§ 23. Sir PERCY HURDasked the Secretary to the Overseas Trade Department if he has any information as to whether any assistance, direct or indirect, and, if so, what, is given to the exportation of Dutch milk products to the British market by the Government or otherwise?
§ The SECRETARY for MINES (Mr. Ernest Brown)I have been asked to reply. Under the Dairy Farmers Relief Act passed by the Netherlands Government in 1932, a surcharge is levied on all butter, cheese and whole-milk products and also on margarine and cooking fats consumed in the Netherlands. The surcharges are fixed from time to time according to market conditions by a special body set up under the Act. The sums derived from the surcharges are used to subsidise producers' milk prices. I understand that for convenience in administration the surcharge on butter is levied on all creamery butter whether sold for home consumption or for export, but a drawback equal to the surcharge is subsequently allowed on all exports of butter.
§ Sir P. HURDThe net effect is that substantial assistance is given to exports to this country?
§ Mr. BROWNI do not understand that that is the case. I understand that the payments do not have the effect of a subsidy in the sense of allowing products to be sold below the world market price. The position is that the internal price is kept at an artificial high level, and in order that those who export are not penalised they are given the difference between the world price of exports and the home price.