Nelson farmers vent frustration on Govt

Press, 19 December 1985, Page 3

Nelson farmers vent frustration on Govt

PA Nelson Nelson farmers vented their frustrations on Government policy-makers in a heated and at times unruly meeting at Richmond on Tuesday.

The Associate Minister of Finance, Mr Caygill, and the Under-Secretary of Agriculture, Mr Butcher, faced a constant barrage of interjections from an audience of about 100 farmers.

Mr Bob Reynolds, of Waimea West, asked the Ministers how they expected fanners to live on $7500 a year. A 23 per cent drop in gross farm income forecast by the Meat and Wool Board’s Economic Service would be suicidal for farmers.

Mr Caygill challenged those figures which he said were based on assumptions that were incorrect as exchange rates had altered since.

A Hastings accountant said yesterday that increases in standard values announced in the Government’s farm package would cost farmers a lot at a time when they could least afford it.

A partner in the accounting firm of Coopers and Lybrand, Mr Terry Taaffe, said the increase of standard values to 70 per cent of a three-year moving average meant farmers continuing in business would have to pay tax on profit not represented by money in the bank.

“We estimate a farmer with 2000 sheep and 150 cattle could have additional taxable income of $26,000,” Mr Taaffe said. . ■ ■

“While we recognise that a review of the standard

value system was inevitable, a change of this magnitude at a time when the industry is under stress is unrealistic,” he said. However, he welcomed the tax concession of a 50 per cent write-off on the book profit of livestock sold before April, 1987, for farmers selling their properties. Farmers facing mortgagee sales should be given details of a new refinancing deal mooted by the Government, said the Opposition spokesman on agriculture, Mr lan McLean, yesterday.

The Minister of Agriculture, Mr Moyle, said on Tuesday evening that the Government could introduce measures to help farmers with high debt servicing. Mr McLean said Mr Moyle bad hinted at help for farmers. “In all fairness to the families whose futures are at stake, he should let them know what they must do to qualify,” said Mr McLean. The Government has assured goat farmers that it has “no wish to impede the orderly development of their industry” through changes to the system of livestock values, says the Wellington reporter of “The Press.”

If the proposals for the goat industry were likely to have a detrimental effect farmers’ concerns could be canvassed fully by the committee set up under the chairmanship of Dr Don Brash.