$440M warning to Canterbury firms

Press, 5 October 1985, Page 1

$440M warning to Canterbury firms

By

HUGH STRINGLEMAN,

farm editor

Farmers are going to put away their chequebooks and send a $440 million spending disruption through Canterbury’s economy, says the leader of Federated Farmers, Mr Peter Elworthy. Fanners had to stop spending to survive the period of economic restructuring, he said in Christchurch yesterday. The federation invited businessmen and farmers to a lunch in Christchurch yesterday and charged them all $lO for the bad news on the rural crisis. Export receipts would be downSlooQ-?jMiUl<?ti, nation-’ Elworthy, and Canterbury’s ’ share of this reduction would be $lOO million. This drop in rural spending power in the region could be increased to $175 million by adding farmers’ non-essential personal and farm spending. By using the commonly

accepted 2.7 multiplying factor, Mr Elworthy arrived at $442 million disruption to Canterbury’s regional economy in the next few months. “This will hit rural business first but it will quickly flow through to the cities,” he said. “Unfortunately the first casualties will be small ratal retail and service businesses. . “We are not being vindictive or directing our actions specifically against businesses servicing fanning communities,” said Mr Elworthy. . azFarmers simply had to stop spending to survive. This had now become a members survive the pain of economic adjustment. Some regions of the federation were planning more co-ordinated boycotts against meat companies. Farmers were grouping to tender their meat production to companies which held or reduced killing

charges. They were also identifying other targets for direct action such as expensive, tariff-protected products and high Government costs including meat inspection charges. Mr Elworthy said farmers might take to the streets in protest, to demonstrate that the agricultural Sector was out in front in the pain of economic restructuring. The federation would have a much higher political profile and identify for its members those political party’policies which complement the agricultural in- ■ said MrElworthy. < ■ > ~* - Mr Elworthy and other Dominion officials met federation branch presidents from Canterbury, Marlborough, Nelson and the West Coast in Christchurch at a conference on strategy.

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