Mr Elworthy tells of European experience

Press, 21 July 1986, Page 6

Mr Elworthy tells of European experience

PA- Timaru Europe’s taxpayers and businessmen are pressing politically with much more vigour for policies which do not encourage production but which compensate people for living in the country, says Federated Farmers’ president, Mr Peter Elworthy. “I am not suggesting this change will be of immediate advantage to New Zealand,” Mr Elworthy said in an interview on his return from a European tour. “But I think the change in mood to question the worst excesses of the Common Agricultural Policy is becoming so that New Zealand will benefit in the next year or two.”

There was also a refreshingly open acceptance by European politicians of the urgent need to include agriculture in the next General Agreement on Tariffs and Trade round. He said he was impressed with the potential for New Zealand manufacturing, meat, and particularly chilled meat, in the “prosperous Common Market” and the "good potential” for further processed and packaged New Zealand products which were not encumbered by quantitative restrictions. “I am optimistic for

New Zealand exports to Europe in spite of wrangles over access to E.E.C. markets,” he said. “A strong move against a continuation of productive subsidies that have produced food mountains and depressed world market prices must eventually benefit New Zealand.

“I suppose the over-all observation that I would make on the E.E.C. was that when I was there in May, 1985, there was no real questioning of C.A.P. by the people responsible for that policy or indeed the business community and the taxpayer. "Generally, a year ago it was accepted that farmers needed subsidies to remain on the land but there has been a major change since then and the business community and the taxpayers generally have observed their money being used to build these massive stockpiles of butter and meat. “These have not brought down the price to the consumer but increased the cost to the taxpayer considerably.” Because of depressed market prices the public had recognised that only about 25 per cent of the subsidy had reached the E.E.C. farmers and 75 per cent had been used up in transport and storage, he

“Worse, 75 per cent of the subsidy is going to 25 per cent of the largest farmers and is not supporting the small family farmer.”

Mr Elworthy said that at the time the Rainbow Warrior settlement was being communicated to the French and New Zealand Governments, he found the French Agriculture Minister, Mr Guillaume, “more receptive to my arguments than a year ago.”

Mr Elworthy’s arrival in Britain was fortuitous for New Zealand, he said, because the presidents of Welsh farmers’ unions were calling for bans on the promotion of New Zealand primary product imports.

“It was felt that this was taking advantage of the Chernobyl disaster. “Happily, I had made appointments to see the presidents of the unions and the British farmers and was able to explain to them that the New Zealand promotion had been planned since January, at a cost of £750,000, that the . shipments, were, scheduled shipments since the meat strike, and it was in United Kingdom farmers’ Interests and ours that the pending shipments continue.”