Wage rise and fuel prices seen as blow to farmer

Press, Volume CXIV, Issue 33515, 22 April 1974, Page 3

Wage rise and fuel prices seen as blow to farmer

Canterbury farming leaders believe that the 9 per cent rise in wages to take effect in July can only lead to higher costs for their industry.

They say' that the wage rise, coming on top of further sharp increases in fuel prices, will affect farmers’ incomes at a time when returns for their produce lare already' falling.

announcement about the I General Wage Order, and talk of big increases in the prices of commodities used by farm- : ers, such as fertilisers, farmers were getting back to the ; position they were in in i 1968-69 — they were suffer- 1 ing a definite lack of confi- i

dence. Such a lack of confidence inhibited production, said the South Island director of the Sheep and Cattlemen’s Association (Mr S. A. Taylor). “A SHOCKER” “I think it is a shocker,” said the president of MidCanterbury Federated Farmers (Mr J. G. Humm), in a reference to the wage increase.

“If export income had remained buoyant it might have been on,” he added, “but the indications are that export returns are on a downward trend.”

It was pleasing to hear the Minister of Agriculture (Mr Moyle), say that present market trends were only temporary, said the president of North Canterbury Federated Farmers, (Mr A. F. Wright).

But on looking at predictions b that had been made-over the i last 18 months, the farming 11 industry could be excused j for having some doubts. about the Minister’s opti-| ( mism, although he certainly | hoped that Mr Moyle was! correct. !

“DISCRIMINATORY” While the wage increase concerned him much more, Mr Taylor said, his organisation was also greatly alarmed that the fuel increase should be so discriminatory in that diesel fuel prices had recently risen 115 per cent, compared with about 46 per cent for petrol. This seemed strange but there might be some reason for it. Mr Humm said that the increases in the cost of diesel could lead to a very heavy charge on the arable farmer, and on pastoral farmers using diesel-powered motors for spray irrigation. The arable farmer, he said, might get a little back if the Government was to increase the price of wheat. But the pastoral farmer referred to I could face higher costs with-

out any prospect of recovering them while the outlook [for meat and wool was bleak. GRAIN PRICE i Growers were urging an increase in the price of wheat .harvested next year to compensate for rising costs, said the chairman of the wheatgrowers’ sub-section of Federated Farmers (Mr J. H. Mitchell).

I The president of the South [Canterbury province of Federated Farmers (Mr K. M. : Davey), said that because of .the big rise in fuel prices, the