ELLINGTON NEWS

Hokitika Guardian, 6 December 1928, Page 2

ELLINGTON NEWS

AMERICAN DUTY ON BUTTER, [Special To The Guardian.] WELLINGTON, December 3.

In view of the protection afforded industries in the United States, farmers there have urged that tariffs should be adjusted to protect them to an increased extent from competition from other countries. Several applications have been made to the Government to increase duties on certain commodities, and as the results of pressure the requests in many cases have received favourable consideration. When New Zealand and Australian butter began

to reach the United States in increasing quantities the dairy farmers complained that the imports were interfering with their markets, and, after repeated efforts on their behalf, the duties were raised.

The adoption of the Paterson plan in Australia has been seized upon by the United States dairy farmers as a reason for highpr tariff rates. It was represented that as the Paterson plan represented an export bounty cVf 3d per lb, the duty on Australian butter should be raised accordingly. This opinion was supported by the United States Government, and retaliatory action was decided on. The Treasury ordered that an additional assessment of 6 cents in the duty should be imposed on all Australian butter entering the country, and that-the duty should operate from the first week in October. Two years ago there was a good deal of agitation in Congress from the Middle West of the United States in respect to the tariff bn dairy produce. j..te Tariff Commission in its report to the President recommended that the duty be increased to 12 cents (fid) per lb under the provisions of the SlumberFordney tariff law.*. The report was adopted and the higher duty became operative. Dairymen held that butter entering the United States from Denmark, Argentine, Australia, New Zealand and other countries, had the effect of breaking down the price of butter at seaboard ports of the homeproduced product. In meeting the request of dairy farmers the Secretary of the Treasury (Mr Mellon) stated that the bonus obtained by tile Australian producei s under the Paterson plan constituted a bounty or grant within the meaning of Section 303 of the Tariff Act, and therefore additional duty equal to the

amount of the bonus should be collected.

MEAT BOARD’S TRADING POLICY

The Meat Producers’ Board, in granting the transfer of an export slaughter-house license has reversed its declared policy, made itself the laughing-stock of the business community and forfeited whatever confidence the people might have had in the organisation. It will be remembered that some years ago the Board consented to the transfer of the slaughtering license from the Poverty Bay Meat Coy to Veste.v Bros. The Board was severely criticised in and out of Parliament by several people, especially by Mr W. Lysnar, M,.P.

The works had practically fallen into the hands of the National Bank, and the Bank was the principal party to the sale. The Board justified its action by pointing out that the sale actually meant one less plant in the district for Vcstev Bros, had agreed to demolish their then existing works. Later it will be remembered that the Wellington Meat Export Company, which had unfortunately accumulated heavy losses, had an opportunity of selling the works as a going concern to Thomas Borthwick and Rons, and the

purchase price could have enabled the directors of tlie company to return to shareholders ail appreciable amount of the capital they had provided. Application was made for a transfer of the license to Borthwicks, several deputations waited on the Minister of Agriculture, and the case was exhaustively placed before the authorities, but the license was refused. The then Minister for Agriculture (Mr 0. Hawken) in his letter of refusal wrote: “The matter was duly referred to the New Zealand Meat Producers' .Boaltl, which, by statute, is invested with power to control the meat export trade of the Dominion. r l ho Board has advised the Government that after due consideration, it cannot see its way, on the grounds ol public policy, to recommend the transfer ol the license in question,” The directors and shareholders of the Meat Export Coy had to struggle along as best they could and reconstruct the concern. Later the works olf the Waingawa Meat Company fell into the hands of the Bank of New Zealand, and the company which owned it went into liquidation. It was rumoured at the time that Borthwicks were willing to purchase the works from the Bank, but the transfer of the license was the obstacle in the way. The works were eventually leased to a company for a

season or two, but that company eventually abandoned the lease and joined up with the Meat Export. Now it is learned that a transfer ot the slaughtering license to Borthwick has been granted, and this volte face is no doubt in accord with the Board’s idea of “ public policy.” A good deal will be beard of the Board’s peculiar

action, and the opinion is that the defeat of the Reform Party at the general election is the cause of the change of front. People are beginning to wonder whether it is worth while maintaining the various control boards.