Farming Too timid—farmers

Press, 28 July 1989, Page 3

Farming Too timid —farmers

By

JOHN HARFORD

Moves in the Budget to reduce costs to farmers were welcomed as a step in the right direcction but considered "too timid” by farming leaders. The senior vice-presi-dent of Federated Farmers, Mr Owen Jennings, of Nelson, said his organisation gave the Budget its conditional support The reduction in excise duty on diesel from 16c to 11c a litre from November 1, was “welcome but disappointing.” . The federation had expected the duty to be abolished. It would apply pressure for further cuts to the tax “as soon as possible.” The duty not only added to on-farm costs but also affected the costs

of transporting stock, milk and other downstream services. The cut was the second to be made in the last year. The duty was left at 23c a litre in last year’s Budget but was reduced to 16c a litre in March. The reduction in the average Accident Compensation Corporation levy from $2.45 to $1.65 per $lOO of leviable earnings was also welcomed by farmers. This would reduce on-farm costs as well as those in freezing works and dairy factories. But the intention to include sickness in A.C.C. payments drew an angry response. Mr Jennings said the Government was trying to shift the costs of a social problem onto employers and as such the move was

Federated Farmers would do what it could to' fight the proposal. One of the pleasing aspects of the Budget had been the stated objectives of reducing inflation, public debt, mortgage interest rates, and unemployment to certain figures by 1992. “Although these objectives are not as bold as we would have hoped, at least we will now be able to measure the performance of the Government against them.” Mr Jennings said the Budget was a logical consolidation. of the Government’s financial policy and should set the environment needed by financiers to move on interest rates. “I think we could expect to see the country move forward from this Budget,” he said.