U.K. BUTTER IMPORTS Basic Quota Up; N.Z. The Same

Press, Volume CV, Issue 31005, 10 March 1966, Page 1

U.K. BUTTER IMPORTS Basic Quota Up; N.Z. The Same

LVew Zealand Press Association)

WELLINGTON, March 9.

New Zealand has again been allocated a basic quota of 168.000 tons of butter for the British market in the 1966-67 year. New Zealand’s right under the 1963 exchange of letters to supply 40 per cent of total permitted British butter imports remains unchanged.

The details were announced by the Board of Trade in London.

The Board said imports for the coming year would be 435,500 tons, compared with total authorised imports last year of 459,000 tons.

Last year’s basic quotas were 420,000 tons to which supplementary quotas of 39,000 tons were added.

The 1966-67 figures include an addition of 10,000 tons to Ireland's basic quota under the recent free trade agreement, giving a total basic entitlement of 430,000 tons for all suppliers. But as some suppliers will not have butter available this year to take up their basic entitlements, these have accordingly been suspended or reduced. This shortfall of 8770 tons is being off-set by the immediate issue to foreign suppliers of additional authorisations for the same amount. Supplementary quotas of 5500 tons over and above the total basic entitlement are also being issued immediately. Lower Level Butter quotas negotiationsI with Britain had been especially difficult this year, but New Zealand had been successful in persuading Britain to authorise imports at a total level considerably lower than that which Britain had originally sought, the Prime Minister (Mr Holyoake) said in a statement. “Our negotiators were facing a situation in w r hich the British Government, to assist in dealing with Britain’s balance of payments problems and rising internal costs, was determined to achieve lower average prices than have been paid for imported butters during the last year,” Mr Holyoake said.

“Moreover, it was made clear, that, as well as their contractual obligations to New Zealand, they had to consider their trading relations with other suppliers. “New Zealand has, however,

been successful in persuading the British Government to authorise imports of butter into the United Kingdom at a total level considerably lower than that which they originally sought,” Mr Holyoake said.

He said that although Britain had agreed to modify its original proposals, the NewZealand Government was still

seriously concerned about the prices implications of the level of imports provided for. “Butter prices have fallen substantially over recent months and stocks in Britain at the opening of the quota year on April 1 will be at a higher level than they were this time last year. British production is also expected to be substantial. “In these circumstances there seems to be little prospect of an early improvement in the present unsatisfactory level of butter prices,” Mr Holyoake said.

Mr Holyoake said the British Government intended to review the market situation with the New Zealand and Australian Governments during the summer. The agreement with Britain provided for the possibility of additional authorisations not exceeding 5000 tons in the light of this review. “We do not believe that any additional butter will be required." Mr Holyoake said. “But if, in fact, after consultations with us, it is decided that further imports should be authorised, New Zealand and Australia will have the first opportunity to supply this requirement.” The Government welcomed the close co-operation and advice of the Dairy Board both in London and Wellington, Mr Holyoake said. “The assistance given to the leader of the New Zealand delegation, Mr H. G. Lang, assistant Secretary to the Treasury, by Sir Andrew Linton and Mr Ward was invaluable.

“The Government, in consultation with the board, will be following with close interest the market situation as it develops,” Mr Holyoake said.