Farmers reject decision on higher interest

Press, Volume CXI, Issue 32660, 16 July 1971, Page 1

Farmers reject decision on higher interest

(New Zealand Press Association)

WELLINGTON, July 15. Federated Farmers’ Dominion conference today rejected as “totally unacceptable” the explanation of the Prime Minister (Sir Keith Holyoake) for the Government’s decision to raise interest rates on some loans.

The rejection resolution was passed after the failure of a conference deputation to persuade the Government to reverse the decision in the Budget to increase interest rates to full market rates on some funds lent to farmers by the State Advances Corporation. The delegation, led by the federation’s president (Mr A. C. Begg), reported to the conference this afternoon after its meeting with the Prime Minister, the Minister of Finance (Mr Muldoon), the Minister of Agriculture (Mr Carter) and the Minister in charge of the State Advances Corporation (Mr Rae).

Mr Begg said his delega-i tion had been informed that ' the decision stood. |;

| The decision to increase lending rates was a tempor|ary measure pending the re-

port of a commission of inquiry into farm finances, the delegation had been told. It was intended to prevent the loss of more farming capital in the meantime.

Mr Muldoon agreed to look at the case of farmers paying higher interest rates if, subsequently, lower rates were recommended by the commission, said Mr Begg. At the end of the meeting, Mr Begg told the Ministers that the conference would regard the increased interest rates as a high price to pay to encourage more lending from the private sector. The Prime Minister gave Mr Begg a letter explaining the reasoning behind the Budget decision. After another deputation member, Mr W. R. Martin (Auckland) said Sir Keith Holyoake had told him that prominent farmers had accepted the increased interest charges, the discussion became heated and the conference went into committee.

A resolution was passed by the conference saying that it deplored the decision to raise the interest rates, and

that it “rejected as totally unsatisfactory” the explanation contained in the letter from the Prime Minister. The conference asked its executive to take every possible step to have the decision reversed. The conference dealt with 20 remits on its final day, a number of them in committee.

A motion to abolish all provincial anniversary days and declare Waitangi Day a national holiday was defeated as was a motion to have the Government provide free an annual maintenance dressing of superphosphate.