‘Fiasco danger’ in livestock tax scheme

Press, 18 December 1985, Page 24

‘Fiasco danger’ in livestock tax scheme

PA Wellington The part of last week’s Government economic statement which dealt with standard values in livestock taxation is in danger of turning into a fully fledged fiasco, says the president of Federated Farmers, Mr Peter Elworthy. It was distressingly apparent that Treasury and agriculture officials had enthusiastically endorsed a scheme about which they knew little, he said. “It is also apparent that these officials nave little understanding of the New Zealand livestock system and have based their proposal on economic theory and not on a sound understanding of farm management practice,” Mr Elworthy said. The Government was in danger of creating the same problems as occurred with the previous Government’s 1982 Income Tax Amendment which had now been scrapped. Mr Elworthy said

Federated Farmers was not in a position to make a final judgment on the standard values because even the best farm accountants in the country were finding it hard to advise their clients. Because of the incompetent way in which the standard values had been handled and the lack of details available, the federation had seriously considered calling off the current round of public meetings with Cabinet Ministers.

However, it was preferable for farmers to attend these meetings to ask questions and to let the Government know their feelings on the economic package as a whole, particularly the new standard values system.

This was even more important in view of the Minister of Agriculture’s statement that the proposed system was a suggestion only and could be altered.

“At this stage, the federation believes the whole proposal should be scrapped,” said Mr Elworthy.