Opposition Doubtful Of Assurances On E.E.C.

Press, Volume CI, Issue 29994, 1 December 1962, Page 12

Opposition Doubtful Of Assurances On E.E.C.

(New Zealand Press Association)

WELLINGTON, November 30.

The Government was called on in Parliament today to oppose suggestions that it may be possible for Britain to join the Common Market, and then from a position “on the inside negotiate to ensure New Zealand’s future economic welfare. Mr A. H. Nordmeyer (Opposition, Island Bay) said he had seen these suggestions. A senior member of the Government should state clearly and unequivocally where it stood on this issue.

The Prime Minister (Mr Holyoake) said the Government would want clearly demonstrable proof that the assurances given New Zealand would be carried out before it would approve of Britain joining the market.

Mr Nordmeyer said a statement by Sir John Crawford. a former head of the Australian Department of Trade, must be taken at its face value.

“These promises and undertakings appear to be receding into the background,” Sir John Crawford is reported to have said when he was discussing the Brussels talks.

“What attitude is the Government taking on this matter?” Mr Nordmeyer asked. “Does it still believe the undertaking has the same weight and force as it did at first? Is it advocating that New Zealand’s economic interests should be safeguarded before Britain joins the Common Market?

Mr Nordmeyer said the Minister of Finance (Mr Lake) was reported as saying on September 20 that borrowing would be needed to boost New Zealand’s depleted exchange reserves even if export prices improved. Mr Nordmeyer said the impression may have been deliberately fostered that New Zealand's current export earnings were low.

The facts were tha‘ in the first nine months of this year they amounted to £244.25 million, compared with £235 million in the same period last year. It was not too much to expect this year’s earnings to reach £305 million, the record set in 1959, compared with £295 million last year. “Why should it be necessary for the Government to claim that it is desirable to borrow overseas to augment our overseas exchange?” The Minister of Overseas Trade (Mr Marshall): Do you know what the terms of trade are? That is the answer. Mr Nordmeyer: It is not. Earnings are likely to be a record.

Mr Marshall: Imports are costing a great deal more. Imports Controlled

Mr Nordmeyer said imports were being held down since the Budget. There had been an indication that taxation revenue was falling. What was the internal borrowing policy for the rest of this financial year? Mr Holyoake said the Government this year had borrowed £lB million verseas, compared with £26 million last year. “Prices for our major products were very low,” he said. A big improvement in butter prices was the r -ult of “splendid arrangements” made by the Government with Britain for the purpose of protecting New Zealand’s dairy industry. “If the present prices hold, our overseas earnings may be somewhere near or roundabout the record,” he said. Further borrowing would not be necessary if prices held. Revenue had not been running quite up to the estimate. but Government expenditure was almost at the level estimated.

Britain’s assurances were just as meaningful as when they were given in July last year, said Mr Holyoake. He said that he would like to see the assurances implemented before Britain joined the E.E.C., “but I don’t think that a clear answer can be given to that.” “We want clearly demonstrable proof that the assurances will be carried out before we would approve of Britain going in,” he said. Decision for Britain The Leader of the Opposition (Mr Nash) said the matter was for Britain to decide. Sweden, Switzerland, and Australia had been refused associate membership of the E.E.C.

“It looks as if Britain cannot make the arrangement she has undertaken to make,” said Mr Nash. Mr Nash said it would be impossible for Britain .to satisfy her own farmers who, last year, were paid £340 million in subsidies. The laws of the E.E.C. did not allow subsidies to the producer, only to the consumer. Britain was now trying to get an arrangement over a period to reduce subsidies gradually over a period of three or four years. Mr Nash said he did not think that a Government which raised food prices to compensate farmers for the loss of £340 million in subsidies would have a “ghost of a chance” in remaining in office. Faith In Assurances

The Minister of Overseas Trade (Mr Marshall) denied that British assurances on the E.E.C. were being weakened. “Mr Sandys said that he would rather leave political life than let the Commonwealth down,” he said. “Britain will decide whether they have in their opinion safeguarded New Zealand. That has been the understanding from the beginning. “There is no reason to doubt that the need for special arrangements has been reduced by any subsequent events."

Mr P. G. Connolly (Opposition, Dunedin Central): What about the French attitude? Mr Marshall: The French have "t objected to the idea of a special arrangement being made for New Zealand. “What is going on is a war of nerves and we have to keep our nerve. This is a battle of tactics.” said Mr Marshall. Difficulties Increasing Mr N. E. Kirk (Opposition, Lyttelton) said New Zealand was overlooking the fact that whether Britain joined the E.E.C. or not, New Zealand’s economic difficulties were increasing. “The Government is spending too much time talking and too little time acting. Where is the Government going on industrial development? Where are the new markets the Government talks about?” Mr Kirk asked.