Farmers ‘better off on the dole’

Press, 9 March 1987, Page 2

Farmers ‘better off on the dole’

PA Auckland Plenty of fanners would be better off on the dole, the chairman of the Dairy Board, Jim Graham, has said in Auckland. “I take absolutely no comfort from the view that our over-valued dollar is simply part of an adjustment process,” he told the first of the dairy industry’s annual round of ward conferences. “It has gone on far too long and it was not predicted or expected by the economic theorists in the Treasury.” Mr Graham said he deplored the fact that the Government had taken so little notice of the combined representations of the Export Institute, the Manufacturers’ Association and producer boards on the value of the dollar.

Three years ago, he said, the dollar was widely recognised as over-valued. The Government’s decision then was to devalue 20 per cent to restore international competitiveness.

Since the devaluation, New Zealand had had much higher inflation than its trading partners, said Mr Graham. After adjusting for that factor, the dollar was now about its level before the 20 per cent devaluation, he said. Mr Graham applauded the Government for dismantling various forms of protection and subsidies in the economy. He said the market outlook had also started to improve. Prices for a number of dairy products had risen.