Beef industry vows to fight Canada's levy

WELLINGTON - Beef farmers and exporters say they will fight Canadian efforts to impose a levy on imported meat to pay for market development, research and beef promotion in Canada.

The Canadian Cattlemen's Association has asked the Canadian National Farm Produce Council for the transaction levy on imported beef.

But Meat New Zealand chief executive Neil Taylor said the New Zealand beef industry opposed the proposal on principle, partly because the money raised would be used specifically to boost sales of Canadian beef.

Canada had a right to impose a levy on its local product; in New Zealand, the local industry had a levy on all cattle, sheep and goats slaughtered.

"But no levy is charged on meat imported into New Zealand, and it would be totally inappropriate to suggest one be introduced," Mr Taylor said.

This was because Meat New Zealand wanted to be free to ensure that the money its levy raised was used to help New Zealand farmers.

New Zealand exported 28,923 tonnes of beef and veal to Canada in the year to September 30, 1999.

The proposed levy of $C1 ($1.40) a head on domestic and imported beef would have cost New Zealand farmers more than $200,000 if it had been applied last year, and $271,000 the previous year, Mr Taylor said.

The Canadian proposal is largely seen as retaliation for a similar levy the United States has on domestic and imported beef. The US and Canada are major suppliers of beef to each other.

Meat New Zealand spokes- woman Sue Miller said New Zealand had been paying the American levy for about 15 years.

It had not been strongly opposed because the money - about $US1.2 million ($2.4 million) a year col-lected from importers - was spent on promoting beef consumption, regardless of whether it was American or imported. - NZPA