THE PATERSON BOUNTY

Hokitika Guardian, 20 October 1928, Page 6

THE PATERSON BOUNTY

DUMPING OF AUSTRALIAN ■ BUTTER. AUCKLAND, Oct, IS. The advantage over New Zealand which Australia has possessed by virtue of the Paterson export bounty scheme, in marketing butter in America, has been removed by the latest move of the United States. For a long while past America has been perturbed \by the manner in which Australian exporters of butter, aided bv. the Paterson export bounty of threepence per pound, have been enabled to undersell American producers comfortably. Early last month it was decided to take action to prevent the “dumping” so made possible. Action was taken under Section 303 of the United States Tariff Act, 1922, which provides that where another country is exploiting the market under the shelter of the export bonus, additional duties to cover it may be imposed. Accordingly, from the first week in this mouth. Australian butter entering America became subject to an extra duty of approximately 0 cents to cover the bounty, making a total duty of 18 cents, compared with 12 cents paid on New Zealand butter superficial!v. This places Australia on an equal footing with' New Zealand so far as the American market is concerned. An Auckland exporter of dairy produce, however, when discussing the position, said that production costs in Australia were higher than in New Zealand, and the Commonwealth industry, once having become accustomed to the benefits of the export bounty, would feel severely the nullification of these benefits so far as America wa»s concerned. The effect, indeed, might be virtually to elimi- ■ mate Australian butter from that centre of consumption to the advantage of New Zealand’s growing trade.