Farmers challenge Minister

Press, Volume CXV, Issue 33962, 1 October 1975, Page 2

Farmers challenge Minister

<Jur Uirn Reporter) i WELLINGTON, September 30. j The Minister of Agriculture (Mr Moyle) has been challenged to hack up his optimism on sheepfarmer’s incomes with Government cash grants to farmers for the amounts by which their incomes fall short, of the 72 per cent increase he has predicted. The chairman of the Dominion Meat and Wool Section of Federated Farmers. (Mr T. G. McNab) described! Mr Moyle’s remarks today as “a totally misleading impres »ion of the sheepfarmer’s future financial position and the country’s economic outlook.” In spite of a rise in sheepfarmers’ incomes above the! levels of last year, the industry would still be seriously; short of investment capital.; and the sheepfarmer would still be left with a poor return. The income figure of $9OOO to $9500 which the Minister' had given m a public address at Dargaville on Monday had

Ito assume a lamb price of I between $9.50 and $lO, which! was far in excess of any! other prediction of likely i market prospects, Mr McNab said. ' “I challenge the Minister! to back up his optimism with! cash. If the Government is sol , i sure we can expect such a dramatic upturn in iamb prices, it should have no fear ! in guaranteeing this price to fanners. And I mean by: (grant, not by loan! on the; basis that the Government! will not be called upon to! pay. anyway.” The producers had already' - indicated that they were pre-1 >■ pared to borrow from the 11 Reserve Bank to fund a pricet smoothing scheme as part of -,a total incomes package, he > I said. I They remained adamant j ••that income efficiency was aj national responsibility, rather! ■ than just a farmer’s one in' ! ' present circumstances. Even assuming an optimis-j tic net income of $9OOO aj .jfarm, this translated to only, 1'56500 for each farmer and ■ from this living expenses, I taxation, and repayment of> I loan moneys and all capital ■'development expenditure; • had to be paid. Mr McNab! I said.

Last year, the average sheepfarmer had incurred a seasonal deficit of about $3OOO. It was significant that the Minister had not mentioned that to increase sheepfarmers’ incomes to his figure of about $6500, the Meat and Woo] Boards might have to borrow an average of about $3500 a farmer. Thus, any increase in farmers’ incomes would be attributable only partly to increased overseas I prices. A considerable (amount would be the result I of farmers’ having to borrow i internally against the pros-

pects of increases in overseas prices.

“Another serious aspect of the Minister’s statement is that it is likely to create a false sense of economic recovery in the community at large,” he said.

“If we let off the economic brakes now, we seriously jeopardise our ability to recover.” It behoved a Government spokesman to adopt a reasonable and statesmanlike position at this,time, and Mr McNab was disappointed that Mr Moyle 'on this occasion did not appear to have done so.