HC Deb 19 December 1972 vol 848 cc1108-10
17. Mr. Marten

asked the Minister of Agriculture, Fisheries and Food what steps Her Majesty's Government will take after 1st January 1973 to prevent the subsidised exports of Common Market surplus butter competing with New Zealand exports.

Mr. Godber

No such steps are necessary. The Council of Ministers (Agriculture) yesterday agreed a regulation which provides very satisfactorily for the implementation of the protocol dealing with New Zealand butter and cheese. The regulation makes it clear that the rates of special levy on these imports must be such as to allow the full quantities specified in the protocol to be sold.

Mr. Marten

Is my right hon. Friend aware that the Common Market has been offering butter out of its quarter of a million ton surplus at heavily subsidised prices to Japan, thus forcing New Zealand to accept lower prices? Is he further aware that under paragraph 1 (b) of Article 5 of Protocol 18, the New Zealand protocol of the Treaty of Accession, this is precisely what the Common Market promised not to do? What view do the Government take about our future partners behaving in that way?

Mr. Godber

The essential point about Protocol 18 is that we have an effective arrangement for the marketing of New Zealand produce here. I was involved in discussions on this only yesterday in Brussels. I believe that we reached a satisfactory outcome and I understand that the New Zealand Minister concerned has made a statement endorsing that view.

Mr. Peart

Is the right hon. Gentleman aware that the Government negotiated terms affecting New Zealand's dairy products which mean that there will be phasing down? Is he further aware that many of us feel, even though we believe in the home production of butter and dairy products, that New Zealand should have a proper place in her traditional British market?

Mr. Godber

The best thing I can do is to remind the right hon. Gentleman precisely of what the New Zealand Minister for Overseas Trade has said about the outcome of our discussions yesterday. He is reported as having said that New Zealand had been consulted about the contents of the regulation and that it had been consulted at all stages of its preparation. He added that the good will shown by the Commission and representatives of the Nine in implementing the New Zealand protocol was appreciated by the New Zealand Government and that New Zealand now knew how its market in Britain for butter and cheese would operate over the next five years. The New Zealand Government is satisfied with this, and that is what matters.

Mr. Marten

My right hon. Friend has totally missed the point of my supplementary question which was about subsidised exports to Japan. It was not about the market here. Can he now reply to that point in view of the protocol?

Mr. Godber

My hon. Friend's original Question was clearly about the protocol. He is now asking a separate question—

Mr. Marten

No.

Mr. Godber

—about Japan. The question of exports to Japan is another matter which I am perfectly prepared to take up. The point I am making is that this is a satisfactory outcome which has been welcomed by all concerned. This is the vital matter for New Zealand. What is involved here is the adequate marketing of New Zealand products. I have been involved in ensuring that this will be effectively carried out.

Mr. Milne

Is the right hon. Gentleman aware that while he has picked up a quotation by the Minister for Overseas Trade in New Zealand, he is nevertheless dealing only with the transitional arrangements and that the interests of New Zealand are still not being protected? What consultations and discussions took place with New Zealand prior to the Brussels talks?

Mr. Godber

The point I have made is that the consultations have taken place over a wide range and that is why the New Zealand Minister has welcomed this. As for the point about trade with third countries, from the time of her accession Britain will be in a position within the Community to argue that the commercial policy of the Community should not run counter to New Zealand's progress in diversifying its markets and economy. As a member of the enlarged Community we will be in a stronger position to play a part in this policy.