Farmers Would Give Aid

Press, Volume CVI, Issue 31123, 28 July 1966, Page 1

Farmers Would Give Aid

f.V.Z. Press Association) WELLINGTON, July 27. The retiring president of Federated Farmers, Mr E. W. McCallum, said that the prospect of widespread famine within the next 15 years was one of the most pressing problems facing the world.

Addressing the federation’s conference in Wellington, he said this problem had to be solved mainly by efforts within the countries affected. This was the policy of the Food and Agriculture Organisation. New Zealand had given much aid in the form of contributions to specific industrial problems. He said;

he would like to see more emphasis on aid to prevent famine. A Dominion vice-president, Mr A. C. Begg, said New Zealand was not in a position to give much away till it achieved a favourable balance of trade. Much aid New Zealand gave at present had to be financed through overseas borrowing. Volunteer Service Abroad was at present the best means the country had of giving aid. The general secretary, Mr J. G. Pryde, said he would like to see a farmer volunteer for service in some developing country. There would be little problem in finding finance to sponsor the farmer. The conference resolved that the federation ask the Government to increase its aid through the Colombo Plan or Volunteer Service Abroad. Several delegates suggested that New Zealand should

try to win respect in developing countries by trade rather than pure aid. The conference discussed possible obstacles which taxation rates placed in the way of production increases. Most delegates agreed that the level of income at which the maximum rate of taxation is reached should be lifted from £3600. Delegates expressed concern of the “detrimental effect” of the present taxation scale on the middle-income group. The conference will urge that the farm-income equalisation scheme should be modified to allow farmers to equalise their incomes in their individual accounts. Mr Begg said this resolution meant that farmers would pay money into special bank accounts, which they would be able to use for working capital.

The object of the present equalisation scheme would therefore be defeated. This was to give farmers reserve funds to use when their income was lowered by circumstances beyond their control. Some delegates said they thought the reserve funds would be more useful as working capital because they could further production increases and so produce revenue which would help farmers in lean periods. The conference expressed disappointment that some important recommendations of the agricultural development conference had not been implemented. It decided to urge the Government to implement a positive incentive scheme of total tax relief on all Increases in production based on an average of the previous five years.