Farmers seek compensation

Press, Volume CXII, Issue 33093, 7 December 1972, Page 2

Farmers seek compensation

(New Zealand Press Association) WELLINGTON, December 6. New Zealand Farmers were entitled to compensation from the New Zealand Government as a result of Britain’s decision to float sterling, said Mr B. Dryden, Dominion president of Federated Farmers, today.

The reduced value of sheep, cattle and dairy exports as a result of Britain’s effective devaluation of sterling earlier this year had cost farmers s2sm Mr Dryden said. “In 1968 Britain agreed that for New Zealand reserves held in the form of sterling it would pay out 1 per cent for every 1 per cent fall below the old rate of United States dollars to the pound which was then in force. “The New Zealand reserves eligible for this compensation amount to £lBom. “Now that the exchange rate has floated down, Britain has effectively devalued by 6 or 7 per cent, and the primary industries of New Zealand can expect to lose about s2sm in the course of 12 months,” Mr Dryden said. “STRONG CLAIM” “The money will be paid to New Zealand by Britain for losses on reserves. But those whose products contributed to building up these reserves, and who are losing s2sm a year, are entitled to compensation for their losses.” The reduced value of their produce gave farmers a strong claim to this money, said Mr Dryden. Federated Farmers would hold early discussions with

the Government “to try to rectify the situation.” LABOUR VIEW The Labour spokesman on finance, Mr R. J. Tizard (Otahuhu) said the Labour Government would certainly be willing to discuss the situation. However, as he saw it, the community as a whole had an interest in the problem. As a result of Britain’s decision to float sterling there had been a variable effect on the price of imports, not just from Britain but also from other countries. Other groups might also want to claim compensation. Mr Tizard said there were many implications which he felt could not be solved on the “simplistic basis” suggested by Mr Dryden. He noted that one section of farmers had already had substantial compensation this year.

Ore ship leaves.—The Japanese ore-carrier Nichiho Maru left the Taharoa offshore loading buoy with about 47,000 tons of ironsand concentrate for Japan on Tuesday evening. The production manager of N.Z. Steel, Ltd (Mr A. Hedges), said the next ship was expected at Taharoa early in the new year.—(P.A.)