Interest Irks Farmers

Press, Volume CV, Issue 31043, 26 April 1966, Page 22

Interest Irks Farmers

(New Zealand Presa Asaociation) NELSON, April 25. Fanners were being encouraged to increase production yet stock and station agents had just advertised that cash must be paid for stock purchases or 8 per cent interest would be charged, Mr J. Bird told Nelson Federated Farmers.

“That doesn't look like encouragement to anyone to increase stock numbers,” he said. “I have no doubt that, by 1972, we will reach the Illmillion ewe-equivalents required by the Agricultural Development Conference, but will we be any better off? It is doubtful whether farmers or the country will be, unless there’s a radical change in the financial policy.” Mr Bird said that with the present trend of rising costs any extra returns from increased production would be swallowed up. “Unless the Government can stabilise costs, the increased production will be for nothing. We will still be faced with a shortage of overseas funds.

“The present attitude of the stock firms is not conducive to increased production. It’s obvious that they have had the squeeze put on them, and it’s

quite plain they don’t like it either,” he said. “If anyone's going to get a rap it should be the Government,” said Mr F. H. Beuke. “It has set these targets, but the bank advances have been very little higher. “The stock firms have reach-

ed the limit with £2O-million indebtedness. They have no wish to put. the stopper on development, but they have no option. Anything they borrow now will be at penal interest rates. “If this is going to restrict production then we are entitled to know about it,” said the president (Mr W. C. Wills). “If it is a general shortage of finance after the Agricultural Development Conference made provision for extra development finance, then we should be told. But if it is only a move to pull up the laggard, then I don’t think we can complain."