Smith Determined To Protect Butter Trade

International Trade Minister Lockwood Smith says protecting New Zealand's $376 million butter trade with Europe is his top priority.

"I have instructed my officials to work with the Board to ensure that this trade is maintained," Dr Smith has announced in the wake of the arrests of Dairy Board staff in London.

"While it would be inappropriate for the government to interfere in the actual matters before the British courts, we are studying the case to see if there are any broad trade policy issues involved that we need to discuss with the British authorities.

"As to the charges laid by UK customs, the Board executives must be considered innocent unless they are proven guilty," Dr Smith added.

The Attorney-General has today confirmed that New Zealand would co-operate with the UK authorities in their investigation of the case against Board executives.

But Dr Smith stressed this decision was made under the Mutual Assistance in Criminal Matters Act and in no way indicated that the government was making any assumption of guilt on the part of the Board.

Noting that the Board had managed New Zealand's dairy trade with Europe for many years, Dr Smith said it had recently become clear that differing views had emerged about provisions defining New Zealand's butter quota into Europe and its administration.

For example, the European Commission had challenged New Zealand's view that spreadable butter is part of the quota and that was why this country has taken the spreadable issue to the World Trade Organisation.

"If there are other problems that we need to resolve we will be happy to work through them with the Commission," Dr Smith said.