GOVT. ASSURES

Press, Volume CV, Issue 31000, 4 March 1966, Page 3

GOVT. ASSURES

(New Zealand Press Association) WELLINGTON, March 3. Government support for efforts toward an acceptable scheme for market diversification was assured today by the Minister of Overseas Trade (Mr Marshall).

“T h e Government supports the efforts which the board and the industry, as represented by the electoral committee and the meat and wool section council, are making to work out an acceptable scheme for market diversification,” Mr Marshall said. “The scheme which has been put before you is, we believe, on the right lines.” If it was endorsed, the Minister said, it would be recommended to the Cabinet by himself and the Minister of Agriculture (Mr Taiboys). Mr Marshall said the diversion of supplies with the objective of establishing and developing new and larger markets for lamb was justified by four reasons. There was a limit to the British market’s capacity

to absorb increasing quantities of lamb. Sooner or later New Zealand could expect the United Kingdom to join the European Economic Com-

munity. Markets for lamb should be increased so that this country would always be in the position where demand exceeded supply. If New Zealand had definite plans for diversifying the marketing of lamb, it would be a great help in negotiations with the United Kingdom Government for the extension of rights of free and unrestriced entry to the British market. Mr Marshall said it was important to remember that the British market—subject to what he had said about the E.E.C.—was the only safe and sure market for lamb. Diversification and diversion were for surpluses and for future increased production. “This means that we are in good time with these proposals,” the Minister said. “We do not face a present crisis. We do not have stocks of lamb which we cannot sell. “We have a marginal pre-

sent problem, and if we can solve that now we will avoid much greater future problems.”