COST OF PHOSPHATE FOLLOWING DEVALUATION

Waimarino Bulletin, Volume 2, Issue 11, 14 August 1984, Page 13

COST OF PHOSPHATE FOLLOWING DEVALUATION

"Farmers would welcome the news that half the cost of the increase in phosphate rock resulting from devaluation would be met by the Phosphate Commission," said Mr Peter Elworthy, President of Federated Farmers in Wellington last week. He was commenting on a statement from the Minister of Agriculture which set prices of rock phosphate at 10% higher than at present, This is the first postdevaluation cost increase to flow through to the industry. The Federation has insisted, and will continue to insist, that Government adopt further measures to ensure that

these cost mcreases do not erode the benefits of devaluation to the export sector. "We remind Government that farming is the principal factor in economic recovery. Farmers are prepared to play their part in this recovery but their efforts will be severely undermined if measures are not adopted to increase efficiencies within the economy. "The Federation expects the fertiliser industry, 80% of which is co-operatively owned, to play its part alongside the Phosphate Commission and reminds the company directors of their responsibility to their shareholders," concluded Mr Elworthy.