U.K. Quotas And N.Z. Import Controls

Press, Volume CII, Issue 30153, 10 June 1963, Page 13

U.K. Quotas And N.Z. Import Controls

It was quite invalid to that imposition of Quotas by the United Kingd m on imports of New Zealand meat was justified bees use New Zealand bad import control, said Professor B P Philpott, professor of ; zricu'.tural ecixiotD.es at I nc~!n Collefie, speaking to Barfield Federated Farmers and She Darfleld Young Farmers' Club

In 1947, Professor Philpott said, there was a world food shortage. To obtain increased supplies of lamb Britain could have allowed free market lamb to rise to a high level to secure greater suppl.es from New Zealand, v xli would have eventually resulted in prices dropp ng back to a normal level. The p 1 icy adopted. however, had been one of keeping the price of imported lamb down by bulk purchase agreements, under which New Zealand accepted a fantastically-low-price. and at die same time the price of Home-produced lamb was raised by paying subsidies to British producers to induce them to increase their supplies. Hiis arrangement had v. -ked strongly to New Zealand’s d.sadvantage. Suppl, as had gone up and the price had gone down and there were British supplies cs well as New Zealand sc that the market for New Zealand lamb had been severely restricted.

"It is no wonder therefore that we have had to restrict imports. ... If we did not have import controls we would have to find some other way of paying our wayoverseas. One of the causes of this balance of payments problem is the United Kingdom subsidy.”

Speaking of the dairy profl u ct s. tua tion. Professor Philpott said British anxiety

and left a greater market for this country, but as usual New Zealand was to get the woroet of both worlds. Quotas had been introduced to restrict supplies of butter, raise the price to the consumer and reduce the commitment of the Treasury. In this way the support of the British dairy farmer was to be shifted on to the British consumer and on to tlie New Zealand ec notny An additional reason for quotas and higher interna! prices in Britain was that this was the method adopted by the Common Market countries and the European Economic Community had objected to the British subsidy system. It was a fairly sure sign that Britain was gearing up fc> reventual entry rnto U e Common Market so that all New Zealand had was a breathing space.