New Zealand ‘deceived’ by C.E.R. agreement

Press, 24 August 1988, Page 10

New Zealand ‘deceived’ by C.E.R. agreement

By

BRENDON BURNS,

political reporter

A National Government would renegotiate the C.E.R. agreement with Austraha signed last week, pledged the Opposition spokesman on trade and industry, Mr Philip

Burdon. During a snap debate in Parliament which he successfully sought yesterday Mr Burdon said the deal had sold New Zealand short. The promise of free trade heralded by Ministerial talks in Christchurch in June had involved deceit at the time, or reneging since, said Mr Burdon. Australia had an enormously preferential position as a result of the agreement signed in Canberra last Thursday by the two Prime Ministers, Mr Lange and Mr Hawke. The Minister of Trade and Industry, Mr Caygill, said there had been changes to the agreement since the Christchurch meeting but exemptions sought by Australia were of minor importance overall. He accused Mr Burdon of engaging in party politics on C.E.R., while its original author, the former National Minister, Mr Hugh Templeton, had congratulated the Government on last week’s re-

newal. Mr Burdon said the Christchurch Ministerial meeting had promised free trade in services apart from a handful of exceptions. Since then, he said, the Government had totally capitulated on all significant issues. Australia had successfully exempted from the agreement some areas of banking, insurance and consultancy services. Far from encouraging State administrations to allow equal access to New Zealand companies, the Federal Government had retained a preference in construction, engineering and general consultancy for Australian companies. A 15 per cent limit on investing in Australia’s domestic airlines had also been retained under the new C.E.R. agreement, said Mr Burdon. An agreement meant Australian apples, pears and bananas could come into New Zealand without quarantine, but this procedure was still imposed on New Zealand apple and

Mr Caygill had conceded in a lunchtime address that last week’s agreement did not go as far as New Zealand wanted in the areas of assistance to Australian industry, Government purchasing and investment. But he said the agreement would be reviewed in 1990. “This will provide an opportunity to reduce if not eliminate the exclusion list.” Mr Caygill and other Government Ministers were accused in Parliament yesterday of steering New Zealand towards political union* Terming the new C.E.R. agreement a substantial sell-out, Mr Rob Storey (National, Waikato), said Ministers were pushing for union, perhaps in five years. He said the deal on dairy products, which promised “free and fair” trade would mean Victorian dairy farmers trotting out the same arguments against New Zealand imports as they had for the last decade.

“We are determined to see that we equalise the relationship.” Mr Caygill said Mr Burdon was incapable .of doing his homework. “It is perfectly true that there have been some changes since Christchurch,” he said. "None of them are in the areas that he has drawn attention to.” Mr Caygill said Australia had 12 exemptions to the free trade in services agreement while New Zealand had 8 areas proscribed. To judge the revised treaty on the basis of some exemptions was to focus on a minor aspect of the agreement, he said. Australia was not able to promise to pass legislation in some areas of exemption before the services agreement came into force on January 1, 1989 It might take five years to negotiate the excluded areas, but negotiations would continue. “Up till now, this matter has been above party politics,” he said.

pear exports across the Tasman. New Zealand had been opened up to competition under the revised G.E.R. treaty, said Mr Burdon, while Australia was protected. “The country has been comprehensively deceived.” A National Government would renegotiate the treaty and seek appropriate compensation.