Cost-price scheme sought

Press, Volume CX, Issue 32460, 21 November 1970, Page 1

Cost-price scheme sought

A special meeting' of the executive of North Canterbury Federated Farmers yesterday asked its president (Mr W. N. Dunlop) to give priority to production of a scheme whereby farmers would be compensated from public funds for adverse movements in farm costs as compared with export earnings.

Mr Dunlop said afterwards that the further draft of such a scheme would be based on a cost rebate system adopted at the annual conference of the province earlier in the year. Its principle was that a (proportion of costs, which 'jyere common to all farmers.

should be related to the prices received by the farmer for his major exports, the farmer then being compensated for any adverse change in these relationships. It was suggested that the scheme should include such costs as processing of stock, transport, fertiliser, weedicides, pesticides, stock remedies, and fencing materials. It was intended that the draft scheme be prepared in time for discussion by provinces of Federated Farmers throughout New Zealand before the February meeting of the Dominion council, so that farmers could go to the Government with concrete proposals aimed at enabling them to resume with confidence the increase of production in the interests of the whole economy. Yesterday’s meeting, said .•fk

Mr Dunlop, had felt that the vital need now was for farmers to have concrete suggestions to put to the Government to restore relativity between fanners and other sections of the community.

The meeting had been called at the request of many branches to consider what action the province should take to arrest the accelerating decline in the viability of the farming industry. It heard reports from Mr Dunlop and the senior vicepresident (Mr A. F. Wright) about meetings recently held with Canterbury members of Parliament. It was obvious, said Mr Dunlop, that farmers were totally opposed to the introduction of the Local Authorities (Petroleum Tax) Bill. With further increases in cartage cates projected, the

thought that the Government would authorise legislation further increasing their costs was totally unacceptable to farmers. Farmers at the meeting had also been deeply concerned about the situation resulting from the recent delay in the opening of the export killing season. Individual farmers would face very severe financial loss, not only from forgoing premium payments on lambs for early shipment, but also from lambs becoming overfat, and by being forced to use, for grazing, paddocks intended for ryegrass or clover seed crops. There was no doubt that this would also have an adverse effect on attempts to encourage early killing and so spread the work load over a longer period.