MARKETS PROBLEM

Hokitika Guardian, 3 October 1930, Page 2

MARKETS PROBLEM

ONLY BRITAIN LEFT. AUCKLAND, September 29. In a. cablegram, which has been forwarded by the directors of the New Zealand C'o-Op’. Dairy Company, Ltd., the Prime Minister, the Hon. G. W. Forbes is urged to press for a tariff on foreign dairy produce entering Britain in return for increased preference to British goods coming into New Zealand. The message states that if this is not done, extremely low prices, especially butter, will result in a permanent lower standard of living, and will restrict the future pi ogress of New Zealand.

“The dairy industry is under no delusion as to the seriousness of the outlook for produce,” said Mr W. Goodfellow, managing director of the New Zealand Dairy Company. “There is every prospect cf the" lower prices owing to the present economic position, but what makes matters really serious is the rapidly increasing quantities of dairy produce going into the United Kingdom, an ample supplied market. Production is racing ahead of consumption in the United Kingdom while Empire dairy produce, is gradually being, excluded from other imjportnht markets. “Mr Goodfellow said Australia and the United States bad practically shut cut New Zealand dairy produce, and the re-ent increase in the tariff in Canada would reduce shipments to that country by at least 10.000 tons during the coming season. If the increased Canadian tariff was permanent, the results would be a rapid increase in production in Canada, and exports from New Zealand would cease in about three wears.

' The United Kingdom was the only large and dependable market for N' J w Zealand produce, Mr Goodfellow said. Urn fortunately that market was also available tor the surplus of the rest of the world, and the Dominions would have to fight for the privilege of supplying, the British consumer. Unless something were done to minimise competition, a lower standard of living in the Dominions would result. The only alternative in sight was for the British Government to give the Dominions a preferential market by imposing a tariff on foreign produce. In return for this the Dominions would have to be prepared to make a reduction in tariffs on goods imported from the- United Kingdom. Mr Goodfellow said the United Kingdom could continue to buy the produce of the Dominions only if they accepted manufacturing goods in payment. Under existing conditions the Dominions were exporting practically the whole of their produce to the United Kingdom, and spending a substantial portion of the profits in the purchase of goods from foreign countries. Undoubtedly this was one of tile 1 main reasons for excessive unemployment in the United Kingdom at the present time,