BUTTER IMPORTS

Otago Witness, Issue 4029, 2 June 1931, Page 26

BUTTER IMPORTS

POSITION IN CANADA. DICUSSION IN PARLIAMENT. OTTAWA, May 27. The removal of the restrictions on the importation of Australian and New Zealand butter was revealed in the House of Commons in a statement by the Minister of Agriculture, who said that price cutting among Canadian organisations had rendered useless the agreement with Mr Parker Moloney (Australian Minister of Trade) that no butter would be sent to Canada at less than 32 cents. The price had been driven down so far that Mr Moloney was relieved of his pledge. Mr Rinfret, a former Secretary of State, alleged that the Minister during the elections had prpinised Quebec that butter would be kept at 50 cents. May 28. During the consideration of the Agriculture Estimates to-day the Minister of National Revenue (Mr Euler) said that there had been a good deal heard during the election campaign about the importation of New Zealand butter. It been stated that little or none had come from Australia, as the dumping provisions had been applied to butter importations from that country by the Liberals. New Zealand, however, had sent in large quantities. He noticed, however, that in April of this year New Zealand had exported to Canada about 70001 b, while Australia had exported 500,0001 b. Mr Euler recalled that in December Australia had agreed not to send any butter at less than 32 cents. Was this rate less at any time than the prevailing price to home consumers in Australia? he asked.

“ Realising that a change should be made in the Australian treaty,” replied the Minister of Agriculture (Mr R. Weir), “I do not think that anyone would feel it advisable to institute against a sister dominion a dumping duty. I think we. served the purpose just as well by taking the action we did.”

The butter came on consignment, was the substance of the Minister’s reply. Dumping duties did not apply to goods entering Canada on consignment.

Mr A. W. Neill (Independent) quoted Mr Weir as saying that he had negotiated a gentlemen’s agreement with Australia, which stipulated that no butter should enter Canada below 32 cents per lb unless by mutual consent. When prices reached what was believed to be rock bottom Australian butter would be granted an entry. He asserted that this had made the matter worse Five hundred thousand pounds had been admitted in one month when the market was already considerably below the 32 cents level. AUSTRALIAN COMPETITION. OTTAWA, May 29. Answering questions from Liberal members during a discussion on the Agricultural Estimates to-day, the Minister of Agriculture (Mr R. Weir) said the price of butter in Canada on April 21 was 22 cents per lb. On that date 10,000 boxes of Australian butter each weighing about 501 b, were released from consignment at a price lower than the 22 cents agreed upon between the Australian and Canadian Governments, but Mr Weir had no information on the exact price. There were no imports of Australian butter in May. Mr J. F. Pouliot (Liberal) harkened back to the election campaign, claiming that the Conservatives promised to raise the prevailing price from 22 to 40 cents per lb. This was to be done by raising the tariff. They plugged the tariff in order to adjust the price of butter, but it was only Utopia. The only effect was to yield a profit to the owners of cost storage plants who had stocks on hand. The price went up 2 cents per lb, but the difference did not go to the farmer. Dealers in dairy products made about 800,000 dollars.