Higher production incentives urged

Press, 27 July 1976, Page 2

Higher production incentives urged

By

CEDRIC MENTIPLAY

Rotorua A remit from Oamaru asking for priority for measures providing direct incentive for increased production as an alternative to higher input subsidies was carried with some acclamation in the closing stages of the National Party conference in Rotorua yesterday. Mr R. Sinclair (Oamaru) said that, after the address bv the Minister of Overseas Trade (Mr Taiboys), getting New Zealand on to the path of export-led growth assumed even greater importance. Mr Taiboys told the conference that New Zealand would not be able to go into the twnety-first century dependent solely on agriculture; manufacturing exports would alsc be necessary. Mr Sinclair said that agriculture still made up 85 per cent o> exports. He was not seeking a special privilege

for agriculture, but believed that all exporters should be given help. “We need sufficient income from exports to pay our debts and to enable us to sustain a standard of living,” Mr Sinclair said. “Our debts are well documented. Our living standard has already fallen. New projects and essential services are being curtailed. The big need is for more production, especially for export.” He quoted Professor B. Philpott as saying that to achieve a minimum standard of growth would require an increase of 70 per cent in export volume by 1980. This would require an annual increase of 12 per cent — more than twice New Zealand’s previous best. Mr Sinclair said that subsidies and stabilisation measures were merely to hold the line. The need was to reward production with increased incentives. He gave the manufacturers’ export incenrive schemes as an example, and added: “Let us do the same for agriculture. It is the reward for extra effort that is lacking.”

Seconding the remit, Mr J. Palmer (Tasman) suggested that the Government could subsidise the wages of farm cadets. Two amendments suggesting specific areas of Government assistance were disallowed by the chairman (Mr G. A. Chapman). Mr P. Malone (Nelson) said that farm production had remained static for years. The stock-retention scheme and the dairy-beef scheme had produced effective results. Mr C. Horton (Remuera) suggested it was time to publicise the work of the agriculture industry in nonagricultural areas. Mr K. Kinnaird (Otago Central) said that as an orchardist he had suffered from over-pro-duction and development of new lines. He suggested that diversification was the answer. A South Island delegate said that the remit was not a good one, as it might well have been overtaken by events. “As far as aid to farmers is concerned, we shall hear about this on Thursday night.” The vote was clearly in favour of the remit.