The Press WEDNESDAY, NOVEMBER 21, 1962. Wool, Lamb, And The E.E.C.

Press, Volume CI, Issue 29985, 21 November 1962, Page 16

The Press WEDNESDAY, NOVEMBER 21, 1962. Wool, Lamb, And The E.E.C.

The New Zealand sheep industry must have been heartened by recent reappraisals of the effect of British membership of the European Economic Community. The Minister* of Trade (Mr Marshall) was almost offhand in his confirmation of the Brussels report that Britain would probably be allowed to import lamb and mutton duty free because the Continent is not really interested in this trade. If Mr Marshall is correct this is news of the first importance to New Zealand. It was less surprising to have the prediction of Mr D. H. Clive, of the International Wool Secretariat, that New Zealand wool would benefit if British woollen manufacturers could get inside the E.E.C. tariff to compete with producers of synthetics. However, taken together, these two reports are most encouraging, because the sheep industry is easily the most important contributor to the New Zealand economy. A prosperous sheep industry would give New Zealand the sound foundation it will need if it has to reorganise its farming practices to overcome difficulties in other fields—notably dairy production. France’s exportable surplus of butter continues to

have a depressing effect on the market, and will become more significant if Britain enters the E.E.C. The French solution of a wide international agreement is still too ephemeral to inspire much confidence. While this situation persists, the consultations on dairying among Britain, Australia, and New Zealand, now being held in this country, can be of only limited usefulness, particularly since Australia is determined, apparently, to keep even its uneconomic producers in business. Though New Zealand’s immediate hopes must rest on the sheep industry, it would be unwise to build too much on the present favourable outlook. We must ultimately expect greater competition from Continental pastoral industries. France, particularly, has a great potential for producing meat and wool; and it would be prudent to expect the French to develop it. This must be set against the probability that the rising standard of living promoted by the economic growth of the Common Market will much increase the demand for products in which New Zealand is interested. To hold, or perhaps increase, our share of this greater demand is a challenge to New Zealand exporters.