F.O.L. Appeal On Joining Market

Press, Volume C, Issue 29524, 27 May 1961, Page 9

F.O.L. Appeal On Joining Market

(New Zealand WELLINGTON. May 26. The president of the Federation of Laboar <Mr F. P. Walsh) has cabled an appeal to the British Trades Cnlon Congress and the Leader of the Opposition iMr Hugh Gaitskelli concerning Britain's joining the European C omni on Market. Mr Walsh is seeking their assistance in bringing before the United Kingdom Government the attitude of the Federation toward Britain's joining the European Common Market without adequate safeguards to protect New Zealand's trade with Britain, and its assessment of the effects of such a move on New Zealand's economy. The appeal asks for the evmpathetic examination of the problems raised by Mr Walsh. It asks the T.U.C. and the British Labour Party to exercise their influence on the United Kingdom Government to “see that the common interests of the workers of Britain and New Zealand are not sacrificed.” "There is consternation in New Zealand at the consequences to our economy if Britain joins the European Common Market without taking precautionary measures to safeguard our present and future trade in meat, butter, cheese and other produce to the United Kingdom market.” said Mr Walsh. Basis of Economy “The New Zealand economy has been built on the basis of the economic production of temperate foodstuffs mainly destined for the United Kingdom market. "Through the years it has been the policy of the New Zealand Government and producers to supply the greatest volume at reasonable prices. There have been occasions when we have deliberately refrained from increasing our prices where this could have

Preu Association) been done because of temporary scarcity. “Right through recent years the working people of Britain have been able to buy New Zealand meat, butter and cheese at low prices because of efficiency in production. Quality and Price “It would seem to us desirable that the British working people should have continued access to this supply of high quality food at the most reasonable prices possible.” If Britain accepted the Rome Treaty, including the agricultural provisions, the first result would be to substitute a high price food system for the present low price system. “It is quite apparent that European members of the Common Market would regard it as essential that British food prices should be raised to bring them into line with those on the Continent.’’ The price increase would cause a most serious decline in demand for New Zealand products. 'The effect of this would be spread right through the New Zealand economy and would result in lower purchasing power and a curtailment of our ability to buy from Britain.” It seemed the probable loss of Commonwealth trade would more than offset the potential gains from the Common Market. “On the other hand, the British worker would have to meet higher prices for his food, which would inevitably lead to higher wages and increased costs for in- ' dustry, again limiting the gains to be secured in Europe.” said Mr Walsh. Shipping Loss “If we are obliged to take our trade elsewhere, then it follows that British shipping must lose out heavily. “Other countries will certainly want their own shipping to participate in the trade. "We shall be no longer in : a position to give preference to British shipping, which at present draws much wealth for Britain from the carriage of freight to and from this part of the world.

“This development would directly affect the earnings of British seamen and dock workers.” Mr Walsh said he did not think it was fully realised that the force behind the move was the industrialists, lately engaged in a “fierce cannibalistic war of takeover bids among themselves. “Now we see the grand take-over contest for Europe. “The British worker and his counterpart in New Zealand and other Dominions are to be trampled under in an enormous industrial war, in which the victors might be other than British industry,” he said.