OVERSEAS EARNINGS

Press, Volume CI, Issue 29848, 14 June 1962, Page 5

OVERSEAS EARNINGS

Farmers Want Bigger Part (Prom Our Own Reporter) WELLINGTON, June 13. Farmers should be allowed to retain a portion of the proceeds from the sale of Iheir produce on world markets now that the Government had announced that importers would be allowed to use overseas funds, held in their names, for importing goods, said the chairman of the dairy section council of Federated Farmers (Mr R Woolerton) at the conference of the section today. The exporting industries earned the exchange initially and should be given the same treatment as was now being given to importers. If such treatment was extended to farmers, it would give some recompense for the impositions of the high internal cost structure. Mr Woolerton said The new Government measure allowed importers to hold these funds in valuable overseas currencies They were not compelled to handle them through the New Zealand banking system as exporters had to do. A farmer, exporting his own lambs was required by law to remit every penny of the proceeds to the New Zealand banking system, Mr Woolerton said.

If dairy farmers received the true value of overseas realisations the financial position of the industry would be greatly improved, said Mr Woolerton. The earnings overseas were received in local currency which was inferior in purchasing power to the amount earned, he said. "The transactions have denied us many millions of pounds tn purchasing power which would have been of great assistatnce to the industry. The effect has been the same as if an additional tax had been loaded onto the income." he said