‘People living beyond means,’ say farmers

Press, 23 April 1980, Page 12

‘People living beyond means,’ say farmers

Wellington New Zealanders were living beyond their means and the 18.4 per cent inflation rate clearly made this point, said the acting Dominion President of Federated Farmers (Mr R. Storey). “The federation has been a strong advocate for encouraging moves towards free enterprise and a more open and competitive economy.' This is to be applied to all sectors,” he said. “We accept that some recent Government measures, such as the institution of the flexible exchange rate, are moves in the right direction. This policy must be continued into other areas of the economy which are protected front market realities. This will cause diffiin some areas but must be carried out for the long-term security of New Zealand. “The farming industry, our major export earner, has already shown that it can increase production, but if this is to be sustained a more healthy and economic environment will be required,” said Mr Storey. “There are five million more stock units on farms this year than at the same time last year, which will generate a significant increase in overseas funds. It is important that this new impetus is continued

but the current high level of inflation acts as a major disincentive. “In the pursuit of a more competitive environment, farming has suffered in cutbacks in Government protection. “Some cutbacks must necessarily be part of the development of a freer economy but as a nation we cannot afford to allow farming to be singled out while other sectors continue to remain in a protected, cost-plus environment. “It is time that the rest of the economy was put on a more realistic basis, with cuts in the import controls, licensing and tax concessions under which they have sheltered for far too long,” Mr Storey said. “Unless such measures are instituted immediately by the Government, the inflation rate of the past year will rise further, particularly with New Zealanders’ current attitudes to consumption and wage demands. “There has been a significant increase in stock numbers in the last year, which farmres are ready to match in the coming year. This effort will be negated unless the community is prepared to live wtihin its means. “This will be more effectively enforced by a more competitive economy and by a Government prepared to tackle the fundamental economic issues,” Mr Storey said.