Commission rise angers farmers

Press, 27 January 1978, Page 2

Commission rise angers farmers

Wellington reporter

An increase in commission for stock and station agents, and the way in which the increase was permitted, has drawn an angry reaction from Federated Farmers.

It was very disturbed that an increase was allowed under the collective agreement for stock commission charges before the Commerce Commission decided whether the agreement should be allowed to continue.

The federation’s president (Mr A. F. Wright) said the federation opposed the continuation of the collective agreement. Now, the federation was very critical of the Pricing Authority for recommending that the Commerce Commission approve an increase in livestock commission rates when it knew that the commission was within weeks of making its decision on the collective agreement. “Procedures for permitting an increase are too rigid, in that affected parties have no right of appeal against the increases granted, and are not even given the opportunity to make submissions on the matters,” Mr Wright said.

The federation wanted the Government to alter the law to ensure that interested parties were consulted by the Trade and Industry Department, and have the right to make submissions on such applications. This latest increase of 37.6 per cent typified the manner in which cost-plus service industries were able to have an increase approved on a purely accounting basis, and then pass them on immediately to the farmer, he said. Earlier, a stock and station agents’ spokesman, Mr W. J. L. Simpson, said Federated Farmers had known of the commission

rate increases 12 months in advance, reports the Press Association. “There was consultation on a confidential basis,” said Mr Simpson. “If Federated Farmers did not tell their members about it, that was their decision.”

Mr Simpson said he was not prepared to comment on criticism of the increases made by members of Parliament at a meeting in Hamilton on Monday. The Associate Minister of Agriculture (Mr Bolger) told an emergency meeting of Waikato Federated Farmers’ executive that he was amazed at the size of the rise in commissions.

The increases were “a considerable disappointment,” said Mr Bolger. But the rises in commission rates were granted by the Minister of Trade and Industry (Mr AdamsSchneider), said Mr Simpson, and criticisms by members of Parliament were their personal opinions. “It was necessary for us well and truly to prove the increases were warranted,” Mr Simpson said.

“You cannot blame stock and station agents for inflation,” he said.