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

Simon Bridges: National Leak Inquiry Points To Jami-Lee Ross

John Billington QC has independently assessed the investigation report. It is his opinion that on the balance of probabilities the evidence establishes that Jami-Lee Ross was the person who leaked the expenses and the sender of the text message.

I accept both the investigation report and the opinion of Mr Billington.

Earlier today I visited Jami-Lee Ross with Paula Bennett and explained to him the report and the opinion of Mr Billington and gave him an opportunity to respond. I was not satisfied with his explanation. More>>


New Hager Investigation: War Crimes, Sexual Assaults And Coverups In Armed Forces

A string of current and ex-New Zealand Defence Force staff have contacted Hager since the book he co-authored with Jon Stephenson – Hit & Run – was published in March 2017... More>>


Israel's Anti-Boycott Law: NZ Activists Fined Over Lorde Cancellation Raise $12k For Charity

New Zealand activists being fined in Israel for urging pop singer Lorde to cancel her concert have raised more than $12,000 for a Palestinian charity. More>>


NZEI: Teacher Shortage Plan Falls Short

NZEI Te Riu Roa has welcomed the Government's announcement of new initiatives to address the growing teacher shortage, but says teaching must become a sustainable career choice if there is to be a long-term solution… More>>


New Study: Women’s Refuge Examines Reproductive Coercion In NZ

While some research on reproductive coercion has been undertaken in other countries, like the United States, to date there has not been a comprehensive study of reproductive coercion in New Zealand – making this study a first of its kind. More>>


Gordon Campbell: On The Govt’s Feeble Response To Loan Sharks

The coalition government’s attempts to minimise the harm done by loan sharks comes nearly 12 years after a major report in 2007 had identified how fringe lenders were aggressively targeting low-income Pacific Island and Maori communities. As that study had found, only 43% of those accessing loan sharks were, at the time, in paid employment. More>>


Sewer Drug Tests: Wastewater Testing To Roll Out Nationally

Testing will be rolled out to 38 sites across the 12 Police districts this month and will capture 80% of New Zealand’s population. Police Commissioner Mike Bush says wastewater testing is crucial to Police’s understanding of drug consumption in our communities. More>>


Four Stood Down: Two Probes Into Police Trainees Are Criminal Investigations

Two of the four investigations into trainee police over claims of misconduct are criminal investigations, the Police College training manager says. More>>


Earthquake Claims: One Stop Shop Launched

The Greater Christchurch Claims Resolution Service... will provide independent case management to bring together fast tracked claims handling, specialist engineering support, psychosocial support, and legal expertise to help resolve claims. More>>





InfoPages News Channels