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

 


APEC Wine Liberalisation Study

MEDIA STATEMENT

11 June 1999

FOR IMMEDIATE RELEASE


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.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>

ALSO:

Corrections Corrected: Supreme Court Rules On Release Dates

Corrections has always followed the lawful rulings of the Court in its calculation of sentence release dates. On four previous occasions, the Court of Appeal had upheld Corrections’ practices in calculating pre-sentence detention. More>>

ALSO:

Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>

ALSO:

General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Gordon Campbell: On Our Posturing At The UN

In New York, Key basically took an old May 2 Washington Post article written by Barack Obama, recycled it back to the Americans, and still scored headlines here at home… We’ve had a double serving of this kind of comfort food. More>>

ALSO:

Treaty Settlements: Bills Delayed As NZ First Pulls Support

Ngāruahine, Te Atiawa and Taranaki are reeling today as they learnt that the third and final readings of each Iwi’s Historical Treaty Settlement Bills scheduled for this Friday, have been put in jeopardy by the actions of NZ First. More>>

ALSO:

Gordon Campbell: On The Damage De-Regulation Is Doing To Fisheries And Education, Plus Kate Tempest

Our faith in the benign workings of the market – and of the light-handed regulation that goes with it – has had a body count. Back in 1992, the free market friendly Health Safety and Employment Act gutted the labour inspectorate and turned forestry, mining and other workplace sites into death traps, long before the Pike River disaster. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news