U.K. GOVT IMPOSES LEVY ON N.Z. MEAT

Press, Volume CX, Issue 32439, 28 October 1970, Page 18

U.K. GOVT IMPOSES LEVY ON N.Z. MEAT

(N.Z.P.A. Staff Correspondent) LONDON, October 27. Butter and cheese will be exempt from the levies on primary produce which the British Chancellor of the Exchequer (Mr Anthony Barber) announced in the House of Commons this afternoon.

There will however be a levy of 3d per lb on lamb and mutton, and a variable levy, tied to the price on the British market, on beef, veal and some milk products.

The New Zealand Deputy Prime Minister (Mr Marshall) who is in London for Common Market negotiations was given a briefing on the levies by the British Minister of Agriculture (Mr James Prior) in a one-and-a-half-hour meeting last night.

“I made it clear to the British Minister that levies of this nature were regarded unfavourably by New Zealand,” Mr Marshall said today, “but we recognised the right of the British Government to introduce these policies as a result of their election manifesto.” Mr Marshall said that the British Government had told him that the levies would be introduced by April of next year. Under the provisions of the New Zealand - United Kingdom trade agreement, either partner is committed to give the other six months notice of impending changes. Mr Marshall said that the British Government had now given that notice and asked for consultations.

“I have arranged with the Minister for Europe (Mr Geoffrey Rippon) to open these discussions on Friday when I meet him,” said Mr Marshall.

“I will then hold further discussions to go into the matter more fully at the end of November when I return

to London from Common Market talks. Mr Marshall said that in the meantime discussions at an official level would take place on November 12 , and 13, dealing particularly with the levies on mutton and lamb. Further discussions on a multi-lateral basis will take place in the week beginning November 16.

The announcement had come as no surprise, said Mr Marshall, because it had been a policy of the Conservative Government-while in opposition and was also in its election manifesto. He said that the British Prime Minister (Mr Heath) had discussed the levies with the New Zealand Government when he visited New Zealand 18 months ago. Mr Marshall said that it will be the objective of the New Zealand Government to

recover in increased prices on the British market, the levies which are imposed on New Zealand products. “This new policy on the part of the British Government represents a departure from the long-established way in which New Zealand has enjoyed free access to the British market,” said Mr Marshall.

“It is a major policy change which will have to be

examined in the light of general trading relationships. This will be one of the factors which will be covered in the consultations which will take place in the coming weeks.”

Mr Marshall said that the New Zealand Government realised that levy policies were involved in the process of joining the E.E.C. and adhering to the common agricultural policy.