Disappointment At U.K. Move

Press, Volume CVI, Issue 31321, 17 March 1967, Page 1

Disappointment At U.K. Move

(New Zealand Press Association) WELLINGTON, March 16. The Minister of Overseas Trade (Mr Marshall) said today it was “disappointing” to be faced with the prospect of increasing stocks of home produced butter coming on the British market.

He was commenting on today’s announcement by the British Minister of Agriculture (Mr Peart) of a £4O million boost for farmers. This provides for an increase in both the guaranteed price for liquid milk and in the standard quantities on which this price is paid, plus increases in beef prices and production subsidies on cattle and sheep. Mr Marshall said tonight the increase in the milk price was likely to increase milk production which must result in increased butter production —even if this was not the main objective. The Minister commented: “In view of the hard negotiations which we have just concluded on the butter quota, negotiations which, while reasonably satisfactory on quantities left little expectation of a price rise in butter in the coming year, it is disappointing to be faced with the prospect of increased stocks of home-produced butter coming on the British market.

“Our capacity to pay for imports from Britain is directly affected by the price we get on the British market,” he said. Trade Balance

“At the moment the price for both wool and butter is uneconomic and is a major factor in our balance-of-payments difficulties.” Mr Marshall said the increase of British farm support prices was a decision made by the British Government with the objective of increasing farm production in the United Kingdom and so saving overseas funds by reducing imports. “This is not in New Zealand’s interests,” he said. “We can provide high-quality meat

and dairy produce at much lower prices than the British farmer.”

The N.Z.P.A. special correspondent in London, said Mr Peart emphasised that under the Government’s selective expansion programme, agriculture was expected to contribute to import saving by increasing its production sufficiently to meet “a major part” of the additional demand expected by 1970 for food for human consumption.