Farmers opposed to tariff change delays

Press, 29 February 1984, Page 24

Farmers opposed to tariff change delays

PA Wellington The farming industry would react strongly to any suggestion that the Government proposes to back off from its agreement last year to change from import licensing to tariff based protection in July, said Mr Peter Elworthy, senior vicepresident of Federated Farmers. Mr Elworthy was commenting on a suggestion that the date for the introduction of the initial 5 per cent import tenders could be deferred. “The Government is to be commended for its decision last year to move from import licensing to tariff

based protection. However, if, under pressure from some short-sighted manufacturers the Government now backs off, it will be the consumers, the taxpayers, and efficient exporters who will suffer,” Mr Elworthy said. Consumers would continue to pay high prices for many goods, taxpayers would have to pay high subsidies to industries adversely affected by the costs of the current import licensing system, and efficient exporters would find it difficult to compete on international markets. “If for any reason it is considered necessary to ex-

elude a few products beyond the July date, it is important to publicly announce the firm timetable for their inclusion to provide the certainty and predictability emphasised as essential both by the Government and the manufacturers. Any such temporary deferments should be for as short a period as possible,” Mr Elworthy said.

Tariff based protection was an integral part of a package to create a more efficient economy. Failure to implement such changes early would result in a continued slow growth of the economy, and high unemployment, he said.