Federation warning of farmer militancy

Press, 30 May 1985, Page 1

Federation warning of farmer militancy

By

HUGH STRINGLEMAN,

farm editor

The farming sector might turn nasty with the Government if other sectors are not restructured at the same pace, leaders of Federated Farmers said in Christchurch yesterday.

Many speakers at the annual conference of North Canterbury Federated Farmers gave a warning that farmers were tired of being reasonable about economic restructuring if the farm sector was way out in front and the Government was “backsliding” on measures for other sectors. The Dominion president of the federation, Mr Peter Elworthy, even raised the possibility of direct action or militancy, such as demonstrations by farmers to achieve a specific purpose. This was out of character for Mr Elworthy, who was calmly and moderately urged the federation to support many of the major economic moves made since last July, including devaluation and floating of the dollar, the removal of support and the freeing up of

the finance sector, and interest rates. But with the Government not far short of its first anniversary and another Budget looming, farmer discontent is growing rapidly and the leadership of the federation is facing repeated demands for stronger action to protect farmers’ interest. Mr Elworthy acknowledged that the farming sector was in real danger of being in the front-line in economic restraint, getting more lonely and bitter every day, even militant, if the “unevenness” persisted. Farmers and their leaders throughout New Zealand have now zeroed in on the “uneven restructuring” between sectors of the economy as being their main complaint. “I believe there is a public awareness of the fact that the Government economic measures have impacted more severely upon agriculture, and increasingly so, than other sectors,” said Mr Elworthy. He said it should never have been thought that the federation was supporting the Labour Government, or the National Government,

as administrations. Its approval or disapproval was directly related to the ruling Government’s adopting the federation’s policies. Mr Elworthy said the Prime Minister, Mr Lange, was alleging that the Government had enacted the federation’s policies. Such a statement was not correct, Mr Elworthy said. “The Government has adopted some of our policy planks but there are critically and urgently important actions where the Government now backslides and appears set to fail," he said. He cited failure to control inflation, the “tardy” move on industry protectionism, failure to hold down wages, Government expenditure, and a faulty perception and understanding by the Government of agriculture. The retiring president of North Canterbury Federated Farmers, Mr Fred Bull, fired a blast at the Government on his departure from agropolitics.

“The Government is forcing the farming industry to change direction and production patterns within a time scale which, because of the very nature of farming.

is neither possible nor practical," he said. "Those who could fall may well be the farmers the country can least afford to lose.” Mr Bull criticised the "virtual word-for-word" adoption in the 1984 Budget of Treasury thinking as expressed in its booklet. "Economic Management: Land Use Issues."

"Roger Douglas' acceptance and implementation of advice of that quality was most unfortunate and potentially disastrous." said Mr Bull' The Treasury had claimed that private landowners "captured entirely" the benefits from community irrigation schemes. "What a magnificent example of unresearched garbage," said Mr Bull. "But on the strength of that kind of assumption the Government has. while calling for diversification and increased production on one hand, introduced with the other hand policies which have effectively destroyed most of the prospects for both.”

Mr Bull was referring to the reduction in Government funding for irrigation

development and the increases in electricity charges and interest rates.

“Mr Knox claims that his wage and salary earners are the only sector exercising restraint," Mr Bull said. "Frankly I couldn't give a continental for Mr Knox's opinion. I am certainly no economist, but neither am I totally stupid. If the country has gone into debt, it is largely because of the fact that we have been overpaying the workforce, who have in turn spent more than the value of our export earnings.

"Too many people in this country still fail to appreciate that their standard of living is dependent on the fact that the major portion of New Zealand’s overseas income still comes from agriculture." While agriculture remained the base of the economy the value and volume of farm production should be the basis for wage-setting. "For too long these simple facts have been overlooked, and as McPhail and Gadsby so capably pointed out we are now three million worms in the pooh,” Mr Bull said.