The Waikato Times. FRIDAY, AUGUST 20, 1937. MATTERS OF POLICY.

Waikato Times, Volume 121, Issue 20277, 20 August 1937, Page 6

The Waikato Times. FRIDAY, AUGUST 20, 1937. MATTERS OF POLICY.

The addresses delivered at the annual meeting of suppliers to the New Zealand Dairy Company yesterday provided food for thought for many not directly connected with the industry. The new system of control, based on Government ownership of the exportable surplus of butter and cheese, must involve the whole community, especially if there should be a deficit in the Dairy Industry Account, and that plan cannot be studied apart from the general policy of the Government of the day. Many important interests arc interdependent. The producer is concerned with the return, but more with the net than the gross return. If costs ot production rise more rapidly than returns then his economic position is undermined. That makes him directly concerned in the fiscal policy of the Government. If it adopts any plan likely to raise internal prices the man on the land must be adversely affected. It follows that the intentions of the Government with regard to the tariff are of immediate importance. The issue was raised clearly by Mr W. Goodfellow when he said that to adjust tariffs in order that New Zealand industries might have a protected market might prejudice the claim of the Dominion to a free market at Home. Tlie degree to which the Dominion depends upon British markets for its economic stability is shown in the trade returns for the first six months of 1937. There was a favourable balance, in New Zealand currency, of £16,732,000, but as the excess of exports to, over our imports from, Great Britain was £16,905,000 in that period it is evident that, on balance, the Dominion lost ground in its trade with the other countries combined. It is difficult to imagine what reasons could be put forward that would justify New Zealand in running the risk of losing its standing in British markets. Doubtless the advocates of higher tariffs will contend that the present duties are low when compared with those of other units of the Empire. That may be so, but it does not follow that their respective policies are at all suitable for application here. There is no self-governing unit that is dependent to such an extent on its exports for its prosperity. It will be remembered that in May, 1936, a large deputation of industrialists waited on several of the members of the Cabinet and discussed conditions. Mr Nash, in his reply to the requests made, said that although local industries must be safeguarded “it must be remembered that the Dominion was linked to a large extent with the United Kingdom. It was important that New Zealand should not jeopardise the marketing of £40,000,000 worth of her produce in Britain. Tlie Dominion had to take goods from Britain in order io be paid for her produce. There was no other way.” That position obtains to-day and the argument is strengthened by the fact that the exports to Great Britain last year moved up to £45,500,000. There is the further factor that comes from the strong advocacy by the Prime Minister of direct ns against indirect taxation, and Customs duties represent the greater part of the indirect impositions. With the British policy regarding dairy produce still not decided, it would be ill-timed, and dangerous for the Dominion to raise higher barriers against reciprocal trade with tin l Mother Country. These arc the big issues that must be discussed and decided this session, and the interests of the. primary producers arc involved. f