Farmers meeting debt crisis ‘head on'

Press, 22 July 1988, Page 3

Farmers meeting debt crisis ‘head on'

By

DAVID LUCAS

Federated Farmers has given priority to solving the rural debt crisis and says it is prepared to meet the problem “head on.” The federation’s Dominion conference in Wellington ' yesterday agreed to encourage the various parties involved in rural debt to meet at carefully prepared creditors’ meetings. The aim of these meetings would be to reduce debt, achieve positive cash-flows and avoid mortgagee sales. The federation will give priority to developing strategies to solve the problem of unserviceable

debt, and a working party at the conference considered many proposals put forward by delegates. The federation’s president, Mr Brian Chamberlin, said a voluntary system was favoured, although the federation would be prepared to call for legislation forcing compulsory arbitration if needed. The debt problem was aggravated by the continued iniquitous interest rates which should be slashed immediately to bring New Zealand into line with its current inflation rate, said Mr Chamberlin. It had been recognised that the only way to deal

with the nation’s debt crisis was through increased exporting. The farming industry had huge potential to take advantage of new market opportunities, but it first needed to overcome the debt hurdle. Mr Chamberlin said the federation’s moves to deal with debt would be to no avail if the Government did not take urgent and permanent action to correct its fiscal policies. “It is essential that the Government reduces its spending because that is the only effective, fundamental answer to getting interest and exchange rates into line.”