Rural Bank System Sought By Farmers

Press, Volume CX, Issue 32350, 16 July 1970, Page 24

Rural Bank System Sought By Farmers

(New Zealand Press Association) WELLINGTON, July 15.

Hundreds of farmers put off labour during the drought because of inadequate financial advice, Mr J. T. Kneebone, of Tirau, said today.

He was speaking in support of a remit at the Dominion conference of Federated Farmers advocating the establishment of a rural banking system. The remit, which suggested that the rural banking facilities be set up to finance, and where necessary re-finance, all first mortgage and capital stock loans, was carried by a narrow majority. Mr Kneebone said it was scandalous that New Zealand’s financial institutions were not agriculturally orientated.

“Many people who administer farm finance do not understand the problems,” he said.

“Labour which was put off this summer at the instigation of financial advisers is

in many cases not coming back to farming,” Mr Kneebone said. “Farmers would have been wiser to increase their debts and keep the labour, but they were persuaded by pople not equipped to give advice.” Mr Kneebone said he was not criticising the State Advances Corporation, which provided an excellent service. Another remit, asking for an immediate reduction to 3 per cent in interest rates charged to primary producers, was rejected. Several delegates said that such a reduction would raise land prices. Foreign investment in New Zealand came under scrutiny, some of it critical, during today’s session. The conference, after many amendments had been suggested, passed a motion that before approving any large

investment projects, the Government should investigate the likely effect on all sectors of the economy, and the future costs of servicing the overseas investment.

Lottery Profits—A reduction in Golden Kiwi lottery profits was arrested last year, when receipts increased to 81.9 m, the level of two years ago, says the annual report of the Controller and Auditor-General