POTATO EMBARGO

Evening Post, Volume CXIX, Issue 31, 6 February 1935, Page 11

POTATO EMBARGO

AUSTRALIAN VIEWPOINT

The' Australian viewpoint on the question of a trade agreement with New Zealand," including a settlement of the potato question, was given by Mr. R; H. Nesbitt, Australian Trade Commissioner, in a luncheon address to members of the Canterbury Chamber of Commerce, Progress League, and Manufacturers' Association, states "The Star."

"It; is contended that Australia is a big market :j for potatoes arid that, as such, Newr Zealand being a surplus producer have a share of this market," said; Mr.: Nesbitt. "I understand Hhat -New; Zealand has 20,300 acres devoted to potato growing, a reduction of sonic 5000 acres from the previousl year, showing, similarly to Australia, that the policy '■ of restriction is. applied. Therefrom is produced approximately an annual tonnageof 132,500, which after providing New Zealand's own requirements leaves a surplus to find a market. Australia has 145,000 acres devoted to growing potatoes. The average harvest over the last few years has been approximately 400,000 tons per annum.

"Statistics go to show that the consumption per-head of population in Australia is well up to. the average of other countries. New South- Wales and Queensland,' however, are ■ very large-consumers of potatoes, taking nearly 50 per cent, ofr the production of all the States, and actually importing from the two other States nearly 80 per cent, of their total, requirements.

"It will be.seen, therefore, that the two States in question, New South Wales: and" Queensland, are -dependent largely upon transportation for their supplies from the other States. This transportation,, on account of. cost, is largely sea-borne: The. price of potatoes, based on an' average o.ver the twelve months, 'shows that the actual wholesale price for the whole of the Commonwealth was £4-13s 2d per ton,' but that for New South Wales it was £5 10s 4d.per ton, whereas Victoria discloses a figure of £3 13s a ton.

"The question is really" an economic one: Would it. pay the New Zealand producer to supply the market in Australia with potatoes as against the average price, bearing in mind the costs incurred in packing and forwarding? I understand that these costs work out in the, neighbourhood of £3 7s per ton, and are altogether' apart from any Customs duty that may be chargeable by Australia. Taking this cost against the average price, it will be seen that the margin is not a very attractive one. :

"The fact that the Prime Minister of Australia has made a public pronouncement upon the subject that it is the intention of the Government to give very serious consideration to the allowing of a definite tonnage from New Zealand annually to enter the Commonwealth during periods of scarcity under certain restrictions, demonstrates that n;y country is prepared to handle this matter fairly, bearing in mind always the fact that protection must be given to the Australian producer.