Japan may cut its farm aid

Press, 17 March 1983, Page 13

Japan may cut its farm aid

NZPA staff correspondent Tokyo

Further reductions in Japanese Government subsidies, to farmers are predicted in the report of a council on administrative reform which is advising the Japanese Prime Minister, Mr Yasuhiro Nakasone.

The council, headed by Mr Toshiwo Doko, aged 86, a former president of the powerful Federation of Economic Organisations (Keidanren), has proposed that the Government’s de-ficit-ridden national finances be restructured without increasing taxes. Mr Nakasone is reported to have pledged that the Government and the ruling Liberal Democratic Party (of which he is president) will make joint efforts to see that the proposed reforms are carried out.

New Zealand has long complained that farm subsidies are- being used to support inefficient dairy arid beef farmers.

For the last, five years, however, Japan has maintained its guaranteed price for milk used in processing,

which has meant a gradual decline in real terms of the subsidy going to dairy farmers.

Mr Doko’s council has taken a strong stand against subsidies of any sort. It urges the Government to. encourage domestic farmers to improve productivity further and to compete fairly with foreign producers. It says this will lead to a further reduction in farm subsidies.

Observers say that such a policy could lead to some farmers turning away from milk and beef production towards more profitable pursuits. New Zealand Government Ministers, including the. Minister of Foreign Affairs and Overseas Trade,. Mr Cooper, who has been -visiting Japan, have repeatedly; suggested to the Japanese that they should do what they do best — concentrate on manufacturing -t and? allow New? Zealand to do what it does best, which is fanning, by making the Japanese market more accessible for New Zealand produce.-? ;