Market delays dairy decision

Press, 20 July 1977, Page 1

Market delays dairy decision

NZPA Brussels European Farm Ministers have deferred until September a decision on a price increase for New Zealand’s dairy products.

They decided in Brussels yesterday that they had not had sufficient time to study the European Commission’s proposal for a 10 per cent increase.

The Deputy Prime Minister (Mr talboys) said from London that he was frustrated at the delay. New Zealand has not had an increase for the butter and cheese it sent to Britain since January 2 last year. In the same period, Europe's own farmers have had three increases.

New Zealand’s main advocate in the E.E.C. Agriculture Council, the British Minister (Mr John Silkin) — who will visit New Zealand next month — said that Ministers had not seen the commission’s working document on New Zealand until late on Monday night. Although he argued for a decision yesterday, Mr Silkin said that the few Ministers that had not had time to study the proposals had some validity. The proposal called for the increase to be effective from August 1, which means that a September

decision could be restrospective. The council does not meet in August — the Common Market’s summer holiday. Mr Silkin said his line in the meeting was supported throughout by' Denmark and West Germany, while the Fench, the Dutch and the Belgians were opposed. The Irish were “quite non-commital,” Mr Silkin said.

The Belgian Agriculture Minister (Mr Antoine Humblet) presided over the meeting.

Mr Silkin said that noone was disputing there should be a price rise for New Zealand dairy producers, who at present had 47 per cent of the price paid to European farmers. The only argument was one of timing. The Dutch Minister (Mr Alphons van der Stee) suggested that New Zealand’s two dairy arguments — pricing and cheese access — should be looked at together in September, but the Agricultural Commissioner (Mr Fiss Olav Gundelach) said the two were separate issues.

He said cheese access for New Zealand beyond the end of this year was a difficult and delicate subject.

He would report on it to the September meeting, but

there would be no formal commission proposal on cheese at that stage.

Mr Talboys said from London there was some satisfaction in there being no dispute over the need for a price increase, but he said it was frustrating that a decision was not reached, especially after he had just toured seven of the nine E.E.C. capitals. It was unfotunate, he said, that he had seen European Ministers over the past fortnight without having the benefit or knowing what the commission’s proposal would be. Mr Talboys, who delayed his departure from London so he could hear the result of the Brussels meeting, leaves for home today. The European Economic Community would continue to provide a market for New Zealand - agricultural produce, but New Zealand was following the right policy in looking for new markets elsewhere, said the West German Economics Minister (Dr Hans Friderichs) yesterday in Wellington.

The oil-producing countries, particularly, provided new markets for New Zealand which could be developed, he said. Dr Friderichs spoke at a news conference after talks with the Prime Minister (Mr Muldoon)