WELLINGTON NEWS

Hokitika Guardian, 22 February 1927, Page 4

WELLINGTON NEWS

DUTY ON HUTTER

(Special to “ Guardian.”)

WELLINGTON, Ecbi'iiary IS

It will be remembered tFiat about two months ago or more, when both Queensland and New South Wales were suffering from drought and their production of butter contracted, supplies were drawn irom New Zealand, Sydney in particular taking a considerable quantity. This importation of New Zealand butter caused an agitation in Australia, and there was a demand lor an increased duty to prevent New Zealand butter entering the Commonwealth. The Commonwealth .Minister for Customs informed the dairy industry representatives that there was little prospect of the .Ministry approving an increase in the duty on New Zealand hutter, nevertheless persistent efforts have continued to he made to have an increased duty imposed. Producers in the Commonwealth are protected by a duty, freights and charges involved in the transport ol butter from New Zealand, and other countries, and have the advantage ol earning higher returns by means ol lbe Paterson plan for giving stability to the market. “It has been previously pointed out to the leaders ol the dairy industry (observes the Melbourne “Argus”) that reciprocal arrangements between Australia and New Zealand are in force, and any departure from the agreement would tend to intensify the discontent that has been apparent in the Dominion at the attitude of the Commonwealth towards importations of produce generally from that source.” It he < been suggested that the Australian Dairy Export Control Hoard should get into touch with the New Zealand Hoard with a. view

to bringing about some arrangement whereby friction in the matter would bo eliminated. If this could be done it would he an excellent thing. It has been claimed by some of the leaders of the dairy industry in Australia that there should he no difficulty in bringing about co-operation with New Zealand. Canada and Denmark in respect to marketing hutter abroad. This is a large order and it is doubtful whether Australia and New Zealand could arrange an agreement which would have the effect of lessening the competition on the Home market. AM I'll? ICAN WOOD DEMAND.

for the past two or three years the demand lor wool on American account lias been very moderate, and it is well known that the American wool textile trade lias been depressed while practically all other industries in the United States have been prosperous. About four years ago Congress raised the duty on foreign wool, the object being to foster wool production. In this it has not altogether succeeded for lh ■> increase in the (locks has not been very marked, being about .'I..‘100.01)0 head. It is calculated that about 43 per cent of the American mill requirements must he imporLeil. The American Institute of Kcoiioinics has studied tho problem and the conclusions reached which have recently been published are as follows:—It is not advisable permanently to maintain a duty, on wool. The burden on consumers of wool goods more than counter-balances the gain to producers. Although the present duty has helped American wool growers to extricate themselves from the diilieult position in which they were placed by post-war depression, tho emergency is passing away and doubtless will have disappeared altogether hv the time the next general tariff revision occurs. ‘I lie industry should then he dealt with on grounds of permanent polity, 'iTierelore when a comprehensive readjustment of the Larilf is made wool should he placed on the free list.” If the United States becomes

an open market for wool it would prove of immense benefit to New Zealand growers, for keen American competi-

tion would help to move prices upwards. In a review of the wool trade lor 1021). ail authority says there has been gradually narrowing price movements at the auctions, through the absence of speculation and the raw wool market is considered to he in a much more healthy condition, and ripe for a sound expansion in demand at current reasonable prices. The lower grades of crossbred probably will benefit most because of the lessened purchasing power of the community generally through the general strike and the coal strike. Money for expensive clothing will he lacking for quite a time.