THE PRESS MONDAY, OCTOBER 23, 1978. Markets N.Z. must have

Press, 23 October 1978, Page 10

THE PRESS MONDAY, OCTOBER 23, 1978. Markets N.Z. must have

A report prepared by the New Zealand Planning Council on New Zealand’s relationship with the European Economic Community has. appropriately, been released while the President of the Federal Republic of Germany (Mr Walter Scheel) is in New Zealand. The report is addressed as much to Europeans as to New Zealanders, most of whom are already well aware that continued access to European, and in particular British, markets for New Zealand dairy products and lamb is essential if New Zealand is to surmount its present economic difficulties. Employing a moderate, but firm tone, the report proceeds from the premise that New Zealand is not asking for a gratuitous favour from the E.E.C. A sound case is made in the report that it will be in the Community’s own interest not to depress the New Zealand economy too severely by closing off New Zealand’s traditional markets abruptly or completely. New Zealand’s contribution to the peace, prosperity and security of the South Pacific will depend, the report reminds its readers, on the strength of its economy. Western Europe as a whole would, indeed, be most unwise to ignore the direct, if not immediately obvious, connection between New Zealand’s capacity to meet challenges arising in the region and the more mundane considerations of marketing butter and lamb. A moderate growth each year in this country's agricultural exports is a condition of prosperity in New Zealand and this growth will be attained only if markets for such exports remain open in the advanced industrial countries of, in particular. Western Europe.

The E.E.C. must not be allowed to think that alternative markets can be developed quickly enough if New Zealand butter and lamb are effectively excluded from the British market. The Planning Council's report should help to prevent this happening, provided that European leaders will take notice of the argument New Zealand’s other strong point in forthcoming negotiations with the E.E.C is, as the report says, that the common agricultural policy of the E.E.C. (the rigid application of which is at the root of many of New Zealand's problems) should be modified in Europe’s own interests. A revised C.A.P.. placing less emphasis on restricting imports and other measures which raise prices and depress consumption, and more emphasis on direct support for European farmers, will serve the Community better. It will also allowNew Zealand to maintain traditional markets which are still vital to our economy. New Zealand cannot say too often that the E.E.C. could, by judicious changes in the C.A.P., accommodate New Zealand without threatening durable solutions to the agricultural problems of its own members. The E.E.C. can provide New Zealand with the certainty it needs about long-term opportunities to sell butter and lamb in Western Europe without seriously harming its own economic interests and to the general benefit of its own broader political interests, if the Planning Council’s report has helped to make this point to New Zealand’s present visitors it will prove to have been valuable and timely.