THE QUOTA AGAIN

Evening Post, Volume CXV, Issue 39, 16 February 1933, Page 10

THE QUOTA AGAIN

Messages received from London today emphasise the gravity of the position in the butter and cheese market. The "Sun" correspondent states that discussions have been be-' gun on .proposals for limiting sup.plies and that a voluntary quota arrungT ent is SOUSIIt* II is suggested that the Dominions would be under the' necessity of adopting some' limitation scheme, apart from any consideration of the Home producer, to maintain their own prices. This' message confirms the impression given, by earlier .cables. A message received on Tuesday stated that trade treaty negotiations with Argentina vt Denmark > coupled with the plight of British agriculture, were likely to a marked degree to involve the foodstuff exports of Australia, New Zealand, and other Dominions to Britain, particularly in dairy produce. The "Sun" understood that the catastrophic fall of prices may compel Britain to seek a restriction of imports similar to tho existing voluntary meat restrictions. The serious problem for the Dominions is that some dairy produce prices have fallen so heavily that no anti-forcigu duties really protcet the Dominions: 9_ *c same day Major Elliot, British Minister of Agriculture, was reported as stating in the House of Commons that, "apart from the Ottawa Agreement, there was no power to impose further limitations on the imports of meat from foreign countries and the Dominions with depreciated currencies." Though this was in reference to meat, the remarks of the Minister's questioner, Mr. Lambert, suggested that he was thinking of dairy produce, for he claimed that the depreciated currencies of Denmark, Australia, and New Zealand represented about 3d a pound, which was unfair competition with British farmers*. Yesterday a further London message reported an appeal by British cheesemakers to the Minister of Agriculture to consider immediately the possibility of dealing with cheese import^ on similar lines to die meat restrictions. A serious situation had' arisen (it was stated) owing to heavy stocks of cheese, mostly from the Dominions. The Minister replied that he recognised the gravity of the situation, which would be seriously considered. Apparently the,serious consideration has led at once lo negotiations for a voluntary restriction. There is no denying the fact that the British market has more butter and cheese than it can absorb, even at the greatly-reduced prices which have ruled this season. New Zealand butter exports have risen by 20 per cent., and cheese exports by over 12 per cent. This increase has taken place also at the same time as a.remarkable growth in Australian production, due in part to a favourable and early season. In the circumstances it is not surprising that British producers are anxious for a voluntary restriction similar to that which has given them relief in the meat markets. The application of this restriction to the Dominions in November last was wholly voluntary. It was. agreed by New Zealand then that shipments' of mutton and lamb for November and December should be 10 per cent, below the quantities

for November and December, 1931. In making'an official announcement to this effect, Mr. Coates stated emphatically that it was not tiie result of the Ottawa Agreement. Luleed, it can reasonably be said, he stated, that the Agreement has the opposite effect. The United Kingdom always had power to regulate or restrict imports. Part of our Agreement concluded at Ottawa is the undertaking by the United Kingdom that New Zealand dairy products will not bo regulated in quantity for at least three years, and that no restriction will be placed upon the importation of any meat from New Zealand during the period ending June 30, 1934. The Government of the United Kingdom have thus agreed to refrain from exercising a power which they undoubtedly possessed apart altogether from the Ottawa Conference. ■-.. Though there may be no power to impose restrictions, New; Zealand cannot ignore proposals for voluntary limitation of dairy produce supplies any more than she could ignore in November the request for reduction of meat exports. The most disturbing feature of the position, however, is the possibility, of such restriction becoming permanent. _ We have accepted quotas applied to foreign suppliers. Now the Home producer desires to see them applied to the Dominions, and not for a few months only. ' Speaking at Manchester last week, Major Elliot said that the quantitative regulation of meat was not a mere expedient to meet a crisis, but had come to stay. The Government - had given a: lead to the world in;respect to the regulation of meat supplies. The arrangements made in November had undoubtedly avoided a calamitous situation. The foreign and Dominion Governments concerned had voluntarily co-operated in a system of regulation and recognised it as a real solution of market stabilisation. ~ It happens that the regulation of meat exports has not seriously embarrassed T.ew Zealand; but a restriction on exports of the expanding dairy industry would present a difficult problem, indeed, if it were to become permanent.