Farmers praise aid

Press, 1 November 1977, Page 13

Farmers praise aid

Canterbury farmers seem reasonably happy with Mr Muldoon’s mini-Budget. According to the president of Mid-Canterbury Federated Farmers (Mr R. W. Johnston) people could hardly have ex-

pected more under the present circumstances. The president of North Canterbury Federated Farmers (Mr P. G. Morrison) sees several good points in Mr Muldoon's economic package. The 5 per cent cut in income tax should act as an incentive to increased productivity, he said. Mr Johnston welcomed the moves to ease farm liquidity, which had been “fairly difficult.” He also saw the tax cut as being helpful. The local fanning leaders did not specifically mention it, but the new compensatory’ deposit scheme—which will be introduced next March, at a time when people are paying tax—is seen as likely to ease fann liquidity under the scheme, the Reserve Bank will redeposit with the trading banks the large outflow of net funds to the Government, which will subsequently be repaid over the next three months. However, according to the federation’s Dominion president (Mr A. F. Wright) the Government could have gone further. “In view of the country’s desperate need to increase export production and earnings, the Government may still have been less bold and imaginative than the situation requires.” he said. Several of the measures were directly in line with submissions Federated Farmers

'made to di? Government » few days ago. said Mr Wright. These included the exten sion of export incentives to primary processing Indus tries, assistance towards dairy’ factories wanting to make new products, extra | funds for the Rural Bank, and 'the incentive to employ add) tional labour on farms. “We regret that the opportunity has not been taken to | adopt certain other of our proposals as well, including the introduction of a long mooted production incentive scheme for the dairy’ industry’, removal from the farming industry of the S2OM-a--y’ear burden of Government imposed inspection fees, and the release of the woolretention funds. However, the Government may be delaying a decision on these matters until it sees how the trading year develops “But taken as a whole the package must be commended.” The president of South Canterbury Federated Farm ers (Mr P. H. Elworthy) said that the Government ought to be complimented on moves to make employment of labour on farms more attractive, and use the unemployed. It was, at last, an acknowledgement of the need for more labour for increaser, production in agriculture, he said.