N.Z. Urged To Prepare For E.E.C. Repercussions

Press, Volume C, Issue 29635, 4 October 1961, Page 12

N.Z. Urged To Prepare For E.E.C. Repercussions

(New Zealand Press Association) WELLINGTON, October 3. Already New Zeaiand should have started making changes in its livestock production pattern, the research director of the Bankers* Association (Mr J. W. Rowe) said today. Addressing a conference of the field staff of an insurance company he said he did not consider that if Britain joined the European Economic Community that this country had “a dog’s chance” of maintaining duty-free, quota-free entry of all its products into Britain.

It seemed inevitable that New Zealand would be forced to reduce its butter exports and it should start seeing what else could be done with the land now, rather than waiting until “things began to get tough." No country in the world, except Britain, seemed to want butter in substantial quantities. Perhaps one solution would be to go out of dairying to some extent and move into beef production. World market prospects for beef were good. Mr Rowe said he did not want to give the impression that the British Government’s assurances to New Zealand meant nothing. He

thought they had meaning, but New Zealand could not expect Britain to Stay outside the E.E.C. merely to save this country the trouble of finding new markets and changing its trading pattern. It should be remembered that the average standard of living in New Zealand was higher than in Britain. What New Zealand could legitimately demand, however, was time to make the necessary readjustments. New Zealand had been likened to Britain’s overseas farm, and it took several years for a country to make a change in its livestock production. Another factor in the situation was that while New Zealand’s butter sales to Britain were likely to be reduced, this country might expect somewhat higher

prices for what it did sell in Britain. It seemed inevitable that Britain, if she joined the Codunon Market, could expect consumer prices, particularly for dairy products and meat, to rise. The same »sort of problem that confronted butter also faced lamb. In one way it was more serious, for Britain was.the only significant fat iamb consumer in the world.

Her population was risin'g slowly and the demand for lamb was not increasing. This was especially true when the growth of the chicken trade in Britain was taken into account. . New Zealand, on the other hand, had a, rapidly increasing population and must succeed in increasing the value of its exports, Mr Rowe said.