Farmers’ president on cost scheme

Press, Volume CXI, Issue 32540, 25 February 1971, Page 16

Farmers’ president on cost scheme

It was now the duty of the Government, not Federated Farmers, to assess the cost and the effect on the nation of the cost-adjustment scheme and to balance this against the loss if the present deteriorating condition was allowed to continue, the president of North Canterbury Federated Farmers (Mr W. N. Dunlop) said yesterday.

The scheme and its aims had not so far been seriously analysed, except for general comment that farmers should be treated the same as any other group and could not be treated in isolation, Mr Dunlop told the provincial executive committee.

“Farmers are being treated differently now,” Mr Dunlop said. “We have in New Zealand a dual economy: farmers take world prices and pay New Zealand cost-plus. . . . We would be very happy to settle to be treated as other sections.” “In national interest”

“The scheme had been put to the Government in the national interest. Federated Farmers was very concerned about the halt in increased production and the deterioration of the overseas exchange position. It believed that agriculture was the only industry which can expand at a rate necessary to right the developing situation. “We have moved from the position of a sloom surplus in overseas transactions last year to a deficit of s2om this year. In the year ended December, 1970, total receipts to the Reserve Bank were 31155.3 m. Of this amount all but 14 per cent came from the sale of agricultural products. A 5 per cent increase in farming exports is worth Ssom a year to New Zealand, and we have, this year, lost sales both in meat and dairy products, because of lack of ability to supply our markets. "We did state, in submitting the scheme, that it should be regarded as a temporary measure and should be instituted immediately to meet an emergency situation,” Mr Dunlop said. “Let us look at the size of the support given to some other sectors of the economy by the people of New Zealand. In the Supplementary Estimates passed November last year, sB4m of a total of sllsm was for salary and; wage increases for public! servants. Let us also look at the support given to sec-! tions of industry by the consumer. What would be the! total cost of import control! in a year paid by the general! public, in this context? “We hear earnest explanations as to what the Government gives to the farmer and of so-called ‘farmers’ budgets’, but the Government does not, in fact, do any of these things. When additional exchange has to be earned, the Government knows that only an injection of capital into farming will give the raw materials necessary to generate increased exchange earnings in large quantities. Role of Government

“Federated ' Fanners has given the Government its assessment of the situation, and has suggested a solution. It is for the Government to make its own decision and take what action is necessary in the national interest. The

well-being of the nation depends on agricultural exports," Mr Dunlop said. Mr B. H. Palmer, the vicechairman at the meat and wool section, said that the probl :m existed now and the solution must be found now Restructuring of farming was a long-te m project but something should be done to remedy the desperate situation now.

Mr P. G. Morrison, junior vice-president, said that nocne in agriculture could disagree with Mr Dunlop’s remarks. “We have put up a scheme to keep the agricultural industry visible.”