Barley contract threat by farmers

Press, 10 July 1979, Page 26

Barley contract threat by farmers

A call to farmers to withhold contracts from the malting industry until it gives a better price for barley, was made at a meeting of the agriculture section of North Canterbury Federated Farmers. “It is very convenient for malting companies to blame the 30 per cent increase in sales tax on beer,” said Mr J. K. Lay. “We should wait until the North Island barley price is announced before we negotiate any contracts,” said Mr G. E. Hutton. “Then we have a good lever.” “In the meantime, don’t sign any contract with the malting industry,” said Mr G. N. Fraser.

Malting and brewing companies should include imported cost increases to farmers in their appli-

cations to the Trade and Industry Department for increased prices, said a member.

Members will ask oil companies to explain why a consignment of Indonesian diesel oil is lumpy, and “the colour of spring grass.” Members were concerned that it might affect new machinery.

The oil was imported, but not refined by the Marsden Point oil refinery.

“If they cannot refine it, why did it come into the country at all?” asked Mr M. J. Harris. “We should be getting it at discount prices in the same way farmers get lower prices for inferior wheat.”

The executive’s acting chairman (Mr F. A. Bull) said the oil was imported

when nothing else was available. The executive will ask the Grain Merchant’s Federation to improve grain and seed export contracts with farmers, in line with a 5 per cent increase in export prices because of devaluation. Mr Bull said that the Budget adjustment in estate duty had not given anything to farmers. Farms in the $400,000 estate duty bracket were paying more tax, although other categories were taxed less.

The removal in the Budget of half the investment allowance on new machinery was a breach of trust, Mr Bull said. “We were told in the 1976 Budget that his allowance would remain in force until March.