OUR FRUIT TRADE

Rotorua Morning Post, Volume 2, Issue 343, 3 October 1932, Page 2

OUR FRUIT TRADE

BENEFIT FROM OTTAWA DUTY CLAiMED TO BE HIGH ENOUGH TO HELP. REVIEW OF P-OSITION. "The duty which has been secured is high enough to be a real proteetion, and in actual practice may improve to be all that is necessary," said Mr. H. E. Napier, who was attached to the New Zealand delegation to the Ottawa Conference as representative of Dominion fruit interests, inr-an address he delivered to the annual conference of the New Zealand Fruitgrowers' Federation. Mr. Napier discussed the agreement that had heen made and the advantages obtained by New Zealand fruitgrowers as a result o? that arrangement.

Mr. Napier explained that the Fruit Committee set up at Ottawa had spent a day in co-ordinating the views of the different Dominions. Although unanimity was secured, Canada adopted the policy of aslcing- for a duty only, but at the same time agreed not to oppose the request of the southern Dominions for a seasonal restriction. The official status given these representatives was of immense benefit, as it enahled the representatives to keep in touch with the leaders of their delegation. Outstanding Advantages. In considering the agreenient entirely from the fruit polnt of view several outstanding advantages had been secured. "The first," said Mr. Napier, "is the change in the basis of the duty from an ad valorem to a specific basis. When prices are high, an ad valorem tariff certainly gives greater proteetion than a specific tariff, but it is not during a period of high prices that proteetion is necessary, whereas a specific tariff on a f alling market increases in importance as prices fall, and so tend to gradually eliminate the foreign competition. "The present tariff on apples and pears is 10 per cent. ad valorem, or equivalent to 8d. per case on a selling price of 10/-, after allowing- for packing costs, etc. The new duty of 4/6 per cwt. is equivalent to 1/7 per box.

Lengthening of Season. "Another advantage is the possible | lengthening of the New Zealand fruit marketing season. In the past, New Zealand has experienced strong comI petition from cool-stored United States stocks. With a duty of 1/7 per case against this long stored fruit there should be little difficulty in ultimately forcing the United States off the markets once our shipments of fresh fruit become sufficient to meet the demands' of the United Kingdom, The greater effect, however, should be apparent in our late shipments, as it is very doubtful if the American Gravenstein can meet a duty of 1/7 per case and still return a payable price to the shipper." Mr. Napier said a prospective advantage to New Zealand was the possibility of the United Kingdom duties creating a much greater trade between New Zealand and Canada. The Eastern Canadian markets largely relied on Britsh Columbia to> supply. their apple requirements during the months of March, April, May, and June. As the costs of railing fruit from British Columbia to Siastern Canada were almost equal to -the sea freight to the United Kingdom the proteetion given in the British market would be a great inducement to the British Columbia grower to avoid cool storage costs and risks, and ship to the United Kingdom instead of holding in cool storage for a problemical later market within Canada.

Possible Disadvantages. One disadvantage which might accrue from the Ottawa agreement was the intensified competition which must automatically be faced on the European markets. It was reasonable to suppose that the U.S.A. shipper would turn his attention to these markets, ■where he would meet New Zealand competition on even terms. Mr. Napier, however, gathered that the financial diificulties of the growers on the Pacific Coast were so serious that production would be curtailed. The first essential in connection with standardisation of produce was the fixing of a minimum standard under which no fruit or other produce could be admitted to a country, or if if a preferential duty were applying, any product below the standard fixed should pay the maximum rate of duty. The elimination of low-grade fruit would automatically' reduce the quantity available on the market, and consumption of fruit would tend to increase owing to the safeguard given to the purchasing public. In conclusion, Mr. Napier said their thanks were due to the leader of the delegation, Rt. Hon. J. G. Coates, for the spirit which dominated the delegates from the time of departure from New Zealand. The team work was excellent, and this was only possible when the leadership was right.