‘Not as bold as expected’

Press, 22 June 1979, Page 2

‘Not as bold as expected’

PA Wellington Federated Farmers has acknowledged the Budget as “an initial tentative move towards the necessary restructuring of the economy.” But its president (Mr A. F. Wright) said the Budget was “less bold than we could have expected given our interpretation of the present state of the economy.” He welcomed the 5 per cent change in the exchange rate and the introduction of a more flexible system. “The increase in supplementary minimum prices for meat and wool will continue the increased confidence introduced in the. 1978 Budget. But regretfully the dairy industry appears to be caught up in the European situation and will be worse off as a result,” he said. The arable sector would be particularly hard hit by

the reduction in fertiliser subsidies and investment allowance. “The reduction in estate duties is welcomed and it is hoped it may be an initial step towards their abolition,” Mr Wright said. “The move towards greater emphasis on the exporting sectors should help direct more of our resources in that direction.” The reduction of direct Government support to the farm sector appeared to be greater than for any other sector.

“The halving of the fertiliser subsidy, lower investment rates plus the increased interest rates, will have an immediate and serious impact on many farmers (about $l3OO for the average sheepfarmer and $5OO for the average dairy farmer) whereas many of the benefits will take some time to filter through,” said Mr Wright.