N.Z. DAIRY BOARD

Hokitika Guardian, 18 February 1933, Page 5

N.Z. DAIRY BOARD

SPECIAL MEETING

EXPORT CRISIS CONSIDERATION.

fPer Press Association — Copyright.)

WELLINGTON, February 17. At a special meeting of the Dairy Board to-day, consideration was given to confidential cablegrams that have been received from London, embodying the suggestion that restrictions should be placed upon the quantities of N e w Zealand butter entering the British

market. In the course of a statement made subsequently, Mr lorns, the Chairman of th. e Board, said that while the cabled suggestions arc of a confidential nature, it. can be indicated that their effect if adopted, would be to restrict the Australian and New Zea-

land exports on to a basis below that of 1932 exports. Restrictions on a

higher percentage basis had also been suggested in respect of foreign countries.

These .proposals, 'Said Mr lorn>s, arose out of negotiations that are now proceeding in l Britain for trade agreementig between Great Britain and the Argentine, and Great Britain and Denmark, and also agreements with other countries. In view of the importance of this issue, the Dairy Board had requested the attendance at Rs meeting of Mr Goodfellow, who had been (the official representative of the New Zealand dairy industry at the Ottawa Conference. Mr. lorns said : “A full analysis of the situation as it obtains both in relation to the present stock position and th e future development of the country was entered into, after which resolutions was passed, which “were later conveyed to the Government by myself, as Chairman of the Board, and Mr Goodfellow. To these representations, the Prime Minister and Minister of Agriculture gave careful consideration with a # view to conynunicating with the High 'Commissioner. “Th e proposals for the restriction made s o far are tentative only, andhave not been made officially to the Government.”

“Under the ' Ottawa agreement,” stated Mr lorns, “New Zealand was accorded free and unrestricted entry in respect of its butter and its cheese into the British market for the term of threp years (duties of 15s per cwt. on butter,' and 15 per cent, on cheese being accorded against non-Empire countries) while, in return for this assured market, New Zealand undeitook to:—(1) Remove the surtax obtaining' on British imports into New Zealand; (2) Not to .increase, and as soon a,s possible to abolish, the primage duty of three per cent; and _ (3) Revise the (New Zealand tariffs against British manufacturers, in general to give them an equal opportunity for their gales on New Zealand's domestic market,

After a full discussion, the Dairy Board lias unanimously reached the decision that-, as .it was impossiblp to restrict the production of dairy produce within New Zealand. The Board could not agree to any restrictions being placed upon our anrual exports of dairy produce to the United Kingdom.’''

“The Board was further unanimously of the opinion that the only sound policy for.the futur e welfare °f the Dominion was to aim at the attainment of free trade between the United Kingdom and Hew Zealand prior to the expiry of ffi e term of the Ottawa agreement. To that end the Government was urged, at once, to reduce the duty on British goods to the extent of the increase that was caused bv the ,recent increase in th 8 exchange rate. The .impossibility of imposing any restrictions upon dairy .production in New Zealand was .emphasised. New Zealand is a young country which is still very iar from having attained its maximum development. The country has been developed in roads, railways and hydro electric facilities by capital borrowed from Britain. The obliga tions thus undertaken can only be met by an unrestricted opportunity for internal development. ‘■Restrictions upon its production and output will inevitably re-act upon the Dominion’s capacity to meet its loan obligations, and will thus _ affect the British investor. Any restrictions upon the British market cannot be met by tfie development of alternative outlets as things Ri’e at present. There a re no alternative outlets at the moment available to New Zealand foi dairy produce. The United Kingdom offers New Zealand its only feasible outlet beyond its own local market, which absorbs only twenty per cent, of its total dairy production, with limited possibilities of increased ab-

sorption. -The New Zealand farmer, owing to the stage of his development, is probaiblv as big a buyer of British manufactures as th e British farmer, and on these grounds, is entitled to as much consideration as the British farmer in protecting Ids market. . “The desire of the British political and farming interests to protect thenown agricultural producers from glutted markets id recognised, but special needs of New Zealand, as distinct from more fully developed continental countries and other parts of the Empire with different fisca] policies, aiming at self-dependence, hav e to be taken into consideration. SIR T. WILFORD’S RETICENCE. LONDON, February 17. Sir Thomas Wilford is silent concern-

ing the proposed New Zealand butter restrictions, but admits that all butter producing dominions were recently in close touch with the Dominions Office. Mr Stanley Bruce denies Australian reports that he made representations to Cabinet for a ten per cent, reduction in Australian dairy exports to Britain.