DIVERSIFIED MARKETS Not Happy About Meat Scheme

Press, Volume CV, Issue 30998, 2 March 1966, Page 3

DIVERSIFIED MARKETS Not Happy About Meat Scheme

\cw Zealand Press Association

WELLINGTON, March 1.

Because of the virtual certainty of a substantial increase in lamb killed over the next few years, the Government and the Meat Board want to open new markets, according to the Prime Minister (Mr Holyoake).

But he told a public meeting in Porangahau tonight neither the Meat Board nor the Government were happy about the current diversification scheme because the full extent of any loss would be carried by the Meat Industrv Reserve Account.

“It does not meet the basic objective of a diversification scheme—namely the building up of new markets which ultimately would become as profitable as the British market,” he said.

Mr Holyoake said that while there was a shortage of meat in Britain and lamb prices were maintained, it was not easy to develop a satisfactory diversification scheme. The Prime Minister said it had been claimed part of the cost of the diversification scheme should be borne directly by the general taxpayer. •■The Government has not

accepted this view and is not likely to,” he said. “Already the Government contributes substantially to development of overseas markets through trade and diplomatic posts, attendances at international trade conferences and by bi-lateral trade negotiations.

“It is not considered appropriate that the taxpayers’ contributions should go beyond this,” he said.

“By making a direct contribution we run the risk of being accused of dumping or subsidisation,” said Mr Holyoake. The Prime Minister explained the Government would have difficulty in justifying to the New Zealand public use of public funds for the diversification scheme at a time when meat receipts were at a profitable level. He said the Government

was prepared to agree to a proportion of the cost of any market diversification scheme being carried by the Meat Industry Reserve Account—provided a practicable scheme could be worked out which met the approval of both exporters and producers.

“Within the next few months, representatives of the Government, Meat Board, exporters and Development Company will be getting together in an endeavour to hammer out such a scheme,” said Mr Holyoake.