E.E.C. may retain butter subsidy

Press, 21 February 1978, Page 11

E.E.C. may retain butter subsidy

NZPA staff correspondent i London i The European Economic s Community may scran its 1 plans to phase out butter sub- | sidies paid by the British ’ Government — a move which i would have caused a steep - rise in shop prices. i AU brands of butter available in Britain, including New Zealand’s Anchor brand, are expensive by nonEuropean standards. Pri --es range between about 48p (90c) and 52p (98c) per lb. The subsidies are now set about 9p (17c) per lb and are regarded by the British Government as a great success! at holding down shop prices) and curbing the fall in con-; sumption. The original intention of the E.E.C. was to cut the subsidies to about 5p (10c) by October and eventuallv stop them altogether, but the British Agriculture Minister (Mr Silkin) said that the E.E.C.’s farm "commissioner (Mr Olav Gundelach, of Finland) was planning revised proposals. Mr Silkin was speaking

after a two-dav meeting of the E.E.C. Council of Farm Ministers in Brussels. He said that rhe change in the E.E.C.’s plans might form part of the annual price review, under which European dairy producers are expected to get a 2 per cent price increase, an increase which will eventually be reflected in shop prices. The effect of rises from all quarters this vear will be to take the price of butter a pound beyond SNZI. although the rises will not hit housewives until existing stocks in cool stores around i the country are cleared | Mr Silkin said that Mr (Gundelach had told the Ministers’ Council he would bring forward revised pro- . posals for butter subsidies “in ( the near future.” i New Zealand is expected to t apply to the E.E.C. for an- - other price increase fo>» ats t producers this year, but if - granted, it will not cause the , price of butter to rise. The - difference will be accounted in New Zealand payments to (I the British Government.