Budget cut irks farmers

Press, 2 July 1979, Page 2

Budget cut irks farmers

The Government should drop Budget measures to cut ’the 40 per cent investment [allowance on farm equipment, [according to North Canterbury Federated Farmers. However the provincial ipresident (Mr G. E. Rennie) [said the Budget was a step in I the right direction and farmlers would be thankful for [some of its provisions. | A remit passed by the ' North Canterbury executive [calls on the Minister of Finance (Mr Muldoon) to reinstate the investment allow■ance at the level set in the 11976 Budget. An executive member, Mr A. W. Trolove, said that the

Budget had set an allowance to fun up to 1980 and the unexpected 50 per cent cut would affect the long-term planning of farmers. Mr F. A. Bull said that while Mr Muldoon might have acted legally the allowance cut was morally wrong.

Mr Rennie said the latest Budget could have been much worse.

“The more I read it the more I find in it that will help you,” he said. It would increase costs for agricultural farmers but the 5 per cent devaluation might open some markets for them.

The increase of the exemption’ on an estate’s value before death duty became payable would also be a big help.