The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, MAY 13, 1930. THE CANADIAN BUTTER DUTY

Hokitika Guardian, 13 May 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, MAY 13, 1930. THE CANADIAN BUTTER DUTY

Hecentey the Canadian Minister of Finance delivered Ids Budget speech, and, dealing with proposed fiscal changes, he gave notice that after October ].2th, the tariff on New Zealand butter will be increased from one cent to four cents per lb. Mr Dunning stated that “the trade agreement with New Zealand would be abrogated, ” but tins way of putting the case, says the Auckland “'Star,” is rather misleading. We have no definite agreement with Canada, but there has been 1 oi' a number of years an understanding that the two Dominions shall concede to each other the best terms that they grant to any nation. In effect, trade between Canada and New Zealand lias thus been regulated by the amount of preference granted to Britain. This arrangement has worked satisfactorily enough, hut the Canadian 1 armors have been complaining ibr

some years past that their sale of dairy products is injured by New Zealand’s competition, and the tariff now imposeu must tiicieioro lie regarded as a concession to me pastoralisls granted largely for political reasons. It should ue observed that the Canadian Finance Al inistcr has declared emphatically that he has no idea of initiating a tariff war and that when he has li.nsne<l the revision of his scale ot duties the preferential concessions to British and Imperial goods will have been largely increased. This is consoling as far as it goes, hut we cannot Ire expected to ignore the fact that butter is much the most important and valuable commodity that we send to Cauuua, and the importance oi the new tariff to us lies in its possible effect on our butter trade. We inav say at once, however, that there can he no certainty that the results will be seriously injurious to us. Canada cannot at present produce enough butter -to supply her own needs, and the natural consequence of tno tariff will therefore be to raise the price of butter in Canada. If Canada could meet its own requirements in the production of butter, New Zealand butter might be shut out, and increased competition between the Canadian farmers would lower tne price while enriching the settlers through the increase of the supply and the extension of their hold on the local market. But for the moment there is no danger of this, kind for us to fear, and iiq tire last resort it should be easy for New Zealand to secure better terms for butter hv threatening retaliation against Canadian imports, more especially motor cars.