Farmers’ plight

Press, 7 May 1986, Page 20

Farmers’ plight

Sir, —The Prime Minister, Mr Lange, told farmers that he could not control or influence the returns received for lamb on the Smithfield market. If he devalued the New Zealand dollar that would certainly change the price received here by the farmer. Maybe what Mr Lange was telling us was that he could not control or influence his Minister of Finance. The Prime Minister should know that a PL grade lamb ex-Smithfield returns $4.19 to $4.26 a kg. Using the lower figure, a 12kg lamb returns $50.28. The farmer here receives $1.22 a kg (schedule May 1, 1986) or $14.64 gross. Subtract $8.62 killing charges, 94c drafting inspection and levies, $1.25 transport to works (it varies according to distance); $lO.Bl total charges. This leaves the farmer with $3.83 or, if killing charges are increased, $2.43 a lamb. The producer receives 4.8 per cent of the London price. Mr Lange’s action is needed, not words. — Yours, etc. R. F. DUGDALE. Springfield, May 1, 1986. Sir, —The Minister of Finance, Mr Douglas, cannot factually dispute that $2 billion paid to farms was an incomplete refund for the cost excesses of tariffs, sales tax, and an over-valued currency. New Zealand’s real economic problems stem from 50 years of import protection. Mr Douglas dismissed as "naive” a leading economist’s research into cost excesses which amount- to 15 to 20 per cent for agriculture. Dr Lattimore is to be commended for his article, “Myth of marketoriented economy” (April 22). Mr Douglas prefers to believe a ("B.E.R.L. Report,” 1985), which suggests 3.6 per cent, or $BOO, cost excess for an average farm. Clear nonsense. Cost excesses on just one set of light truck tyres near that amount Mr Douglas believes a reduction in the exchange rate would not help burners and exporters. Seven cent of my farm cysts are

directly imported. The 10 per cent overshooting in the value of our currency, if corrected, would add $B2O to my costs, and $ll,OOO to my export receipts.— Yours, etc., B. K. MACFARLANE. Parnassus, May 2, 1986.

Sir,—l am as concerned as anyone regarding the plight of some farmers. The most urgent problem seems to be lack of short-term finance. I would like to appeal to those retired farmers who benefited from good prices in the past, both for their products and the sale of their land to new farmers, to consider withdrawing their investments from high-interest returns into a special low-interest account. The investor would get a low rate of interest, say 4 per cent as in a credit union, and the person in need would get it for, say 10 per cent. This lower return could possibly make the surcharge (on national superannuation) less. Federated Farmers or the Rural Bank could possibly administer it. “Think not what my country can do for me, but what I can do for my country.” — Yours, etc., L. GARDEN. May 5, 1986.

Sir,—The retort by Mr Lange in response to the recent farmers’ protest rally — “We have no control over Smithfield prices” — inferred that these prices were the cause of farmers’ desperation. Smithfield prices are at record high levels, but uncontrolled inflation within New Zealand has cut the farmers’ share to record low levels. It would have been more relevant if our Prime Minister had admitted that his Government had no control over inflation, for it is its weakness and reluctance to act firmly in this field that has brought New Zealand’s most valuable industry to the brink of total collapse.— Yours, etc., G. A. INCH. Oxford, May 3, 1986. Sir,—When all is said and done the much-publicised farmers’ march on Parliament turned out to be a National Party rally addressed by the leader, Mr Jim Bolger. The only novelty was that it is not usual for such rallies to ask for hand-outs from a Labour Government. —Yours, etc. JOHN G. FREEMAN. May 2, 1986.