U.K. Labour quotes Mr Kirk on E.E.C.

Press, Volume CXI, Issue 32706, 8 September 1971, Page 2

U.K. Labour quotes Mr Kirk on E.E.C.

(By MICHAEL ROBSON, N.Z.P.A. staff correspondent)

LONDON, September 6.

The statement by the Leader of the Opposition (Mr Kirk) that the Common Market terms negotiated for New Zealand are “not satisfactory,” is used as the central argument in the section on New Zealand in the British Labour Party’s White Paper on the United Kingdom and the E.E.C., published in London today.

The document, which is sub-titled “No entry on Tory terms,” will be presented as a background paper for the Labour Party conference in Brighton next month. After quoting the paragraph from the Government White Paper which details the arrangements for New Zealand, the Labour Party reply said the Conservatives had said these had been accepted by New Zealand. The Labour document then quotes Mr Kirk’s speech in the House of Representatives on July 1 in which he said: “I think I have shown that the consequences of the agreement that have been placed before this House and the people of New Zealand as a result of negotiations that took place in Luxemburg are not satisfactory.” v DAIRY GUARANTEES The White Paper gives de-

tails of Mr Kirk’s reservations on the butter and cheese guarantees after 1977, and the serious implications for New Zealand’s economy implicit in the agreement. “Those are the consequences for New Zealand,” said the document. “For Britain, the impact will be in the loss of cheap food. All produce now coming in from that country either will be replaced by costly European food or will be taxed up to the cost needed to maintain European fanners. “For these reasons, Labour negotiators made specific proposals for continuing access to this country for New Zealand produce, and would have made this issue one of the central points of negotiation.” The document also mounts a stinging attack on the E.E.C.*s Common Agricultural Policy. The C.A.P., in plain language, said the Paper, meant “that consumers pay high prices for E.E.C. farm produce in order to guarantee farmers* living standards; imports of the same food from cheaper markets abroad are taxed up to the point where the consumer has no advantage.” BUTTER SURPLUS

The White Paper says that the E.E.C. Commission resorts to creating artificial scarcities to bring the price up and draws attention to the huge butter surplus of past years—butter, it says which housewives of the Six would not buy because it was so expensive. According to the document, no-one outside the E.E.C. (“and precious few within it”) supports the CA.P. and draws attention to recent criticism by the former Vice-President of the United States, Senator Hubert Humphrey. Mr Humphrey said: "Unless the C.A.P. system is reformed, the enlargement of the European Community can be exnected to have a further disillusioning effect on the United States attitude towards the new Europe.” “MISLEADING” As for the over-all effect on the consumer, said the Labour document, the Government White Paper was very misleading in giving details of the rise in the cost of living based on the 1969 family expenditure survey.

“It (the Government White Paper) makes no allowance for the fact that 5m British households then (in 1969) received less than £25 per week before tax; for the fact that the proportion of expenditure rises as income falls; or for the fact that expenditure on housing, light and fuel is a greater proportion of income for those earning less.” While the Government had promised to raise social security benefits to alleviate the rise in the cost of living, said the Labour document,

this would be of no help to those on low incomes. CONFERENCE AGENDA

Along with the publication of its White Paper on the Common Market, the Labour Party also issued an agenda for the Brighton conference. It is apparent from the amendments proposed by the various constituency and union groups that there is a considerable group in the party seeking to push the conference into a commitment to withdraw from the Community if Labour is returned to power. Mr Wilson and the national executive will be certain to try and head off this movement, however, on the grounds that they should be given flexibility to deal with future developments.

What the party leaders will fight for, and what seems more probable at this stage, is an amendment officially committing the Labour Party to an all-out effort to seek a General Election on the Common Market issue after Parliament assembles in late October.