Wool chief upset by Govt

Press, 25 August 1988, Page 7

Wool chief upset by Govt

PA Wellington Claims that farming was in better shape now than for a long time showed the Government was “living in a fantasy world,” said the Wool Board’s chairman, Mr Pat Morrison. In an address to the annual meeting of the Wool and Meat Boards Electoral Committee, Mr Morrison charged the Government with treating agriculture as an "experimental plaything.” High exchange and interest rates caused by Government policies were creating havoc for agriculture, the first sector

exposed to “what the Government kindly calls ‘market forces’.” Mr Morrison said tariffs still existed on many imports used by farmers, who were also affected by tax on fuel for vehicles that most of the time were not on the road. Restrictions on live sheep exports continued. “What the Government does not seem to realise is that we have had continual exposure and cuts to our income but our expenses haven’t fallen.” Mr Morrison said a claim made on the 8.8. C. by the Minister of Finance, Mr Douglas, that

farming was now in better shape showed the Government was unprepared to face realities.

It had blamed all rural ills on the high price of land but failed to acknowledge the impact of high interest rates or earnings “eroded by exchange rate manipulation.”

He predicted the New Zealand dollar would not fall “as far as it should if we are to keep our farmers and exporters and their employees working.” This was because of a likely inflow of capital to buy state assets under the Government’s privatisation policies.

The Reserve Bank had “controlled interest rates at exorbitant rates ...

causing a slump,” but now that an effort was being made to talk rates down this would come too late for some farmers. Mr Morrison criticised the indication by the Prime Minister, Mr Lange, that the pace of change would slow, saying this was “all very well but I never heard similar comments when the pace of change hit rural areas three years ago.”

The real worth of wool to the economy was clear from figures showing wool and wool products to have been the second-biggest

earner in the latest export season, he said. Raw wool exports alone had totalled $1620 million, a record achieved in spite of Government policy and thanks to the board’s international promotion.

Mr Morrison said a decline in sheep numbers and declining returns for sheepmeat had serious consequences in the long term for wool production levels.

Nevertheless, wool had a good future as it was of world renown and a competitive fibre and stocks were minimal. The board believed production would decline only marginally next season, he said.