Farmers' plan defended

Press, Volume CXI, Issue 32542, 27 February 1971, Page 2

Farmers' plan defended

(New Zealand Pre,« AMOclarion)

WELLINGTON, February 26. The cost-adjustment scheme presented by Federated Farmers to the Government was a sound and fully-researched proposal capable of restoring confidence in farming, the vicepresident of Federated Farmers (Mr J. J. Parsons) said today.

Mr Parsons was addressing the Bay of Plenty provincial executive of the federation at Whakatane. “The federation has at no time submitted that the money for cost adjustment would be disbursed by massive cash handouts as suggested by the Minister of Finance. Under the federation’s scheme, a fanner must spend on productive resources in order to receive assistance.

“The federation does not have the rtsourses of Treasury, but I can assure Mr

Muldoon that our organisation is giving further detailed consideration to possible sources of the necessary revenue. We will be only too happy to give Mr Muldoon the benefit of our views. “Mr Muldoon appears concered at the effects on the economy of the injection of capital into fanning to reverse downward trends in farm investment and production. The federation believes New Zealand’s Minister of Finance should be more concerned with the effects on the economy if this injection is not made,” said Mr Parsons.