Toy machines to make a prices point

Press, 14 May 1981, Page 2

Toy machines to make a prices point

The chairman, Mr F. A. Bull, jun., took a “box of tricks” to the annual conference of the agriculture section of North Canterbury Federated Farmers yesterday.

■He had a message to convey about rising costs. Mr Bull held up a yellow toy header-harvester and said that since 1975, the price of such a machine had tripled.

There was a similar story about a toy tractor. Producing a ploughshare, Mr Bull said that not long ago five could be bought for $lO. They were now worth $l2 each. But when he held aloft a table potato, he said that he did not think it had increased at all in the last five years. New Zealand had probably ithe cheapest food in the world, Mr Bull said, but also some of the most expensive machinery in the world. Some politicians, he said, were trying to convince people that food should be given to them, but if (farmers) were going to have to contend with such high costs food prices would have to go

up. Referring to the inflation in machinery prices over the last four years, Mr Bull said that if the present rate of

inflation continued, a header harvester valued at $lOO,OOO last year would cost $1 million by 1990.

“The people of New Zealand must therefore do some serious thinking and do it quickly.” said Mr Bull. “Because if we grain growers are to be in a financial position to pay $1 million to replace our headers in 1990, how much is the public going to pay then for a loaf of bread or pint of beer? By the same token, if we are not going to be in a position to spend that $1 million, then where will the public get its loaf of bread and pint of beer?

“It is my considered opinion that the major part of our inflation is internal — excessive mark-ups, wages out of all proportion to productivity, redundancy payments, blatant abuse of the welfare system, a top-heavy Public Service, and protected, inefficient, and costly services and secondary industries all make their contributions. I support the concept of user pays, but as a user I also object strongly to rip-offs.” Mr Bull was re-elected chairman for an additional term, and Mr G. E. J. Hutton was re-elected vice-chair-man.