HOPES FOR BUDGET

Press, Volume CIII, Issue 30442, 16 May 1964, Page 14

HOPES FOR BUDGET

Indirect Taxes Higher Hopes for a Budget that will give nothing away and may even take something more away with higher indirect taxes was expressed by Professor B. P. Philpott, professor of agricultural economics at Lincoln College, speaking at a field day at Cheviot this week.

Professor Philpott, who was speaking to farmers, said that there was some evidence that the upward move of costs was now slowing down. The figures of the Meat and Wool Boards’ economic service for sheepfarmers' costs this year indicated that there had been no increase for the first time since 1950.

“This is probably the end of a great cost-price spiral, which started off with the 1950-51 wool boom and has finally reached a plateau. Now the worry is that the current farming boom will set off another such spiralling upward movement of costs and prices.” To prevent this the Government had introduced the wool retention scheme and other measures aimed at reducing demand such as Government loans with the proceeds salted away. His hopes on the Budget, Professor Philpott said, would no doubt annoy his listeners, bu‘ he could assure them that another inflationary period like 1950-64 would annoy them even more.