The Press FRIDAY. JANUARY 9, 1976. Imports of wine to raise N.Z. quality

Press, Volume CXVI, Issue 34046, 9 January 1976, Page 8

The Press FRIDAY. JANUARY 9, 1976. Imports of wine to raise N.Z. quality

New Zealand winemakers now produce large quantities of what they claim are acceptable wines. Suggestions are often heard that advantage be taken of the industry’s abiFy to satisfy the New Zealand market for wines to save the country overseas funds by further limiting the importing of wine. More protection from imports could mean that drinkers of wine in New Zealand would have to pay more than they need for wines of only average quality; but reasons can be found for continuing, and even strengthening, the protection of New Zealand winemakers.

The Viticultural Association of New' Zealand has an obvious interest in keeping foreign wines out of New Zealand, but the association’s president (Mr G. Mazuran) has made it clear that the association as a whole does not want to prevent New Zealanders from enjoying imported wines entirely. The association appreciates that good foreign wines set standards which spur on New Zealand winemakers who are not yet able to produce high quality wines of certain varieties. And so far. the industry’ has done well in improving its standards. Mr Mazuran s argument is that it is senseless to import wines of a quality already produced here in abundance. This must carry weight. He complains that importers of wine bring in cheap foreign wines because they can secure a better return by selling large quantities of cheap wine than by selling smaller amounts of wines of a higher quality Hi-, charge may be difficult to prove; but if it is sound it provides grounds for Government action because the cost in overseas funds is not justified by benefits to the industry or to the consumers.

Simply reducing import licences for wines will not necessarily’ ensure the importing of wines that will stimulate the industry and increase the satisfaction of consumers. In March. 1975, after the question had been investigated by* the Tariff and Development Board, the Government changed the duties levied on wines in a way that made cheap imported wines dearer and made more expensive imported wines cheaper. Further changes in the structure of duties, or the selective levying of higher sales tax on certain imported wines, might ensure that imports improve everyone’s position. Apart from this, devaluation and rising freight rates have already reduced the volume of wine and liqueurs that importers have been able to bring into the country. And some regard must be had for trade agreements and the chance to export the better New Zealand wines.

Some of the present alarm among our winemakers may stem from their knowledge that almost every wine-producing country has surpluses, and from a fear of aggressive selling by overseas producers in New Zealand's growing market. Even if imports diminish to a trickle, New Zealand winemakers may find themselves in a few years with a surplus on their hands. New vineyards are being planted and the local demand may not match the supply. If the aim is for New Zealand to become a major wine-exporting country the reputation of New Zealand wines in New’ Zealand itself will have to be well-established, and this may be done best against the competition of good wines from overseas.