AUSTRALIAN BUTTER BARRIER

Sun (Auckland), Volume I, Issue 261, 25 January 1928, Page 6

AUSTRALIAN BUTTER BARRIER

DOMINION’S RIGHT TO HAVE NOTICE FAIRNESS TO PRODUCERS I j (Fro?n Our Resident Reporter . ) WELLINGTON, Tuesday. “To have agreed to the imposition of the new Australian duties on butter and cheese, without waiting for the expiry of the six months* notice, would not have been fair to the New Zealand dairy industry,” said the Minister of Customs, the Hon. W. Downie Stewart, to-day, reviewing the effect of the proposals upon the trade agreement between the Common wealth and the Dominion. The statement that Australia had offered no objection to the increase by New Zealand in flour and wheat duties, without Australia first receiving six months’ notice was not analagous, he said. The new tariff on wheat and flour did not necessarily mean an increase in the duty of those products. They were an adjustment rather than an increase of duties. The Australian duties were virtually prohibitive, and no notification of the proposed action was received by New Zealand until after the prohibitive duties had been introduced into the Australian Parliament. “As a mater of fact,” continued Air. Stewart, “there was. in view of the prices and conditions ruling at that time, and of the existence of the provisions of the New Zealand Customs Acts relating to dumping, ample power to have charged under the agreement, without the final acquiescence of the Commonwealth Government, the rates of duty finally adopted on Australian wheat and flour. QUESTION OF WHEAT VALUES “In connection with this it must be remembered that the new tariff on wheat and flour does not necessarily mean an increase in the duty on these products. If the current domestic value of wheat at the port of export to New Zealand exceeds ps 6id a bushel the duty payable is less than that under the old tariff, and if the current domestic value of flour exceeds £l4 a ton, and the f.o.b. export price exceeds £l2 15s a ton, the duty is less than that. chargeable under the previous tariff. CHECK ON TRADE “The duties on wheat and flour have not had the effect of preventing trade in these articles between the Commonwealth and the Dominion, whereas it is considered that the new Australian duties will probably stop further exports to the Commonwealth in the commodities concerned. In view of the terms of the tariff agreement it is considered that to have agreed

to the immediate imposiriduties on butter and a have been fair to thev?fc, dairy industrv. ~ Ne w "It will therefore be two cases are entirely t*r grounds of complaint \ ; Xew Zealand, because t«a£ Zealand did. in effect »riv notice, and the ;ilterati on su L ,n <>:iU s ” ec tS r ?' ™ can or wheat duties, and second? Australian duties again, and cheese are virtually and no notincation of 'the „ action was received bv vU p ">Pos» until after the prohibitive been^trod^edmtotbe