‘Price disquiet may help N.Z. farmers’

Press, 10 April 1980, Page 10

‘Price disquiet may help N.Z. farmers’

PA Auckland A Dutch Cabinet Minister says that the growing disenchantment about subsidies paid to European .farmers could help New Zealand exports to the European Economic Community.

The Dutch Foreign Minister (Dr Christoph van der Klaauw) says there is a growing feeling among Europeans that something has to be done about the high prices that their farmers get, for their produce. . Dr van der Klaauw and a party of Dutch officials arrived in Auckland on Tuesday for a six-day good-will visit, which will include talks with the Government on economic and trade affairs and New Zealand’s relations with the E.E.C.

He. said that 1 per cent of value added tax collected by the various members went to the community, and most of this money was used to subsidise European farmers. This meant that there was little money for other policies

such as stimulating back- i ward regions. Raising the ; amount to 1.5 per cent , had i been discussed, “but at the : moment it is believed, that this should not be done,” Dr j van der Klaauw said.

The general view was that something should be done about the high prices paid to European, farmers for their products so that more could be done in other directions;

Farmers over-produced because they got so much in subsidies. If they cut back this could help countries such as New Zealand get a “fair proportion” of the European market. “After all,” Dr van der Klaauw said, “if you can sell your dairy products to Europe you can buy more from us.”

He said that the E.E.C. realised it had responsibilities towards world trade and the economies of friends such as New Zealand.

Dr van der Klaauw said that he hoped hits visit would enable him to gain more

understanding of the New Zealand scene. Many Dutch migrants lived in New Zealand, and he was also interested in the future of democratic countries. In an uneasy world in

which democracies were a minority, things should not be taken for granted, he said. He had always said that democracies should stand together to survive econo-

mically. New Zealand agricultural exports would certainly not be excluded from the E.E.C. when its agreement was renegotiated at the end of this year, Dr van der Klaauw said. The Netherlands believed that it must have “fair” access, and other E.E.C. members affected by New Zealand exports also took a positive attitude. The Dutch party was met by the Minister of Health (Mr Gair) and last evening attended a function in its honour given by the Minister of Agriculture and Fisheries (Mr Maclntyre).