OTTAWA REACTIONS

Rotorua Morning Post, Volume 2, Issue 356, 18 October 1932, Page 4

OTTAWA REACTIONS

From the primary producers' point of view the most gratifying part of Mr. Coates' Ottawa state- ! ment was the intimation that no reduction had been imposed on New Zealand's exports. It was feared in some quarters that there would be a quantitative restrietion on the Dominion's exports of mutton and lamb, but apparently the only proviso that has been made is that New Zealand is to give an early estimate of her season's output and that that estimate is not to be exceeded. In view pf the fact that a progressive reduction has been imposed on foreign supplies, New Zealand should not be embarrassed by future increased output. For next season the difficulty seems to lie in the other direction. The estimate for the season just commencing has been based on the exports for the year ended Jun^ 30 last, and there is no doubt that the Dominion cannot reach that figure. Last season was a~ record one, and the record was achieved at the expense of the "capital" | flock. Owing to the low prices Irealised on wool, many farmers | killed more sheep for export | than they would have done in normal times, and the ewe flock ! was considerably redueed. It is j estimated that the total reduc- ; tion in the number of sheep in | the Dominion in the last three i years has been in the vicinity of ' 4,000,000, although this figure j cannot be accepted as reliable until the Agricultural Lepartment's returns are announced. If New Zealand's estimate cannot | be reached and the restrietion ■on the foreign supplies is not lifted in consequence, the amount j of meat placed on the Home i market next season will be conI siderably less than last year. As • a result there should be a rise in prices. In some quarters, a difflculty is seen in the decision to place a quota on foreign supplies. It is realised that English investors have a large amount of money invested in South Ameriea and that naturally the interest is paid in goods. As the price for produce has fallen considerably, it thus takes a much greater quantity of chilled beef and other commodities to meet the interest bill than it does in normal times, and a quantitative restrietion would add to the difficulties. The statement has been made frequently during the past year that it now takes twice the money received for the wool exports of the Dominion to pay the interest on the overseas debt, whereas formerly only half the national wool cheque was required. Such a state of affairs must surely apply to Argentina also. These suppositions are invariably bound up with unforeseen factors, but nevertheles|s they appear to present a prima facie difflculty. The Government is pleased with the attitude that has been adopted so far by the secondary industries in connection with the tariff adjustments .based on the Ottawa decision, but their silence might be a lull before the storm. So far, the tariff alterations, except in the case of artificial silk and piece goods, have meant only a 5 per cent. reduction in the preference to the local manufacturer, but as far as he is concerned there is more to come. The Government has promised that an examination of the tariff will be made with a view to placing the British manufacturer on the basis of a domestic cohipetitor. The Labour Party's attitude towards the tariff amendments is that they will jeopardise the future of New Zealand's secondary industries. It was contended by the Leader of the Opposition, Mr. H, E. Holland, that the time had passed when New Zealand should rely on England for goods which could . be manufactured from the primary products of the Dominion. In his opinion, industries which absorb New Zealand products should receive the

highest. protection while those commodities which are foreign to New Zealand should be admitted duty free. It is interesting to note that in this respect Mr. Holland seems to be at variance with his colleague, Mr. J. McCombs, the Labour member for Lyttelton, who has already made a plea on behalf of an artificial silk industry in Canterbury. According to the resolutions, the duty of 10 per cent. on artificial silk and piece goods has been entirely lifted and Mr. MeCombs contends that the Canterbury fact-ory has been unfairly endangered. However, as this industry depends on overseas supplies for its raw materials, it has no right to protection under Mr Holland's theory, and it will be interesting to-see in what manner the variant Labour views will be compromised.