preference to Britain; A full tariff against countries not giving preference; We are strongly of the opinion that they stand to-day as the only sound and safe basis, so far as this Dominion is concerned. Any proposal not based on the laws of supply and demand, which gives the right to a committee or Government Department to restrict the output of New Zealand’s most important export, will mean definitely the death-blow to further expansion or development of that industry in this country. It will lead eventually to complete and utter dissension between the farming industry of Great Britain and that of New Zealand. The weapon is too powerful and too dangerous to be brought into being with the advocacy and consent of those representing the Dominion of New Zealand at the all-important Ottawa Conference.