Farming-slump concern

Press, 2 July 1979, Page 7

Farming-slump concern

PA Wellington Farmer income now comprises only 4.84 per cent of the total private income earned in New Zealand, compared with 8 per cent 10 years ago, according to Mr J. B. Falconer, retiring chairman of Federated Farmers’ meat and wool section. “I am critical that Government policies adopted in the, past have meant that insufficient funds are left in the hands! of producers to allow reinvestment to stimulate growth in production,” he told the

sec Ton’s annual conference at Wellington. “Pressure is being put on the Government to provide facilities and benefits for one sector after another, but the agricultural industry still provides 76 per cent of New Zealand’s total export earnings.”, Mr Falconer said that in the six years to /June, 1977, sheepfarmers’, incomes were estimated to ■ have been 38 per- pent ‘ lower • than they would' have if New Zedlancl’s’, inflation rate had been the same’as thb’Q.E.C.D. avtir- '■ age. ’ '

'‘This puts into perspective the essential and fundamental role of Government — to control inflation. If this were done effectively the need for subsidies would hardly exist,” he said, Mr Falconer said that he was pleased with the Budget, which indicated that the Government was .prepared to start restructuring the economy. “The 5 per cent devaluation, combined with a more flexible exchangerate policy, should improve the exporters’ pqsition,” he said.