Senate bill mars good beef news

Press, 1 May 1978, Page 2

Senate bill mars good beef news

NZPA Washington Prices for New Zealand beef have reached a fiveyear peak on the United States market, and are predicted to go higher. Imported boneless cow beef last week averaged $1 per lb in New York, the first time this level had been achieved since July, 1973, and almost double the depressed rate of barely six months ago. But the good news for New Zealand producers about prices is clouded by Congressional legislation which threatens the longterm stability of the beef-im-port market. The legislative push, inspired by the domestic cattle industry, to amend the 1964 meat import law, developed quickly in the Senate two weeks ago. Sponsors of a bill to change the method by which beef import levels are computed say that it will not hurt imports, which come mainly from New Zealand and Australia. But Australian and New Zealand officials and importers see the bill, introduced by Senator Lloyd Bentsen, as the most dangerous piece of anti-imports legislation since 1964. They believe it would

slash imports over a long period and cause fluctuations in the year-to-year imports figure, meaning production problems for farmers and exporters.

The bill was passed by the Senate Finance Committee and may reach the floor of the Senate this week. It is believed it has sufficient support to win full Senate approval. Hearings on the imports issue will be held in the House of Representatives in a month, at least slowing passage of the bill and giving opponents a chance to be heard. But the ultimate outcome is not certain. The Administration’s attitude to the legislation is not clear at this stage. President Carter’s chief inflation fighter, Mr Robert S. Strauss, opposes the measure but sources say the Administration may be willing to accept some sort of a watered-down Bensten bill. Mr Strauss says that had the bill been in effect since 1968 imports would have been cut 26 per cent and retail prices boosted 16c to 17c per lb. The New Zealand Ambassador (Mr M. Norrish) met the Secretary for Agriculture (Mr Robert Bergland) on Friday afternoon

to register New Zealand’s opposition to the move. The Prime Minister (Mr Muldoon) will tell Vice-Pres-ident Walter Mondale of New Zealand’s concern when the pair meet in Wellington on May 9.

Mr Norrish told NZPA that he believed the President would veto the Bentsen bill if it were approved in its present form by the Senate. He said that if it went through unchanged it would virtually “ruin” beef imports. Beef is one of the main ingredients in rapidly rising food costs in the United States, and if the price keeps rising, as it is forecast to do for at least some time yet, consumer pressure may develop for more imports to help hold beef prices.

The President has the authority to lift import quotas if he wishes; President Nixon suspended quotas in 1972 when domestic beef prices got out of hand. New Zealand ships about one quarter of United States beef import requirements, and such exports earned it SI44M in 1977. Export receipts will be much higher this year because of the improved prices.