‘Aid to farmers ineffective’

Press, Volume CXV, Issue 33917, 9 August 1975, Page 20

‘Aid to farmers ineffective ’

The Government had nothing to he proud of in saying that assistance totalling $l3l m had been given to farmers through subsidies, Mr R. L. G. Talbot, member of Parliament for South Canterbury and the Opposition spokesman on arable farming, said in a statement.

Mr Talbot was replying to l comments made by the | Under-Secretary of Agricul- ] tore (Mr Barclay). 1 He said that the assistance < given to the farming industry by the Labour Gov- i ernment had been “com- f pletely ineffective” in maintaining the confidence of I farmers, promoting reinvest- I ment and increasing productivity. FERTILISER PRICES The profitability of farming had been so undermined i by the failure of the Government to control internal costs that many farmers could not afford to apply their basic fertiliser requirements. The cost of seed and fertiliser had risen 44 per cent in the two years to March, 1975, Mr Talbot said. The cost of wages and rations had increased 30 per cent I over the same period, as had the all groups sheep farming (cost price index.

Wool prices were down 35 per cent on last season's prices and the lamb schedule had fallen 35 to 40 per cent on last season. “At the same time farmers’ incomes have fallen from a total of ss4om in 1973-74, to an estimated s27om in 1975-76,” Mr Talbot said. WAGE INCREASES The total income of wage and salary earners increased from $4900m to 56500 m during the same period. “Confidence will not be restored to our primarv industry until we have a Government which is prepared to tackle the problem of an increasing imbalance between the major sectors of the New Zealand economy,” he said. “The sl3lm in assistance referred to by Mr Barclay is nothing more than a feeble attempt to compensate farmers for the present in, pquitous rate of inflation.”