Minister may visit Mid-Canty

Press, 13 May 1988, Page 19

Minister may visit Mid-Canty

An invitation to inspect the impact of Government financial policies and adverse weather on MidCanterbury farmers might be accepted by the Minister of Agriculture, Mr Moyle. The president of MidCanterbury Federated Farmers, Mr Eddie Glass, issued the invitation when Mr Moyle addressed the arable section conference. Mr Glass said that of the 1200 families involved in farming in Mid-Canter-bury, 400 were in dire straits and 300 had their farms on the market.

He said many farmers

had followed the advice given by Mr Moyle in the 1970 s to undertake massive irrigation projects. “They admired you for that advice but the decision to follow that advice has hung them.” The large financial burden the irrigation schemes had brought with higher interest rates of the 1980 s had caused many to lose their motivation.

“What does it matter if the Government wins its economic battle but loses its people,” said Mr Glass. Mr Moyle said he thought it a good idea for

himself and the Government’s caucus committee to spend “a day or so” in Mid-Canterbury to see what was happening.

He said he was concerned with the problems faced by farmers and it was for that reason he had agreed to speak to the conference.

Mr Moyle spent most of his time defending the Government’s economic policies and said that noone had come up with a viable, workable alternative policy which would benefit all New Zealanders.

He said interest rates

were now falling and grain prices were improving.

The world demand for wheat was likely to exceed production, thus reducing world stocks. It probably would not be until 1989 before there was any real strengthening in world wheat prices. The average price per tonne in New Zealand was likely to then rise from $2OO to an average of $240.

A 13 per cent reduction in milk capacity by Europe meant that the European butter mountain would be all but gone by

the end of the year, bringing better prices for dairy products.

Mr Moyle said the international sheep market was improving but New Zealand meat companies had overextended, themselves last year. A move which was causing embarrassment while they recouped their losses this year.

He was confident that sheep meat prices in the Middle East would improve substantially “so long as they stop firing missiles at each other.”