Threats To N.Z. Outlined

Press, Volume CI, Issue 29838, 2 June 1962, Page 11

Threats To N.Z. Outlined

(N.Z. Press Association -Copyright) LONDON, June 1.

New Zealand’s economy was severely threatened by possible consequences of Britain’s entry into the Common Market, according to “The Times” diplomatic correspondent.

New Zealand's gross national product in 1960 was about £l2OO million, of which one-quarter was exported. More than half of these exports went to the United Kingdom Any serious blow to these exports would be a blow to the whole of New Zealand as she depended upon high exports to pay for essential imports, the correspondent said New Zealand's growing forestry industry gave her an interest in a nil tariff on timber, wood pulp, and newsprint. Plans for an aluminium industry, based on Australian bauxite and New Zealand's hydro-electric power had been made on the assumption that half the aluminium exports could be sold in Brita n The real crux for New Zealand however, the correspondent said, was whether those of her main agricultural exports could continue to be sold to Britain (or members of the enlarged Common Market) in traditional quantities The correspondent listed the important exports and how they would be affected: Wool: Exports should not be directly affected, since wool entered the Common Market duty free A blow to the meat trade would, however. indirectly hit the woo! trade Mutton and lamb: If the

system of duty-free entry to Britain were followed by restrictions upon entry into the enlarged Common Market. or by worsening the competitive position of these exports to Britain, the effect would be extremely serious Beef and veal: As for nutton Butter: This was of cardinal importance and most vulnerable. If British prices were harmonised with Common Market prices at a high level, uneconomic production in Britain and throughout the six countries would increase and if the rise in price was rapid, consumption in Britain would decline (because of competition from margarine) Without special arrangements New Zealand's efficient large-scale production would be disrupted Cheese: As for butter Large-scale production would be threatened if New Zealand exports lost their present 15 per cent, preference and had to enter Britain over a high levy Since the lamb, mutton and dairy produce exported to Britain would all be directly affected by British entry into the Common Market and is worth over £ 100 million, any dislocation of these markets would clearly be extremely damaging to New Zealand’s standard of living .Alternative markets on anything like the scale of the British market did not exist at present, the correspondent said New Zealand needed stable British or enlarged Common Market outlets to maintain large-scale economic production Her main need from the Common Market negotiations was an assurance of access to the enlarged market for farm exports, in quantities that would ensure a return comparable to her traditional export earnings, he said Insurance Scheme (Special Crspdt N.Z.P.A.) LONDON. June 1. A supermarket chain in America's Middle West is offering its customers “breadwinners' insurance,” the “Daily Telegraph” reported. By paying an additional 5s 7d weekly on its grocery bill, a family is assured of up to £35 monthly over three years for food bills should the head of the family die.