Tariff cuts timid, say farmers

Press, 28 December 1987, Page 6

Tariff cuts timid, say farmers

The tariff reductions announced by the Minister of Trade and Industry are timid, says the president of Federated Farmers, Mr Brian Chamberlain. The reductions were less than many manufacturers had expected and the lengthy timing was inconsistent with the rapid removal of other industry assistance, he said. Supplementary minimum payments for farmers had ended within three years, said Mr Chamberlain. The slow rate of change meant industries would not have the pressure to become competitive in the rapidly-changing domestic

and international economies thus damaging their ability to survive in the long-term. “It means they will continue to have higher wage rounds and have no incentive to increase productivity,” he said. “We are concerned these excessive costs will continue to be subsidised by efficient exporters, both manufacturing and farming.” The new tariffs would continue to over value the exchange rate which was already crippling exporters. “A much more substantial cut in tariffs is an essential part of the necessary economic reforms,” he said.