Action urged on costs

Press, Volume CXV, Issue 33966, 6 October 1975, Page 2

Action urged on costs

The attempt of the Minister of Agriculture (Mr Moyle) to persuade the electorate that meat and wool producers could now have the confidence to invest in increased production, to take New Zealand out of some of its economic ills, was likely to fail, said Mr A. D. Dick, director of the Sheep and Cattlemen’s Association.

Referring to Mr Moyle’s recent predictions of sheepfarmers’ net incomes for 1975-76, Mr Dick said that he still showed a lack of appreciation of the need of the sheep and cattle man, who would “not be persuaded by a set of figures for a model farm, taken out by a group of academics making market predictions and assumptions based on traditional patterns of farm investment.

“The assumptions are that producers will spend about 70 per cent of their gross income on general maintenance and farm improvements, and 20 per cent on buildings, machinery, new stock, debt repayment, and general living,” said Mr Dick. A farming survey arranged by the Sheep and Cattlemen’s Association showed that 95 per cent of producers were in no mood even to contemplate further borrowing or investment to maintain, let alone expand, production until the Government took effective action either to control or underwrite their everincreasing costs, none of which were fully recoverable. “Even if sheepfarmers’ incomes reached Mr Moyle’s figure of $9OOO to $9500 on average, there would be precious little left for farm improvement and development after paying living costs, taxation, and mortgage commitments,” Mr Dick said. “The meat workers and shearers, and all the others who service farming, are asking for more and more in their pockets to maintain

their relative living standards. “Farmers are no exception — and they expect the same consideration if they are to be motivated to produce the foreign exchange which is the lifeblood of industry and the nation.” Mr Dick said.