Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


APEC Wine Liberalisation Study


11 June 1999


Trade Minister Launches APEC Wine Liberalisation Study

Trade Minister Lockwood Smith will launch an APEC Study on the impact of liberalisation on the New Zealand Wine Industry today at Kumeu River Wines, in West Auckland.

The study was prepared under contract from the APEC Secretariat, and shows that trade liberalisation in the New Zealand Wine Industry since the mid-1980s has benefited both producers and consumers of wine in New Zealand.

"Twenty years ago the New Zealand wine industry was heavily protected by tariffs in order to encourage domestic production," said Dr Smith.

"The result, as we know too well, was high production of a limited range of low-quality wines, leading to a glut of cheap 'Chateau Cardboard' wine.

"Today, tariffs have all but been removed, and we've seen a real renaissance in our wine industry. Total production has risen by around fifty percent since 1988, and exports have risen from 2.7 percent of production in 1987 to 29.1 percent today. In 1990 we exported $21 million of wine, which constituted 0.14 percent of our exports. Contrast this with 1998, where we exported $117 million dollars of wine, constituting 0.52 percent of our exports.

"The success of the wine industry has occurred because the removal of taxpayer funded incentives caused both producers and consumers to adjust their choices. Producers abandoned production of cheap mass produced wines, and started producing better quality wines at premium prices, aimed at the world market," said Dr Smith.

"Despite the success of liberalisation, the removal of Government support was not without its critics in the 1980s. As an example, one prominent industry spokesperson in 1983 warned that liberalisation would lead to 'chaos' in the wine industry, with 'too many brands available'. Government was warned that consumers would be so confused that they wouldn't know what they were buying.

"These arguments are now in the past for all but the dull parties in opposition, who even yesterday were responding to trade statistics with talk of the need for new Government intervention to promote export growth.

"This study shows that the best thing Government can do for producers, consumers and export growth is to get right out of regulating industries," Dr Smith concluded.

Dr Smith will launch the study with Ross Spence, President of the New Zealand Wine Institute, over a light lunch and wines from New Zealand's Kumeu River at the Kumeu River Wines at 550 Highway 16, Kumeu. All media are welcome.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

PM Announces Royal Commission Into Christchurch Attacks

Prime Minister Jacinda Ardern has announced that there will be a Royal Commission of Inquiry into security agencies following the Christchurch terrorist attacks... The inquiry will look at what could or should have been done to prevent the attack, Ms Ardern said. More>>

Gordon Campbell: On Ridding The Net Of White Supremacist Propaganda

Although it won’t be a walk in the park, gun law reform will be an easier job than neutralising the Internet hate content that (a) recruited the Christchurch shooter, and (b) confirmed him in his beliefs. More>>

Friday: National Remembrance Service

A National Remembrance Service for the victims of the Christchurch mosques terrorist attack, and all those affected by it, will be held at 10am on Friday 29 March, Prime Minister Jacinda Ardern announced. More>>

For the Latest: Scoop Search - Christchurch

Gordon Campbell: On The School Climate Strike

Locally, the school strike has won a ton of support for bringing climate change to the fore. Yet the strikers don't want mere expressions of support. They want action. More>>


"Grabbed And Struck In The Face": Greens Co-Leader Attacked While Walking To Work

Green Party co-leader James Shaw was the victim of an unprovoked attack when he was walking to work in Wellington. More>>


████████ ████ ███: Latest OIA Statistics Released

The latest statistics cover 110 agencies that collectively completed 18,106 official information requests between July and December 2018, a 16.4% increase on the 15,551 requests for the previous six months. More>>


'Hit And Run' Inquiry: New Legal Action Over Secrecy

The lawyer representing the Afghan villagers in the inquiry into Operation Burnham has launched legal proceedings calling for a judicial review in the investigation. More>>


From Hydro Plan To...: Mokihinui River Land To Join Kahurangi National Park

A total of 64,400 hectares of conservation land in the Mokihinui River catchment on the West Coast north of Westport, including 15 km of riverbed, is being added to Kahurangi National Park. “Adding this area, roughly half the size of Auckland City, to Kahurangi is the largest addition of land to an existing national park in New Zealand’s history,” Eugenie Sage said. More>>





InfoPages News Channels