Compulsion disliked

Press, Volume CXIII, Issue 33158, 23 February 1973, Page 1

Compulsion disliked

A preference for more “carrot” in the voluntary scheme rather than “stick” in the compulsory scheme—this was the reaction by the president of Federated Farmers (Mr Bruce Dryden) last night to the Government’s freeze on meat and wool farmers’ incomes.

Speaking from Iris Ngutuwera home, Mr Dryden said that Federated Farmers recognised the need for dampening down the New Zealand economy, according to a Press Association message from Wanganui.

“We feel that restraint; should be exercised across j the whole community, andj not only on the farming I sector,” Mr Dryden said. “If we are to be the guinea pig, so be it. But we hope the Government will show by other measures their serious intention to control over-all inflation.” Mr Dryden said his federation completely supported the voluntary scheme announced in Parliament yesterday by Mr Moyle. “We urge every farmer in ■ a position to do so to take; advantage of it,” he said. “But we are not happyl about the compulsory scheme | because of the likelihood: of inequalities between! farmers.” APPEAL SYSTEM He said the compulsory scheme must involve a widespread appeal procedure. “We are afraid it might break down because of the load upon it,” Mr Dryden said. Federated Farmers was opposed to a compulsory freeze on sheepfarmers’ incomes and had strongly expressed this view to the Government, Mr T. G. McNab, chairman of the organisation’s meat and wool sec-! tion, said yesterday. “We told the Government that we believed it could obtain its objective by making the present income equalisation scheme more attractive and suggested a number of .ways that this could be done. “The Government did not accept these suggestions except for the removal of the 40 per cent limit on deposits. However, at our request the Government did agree to suspend the introduction of a compulsory scheme until April 30.” INFLATION “Gross farm incomes have increased considerably; and although much of this money !is required by the industry ito enable it to begin expanding again, the inflationary pressures of an immediate demand for productive goods and development could be to the disadvantage of our industry and the nation,” the ’chairman of the meat and wool section of North Canterbury Federated Farmers (Mr B. H. Palmer),, said last evening. “Federated Farmers must support this voluntary scheme as it will help contain inflation. If farmers respond as it is hoped, it cannot be : over-emphasised that other sectors of industry should also act in a responsible manIner,” he said.