BUTTER QUOTA

Evening Post, Volume CXV, Issue 73, 28 March 1933, Page 8

BUTTER QUOTA

GOVERNMENT ACTION

NOT LIKELY YET

ISSUE MAY BE FOECED

Although the proposal for a quota on butter imports into Great Britain has naturally been engaging the close attention of the New Zealand Government, it appears unlikely ' that any definite action will be taken until such time as representatives of the New Zealand Dairy Board have had an oppoTtunity of conferring with the Australian board. The New Zealand represeh* tatives will leave Auckland on April 14 for Sydney, and wilLreturn to New Zealand in time to attend a meeting of the board in Wellington on April 28. ■ • ■ ■ .

In the meantime considerable pressure is being brought to bear by the trade in London in favour of an immediate restriction of imports, and it was ascertained > today that the next few days are' likely, to see important developments which may havV the effect of forcing, the issue. Prices of butter are at present at a very low level, and it is argued that the only way to bring about a rise is to place an immediate restriction on the quantities shipned to the Home markets.

It is stated that a restriction, of imports might well bring about an im■mediate and substantial' increase in price—possibly, about 30s a cwt. On the other hand, the fear is expressed that a restriction might lead to a considerable surplus of butter in New Zealand.

An impression has gained, ground that the Ottawa Agreement gives Great Britain the right to restrict any produce which is exported under State assistance, but this is incorrect. There is no such provision in the Agreement, which deals only with the immediate restriction of foreign imports. _ Some concern is felt in: the trade m JSew Zealand because of the fact that Australia and New Zealand are being placed on an .equal footing in so far as the proposed quota is concerned. It is argued that owing to the Patterson plan and tie high exchange rate which has ruled for some time, Australia has been able to increase her production by nearly iOO per cent, during the last few years, and the opinion is expressed that any restriction should be greater on Australia than on New Zealand.