S.M.P. scheme ‘economic lunacy’

Press, 13 December 1982, Page 41

S.M.P. scheme ‘economic lunacy’

PA Wellington National Superannuation and the supplementary minimum price scheme are the Government's "sacred cows" in the area of means testing, according to Sir Basil Arthur (Lab.. Timarui. Speaking during Parliamentary debate on the Agriculture supplementary estimates. he said it was time to have “a good look" at the working of the S.M.P. scheme. “Means testing really should be applied in this area because the taxpayers are funding it from borrowed money." he said. Sickness beneficiaries and students applying for unemployment benefits were means tested, he said. "But if you are a farmer, producing meat and wool, up to 57 per cent of your income will come from borrowed dollars through the S.M.P. scheme."

"This is economic lunacy. The payout is made whether you are a pensioner with two paper bags of wool or if you are a wealthy general manager and run a few sheep." “You still get S.M.P.s from the taxpayers' money." The Minister of Finance. Mr Muldoon, said no one had yet suggested a better alternative to the present S.M.P. scheme. He gave an open invitation to anyone to come forward with a better proposal. "It is fair to say that'there are farmers who have been uneasy about the S.M.P.s. and some who have been heard to oppose them." Mr Muldoon said. "Not many lately." "S.M.P.s are the only things at the present time that are bolstering the confidence of the farmers in their own industry."