E.E.C. reassurance for Mr Taiboys

Press, 8 March 1978, Page 6

E.E.C. reassurance for Mr Taiboys

From

JOHN ROSS

in Brussels

Many of New Zealand’s anxieties about the potential dangers of the common European sheepmeat policy were apparently allayed yesterday during a onehour meeting between the Minister of Overseas Trade (Mr Taiboys) and the European Agricultural Commissioner (Mr F. O. Gundelach).

Informed sources in Brussels said it seemed likely that New Zealand would have unrestricted access to Europe for its lamb for at least another year. That is the minimum time they think it will take the European Ministers of Agriculture, particularly those of Britain and France, to agree to a common policy on lamb. Mr Taiboys joked with journalists. last evening and looked much more relaxed than he had done earlier. He said Mr Gundelach had given him an assurance that it was not the intention to “disadvantage” New, Zealand through ffie sheepmeat proposals. "I expressed to him our concern that some of the mechanics that have been (considered should have the effect of increasing (New Zealand lamb) prices and reducing consumption, and he expressed the view that New- Zealand would have a continuing opportunity to develop the market,” said Mr Taiboys.. The European Commission felt there were legal imperatives on it to introduce a policy, but Mr Gundelach had agreed that there could be continuing consultations between New Zealand officials and the commission “to reconcile any differences.” Mr Taiboys and his two advisers. Mr I. L. G. Stewart (Ministry of Foreign Affairs) and Mr E. A. Woodfield (Department of Trade and Industry), said that New Zealand would have to examine any proposals from the commission very closely to ensure they did not un-

knowingly affect New Zealand lamb exports to Europe. “It is like throwing a rock into a pool,” said Mr Taiboys. “It is not your intention to swamp the little kids’ boat, but it could be one of the consequences.” The Minister repeated that, he was still unable to give any details of the proposals already discussed by the European commissioners. But Common Market sources confirmed that the proposals include a variable levy on lamb imports with a maximum of 20 per cent, some form of payment to French .producers,, and some mechanisfn to give additional protection when it is required to European producers, A commission official said

[New Zealand should not be itoo pessimistic about price rises in Britain after the [introduction of the regulations. “Irish sheepfarmers, for example, have ruined their markets at home in their efforts to make a quick killing by sending small tonnages of lamb to France each week,” he said. “Irish lamb prices will increase to such an extent that, if the French cut them out, they will be unable to sell it at home. I cannot see the British farmers making the same mistake.” Mr Tilboys is due in London this morning for talks with British Cabinet Ministers, including the Prime Minister (Mr Callaghan) and other officials.