Reservations about relief

Press, 9 May 1985, Page 1

Reservations about relief

Timaru reporter

Drought relief measures announced yesterday by the Government have been greeted with - reservations by the president of South Canterbury Federated Farmers, Mr Don Simpson.

The measures were “a form of Clayton’s relief, 1 ' he said yesterday. Although the package would help young and newly settled farmers it would do nothing to boost the very low morale in the rural communities of South Canterbury and North Otago, he said.

Young and newly settled

farmers represented only a small percentage of those affected by the drought. Mr Simpson said the measures failed to address the problem of how farmers would survive next season.

“There is going to be much less stock on many properties throughout the affected region, there will be lower productivity, and supplementary minimum prices on meat are being removed.

“These three points make a disastrous combination,” he said.

Farmers were reluctant

to increase their debts but they were being forced to borrow more money if they wanted relief.

“I hope the Government will not simply wash its hands and say it has done its bit for drought,’’ said Mr Simpson. He welcomed tax relief, which would enable farmers to move into cropping or other forms of diversification without having to replace capital stock. Farmers would also welcome initiatives aimed at improving storage in the freezing industry, he said.