FARMERS’ NEEDS “Proof” in report

Press, Volume CXI, Issue 32588, 23 April 1971, Page 2

FARMERS’ NEEDS “Proof” in report

(N.Z. Press Association) WELLINGTON, April 22. Federated Farmers gees the report of the economics working party of the Agricultural Production Council as acknowledgement that the fanners proposed cost-adjustment scheme measures up to the working party’s criteria for assistance.

The report of the working party was handed to the Government yesterday. In a statement today, die acting president of Federated Farmers (Mr J. Parsons) said: “Clear and unequivocal proof that farmers need positive measures of assistance has been provided by the report by the economics working party of the Agricultural Production Council.” “DANGEROUS IMPLICATIONS” “The report emphasises what the federation has been saying for the last nine months—that farm output, investment, and confidence have declined. It would be a foolish man who believes that

this situation does not have dangerous implications for New Zealand’s economy. If the Government should ignore such economic facts, and ignore the need for widescale adjustment of farmers’ production costs, it would inevitably be met with “some basic political realities,” Mr Parsons said. “When the expansion of New Zealand’s export earnings was threatened economic and political realities combined to jeopardise the living standards of every man, woman and child. “Despite reported differences in the council, Federated Farmers was heartened that a clear majority advocated a resumption of the rate of growth in agricultural exports. This necessitates that measures in the form of costadjustments to a range of farm inputs should be intro--1 duced without delay,” said Mt Parsons. “DISTURBING READING”

The Agricultural Production Council’s report has been described by the Deputy Leader of the Opposition (Mt Watt) as “disturbing reading,” says the Parliamentary reporter of “The Press.” “Falling farm incomes, when costs and taxation continue to accelerate, provide no incentive to increases in

farm production,” Mr Watt said. “As well as showing that dairy farmers’ incomes are expected to fall by $B5O on average, the report says that farm debt has risen by 11 per cent compound pet annum since 1963, that livestock increases have tapered off, that total output has actually fallen 1 per cent ovei the last season—instead of rising the 2.9 per cent recommended for National Development Conference targets—and that there has been a decline in dairy production, in grains and field crops, and in horticultural products. “This sorry picture proves that the Government is as incompetent in the agricultural sector as it is in running the economy,” Mr Watt said. “How the Minister of Agriculture could release this statement in his capacity as chairman of the Agricultural Production Council and not make some sort of apology to the farming community for the mess he has created is beyond me.” Mr Watt said that had Labour’s proposals been fol--1 lowed New Zealand would have had a broader-based , farm economy, stability in ■ production costs, and an imi proved share of production i for those engaged in farming.