EXCESSIVE PROTECTION

Waikato Times, Volume 114, Issue 19012, 1 August 1933, Page 7

EXCESSIVE PROTECTION

A RETROGRADE POLICY. MONTHLY MARKET REVIEW. v MR W. GOODFELLOW’S OUTLINE. Pointed reference to the necessity of New Zealand honouring' the Ottawa Agreement is made hy Mr W. Goodfellow, managing director of Amalgamated Dairies, Ltd.,, in his monthly marketing review in the New Zealand Dairy Exporter. Mr Goodfellow states:— “The London butter market during the past four weeks has 'been quiet, with short periods of activity. The prloes reached during the previous month have not been maintained because of the larger supplies of domestic, Irish and Continental butter. Australian has been in shorter supply, and, as a result, deliveries of New Zealand appreciably increased. This situation will- continue for some time because shipments from the Commonwealth during June totalled 3162 tons only, and July figures will be still less. Argentine shipments to the United Kingdom for the six months ended June 30 amounted to little more than half the quantity shipped during the corresponding period of the previous year, and for June only 60 tons were shipped. Due to the 15s cwt duty, the British market is becoming unre-_ munerative to Argentine. The Irish Free State shipped over 4000 tons to the United Kingdom in June —about 1000 tons more than the previous June, ’as a direot result of the export bounty of 31s per cwt., introduced to offset the special duties imposed by the British Government. A feature of the June Imports was the remarkable Increase from Holland. In June of 1982 the Netherlands exported only 144 tons to the United Kingdom, this year the quantity was 3271 tons.

Agitation In Britain.

“The estimated stocks at June 30, of all butters in London and provincial stores totalled 35,800 tons. The holdings of New Zealand in agents’ hands were just under 12,000 tons, rather a heavy quantity, but since then the shortage of Australian has assisted in reducing stocks of New Zealand by about 2000 tons, and there is every likelihood of the position being still further inr&roved during the next few weeks.

“The agitation by British agriculture for the »estrictlon of imports of dairy produce into the United Kingdom has been intensified, and it is noticeable that New Zealand has been singled lout for special attention, partly because it is realised that the backbone of the opposition to the proposal is from New Zealand, but mainly, we believe, because this country has not yet honoured the Ottawa Agreement. We are definitely of the opinion that when our import duties and exchange are substantially reduced in accordance with the letter and spirit of the Ottawa Agreement the agitation for Dominion quotas will disappear. “For the ybar ended December 31, 1932, New Zealand trade figures are as follows: —Exports to the United Kingdom, £32,500,000; imports from the United Kingdom, £11,500,000; total exports to all countries, £37,000,000; total Imports from all countries, £23,000,000.

Accusation of Dumping. “The 'high import duties, plus 25 per cent exchange, make it almost impossible for many British manufacturers to trade In New Zealand, and have in turn given local manufacturers a highly protected market in this Dominion. The result is that the British farmers acouse New Zealand of dumping produce on the Home market, with the aid of a depreciated ourrency, while the British manufacturer complains that trade barriers have been raised, and not lowered as provided in the Ottawa Agreement. The present, polloy of excessive protection is keeping up the cost of most commodities, and the oost of aTT our national services. Whereas New Zealand used to be one of the cheapest countries in the world to live in, it Is now one of the dearest. Houses, clothes, boots and most other commodities (other than produce) are costing the people of New Zealand about double the price of similar goods In the United Kingdom or U.S.A. What Is required in New Zealand is a reduction In the prioe of goods and the cost of services, without necessarily reducing the standard of living. To buy highly protected New Zealand goods Is only to maintain high prioes and increase unemployment, not reduoe it. There is no possibility of the local manufacturers oreating a demand, whloh would absorb a substantial proportion of New Zealand's production, and there Is no Justification for the existing polloy of fostering uneoonomio local industries, whloh to-day are maintaining retail prices at an absurdly high figure, and, Incidentally, substantially increasing the oost of producing farm produce and all other commodities. Our slogan should be “Free trade between New Zealand and United Kingdom.” Oheeso Market. “The cheese market has been holding Its own except that the premium for coloured has declined to 2s per cwt. It would appear that the Home cheesemakers have met the shortage of coloured, as for some months our exports have been consistently below the proportion which has been found to suit the market, viz., to-thlrds white and one-third coloured. Stocks of Canadian cheese in the United Kingdom and Canada are given as 10,000 tons, of which about 7500 tons are held In Canada. The introduction of light beers in the United States has created a demand for Canadian cheese, and it is probable that a proportion of the Canadian holdings will bo sent over the border, relieving the London market to a corresponding degree. Shipments of Canadian to the United Kingdom for June totalled 1563 tons. New Zealand was responsible for 12,671 tons of the total of June Imports into the United Kingdom of 15.252 tons of cheese. "Competition In milk powder is sti'.l intense, particularly from Holland. which country specialises in skim milk products, and has practically a monopoly of the British market "for sweetened condensed skimmed milk.