Moves on wheat ‘too far too fast’

Press, 12 September 1986, Page 2

Moves on wheat ‘too far too fast’

Wellington reporter The Government has moved too far too fast in deregulating the wheat industry, according to the Opposition spokesman on arable farming, Mr Denis Marshall, (Nat, Rangitikei). The price for wheat had now been tied to the Australian price which in turn was supposedly set on international prices. World prices were at a record low because of the huge surpluses of subsidised United States and European grain, said Mr Marshall. For the Government to say (“The Press,” Septem-

ber 11) that the wheat industry was the cornerstore of the arable sector and that the impact of the international price war must not be allowed to fail unfairly on New Zealand growers was a “sick joke." For months he had been telling the Government that artificially low market prices for wheat would be disastrous for arable farmers in New Zealand. While there was now some recognition of the problem by the Government, it was not enough to say that it would wait until there was evidence

of dumped wheat entering the country, before acting, Mr Marshall said. By the time the growers had collected the evidence, proved the case and established the penalties, another growing season would have passed and many cereal growers would be “broke.” The market price in New Zealand should be calculated not on just the Australian price but on that plus the subsidy paid to Australian growers, he said. That would lift what was paid to the New Zealand grower to an honest figure.