‘Tradesmen’s door’ slammed on N.Z.

Press, 23 February 1978, Page 6

‘Tradesmen’s door’ slammed on N.Z.

From

JOHN ROSS

in London

New' Zealand had had the “tradesman's door” slammed in its face in its efforts to .export its primary produce, ; said the Minister of AgriI culture (Mr Maclntyre) in London yesterday. “When we protest against restrictions on our food exports. we get a reassuring ; reply,” he said. “We are told 1 it is not wholesale protection but only a few shutters going up. “To that, I have this to say: to some it may seem to be simply a matter of closing the back windows in the servants’ quarters. But it strikes us in New Zealand that what you are doing is slamming the door at the tradesman’s entrance,” Mr Maclntyre told the Royal Commonwealth Society that New Zealand’s economic health was in jeopardy, and that its former living standards could be restored only if it earned more from its exports. If all else depended on the efficiency and determination of the New Zealand farmer, and the relative costs of its products, the country would have no cause for concern, he said. “That is not the case—we also have to rely on our friends not to frustrate our efforts, and that is where we have struck difficulty.” In its main markets, in Europe, Japan, and North America, New Zealand had run up against the walls of agricultural protectionism. The major developed countries were pursuing two

different and possibly contradictory, philosophies about trade in manufactured goods and trade in agricultural products. “As far as manufactured goods are concerned, there is a general recognition of the need for competition, of the benefits of specialisation, and of the need for the free flow of products across national barriers. This is seen as being in the interests of efficiency and the best use of resources,” said Mr MacIntyre.

With agriculture, the object seemed to be to produce the maximum amount of food. “The emphasis is on supporting farmers’ incomes land on self-sufficiency at any expense. If this can be achieved at reasonably low cost, so the philosophy runs, then so much the better, but the cost element is not of paramount importance. “It is looked upon as acceptable to ‘fix’ the market in order to ensure that the income of farmers—in many cases very high cost farmers by world standards—are protected, without much regard for the interests of the consumer.”

This presented the most serious problems for a country such as New Zealand, for which agricultural exports were vital. Recent talk of a European Economic Community regulation on lamb was disquieting for New Zealand, said the Minister. Between 15 and 20 million carcases—two-thirds of New

Zealand's total lamb exporis —went to Britain, he said What concerned New Zealand was that a Community "regime” for lamb would almost certainly force up the price the British consumer had to pay. This would take its toll on levels of consumption, and the New Zealand share of the market would shrink.

Mr Maclntyre said New Zealand was not making a lease for special treatment on ’lamb, but it was anxious to be able to continue to compete in Europe, which was deficient in lamb production.

! With Britain’s decision to enter Europe, he said. New Zealand had developed a strong sense of commitment to the South Pacific, but that would in no way impair the long association New Zealand had with Britain and Europe. There were powerful reasons why New Zealand should play an active role in the South Pacific region, but it could do so only if its economic health recovered.