Economy imbalanced, says farming leader

Press, 13 June 1979, Page 7

Economy imbalanced, says farming leader

PA Wellington It was a grave reflect tion on the economic policies of successive governments that New Zealand’s biggest export-earning industry had to receive the level of Government support it now did, said the president of Federated Farmers (Mr A. F. Wright). Mr Wright was commenting on an address by the Leader of the Opposition (Mr Rowling) to Nelson Federated Farmers.

Mr Wright said that the whole New Zealand economy was out of balance, and the farming industry bore the brunt of attacks by economists and politicians for the level of subsidy. .’“Mr Rowling -must be

commended on using accurate figures on the amount of Government subsidy, rather than the highly misleading statistics used by some commentators,” said Mr Wright. “However, whatever the exact figures, the fanning industry has no particular wish to rely on Government support. But until the Government adopts the economic policies which make subsidies unnecessary, they will continue to be required for the industry to remain viable,” he said. “We challenge Mr Row-, ling to elaborate on his solutions.

“I hope to arrange a meeting with Mr Rowling to discuss this whole matter.” Mr Wright said.

“Mr Rowling has identi-

fied two of the main problems— high'interest rates and the high internal rate of inflation — but he says very little about how to get rid of them.” Mr Wright said that the farming industry was still New Zealand’s “best bet” for economic recovery. Of the total increase in export earnings last year, farming was responsible for 81 per cent, and still provided about 75 per cent of New Zealand's total export earnings each year.

“Until the difficult and necessary changes are made to the economy by the Government, the level of subsidy which exists is a sound investment for the country and a small price to pay,” Mr Wright said. _____