Govt spending too much — farmers

Press, 16 June 1982, Page 3

Govt spending too much — farmers

PA Wellington Inflation and Government interference are eroding the viability of the New Zealand farmer while the news media are eroding his credibility, Federated Farmers’ Dominion agriculture section conference in Wellington heard yesterday. The chairman, Mr N. Q. Wright, attacked the high level of Government expenditure, which he said had risen to an estimated 38.5 per cent of gross domestic product in 1981-82. Such expenditure contributed little to increase national wealth or overseas exchange and encouraged an inflation rate -almost double that of New Zealand's trading partners. “Until the inflation rate is brought under control we can expect the position of arable farmers, and indeed all farmers, to deteriorate,” Mr Wright said.

Federated Farmers had submitted an anti-inflation package to the Government, Mr Wright said. This called for reduced Government expenditure, removals of controls restricting competition and efficiency, and a wages policy based bn export industries and the country’s ability to pay. Mr Wright attacked the news media for what he saw as their negative reporting of the supplementary minimum price scheme. “One would assume by the coverage, in the worst "possible light, that the rest of the nation was carrying us." he said. “Why don’t they give headlines to the $62 million subsidy to city commuters or the $lBOO million for superannuation?” “Why don’t they make headlines of the fact that if the Public Service were granted a 10 per cent wage increase it alone would cost

the country $350 million, the bulk of which goes to people who do nothing to increase our national wealth or overseas exchange?” Important decisions had to be made to boost the profitability of arable farmers in particular, with less interference from the Government and trade unions, improved marketing, better freight rates and competition between carriers, and more ambitious irrigation programmes. Irrigation was particularly important when many of the Government's “think big" projects were being reconsidered, Mr Wright said., Closer economic relations with Australia were strongly supported by Federated Farmers, Mr Wright said. While specific products might have difficulties, the benefits for- the New Zealand economy far outweighed the disadvantages.