OTTAWA AGREEMENT

Hokitika Guardian, 27 October 1932, Page 2

OTTAWA AGREEMENT

DEBATE IN BRITISH COMMONS. (United Pres* Association —By Electric Telegraph-Copyright.) LONDON 1 / October 24. In the House of Commons, Mr Burgin informed.the.Rt. Hon. G. Lambert (National Liberal) that under the Ottawa , agreement, imports of foreign mutton Mind lamb into Britain for the calendar year, 1933, would be 31/2,568 hundredweights less than tbe ’ Ottawa standard year, July to June, while in the first -of .1934 there, would be a reduction/'of 382,302 cwt. The corresponding figures for foreign beef would be 72,040 and 57,972. Mr Rhys Davies moved an amendment to delete the meat quota provision from t) Ottawa agreements. He complained -hat it only dealt with Australia and New Zealand, left, out South Africa, and failed to take into account British agriculture. Sir H. Petiro declared that the arrangements were quite inadequate to deal with the calamitous situation, of the Home producer. Mr Malcolm MacD maid said that the provision made at Ottawa, was agreed to by all the Dominion .statesmen as the best means of raising ""-emunerative price levels for the tenefit of Home and Dominions producers. Mr Amery stated that the Ottawa schedule provided for such a, small reduction in foreign imports that the quota .was inadequate to deal with the present critical position of British agriculture. The whole cf the Ottawa agreements were meaningless, unless backed ,by monetary , policy, stabilising sterling and premittii/g the prices of-primary products to rise to a payable standard.

Sir 11. Samuel protested that the Government would be empowered to effect any restrictions on foreign meat supplies, beyond those set out in the Ottawa agreements. This would seriously effect the attempts to make trade treaties with the ArgentineBrazil and Uruguay. ’ The amendment was defeated by 285 votes to 68. . * Another amendment to » make the' Government undertake that there should be ho rise in retail prices was rejected byv272, votes to 46. . Mr, Tom Williams moved to delete the provision taxing foreign wheat, two shillings a quarter on the ground that it would raise the cost of food to /the poorest. .

Mr Hore Relisha, replying, said the tax was only equivalent to eight per cent. ad. valorem on half our wheat imports. Even if whole importations from the Empire, as well as foreign, were thus taxed, it would only..add a. farthing to the four pound loaf. The Dominions could supply all- our requirements; both soft and hard wheats, which would not be’ tajted. If they were ’unable tp supply adequate quantities at the world price, the new duty .lapsed.

T;he amendment was negatived by 230 to 68. . ’. . ;

Mr C, Brown moved to exclude the proposed new . duties on foreign butter, cheese and eggs. He said , that ’ the Dominion was already capturing the market for these commodities, and did not need ‘ preferences. Mr Pickering said the new,' together with the former duty bn butter, meant three halfpence a pound, which wais a serious food tax. Mr Burgin said the provision aimed at helping horn© and Dominion producers. It provided that after three yeh-rs Dominion butter and eggs might also be taxed in the interest of the home producer, providing the preference percentage were maintained. The cheese duty was. not expected to increase the retail prices. The amendment was negatived by 244 to 63.'

The agricultural writer .of “The Times’’ says, that the present glut of meat, combined with the high rate of production in Australia and New Zealand, indicate that it will be some tiine before supplies are brought within the British capacity for consumption at an economic price. With frozen beef selling in the street booths at 3d a lb. the British farmers’ position has become desperate. The reduced purchasing power of thousands of families is increasing their difficulties. Although the Agricultural Committee of Conservative M’s.P. will be discussing on October 25 the necessity for immediate action to relieve the agricultural distress it is not easy to see what emergency measures are possible. Obviously the Ottawa agreements must not be diluted and the quota must be'given eighteen months’ fair trial, but farmers are. disappointed that. Ottawa has not provided an immediate reduction of South American chilled meat. It is now suggested that the Argentine tariff discussions will investigate the possibility of a reduction with a view to strengthening the prices, to their mutual advantage. Moanwl»§!k the VFree State probably will send 70,000 £at cattle, aggravating the glut. It-is expected that the farmers, in view of the low prices, will urge the Government to buy English meat to supply the Army and Navy.