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Dairy Export Refunds

Volume 165: debated on Friday 19 January 1990

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To ask the Minister of Agriculture, Fisheries and Food why EEC spending on dairy export refunds has increased in the past three years; and what steps were taken to ensure that the increase is compatible with the EEC agreement with New Zealand on orderly marketing of dairy surpluses.

Increased expenditure on dairy export refunds in 1988 and 1989 resulted from an increased volume of sales in response to a strenthening of demand on world markets at a time when the Community was rightly concerned to give priority to exports over sales into intervention. All EC dairy exports have complied with the rules of the GATT international dairy arrangement, of which both New Zealand and the Community are members. This includes the low-priced EC butter exports which took place in 1987 and 1988 under derogations agreed by all parties to the arrangement.