C.A.P. ‘will probably survive’

Press, 2 March 1984, Page 18

C.A.P. ‘will probably survive’

The European Economic Community’s Common Agricultural Policy (C.A.P.) would probably survive, although in a most unsatisfactory way, according to a top agricultural journalist from the United Kingdom who is visiting New Zealand at present. Mr John Hosking, director and chief executive of the agricultural newsletter “Agra Europe,” said the will to survive in the European community was greater than the will to revise the C.A.P. He therefore predicted that the outcome of present tortured negotiations on reform of the C.A.P. would result in its extension on a largely unchanged basis. More money would be allocated, perhaps through a rise in the proportion of value-added tax (V.A.T.), which funds the massive C.A.P. budget. Agreement within the E.E.C. on some restriction on European dairy production might be possible but as “Agra Europe” pointed out in a recent issue, such agreement was yet some time off. Mr Hosking was in Christchurch this week as part of a two-week tour of New Zealand. He has a degree in agriculture, farmed in Kent for 20 years as well as running a family business importing and exporting seeds and for the last 10 years has been at the head

of “Agra Europe,” a weekly agricultural newsletter widely circulated throughout the E.E.C. “Agra Europe” took a consistent editorial line over the last five years that the C.A.P. was “economic nonsense,” he said. “But if the C.A.P. became simple and easy-to-under-stand, ‘Agra Europe’ might be out of business,” he added facetiously. “We are not against the C.A.P. because we are not pro-European, but we see that the thing has got out of control. “The farm lobby in Europe is out of all proportion to its size.” But in the United Kingdom farmers were having a rough time at present. They were under fire from those

who believed that some farming practices, such as clearing hedgerows and burning stubble, were degrading to the environment. Also during the recent recession, farmers, who make up only 2 per cent of the population, were perceived to be protected by large subsidies. “Farmers were thought to be immune from the restraints which hit the rest of the community. “But the farmers, with justification, could point to greatly increased costs and lower real incomes. “Farmers just produced more to stay in front,” he said. “They have been able to borrow more than other sectors of the economy because their collateral is good with high land values.” Mr Hosking drew attention to the great reliance which is put on self-suffi-ciency within the E.E.C. “Self-sufficiency is an important guiding principle in European thinking, particularly among those who jealously guard the C.A.P.” In the U.K., politicians pointed with pride to the fact that the country was now 75 per cent self-suffi-cient in temperate climate products, compared with 45 per cent before the Second' World War. In the three-year period of operation of the sheepmeats policy, self-suf-ficiency had risen from 64

to 75 per cent. Nevertheless, the U.K. still recognised a special tie to New Zealand and continued preferred access for butter and sheepmeats. “Blood is thicker than water,” he said. “But the rest of Europe have trouble seeing the relationship the same way as we do,” Mr Hosking said. “I would like to be able to say that New Zealand will continue to get access at the present levels for butter and lamb. “But I think the reality is a continued hard struggle against the erosion of the quotas. “I agree with the recent point made by your Prime Minister, Sir Robert Muldoon.” Sir Robert said while in Europe last month that if New Zealand was forced out of Europe, the displaced butter would be sold on world markets and prices would be depressed. That would not be to the advantage of Europe, which has its own dairy product surpluses which are traded into third-country markets. “That argument has been one of the most telling in the past,” said Mr Hosking, “anti New Zealand has played its cards reasonably well. “The Common Market works in a dreadfully complicated way and it takes a very long time to get a decision,” he said.