BRITISH POLICY

Evening Post, Volume CXVI, Issue 61, 13 March 1934, Page 8

BRITISH POLICY

ME. COATES'S VIEWS

QUESTION OF TACTICS

The necessity for the continuance of friendly relations with the United Kingdom in the problems affecting the trade between Great Britain and New Zealand was strongly emphasised by the Minister of Finance (the Et. Hon. J G. Coates). Mr. Coates said that he hoped there would be a frank discussion of the serious position of the dairy industry in New Zealand: He had yet to learn how it was possible for dairy farmers to make, ends meet while obtaining 8d per lb for butter. It was all very well to say that the dairy farmers should fight it out, but it- was a different matter when one depended on the industry for a living. There were over 70,000 suppliers involved, and many of them were in a bad way. "I have yet. to learn of an industry that can progress and produce at a loss," said Mr. Coates, "and there is also the question as to how long an industry can produce at a loss. This is a real question which will have to be fully discussed in order to see how far it is possible for the dairy industry and the Government to sum up the position clearly and concisely and find out what can bo done in the present situation." OTTAWA PROVISO. Mr. Coates said it was no exaggeration to say that the Ottawa Agreement could be rightly termed the farmers' Bible. As far as meat was concerned ths i agreement reached had resulted in a big improvement in prices. The agreement involving dairy produce was for three years, but there was an important proviso in the last paragraph which read: — ' In the event of circumstances" arising which, in the judgment of his I Majesty's Government in the United • Kingdom, or of his Majesty's Govern-*' ment in New Zealand, as the case mast be, necessitate a variation in the termEfJ

of the agreement, the proposal to vary those terms shall form the subject of consultation between the two Governments. /Thus it was altogether wrong to suggest that at any stage the United Kingdom or New Zealand could not raise points involved in. the agreement until its expiration. Either country was at liberty to raise any question which might arise from time to time. The next point he raised was the wisdom of New Zealand's tactics in not meeting round' a table with the British Government for the purpose of discussing the questions they were at present considering. What they had to avoid was anything in the nature of hostility towards Great Britain, but they sliould rather endeavour to roach a friendly understanding ami agreement. It -had been suggested thai, if tariff alterations were made giving Great Britain greater opportunities on the New Zealand market, the Dominion might obtain the free entry for her produce on the United Kingdom mar ket. However, that point had beer settled by the cables which had beej read by the Prime Minister. "The position as I see it," said Mr. Coates, "is that the British Government no longer asks the New Zealand Government to discuss the x uestion, but makes a declaration of th"c policy which has been adopted by the British Government." He pointed out that the British Gov - eminent had decided to assist the mUto industry in- Great Britain by a suty sidy, and he emphasised that once tbic British Government embarked on a policy it did not turn back. Sometimes that was not realised. Once the United Kingdom made up its mind on a course of action, it would push on gradually, and it • had neve-- knwnru failure. BACON SCHEME. When the bacon scheme was being put into operation in Great Britain, it was calculated that a certain quantity would be reached in three years. That quantity had been reached in twelve months. Now they had the milk marketing scheme, and it was obvious tli;jt the amount of cheese which could be -made in Great Britain could far exceeid the amount that was being made art present. Suggestions that the British farmer could increase his output had been ridiculed on many occasions, but there was tremendous room for the expansion of the.number of dairy cows in the United Kingdom. The milk, subsidy placed the British dairy farmer in a much better position than the New Zealand farmer. At a later stage they would .get down to a definite discussion as to; whether the dairy industry could continue as at present in view of the low prioes, and as to whether there were prospects of better prices in the near future,, said Mr. Coat.Bs. They would, also discuss what action would be necessary to improve tike industry. They could not overlook the fact that they had a meat agreement with Great Britain which would come up for discussion again in June next. Under that agreement they had hound themselves to a quantitative) restriction which was necessary in order that a restriction might be imposed on other countries, Empire or foreign, which were supplying the British market. Whether the quantity couffd. be increased or not would have to .'be determined when the position was next discussed. He mentioned that fact because the price of one commodity obtained in comparison with another' eventually resulted in a change-over in production. They had to consider carefully the position in which the meat industry would be placed if there was an excess of the amount thai they had undertaken to supply to the United Kingdom market. Dairy farming was closely allied to pig-raising, atnd the pork export of the Dominion was increasing. That, was shown by ;ihe shipments in recent years. DAIRY BOARD'S DUTY. In the present posit uon, the Dairy Export Control Board, vphich was the parliament elected by the suppliers to govern the industry, hsijd a duty, not only to the Government, 'but to the people of the Dominion, to indicate how it expected to cope wit.i the present situation, what is thouvjht the position was likely to be, and whether the industry could continue at 'present prices. The board should also make suggestions for the improvement ,• of the position of those engaged in the industry, indicating lines of actioni that might be taken. At tho same time it should not be forgotten that the Government had also clone a great deal for the farmers in currency depreciation, legislation for the relief of mortgagors, interest reduction, and other- fforms of assistance. The policy of the Government had been designed fo secrire an ample supply of cheap credit, without which it would be impossible -for New Zealand to keep her place as an exporting country. However, that vrsts partly a question of politics, and it was most difficult to discuss economics and polities at the same time. Today they were more concerned with tho economic position of the country;^ particularly the dairy industry, and. politics should be left out of the discussions in order that the economic situation miglit be clearly approached..