Farm debt write-off hint welcomed

Press, 18 June 1986, Page 13

Farm debt write-off hint welcomed

PA Wellington Federated Farmers has welcomed an indication from the Prime Minister, Mr Lange, that both the State and private sectors could writeoff debts of some financially troubled farmers. In interviews on television and radio Mr Lange has said the Government was looking at both private and State sector writeoff. This would be part of debt restructuring included in a long awaited farm rescue package expected sometime this

month. Federated Farmers’ vice-president, Mr Brian Chamberlin, said that, as he understood it, the write-off would be part of an agreement reached between individual farmers and their lenders. They would have to work out a sensible level of debt from which all parties could salvage the greatest amount of money. Mr Chamberlin said he would support this approach as one of the options available to help troubled farmers. However, Mr Bruce

Townshend, the member of Parliament for Kaimai said that Mr Lange’s proposals for a write-off of farmers’ debts reflected a lack of contact with the reality of business and financial sector practice. “He has not addressed the hard question of what will motivate mortgage lenders to favour farmers or orchardists over other investors whose funds they have invested. “The Prime Minister's comments reflect his lack of reality of business and financial practice.”