Farm income policy hit

Press, Volume CXV, Issue 33963, 2 October 1975, Page 2

Farm income policy hit

The Government’s price-smcxithing policy on farm incomes was nothing more than “political gimmickry,’’ the provincial executive of North Canterbury Federated Farmers was told vesterdav.

The scheme would not increase productivity or benefit the farming industry in any way. the president (Mr P. G. Morrison) said. He told the meeting thati the price-smoothing policy had ranked sixth in a priority. list of seven farm incomes policies prepared by Federated Fanners. 'The statement by the Minister of Agriculture (Mr Moyle) that the annual income of sheepfanners averages $9OOO shows just howfar away from reality he is.” Mr Morrison said.

"He has forgotten to tell the countrv that because of the price-smoothing policy a lot of that $9OOO is borrowed money.” Mr Moyle s statement gave a false impression. Mr Morrison said. He believed that the public should be told that the $9OOO figure did not represent net income, but included a considerable amount borrowed from the Reserve Bank. Mr D. G. Watson said that the farming industry was being used as a "chopping block." "The Government is borrowing money to bolster! farming, and to give the im-' pression that the industry is. on the upturn.” he said. "But prospects for this, year are not good, and theGovernment seems oblivious to the fact that returns will, have to rise considerably to cover costs.” Yesterday’s meeting voted to oppose strongly any increase in farm fuel prices as a consequence of the 10 per cent rise in the price of crude oil. Mr Watson said that there

. was plenty of leeway in the present tax structure for the Government to absorb the 10 per cent price rise. He also urged the executive to write to the Minister of Works and Development (Mr Connelly) seeking an independent appraisal of the proposed development plans < for Rolleston. His resolution will be con-: side red at the next meeting ■of the executive.