Butter cut makes mockery of free trade—Bolger

Press, 7 October 1988, Page 1

Butter cut makes mockery of free trade—Bolger

NZPA and OLIVER RIDDELL Cuts in New Zealand butter and lamb quotas to Europe made a mockery of claims by the Minister of External Relations and Trade, Mr Moore, that international trade barriers were breaking down, said the Leader of the Opposition, Mr Bolger, yesterday. “It is very clear he has been part of negotiations to tighten up trade and to reinforce barriers to international agricultural trade,” he said. “I find it a little difficult for Mr Moore to present that as a success because clearly it is against the long-term interest of New Zealand to reinforce global quotas to a major market such as the European Community.” ■ Under the agreement reached between Mr Moore and the European Agriculture Commissioner, Mr Frans Andriessen, Europe will reduce its 25 per cent impor't levy on New Zealand butter! and remove its 10 per cent tariff on lamb.

In return, there wijl be big cuts in the tonnages New Zealand can export to the Euro-

pean Community — possibly from 74,500 tonnes of butter to -50,000 tonnes. Mr Bolger said the details had not yet been made public. “But it does appear (the Government) breached one of the undertakings they gave Parliament within the last 24 hours, and that is that they would not trade off lamb quotas for butter quotas,” he said. “It appears Mr Moore has agreed to such a trade-off being undertaken.

“It is very obvious from the very limited amount of information we have been given that New Zealand’s access to Europe has been reduced, both for lamb and for butter.” New Zealand is allowed to send 245,500 tonnes of lamb a year to Europe but exporters have failed to fill this allowance because of declining stock numbers. The deal has been described by a former National Prime Minister, Sir Robert Muldoon, as audacious.

He said the reality was that Mr Moore had got nothing more than had been decided months ago and been known to the Government at the time.

Although the reduction in levy and tariff would give farmers extra money, the surplus product available would still need to be sold on other markets.

The Minister of Agriculture, Mr Moyle, said he was guardedly optimistic. The proposal for meat and dairy products that was to be put to European Community Ministers would give New Zealand an invaluable breathing space, he said.