BUTTER RESTRICTIONS

Waikato Times, Volume 113, Issue 18927, 22 April 1933, Page 5

BUTTER RESTRICTIONS

NEW ZEALAND EXPORTS. STATEMENT BY MR COATES. RESULTS OF RESTRICTIONS. AUCKLAND, Saturday. The Rt. Hon. J. G. Coates, in addressing the Auckland 'Creditmen’s Club yesterday, pointed out that the price of lamb had risen from 5d at the time the Ottawa agreements were made to about 6Jd now, while the outlook for wether mutton and beef was better. Had much hardship followed the restrictive methods agreed to at Ottawa? So far as Mr Coates could see, the results had been successful. Mr Coates said the duty of 15s a pwt, on butter gave New Zealand butter to-day an advantage of 22) per cent ad valorem over the foreign product. He could not say that trie results, as far as butter was concerned, had been successful, although similar methods had put Dominion , fruit-growers on a better footing. “I am not speaking from any determined viewpoint," said Mr Coates, "but I do consider the solution of our problems will be assisted materially if we can raise prioes. Is It possible to adopt much the same method In regard to the export of butter as has been adopted in regard to meat? The butter agreement will be overhauled In about two years from now—not that the duties will be interfered with, but the whole question will be reviewed.

Giving British Farmers Opportunity.

"Is the United Kingdom likely to say at the end of two' years that It has had enough of its market being knocked about, by the importation of Empire 'and foreign butter? The agriculturists in Britain produce only about 40,000 tons of butter a year, but it seems that the United Kingdom is determined to give its farmers a greater opportunity to produce more for the British market. "Would restrictions on butter be effective? For many years Britain has been trading with neighbouring European countries, and those old ties will not he lightly severed. As I understand the matter, representatives of the 'butter trade in London discussed the position with representatives of the various Dominions. The authorities in England were then asked what could be done to raise the prices of this commodity. If we are unable to get satisfactory prices we must become dangerously near to the point when we will be unable to meet our responsibilities with Britain. I mean no more and no less than just that. Restriction of Exports. "Can we -restrict the amount of our butter imports Into Britain for a year or two? I do not-.'think it peoessary to reduce production. I am ndw using imaginary figures. Could we sell 110,000 tons in the United Kingdom instead of 115,000 tons? The payout now is 7d or 8d a lb, and if it were in gold it would be only about 3jd. If we could get Is for 110,000 tons, we would have -to' see what we could do with Ihe 5000 tons for, say, three years. The suggestion is that the foreigner would be restricted two tons for our one ton.

: "The thought I wan to leave with you is that this is a vital matter. The problem at the moment is to know how farmers are to get credit. It is thoroughly worth while examining this question. It is .an important question which is of practical concern,' not only to the farmer, but also to -the trader dependent upon him.”