Better deal in Europe for N.Z. lamb, butter likely

Press, 2 July 1979, Page 1

Better deal in Europe for N.Z. lamb, butter likely

By

PETER LEWIS

in Brussels

Proposals aimed at giving New Zealand a stable, long-term market for butter and lamb in the European Common Market are in the pipeline, officials have indicated in Brussels.

Future deals for New Zealand farm exports may be binding for five years or longer. The E.E.C. Agriculture Commissioner (Mr Finn Olav Gundelach) was reliably reported to be anxious that the forthcoming arrangements with New Zealand should be longer than the three or four years which has been the duration of agreements until now. The aim of Mr Gundelach, who recently visited New Zealand for talks with political and export industry leaders, is to offer greater stability to the New Zealand economy and “avoid the headache of seemingly constant negotiation.”

This is consistent with comments by the Prime Minister (Mr Muldoon) who said in London recently that proposals he

discussed broadly with Mr Gundelach were for longt e r m arrangements whereas previously negotiations were transitional. The commissioner next month will table his proposals on quotas and prices for New Zealand butter and lamb entering the Common Market after 1980, but the paper he presents will contain no figures, according to officials.

The figures will become known only when the commission in turn puts the question to the Council of Ministers for a decision some time in September.

“The commission is handling the question as a working paper to begin with because of fears that any hard proposals on butter could stir up an unholy fuss in Europe at a

time when the E.E.C. has a mountain of butter to dispose of and milk prices have been frozen for a year,” a senior E.E.C. official said. He said it was reasonable to expect that Mr Gundelach’s proposals would involve a cut in the butter quota but a reasonably sharp rise in prices. On lamb, the Farm Commissioner would suggest imposing a variable levy, rather than the flat 20 per cent duty now in force. However, E.E.C. officials are convinced that the levy “would never be more protectionist than the present duty, and often less so.” Informed E.E.C. sources said the commission was “relatively open” to the New Zealand suggestion that a quota for iamb entering the Community be set for the first time.