COMMENT FROM THE CAPITAL GOVERNMENT TO BE ACTIVE IN FARMING EXPANSION

Press, Volume CXII, Issue 33096, 11 December 1972, Page 16

COMMENT FROM THE CAPITAL GOVERNMENT TO BE ACTIVE IN FARMING EXPANSION

(By

CEDRIC MENTIPLAY)

W ELLINGTON. December 10.—A close partnership between farmers and the Government, with a view to getting the best out of New Zealand ' farming potential, will be part of the long-range planning of the Labour Government.

This is made clear by the new Minister of Agriculture (Mr C. J. Moyle) who because of his own background as a farmer, combined with intensive study of the subject, has been Labour's spokesman on agricultural subjects during the Opposition years.

“Our first objective is to restore cost and price stability as far as the farmer is concerned,” Mr Moyle told me. “The second leg. shall we say, is to change to orientation of farming from production to marketing.” Mr Moyle is in no doubt that this will entail considerable Government commitment. “In order to get flexibility in marketing, obviously you have to take certain steps. One thing we are interested in is the development of large-scale irrigation to provide a much greater flexibility in production opportunities in areas that can take this sort of development.” Labour’s irrigation policy has been carefully worked out, Mr Moyle assured me. Members of the party’s agricultural team spent months studying the problem. They had discussions with various irrigation authorities, particularly in the South Island (South Canterbury, Oamaru. Central Otago), and reached unanimous conclusions. “In these areas we can see possibly half a million acres that can be changed from extensive pastoral farming to intensive forms of crop development. When this is done, there will be more people in the area — more production per acre. More on land

“We have a stated intention of halting the flow of people off the rural areas and of re-establishing the rural population,” Mr Moyle explained. “So all of these measures, whether irrigation or the development of other forms of production through the employment of other techniques and the introduction of an increasing amount of horticulture as opposed to pastoral farming — these things are all part of the programme.” Mr Moyle is convinced that everything hinges on market research. “We are not going to fly blind into this.; If something has market i possibilities, then we shall i provide the finance and share the risks with the farmers.” [ Mr Moyle’s ideas on co- 1 operative works are firm and positive. “We shall establish processing plants — hopefully co-operatives, if we can get the farmers’ support. For the processing of farm products, whether it is lucerne into stock food, or whether it is the horticultural industry, we want to see that function of our I farm production turned [away from mere raw materials into finished goods. “For export markets this is very important indeed. We feel that if New Zealanders want to get away from the troughs and the peaks of export incomes, we just have to become an exporter of finished goods. This is why we, the Government, will be assisting with a fair proportion of development cost.” The Labour Government believes in dealing with inflation by channelling into the productive sector the I capital that is available for; investment. “This would [ increase the quantity .of .goods produced — the only real wealth. Anything that will generate more goods at a saleable price is a good investment. That is what we are after. We believe a national effort in this sector — not just a producer-board effort — is mightily important." Mr Moyle is advocating an upgrading in research. He is dissatisfied with the amount of research being done at present. The existing input

subsidies. on fertiliser, weedicides. pesticides and drenches, will be maintained. “There is no intention of removing them — or of increasing them.” Smaller plants? Mr Moyle will see the Meat Board shortly concerning the establishment of a meat works in Centra] Otago. He will take some progressive ideas to the discussion. “I have had talks with people in the meat industry who think New Zealand may have been off the track oil the size of processing plants,” he told me. “There is a strong feeling that modem, smaller, fullyautomated plants, working throughout the year, with efficiency, good hygiene, and smaller managementworkers’ relations problems, may be the answer. Certainly this might be better than trying to upgrade some of the big, inefficient plants we have.”

Mr Moyle believes that .the arguments for the ; smaller, modern plant are I strong. If they prove convincing to the primary production people who matter. Then one of the best places to start such an enterprise (would be Central Otago. It would be a co-operative, of course. Mr Moyle’s ideas on co-operatives suggest that the farmers should not have to find about half the (capital. “As the farmers’ commitment, my suggestion would be about "20 per cent,” he told me. “This would be a realistic initial figure. “The evidence shows that in Central Otago and Te Kuiti the farmers could raise 20 per cent by solid effort. The rest would have to come either through the Meat Board or through the

Government from other sources of finance.” Settlement, training As part of its rural repopulation plan. the Labour Government has set out a farm, settlement scheme whereby “young men with proven farming ability but limited financial resources” will have a chance to acquire their own farms

This involves the purchase of suitable land area* by the Government, their division into suitable units, and then the provision of a seven-year leasehold by ballot, with an jnitial development loan at 4 per cent. In some cases of farm purchase, the Government will provide all the finance To ensure maximum opportunity for the land settlement scheme, a Farm Training Council will be set up to train young farmers to certificate standard.

I The Government’s irrigation proposals are closely Jinked with the regional (development plans described Hast week. Brieflv, it (envisages the upgrading of | lands through the use of the nation’s water resources — | with an immediate survey of all irrigable areas. The Government is prepared to accept full responsibility for I the capital cost of new | schemes and the upgrading iof existing ones. A detailed (loan and repayment system [has been worked out. In general terms, farm [finance will pass to a newlyestablished Rural Banking and Finance Corporation, 'which will work with the I Marginal Lands Board. I There will be Farm Owner- [ ship Investment Accounts, and various forms of special [assistance, including farm i house-improvement loans.