GRAVE DANGER

Evening Post, Volume CXVI, Issue 61, 13 March 1934, Page 10

GRAVE DANGER

"PLAYING WITH QUOTAS"

Some interesting editorial comment on the subject of quotas is made in the latest "Dairy Exporter." There is also a reference to the coming round-table conference to discuss ways and means of placing the dairying industry on a sounder footing. The dairy industry is in a position of grave danger at the moment, a danger that is due not to internal dissension nor inefficiency, but to the desire on the part of politicians to interfere (says the "Exporter"). Ever since Mr. Coates published his quota pamphlet last year he has been playing with the idea of quotas, and nothing would have pleased him better than that the Dairy Board should have made some suggestion in that direction. The Dairy Board has resisted the quota idea, but the Hon. Walter Elliot, Minister of Agriculture in England, is now exerting pressure on politicians here to | accept quota restrictions on all dairy produce. We have no great faith that Cabinet would make the right decision on a matter that really affects'the whole future of the Dominion, and our lack of faith is strengthened by the devious courses which are- being adopted, and which show that Cabinet is not prepared to shoulder the responsibility for the decision. First of all Mr. Forbes and Mr. Coates throw out feelers to the board, but meeting with a firm attitude there they make "hopeful" statements about the future of dairy produce prices in country speeches, and very brief references to the need for some planning—the word "quota" being carefully held in the background, of course. Then Mr. Poison, whose penchant as a parliamentarian for running into print before verifying his facts has led to several rebukes during recent months, brings the question of a Royal Commission for dairying before the Farmers' Union. Whether this was prearranged we do not know, but Mr. Forbes seized upon it as a Heaven-sent opportunity and "welcomes" a conference of dairy leaders in the fervent hope, no doubt, that it can be so manipulated as to bring forth some recommendation regarding quota. Make no mistake about it. The politicians love compromise, and there is a very real danger to the industry at present. Recently offers have been made to factories at prices well above present values. Those offers have been made because London knows of the pressure that is being exerted through political circles, and because they expect prices to rise after shipments are reduced in volume. The industry, and those branches of the Farmers' Union which believe that Mr. Poison as a politician is treading on very dangerous ground, should put forward their views with emphasis. The truth about the quota is that it is. very largely a political question, and information from most reliable sources in England is to the effect that, if we live up to the spirit of the Ottawa Agreement, we need have no fears. Moreover, the recent action of the British Government in agreeing to subsidise the Milk Marketing Boai-d on that portion of its supply used for manufacturing purposes surely indicates that in Britain the tendency at the moment is to look for salvation through subsidies rather than, through quotas. Neither the Dairy Board nor our dairy farmers are opposing tlu assistance to the British farmer. What they do oppose is action in connection with quotas which will make the position of the New Zealand farmer still more difficult, and which will. give as much, or greater, assistance to the margarine interests in England as it will to English farmers. We certainly have no fault to find with the representative conference now proposed, and we do not believe that any conference so constituted will find it possible to come to any other conclusion than that any question of quota, at present, would be inimical to the interests of the industry and the Dominion as a .whole.

A cable message from the !llount Lyell Mining Company has been received by the New Zealand Stock Exchange Association stating that owing to the continued lack of rainfall all production and milling had been suspended.