DAIRY FARMERS ON E.E.C. PROPOSAL

Press, Volume C, Issue 29553, 30 June 1961, Page 16

DAIRY FARMERS ON E.E.C. PROPOSAL

The Press' Special Service

WELLINGTON, June 29. If, after full negotiation with the European Economic Community, the United Kingdom Government decided to join the community and accept the proposed common agricultural policy, the effects on New Zealand would be very serious indeed, said Mr A. Linton, chairman of the New Zealand Dairy Board, addressing the Dominion Dairy 'Conference today. In that event, the least the British Government could do to recognise its substantial responsibility to the primary producers of New Zealand would be to underwrite the undoubted losses they would make, for a period of years. “We should have no illusions as to the disruption ! that would occur if we are forced to try to make rapid and substantial changes in our dairy produce trading pattern." said Mr Linton. “Let us say quite clearly now that if this should occur, and if the United Kingdom Government enters the E.E.C. on i the basis of the proposed exj tremely restrictive agriculI tural policy of the Six. then we will expect the United; Kingdom to pay us substan- i tial and continuing compen-j sation until we can make the necessary adjustments. Let' us be equally frank and say that it will take years to make them.” Alternative Suggested New Zealand must also be fair to the United Kingdom and suggest ways of making the E.E.C. proposition less attractive, by offering increased trading opportunities. One sensible way of doing this would be to balance trade with Australia and immediately transfer £2om of credits for purchase in the United Kingdom. There was urgent need for the. Government and the people of Neu' Zealand to have a quick, hard look at where current trade policy was leading them. Unless New Zealand could offer the United Kingdom more trade it was not in a strong bargaining position.

The two major considerations that prevented the British Government from joining the E.E.C. at the outset were, first, her obligations to the Commonwealth, and second. her commitments to her own farmers. “These were still the stumbling blocks. The United Kingdom Government had been under very great pressure from British industrial interests to join and have done with it. but it had said it would not enter negotiations without consulting Commonwealth countries.

"This is the phase we are now' entering, which Mr Duncan Sandys no doubt is coming out to discuss, and it is a particularly dangerous one for us.” Mr Linton said. “If Mr Sandys is coming to advise our Government that Britain will not enter on present terms. I think it is essential that he also indicates to our Government ivhat are the terms it is prepared to insist must be met before it joins. That is something which New Zealand with its very considerable stake in the United Kingdom market, is fully entitled to know.”

It was practically certain that the United Kingdom would not be allowed to join the E.E.C. unless it accepted the proposed agricultural policy of the Six. Just how detrimental the change would j prove to the dairy industry would depend on the agri-i cultural policy finally adopted However, any system which artificially supported butter at high price levels could not be helpful to New, Zealand, because the British people. like the Americans, would buy margarine, rather than pay for dear butter. “Economically I’naound" The idea of receiving a higher price for a lesser quantity of butter, though! superficially attractive was economically unsound to a country that had not reached its ultimate development That was why it considered that, if the United Kingdom Government decided it was m its essential interest to join on current terms, it should' recognise its substantial responsimlity tq* th. primary

producers of New Zealand by underwriting the undoubted losses they would make, for a period of years. “Why does the United Kingdom have that responsibility? Year in and year out—in war and peace—New Zealand has continued to supply Britain with very substantial quantities of meat and dairy produce at reasonable prices,” said Mr Linton. “Both during and after the war the United Kingdom Government requested us to increase our production for its market, and we did so. Our whole farming system has been developed to provide the United Kingdom with low-priced foodstuffs and they—and we—have derived great benefit. If association on this sensible and efficient pattern has to be substantially changed to fit into the highly protected agricultural system of Europe, we will have to make tremendous readjustments in our production and selling pattern. The shorter the time given to make these, the greater the measure of the loss we are likely to suffer."