Govt agrees to meet tobacco men

Press, 18 July 1980, Page 2

Govt agrees to meet tobacco men

PA ■ ■ 'Nelson The Government has agreed to meet Motueka’s new joint, committee on 'tobacco at Wellington on July 31. The secretary of the Tobacco Growers’ Federation, Mr R. Rance, confirmed yesterday that- the Minister of Trade and Industry (Mr Adam s-Schneider) would hear submissions by - the committee based on tobacco growers’ alternative proposals to the Government on the restructuring of the industry. . Proposals-include the formation of a co-operative to retain ownership of leaf during the two-year maturing stage. The scheme would enable the Government to cut its financial investment.

The president of the federation, Mr J. Hurley, and the vice-president, Mr G. Hunt, yesterday discussed details of the Government’s package with officials of the Department of Trade and Industry at Wellington. ] The Tobacco Board will meet on July 23 to discuss the developments in the industry. The executive of the Nelson branch of Federated Farmers yesterday unanimously decided: to support fully the tobacco industry in its fight for survival and said it would help in any' way possible, Two members of the tobacco growers’ executive spoke to the monthly meeting and threw doubt‘ on the validity of the measures suggested by the Government.

. Messrs E. Drummond and R. Cederman told the meeting the inter-departmental study group which drew the recommendations on which the Government made its decisions to phase out the industry, had been in the district for only , four days. The decision to phase out the industry made so little

sense that growers were left wondering, about the reasons behind it Phasing out the 30 per cent usage requirement would have little effect as the . industry had freely negotiated a 45' per cent usage, Messrs Drummond and Cederman said. Phasing out import licensing would have little effect as there was only a small market for imported cigarettes. There was no financial benefit to the country in phasing out the industry as tobacco farmers “wouldn’t have a dog’s show” of producing more money in overseas funds by growing export crops than what was saved by growing tobacco for internal consumption, they said. Motueka tobacco farmers produced 9c worth of the tobacco in every packet of cigarettes, but the return to Motueka tobacco farmers from each packet was only 4c, considerably. less than the Government’s share. Federated Farmers agreed that the pace of moves into export alternatives such as berryfruit and kiwifruit was fast enough. A faster pace could prove disastrous for marketing the crops in the short-term.

There was plenty of land available for alternative cropping in. the district without using tobacco land, which made many. farmseconomic by providing income for other development. The executive felt the decision to phase out the tobacco industry was a political one rather than an economic one. There was no reason why New Zealand could not become self-sufficient in tobacco.

The meeting agreed Federated Fanners could be of help in providing expertise on tariffs, the setting ,up of co-operatives, and , planning a more realistic time period: for phasing in alternative; crops if the demand for tobacco dropped.