Tax inhibiting farming output—Labour speaker

Press, 9 May 1978, Page 35

Tax inhibiting farming output—Labour speaker

"A Wellington The New Zealand farmer "as absolutely bewildered by lack of any clearly enunciated policy coming from the National Party, said Mr A W Begg, the Labour candidate for Invercargill, to farmers' delegates to the 1 abour Party’s annual conference. Mr Begg, a farmer and member of Parliament for Awarua from 1972 to 1975. said that three years ago fanners spoke of reducing stock numbers, and now they were doing just that because of a tax policy that inhibited maximum effort byl farmers and inhibited maximum production. In spite of all National’s 1975 promises, the farmer could not get stock killed at a reasonable time because of unprecedented industrial stoppages, he said. “A Labour Government will need positive, constructive policies to correct these things.” Mr Begg told the delegates. “It will need the policies, not in expectation of widespread farmer support at the polls, but because the New Zealand economy is in a crisis. "The economy requires corrective measures if we are to overcome the huge deficit in our overseas

1 accounts and maintain the ordinary New Zealander’s r standard of living.” 1 The National Govern--Iment’s much-vaunted price i( smoothing legislation, with flits means to remove the -1 more violent flluctuations in I the farmers’ income, seemed ! I somehow to have been sacrificed on the altar of political expediency at the RangiLtikei by-election, said Mr Begg ■ I “Many farmers now think ijthat a by-election is needed Lonce a month, if they are to( ' I receive assistance. ■■ “Perhaps there is a ! political lesson for the I Labour Party in what has ■ now happened over the wool stabilisation accounts, and a > gentle reminder about the • past might show the neces- : sity to keep our feet on the ’ ground on such matters,” he I said. It was now time for : yesteryear Reserve Bank ■ credit to the farmers to be ■ paid back, but farmers, being ' farmers, did not see the need ■ for this. They now believed i they were entitled to market ■ realisations. “The farmers were not inI terested in the Labour Government’s explanations that ; what was borrowed must be

! paid back. The dairy farm-j s ers deserted the Labour Party I and have remained away. ■ They are now affluent,” said] : Mr Begg. i “This is just one case ofl : farmers being great socialists! i on the down and unrepentant] I capitalists when prices go • up,” he said. “Nothing will I alter these basic human attri- ■ butes belonging to farmers. ■ The Labour Party must recognise this and promote : policies accordingly.” 1! The Labour Party supported the strengthening of I rural communities and saw i farming policy not just in i terms of the farmer but of > the wider community of I people who served the indusi try in a variety of occupai tions. Labour would seek a prac- ■ tical method of restructuring ■ the tax system, particularly for farmers, to encourage in- ■ creased production, Mr Begg : said. The aim would be to i foster the spending of capital ; for more profits as distinct from spending to save tax as at present. Labour would encourage the smallholder, and diversification. strengthen rural 1 communities, and promote increased production through • the incentive of profit.

j Linder Labour, the Ministry of Agriculture would be I more autonomous for district I problems and would be the i co-ordinator of other GovernIment departments at district [level for primary production [problems. Crown lands would be settled by qualified young people at a maximum sustainable rate. A designation, “approved farmer” would be available to those who had consistently worked on farms. Management experience would be a qualification for the designation and they would receive Rural Bank finance priority to buy their own farms. Mr Begg said that the fishing industry would need all possible encouragement if the fish available in the 200-mile zone were to be harvested. “The encouragement must apply not only to catching but to processing and marketing. “We can catch all the fish we like but if they are not processed to market requirements, we will not sell the product. The , essential markets will be available only through strenuous efforts at Government and industry level. Both must work together for common aims.” Mr Begg said.