Farmers and GST

Press, 30 August 1985, Page 16

Farmers and GST

Sir,—Through your column I ask Mr Elworthy, of Federated Farmers, what effects GST will have on farmers and their servicing industries. Perhaps following Mr Elworthy’s prediction that farmers would be 20 per cent better off by devaluation and now finding themselves 30 per cent worse off, he may not feel able to comment at this stage. If this is so it bears witness to Federated Farmers’ poor political set-up, with small remits coming in from branch meetings, with perhaps 10 or 12 members attending, and no real pressure being placed on one significant thing — such as increased interest rates and an increasing rate of inflation. Perhaps this is what the Labour Government wants, with higher prices for all things the more revenue from GST on a percentage basis. — Yours, etc.,

G. W. S. CHISNALL, Hawarden. August 19, 1985.

[Mr Peter Elworthy, the Dominion president of Federated Farmers, replies: “Federated Farmers’ annual conference gave support to the goods and services tax in principle. We share Mr Chisnall’s concern for the increased interest rates and the increasing rate of inflation and invite him to communicate with us as to the pressure he would like to see to bring about their reduction.”]