Some ‘smoothing’ acceptable

Press, Volume CXV, Issue 33874, 20 June 1975, Page 20

Some ‘smoothing’ acceptable

Farmers would accept some “smoothing” of commodity prices if done through the producer boards, and after consultation with farm- ! ers and the Government, said Mr M. R. Barnett. I chairman of the meat and wool section of the 'North Canterbury Federated Farmers, on Wednesday. To achieve this levelling □•prices, finance would have to be made available through the Reserve Bank, Mr Barnett saifi. In return, there would have to be an assurance of adequate assistance to farming when incomes fell below the level necessary to sustain maximum production to give the farmer a fair return on investment, skill, and effort. The tax legislation would have to be altered so that farmers had greater opportunities to spread their incomes, if they had any to pay, so that the maximum amount could be put back into their farms to increase production, as well as removing spending pressures in the occasional times of higher prices. Mr Barnett said that farm income equalisation procedures needed updating so that money invested would be returned to farmers in terms which at least allowed for inflation. “None of the criteria can be taken in , isolation,” said Mr Barnett. •“It will take understanding, determination, and co-operation by the Government to ensure that any proposals guarantee

future productivity, profitability, and growth.” Branch representatives reported the views of their branches on proposals regarding farm incomes, after which a motion by the Motukarara branch was put ■and carried unanimously. It was “That this executive

- opposes any proposal for] farm price smoothing until] - such time as the Government ] r demonstrates farm cost] - stabilisation by making] policy to control ~] internal costs, with par-] jticular reference to off-farm s 'costs.” ]

Putting the motion, Mr E. W. Turrell said that his branch was “completely shattered’’ when the Government in its last Budget failed to present any policy to hold ;farm costs. “The Government is forcing farming into stagnation with its own policies,” said Mr Turrell. “But in the meantime, the rest ,of the country is being lulled into thinking that nothing is wrong.” He said that the Minister of Agriculture (Mr Moyle) had made it clear that he was not going to provide an economic plan, “so my branch is unanimous that we should produce a plan.” Mr J. H. M. Dawson said that there was “a lamentable lack of interest” by New Zealanders in the farming sector

“Two years ago, we received shocking publicity and shocking misinformation, particularly through one of the Christchurch papers,” he said. He did not know why that newspaper’s commercial editor was writing front-page articles on farming at that time. “I don’t think that the Government or the community is giving farming a fair hearing,” said Mr Dawson. “Our problems are not being recognised—but they must be recognised.”