HC Deb 24 April 1978 vol 948 cc975-7
3. Sir Bernard Braine

asked the Secretary of State for Trade if he will make a statement on the current state of trade between the United Kingdom and New Zealand, as regards agricultural and industrial products, respectively; and what estimate he has of future growth of the New Zealand market for British manufactured goods.

The Under-Secretary of State for Trade (Mr. Michael Meacher)

In the year ending December 1977 total United Kingdom exports to New Zealand amounted to £287 million fob, of which 97 per cent. were industrial products. United Kingdom imports from New Zealand were £383 million cif, of which 96 per cent. were agricultural products, including wool. It is not possible to make a precise estimate of the future growth of the New Zealand market for manufactures.

Sir B. Braine

Will the Minister confirm, however, that if one includes invisibles, the New Zealand trade is of very great importance to the British economy and that any attempt to diminish New Zealand's exports of lamb to this country would not only be bad for consumers here but would limit New Zealand's capacity to go on importing British goods? [Interruption.]

Therefore, will the Minister give an assurance that in the current negotiations with the EEC about New Zealand's lamb exports—

Hon. Members

Too long.

Mr. Speaker

Order. The hon. Gentleman should be heard.

Sir B. Braine

One reason why I have taken a little longer is the continued interruptions from Labour Members who have not the slightest interest in this very important subject.

Will the Minister therefore give the House an assurance that, in the current negotiations with the EEC about New Zealand's lamb exports and access for dairy products after 1980, we shall not tolerate any diminution of New Zealand's traditional trade with this country?

Mr. Meacher

I can certainly assure the hon. Gentleman that we regard trade with New Zealand—even without invisibles—as extremely important. I can give him the specific assurance that he seeks, because the Government have recently assured the New Zealand Government that we are determined to ensure that any EEC measures on sheepmeat should continue to provide satisfactory access for New Zealand's exports of frozen lamb to this country. Last year those exports were at 213,000 tonnes, and we intend to keep them at about that level.

Mr. Spearing

Since, however, no cheese has come from New Zealand this year, since butter exports may be finished after 1980, and since those imports of mutton and lamb that we get are charged 20 per cent. tax on their value, and even they are threatened by the sheepmeat regime, are not any doubts about the future of trade the responsibility of hon. Members—wherever they may be in the House—who voted for our entry to the Common Market?

Mr. Meacher

With regard to exports of lamb, New Zealand has the security of a 20 per cent. tariff, which is binding under GATT. Therefore, there cannot be any renegotiation of that without compensation.

With regard to butter supplies, the Council of Ministers recently confirmed that Protocol 18 remains the basis for continued imports of New Zealand butter after 1980.

Imports of cheese under Protocol 18 ceased, as my hon. Friend said, last year, but the New Zealand Government have pressed the Commission to produce a proposal for the access of at least 15,000 tonnes per year, which was the level of exports last year.

Mr. Powell

Can the Minister make any comparison between the terms of trade of the United Kingdom with New Zealand and the terms of trade of the United Kingdom with the rest of the Common Market?

Mr. Meacher

I shall be glad to give the right hon. Gentleman those precise details by letter.

Mr. Skinner

Will my hon. Friend confirm that it is quite conceivable that the trade between New Zealand and this country would be even greater had we not gone into the Common Market? Will my hon. Friend also bear in mind that I cannot help but intervene when hon. Members, such as the hon. Member for Essex, South-East (Sir B. Braine), who introduced this Question, complain about the lack of trade? It was people such as the hon. Member for Essex, South-East and the majority of the Tory Party who sold this country down the river when they voted to go into the Common Market and thereby hampered trade between New Zealand and Great Britain.

Mr. Meacher

I think that the consequences of those earlier votes are entirely understood. All that we can do now is to preserve whatever access is possible by pressing the Commission to widen or, at least, to maintain access for New Zealand foodstuffs of those kinds which can certainly be produced more cheaply than any others in the world.