Important talks on N.Z. and E.E.C. soon

Press, Volume CXII, Issue 32959, 4 July 1972, Page 14

Important talks on N.Z. and E.E.C. soon

(By MICHAEL fiOBSON, N.Z.P.A. Staff Correspondent) BRUSSELS, July 3. British and Common Market officials are believed to be ready to discuss the “nuts and bolts” aspects of New Zealand’s special arrangement with the enlarged Common Market.

Informed sources both in Brussels, and in London have indicated that the first substantive meeting on the actual working of the Luxemburg protocal might be held this week.

It is believed that until now there have been only general discussions on the New Zealand question, but that the commission is finally ready to consider specific proposals. These fine print discussions will be of tremendous importance to New Zealand, for theq will dictate not only methods of marketing New Zealand produce after British entry, but will also determine whether the price formula for butter decided on in Luxemburg is a maximum return or merely a floor. MR RIPPON’S VIEW

The chief British negotiator, Mr Geoffrey Rippon, has insisted that the formula—to be based on the average price New Zealand received on the

> British market in the four years from 1969 to 1972— is merely a base, and there is no reason why New Zealand should not receive higher returns. The formula at present would produce an average of just under $B40 —a drop of $220 on the present London price. One method whereby New Zealand might possibly increase returns would be if a fixed levy were set, so that any upwards movement in the market would result in an increased return for New Zealand, instead of being absorbed in a variable levy.

The determination of the British in this coming round of negotiations will provide a valuable insight into how hard they can be expected to fight for our interests once inside the community. If they stand firm on the price issue and translate Mr Rippon’s promises into action, the future will appear a good deal brighter not only on the dairy front, but also on the question of lamb imports. In this, New Zealand

is reliant on British efforts to make sure that no prohibitive sheepmeat regulation is introduced by the enlarged Community.

Other issues which could be raised in this first substantive meeting might be the question of who pays “on” costs such as advertising, packaging and storage. For if these have to come out of the formula price, the returns might be severely eroded by inflation. Another issue will be the question of freight rates. These are an important item and New Zealand would like some cushion to take care of any extraordinary increases in the future. Whether there will be a great deal of progress in these discussions before the summer break in Luxemburg is difficult to establish. DELAY LIKELY

The commission’s usual method of doing business is to leave matters until the last possible moment, and, in some quarters, it is thought that the New Zealand question will be shelved after an I opening session, so that more urgent matters affecting British entry can be dealt with.

The chairman of the New Zealand Dairy Board (Mr F. L. Onion) will probably try to push the New Zealand question to the forefront when he visits Luxemburg, to try to get an early decision on which to base planning for next season.

After Mr Onion’s visit, it should be possible to have a more accurate picture of how the negotiations are proceeding.