Foreign farm subsidies ‘key N.Z. problem’

Press, 9 July 1986, Page 32

Foreign farm subsidies ‘key N.Z. problem’

PA Hastings Now that New Zealand has played its part in removing subsidies, it could ask its trading partners to do the same, said the Under-Secretary of Agriculture, Mr Butcher, in Hastings. It could now urge this course “with some credibility.” Agricultural subsidies were the key problem facing farmers in New Zealand, Mr Butcher said. Some of them were in New Zealand, but most of

the subsidies were in the European Community and the United States. Mr Butcher, member of Parliament for Hastings, said most farmers did not want a return to subsidies, but the reaction by farm leaders to Government moves designed to ease the transition for the rural community had been “far too negative for the prevailing mood among farmers.” “If "subsidies and artificial controls are both ruled out, the options be-

J come very limited.” 1 Commenting on the recent “package” which alf lows some writing-off of , Rural Bank debts, Mr t Butcher said what the . Government had done i was to make an offer to t discount the face value of s the largest chunk of rural 1 debt . r Some farms were so ■ badly distorted by previ- ; ous land values and subsidies that no amount of • debt write-off would make i them viable under .any ■ lik% product prices.