Britain's Farm Subsidies Reach “Unrealistic” Level

Press, Volume XCVII, Issue 28541, 21 March 1958, Page 12

Britain's Farm Subsidies Reach “Unrealistic” Level

(New Zealand Press Association)

WELLINGTON. March 20. New Zealand was facing, and would continue to face, complex marketing problems, and their solution was of fundamental importance to the well-being of the country’s economy, the ActingPrime Minister (Mr Skinner) said today. Addressing the mid-year conference of the electoral college of the meat and wool boards, Mr Skinner added: “The United Kingdom market overshadows all our other markets in importance. We must retain and, if possible, expand our share of this market.” This was being made most difficult by the stimulus United Kingdom production was being given by Government assistance which was costing the Exchequer about £250.000,000 a year. “I am convinced, however, that the United Kingdom Government cannot maintain this financial assistance at the present level,” said Mr Skinner. It was “unrealistic,” and the British Prime Minister (Mr Macmillan) had made it plain during his recent New Zealand visit that

some reduction in assistance would have to be made. Mr Skinner said New Zealand was also confronted with the fact that increasing quantities of dairy produce from foreign countries were being dumped in Britain. The whole marketing picture was rendered somewhat obscure by the moves toward economic integration in Europe. “We recognise that, while the United Kingdom market is vital to us, we must also do our utmost to develop supplementary markets,” said Mr Skinner. “To this end the Goverpment has asked the British Government for a review of the Ottawa Agreement and in the course of such a review we may seek modifications which would give New Zealand freedom to adjust existing preferential margins of duty at present in favour of the United Kingdom.” Freedom to adjust margins of duty would give New Zealand a tool to use in trade negotiations with other countries. It could also have a beneficial effect on the Dominion’s internal cost structure.