Opposition to N.Z. case

Press, Volume CXIV, Issue 33694, 18 November 1974, Page 20

Opposition to N.Z. case

(N.Z.P.A. Staff Correspondent) LONDON. The European Commission’s recommendation that New Zealand get an 18 per cent price rise for its dairy exports to Europe has run into opposition at an E.E.C. committee meeting in Brussels.

Britain has told its Common Market partners that it would like the increase lifted to 20 per cent.

The issue is likely to be discussed when Agriculture Ministers of the Nine meet in Brussels todav.

; Common Market sources Isay that the commission’s Special Agriculture Committee discussed the New Zealand case three times this week, without reaching agreement. The committee met to decide the agenda for the monthly Ministerial meeting today. If there had been agreement on the rise, it would have been marked a non-contentious item and put before the Ministens for virtual rubber-stamping. But in the face of opposition, the New Zealand rise has been provisionally put down for debate. The sources said the matter would be considered again by the Special Agriculture Committee on Monday before the Ministerial meeting. Three weeks ago, the European Commission (the Common Market Cabinet) to recommend that

member nations accept an 18 per cent price rise for New Zealand butter and cheese on the British market. The increase would be w’orth between SNZI7m and is2om to New Zealand in a I full year. INFLATION EFFECT Although New Zealand in March sought a rise of 14 to 15 per cent, inflation has outdated this. The Dairy Board said recently a rise of about 31 per cent was justified if returns to New Zealand farmers were to be restored to the levels intended by the original E.E.C. agreement The British Government’s bid, in the Special Agriculture Committee, to lift the increase to 20 per cent is seen as an effort to ease New Zealand’s disapointment at the 18 per cent offer. Common Market sources said that in the committee some nations had asked for further details of the. methods of calculating the 18 per cent rise. Others had questioned whether an increase could legally be given under the terms of protocol 18 of Britain’s entry treaty. France and the Irish Republic are believed to have led the opposition.