BUTTER EXPORTS

Evening Post, Volume CXV, Issue 69, 23 March 1933, Page 3

BUTTER EXPORTS

AUSTRALIAN PROBLEM

RESTRICTION POLICY

(From "The Post's" Representative.)

SYDNEY, March 16.

In agreeing to a compulsory 6 per cent, restriction of Australian butter exports to England, the Australian Dairy Control Board bowed to the inevitable. It is certain that it did something against its will, and that its action was the result o£ pressure by the Government, -which, in turn, had been urged on by the Resident Mm- | ister in London (Mr. Bruce). Those en-j gaged in the industry are still divided as to the wisdom of the move, and predict that it will so disorganise the production of butter in the Commonwealth that it I will take years to get back to normal. The so-called setback to the industry comeS at a time when it is feeling the effects of a progressive policy that has been developed over a series of years. Australian butter production has never been greater than it is today, and it is because of this that the issues involved have been so complex as to cause the Government keen anxiety. The Government has been most anxious to retain the goodwill of the producers, and at the same time has been impressed with the danger of offending the British Government. LEVY PROPOSED. The proposal of %d a pound on all butter exported, in order to finance the surplus that is held back, is regarded as the best compromise possible, and it is likely that it will be acceptable to the butter men in all States. It is now recognised that some restriction is inevitable, but at lirst the industry ■ opposed that idea aiid set about to formulate a policy of pushing sales by increased advertising in England: The levy of %d is regarded as a maximum, and it may be that the butter withheld can be financed for a smaller amount. The producer will, of course, pay the levy, and will be very disappointed if the limitation of export does not send butter prices to 100s a hundredweight, as predicted by Mr. Bruce. The decision means that 6000 tons of Australian-butter will not reach the London market. How the Australian people will be induced to buy the surplus at an enhanced price remains to be seen. EXCISE DUTY SUGGESTED. Hie Federal Government has agreed to pass the necessary legislation as soon as the proposals have received the endorsement of all interests concerned.. It is a condition that all other countries reduce their exports to the United Kingdom by a similar proportion, and that the British Government places restrictions on foreign butter, as it has agreed to do. The power to collect the levy will be given to the Export Control Board, whose intention it will be to use the money to purchase and dispose of the uncxportcd surplus. Advocates of the proposal contend that its effect on the market will be such that the Australian producer will be ffiore than compensated for the amount of the levy that he will be called upon to pay, and will be assured of a satisfactory market for the whole of his output. Among the proposals that were considered, but not adopted, were the imposition by the Covernment of an excise duty on butter, and the adoption by the Government, on a compulsory basis, of the principle embodied in the voluntary scheme now in force and known as the.Paterson scheme. The Paterson scheme, which provides for n levy on butter with the object of stabilising prices, will not be affected, and those producers who wish to share in it will still be able to do so. There was a surprise development in the House of Representatives on Tuesday when a United Country Party, member (Mr. Corsor, of Queensland), moved the adjournment of the House to dJ6cuss the "grave position of the \Australian dairy industry." He said he believed that any restriction of butter exports would lead to a debacle for the industry. The threat of export restriction was the last blow to that industry. Under the Ottawa Agreement Australian butter producers had been, conceded a share in the British market for three years, and the dairy farmers and the people of Australia were entitled to_ that market. The financial magnates of the Empire were endeavouring to have Australian exports restricted so that their interests in foreign butterproducing countries could be protected. OTTAWA AGREEMENT. The Leader of the Opposition (Mr. Scullin) said that apparently the unfortunate Ottawa Agreement had already broken down. If the Ottawa Agreement was to be torn up because of the investment of British money in foreign countries, it would be better if there were no more talk about the Empire. The British manufacturer was to be allowed to sell goods in Australia on an equal basis with the local manufacturers. ■ Surely, therefore, Australia had the right to ask the British Government to admit the Australian product and restrict the foreigner. As soon as the Labour Party was returned to power the whole of the agreement would be reviewed. The Minister for Trade (Mr. Stewart) said that the British Government had made it clear that nothing could be done without the consent of Australia. Australian representatives at the Ottawa Conference had asked for and had received a duty giving preference to butter. They had asked for, but bad not received, a restriction of foreign imports. Under the proposed arrangements there would be a a restriction of foreign imports of butter amounting to twice the proposed restriction of Dominion butter. The proposals would be definitely beneficial to the Australian dairying industry, because of the effect on prices. There had boen an advance in the price of butter in Britain merely bec"'s<? of t.li" talk of restriction. Entries for the Masterton Competitions close on April 8. Full particulars and book of words can be obtained from E. Bell. Secretary, P.O. Box 182, Masterton. itessvs. Silverstone and Co. will sell radio seta by auction at their mart at 1.30 p.m., tomorrow. On Saturday, at 1.30 p.m., on the premises, 224 .Queen's Drive,. they,. jyill sell furniture, J_