Air Topdressing Industry In “Most Critical State”

Press, Volume XCVIII, Issue 28821, 16 February 1959, Page 12

Air Topdressing Industry In “Most Critical State”

(New Zealand Press Association)

NEW PLYMOUTH, Feb. 15. - “The agricultural aviation industry is in a most critical state, which is clearly shown by the fact that at this time of the year, usually the most lucrative season, most operators are'from 50 to 70 per cent, down in output," said the managing director of Rural Aviation, Ltd., Mr M. King today. “Many operators are dismissing stall and cutting salaries," he said. Mr King, who is a former

chairman of the Taranaki-West Coast Aviation Industries Association, said the causes were obvious. In the early years aircraft had been purchased for £5OO and £5 per ton was charged for spreading fertiliser. Operators had a steady income for 12 months of the year. “Today our aircraft cost £6OOO and we received £3-per ton. and, worst of all, we operate for three months of the-year,” he said. “The blame for this situation is three-fold. It lies with the operators themselves—they have not stood firm in maintaining an economic price level- and have succumbed to the farmers playing off one operator against another to achieve a - lower price. “It must lie fairly on the farmer himself. He has forced price-cutting on the industry: he has forced the limited season upon us, so that our expensive equipment and staff stand idle for three-quarters of the year.” Mr King said the farmers, through the Meat Board, had flooded the country with too many aircraft to sow the available tonnage. > “And, thirdly, the crippling taxation and criminal death duties imposed by the Government have entirely removed any incentive toward greater production by the farmer so that he is unable to maintain his vital phosphating programme. . “If .the industry is crippled by the combined and continued foolishness of operator, farmer, and the Government, the individual tragedy to the operators will be infinitesimal compared with the tradedy to New Zealand.