New Zealand Butter (Hansard, 19 May 1988)

§ Q3. Mr. Teddy Taylor
To ask the Prime Minister if the next meeting of the European Council will discuss the special arrangements for the import of New Zealand butter; and if she will make a statement.

§ The Prime Minister
I am not aware of any plans to do so.

§ Mr. Taylor
Will my right hon. Friend fight hard to prevent the EEC further cutting New Zealand butter imports and depriving British housewives of freedom of choice, particularly as New Zealand has never let Britain down when we have been in trouble? Will she bear in mind the massive damage being done to New Zealand, Australia and the Third world by the Common Market spending over £200 million of taxpayers' money every week dumping butter on the world market at 6p a pound?

§ The Prime Minister
As my hon. Friend is aware, we have done more than any other Government to get the surpluses under control in the Common Market, in particular at the last meeting that we had, because we were very much aware of the truth of what my hon. Friend said. The surpluses affect other countries which depend to a considerable extent upon the export of agricultural products. The New Zealand butter agreement will come up again shortly for examination and we expect the Commission to make proposals. New Zealand exports far less butter to Britain than it used to do, but it is an important part of its economy and many people in this country wish to continue to be able to buy that butter, and I assume that they will be able to do so.

§ Mr. Rees
Will the Prime Minister recall the speed with which the New Zealanders came to our support in 1939? Will she consider visiting the airfields in Lincolnshire and the war graves all the way from El Alamein to the Austrian border and reflect on the price that New Zealanders paid while supporting us, and support the New Zealanders in the EEC?

§ The Prime Minister
I thought that I was doing just that in my reply, because butter exports are very much a part of the New Zealand economy. People here still wish to purchase that country's butter—and lamb—and I am very much aware that the import quotas have been reduced steadily from 165,000 tonnes in 1973 to 74,000 tonnes this year. A new agreement will be negotiated, which I hope will be satisfactory to all concerned.

§ Dame Elaine Kellett-Bowman
Will my right hon. Friend reflect on the fact that, although many people agree that the older generations of New Zealanders, in the first and second world wars, supported us superbly, as they did in the Falklands, the present New Zealand Government, under Labour, have reneged on their duty to contribute to the defence of the free world and the position has radically changed?

§ The Prime Minister
I am very much aware that our ships are not able to go to New Zealand at the moment—which I think is a great tragedy both for our Navy and for many people in New Zealand—because the New Zealand Government insists on the ships not having any nuclear weapons or on asking questions about that, and of course we cannot say whether they have because of our obligations to NATO. Nevertheless, I do not think that 1095 that would warrant taking it out of the New Zealand people by not doing everything that we can to see that they have a thoroughly satisfactory arrangement for the continued sale of butter to the Common Market.

§ Mr. Wilson
Having used the un-word "unwisdom", and having called in aid the good example of the New Zealand Socialist Government, will the Prime Minister now give an assurance that there will be no cruise missiles on the Clyde?

§ The Prime Minister
I shall give the hon. Gentleman the assurance that we shall take whatever measures are necessary to keep a continued effective nuclear deterrent and to carry out our obligations to NATO.

§ Mr. Dykes
Will my right hon. Friend accept, though, that fairminded New Zealanders agree that the arrangement for New Zealand, which is very welcome in all parts of the House, has been a very good one for that country, but that that does not gainsay the need for New Zealand to find other markets, including the Soviet Union, because New Zealanders sell more butter there than the EEC does?

§ The Prime Minister
Yes, but I hope my hon. Friend will appreciate that when they have a drop in quota from 165,000 tonnes in 1973 to 74,000 tonnes this year they have had to be very active in finding other markets, particularly those in the Pacific basin.