Government cuts import tariffs on farm goods

Press, 9 January 1987, Page 3

Government cuts import tariffs on farm goods

By

MARTIN FREETH

in Wellington The Government has finally delivered on its promise to farmers to cut import tariffs on goods they require, but Federated Farmers immediately dismissed the new policy which removes or reduces the tariff on just 16 imported items as insignificant in reducing the cost structure faced by farmers.

The Government undertook in its farm policy statement of December, 1985, to tackle tariffs on farm inputs. When no action was taken'last year, farmers protested to the Government. The Minister of Trade and Industry, Mr Caygill, said yesterday that the delay resulted from a commitment the Government also gave to manufacturers to consult with

them before reducing any tariffs. Under decisions he has now made, six items, including pick axes, nose rings for animals and 2,4, 5-T phenol chemicals, are no longer subject to a tariff. Ten other tariffs have been reduced to between 30 per cent and 5 per cent, affecting imports including spades, aluminium tube and dairy pasteurisers.

Mr Caygill said that a range of other farm inputs were covered by individual industry plans under which tariffs were already being phased out. In particular, he said, tariffs on goods covered by the plan for plastic goods, tyres and footwear would be phased. out quicker than earlier intended in the interests of farmers.

However, the federa-

tion’s agricultural section chairman, Mr David Ritchie, argued that the Government seemed still not to appreciate the need to put the economy on an internationally competitive basis. The cuts would do nothing in particular for the profitability of arable farmers who had already made their expenditure decisions for this year, Mr Ritchie said.

Nevertheless, he welcomed the opportunity for the federation to be involved in the Government’s working party on all tariff levels after 1987.

Mr Caygill announced that the farmers would be invited to join that group which will also include manufacturers. The federation estimates there are 150 tariff items of Interest to farmers.