Tobacco growers have new plan

Press, 16 July 1980, Page 2

Tobacco growers have new plan

- PA " ■ Nelson Tobacco growers have a plan to restructure their industry which they say would save the Government money, but not disrupt the economy of Motueka. They have already put this plan to the Government and will continue to press it through the action group formed at Monday’s public meeting on the future of the tobacco industry. : Mr J. Hurley, president of the Tobacco Growers’ Federation, ' said - growers would form a co-operative to retain ownership of leaf during the two-year maturing stage. At present manufacturers buy the leaf as soon as it is grown arid the Government loan money is used to finance the purchases. The loans are at the market rate of interest.

With growers, through the co-operative, financing the holding of the 'leaf during the maturing period, the Government would be able to cut, out its financial investment. • / : As ; an • incentive’ to use New Zealand leaf, manufacturers who increased their use of domestic leaf-.would receive an.incentive payment or remission of tariff on imported leaf. This was the system used in Australia, said Mr . Hurley. Growers wanted the leaf taxed at the end of the ' maturing period instead of the beginning.

j . They also wanted a phas : t ing-in period for 'their - scheme. A grower who;went 1 straight from the system of , receiving, payment for raw • leaf to being paid for matured leaf would be 18 months ; without income. They sugI gested a phasing in, 10 to 20 [ per cent of the crop being . brought in over five to 10 : years.

Mr Hurley said the federation’s scheme had received a mixed reception' from the Government. Some people thought it should be considered while others wanted to plough on with the Government’s own scheme.

The federation will hold ward meetings among growers to. discuss its alternative restructuring plan.