South Island ‘sold out’

Press, 9 November 1984, Page 6

South Island ‘sold out’

By

PATRICIA HERBERT

in Wellington The Labour Government has sold out the South Island in the Budget, according to the National member of Parliament for Fendalton, Mr Phillip Burdon.

He said the measures it contained would have “a devastating effect on traditional farming” and this would hit the South Island hardest because it did not have the benefits of horticultural diversification. “The land does not have

an ability to restructure and farmers will be bankrupted,” he said. The Government had also failed to deliver on its election pledge to reduce the Sof electricity in the Island through a 25 per cent concession, Mr Burdon said. He described the undertaking as “deliberate rhetoric.” The Government had promised to help industry but had failed to do so in the Budget. “Instead, the benefits of devaluation were virtually

eliminated by the substantial increase in electricity charges and the highly inflationary consequences of the increased freight charges,” Mr Burton said.

“The failure of the Government to deliver a positive package of industryencouragement measures such as the removal of sales tax on plant, machinery and spare parts, accelerated depreciation allowances, and an increase in research and development incentives is most unfortunate,” he said.