Italy blocks E.E.C. accord covering N.Z. butter

Press, 26 February 1981, Page 2

Italy blocks E.E.C. accord covering N.Z. butter

;NZPA-Reuter Brussels i Italy yesterday, blocked la wide - ranging; E.E.C. farm package covering New Zealand butter imports to Britain and other issues be-; cause it failed to get big) enough sugar production | quotas for its farmers. “For us it is no.” an Italian spokesn an told journalists after hours of closeddoor bargaining between Farm Ministers from the 10 E.E.C. member States. Earlier, the British Minister of Agriculture (Mr Peter Walker) had said that an accord on sugar production quotas, imports of. Australian beef and New . Zeaiand butter, and cash .raids to E.E.C. farmers was tin sight, i lifting month, of deadlock. ; But Italy’s rejection of a small increase in sugar quotas and its insistence on being allowed to continue national aids to its sugar!

producers prevente- the pact from being sealed. The Prime Minister (Mr Muldoon) said at a press conference later in Wellington yesterday that the Italians had until March 10 to agree to the complete package. If they did not agree the package would "self-des-truct” at that time.

But there was provision for a further three months “roll-over” of the supply quantity and this would allow for fresh negotiations o n the butter issue to Take place while supplies were still flowing.

The French Government Was involved iti the negotiations on the sugar arrangements to which th.' Italians had not yet agreed, Mr Muldoon said. The Italian .refusal .meant failure for Dutch', efforts to win a compromise and threatened to hw up negotiations next month on

E.E.C. farm prices which France, in particular, wants to get an agreement or before its Presidential elections next May.The Italian stand meant that concessions . made to each other by Britain and ..rance on New Zealand butter imports and on taxes on sugar production were to no avail.

France yesterday conceded its accord to a three-year agreement on New Zealand butter imports to Britain, something which for months it has refused to accept, in return for improved terms for its sugar producers. But Italy held out for bigger sugar pteductioij quotas for its farmers, rejecting an offer from the other nine E.E.C, States of a 90,000 tonne increase in its quota, benefiting from full E.E.C. price-support, to 1.32 million tonnes.

Italian officials said this J offer was unacceptable because it would have meant taking the same quantity of 'sugar from Italy’s B quota, which gets only partial price support.

I Instead. Italy is pressing I for a larger global A and B |quota whic’. its partners do not want to grant. New Zealand’s fvlinister of Overseas 'lra; ' (Mr Taiboys) told NZPA that if the agreement had been finally approved, it would have provided a satisfactory basis for 'the dairy industry’s plan-! ining. I

“Certainly it is not what we wanted, but it is very much better than many people might have expected,” he said.

Mr Walker said no concessions had been ma le to the French who had been holding out for no more than a one-year butter agreement and originally wanted New Zealand to be cut back to 40,000-50,000 tonnes. Mr Braks, the Dutch Minister of Agriculture, told a news conference after the meeting ended that it was -.a “Once and for all package” and the contents could not be linked together in future if the Italians did not agree.

The package actually created enormous advantages for Italy and he did not want any expectations that it could be altered. Mr Braks said the E.E.C. Commission’s proposals in the mini-package were so well balanced that there had

been wide-ranging agreement once it had been submitted. ) “Quicker than I could dare! to hope there was agreement) among council members ex-

cept Italy,” he said. Mr Taiboys, who had waited in the New Zealand Embassy, said the agreement would have given New Zealand three years assured ! access with a ’review for the period after that. “That is of very consid- ' erable importance to us be- .1 cause it. looks to contin-|t uation of access to the mar-), ket,” he said.