Farmers' leader hits back

Waimarino Bulletin, Volume 3, Issue 14, 27 August 1985, Page 22

Farmers' leader hits back

"The Deputy Leader of the Opposition's comments on Federated Farmers' lobbying activities would have more credibility if they were factually based and if Mr Bolger offered some constructive alternatives." This was stated by Mr Peter Elworthy, President of Federated Farmers, in commenting on Mr Bolger's criticisms of Federated Farmers' alleged lack of comments on inflation and interest rates. "The facts are quite simple. Federated Farmers has supported the moves started by the previous Government and speeded up by the current administration to increase efficiency and prov ductivity in the New Zealand economy by removing j the web of suffocating and distortionary restrictions built up over many years. These past policies had seen returns to farming both in absolute and relative terms fall significantly to the point where New Zealand's major export industries had to be compensated through such devices as the Supplementary Minimum Prices Scheme — a scheme which not only caused problems within New Zealand but also on our international markets." "The Federation has no reason to back off from its support for more market orientated economic policies, and from the recent speech by the Leader of the Opposition we assumed that the National Party also supported this approach. Is Mr

Bolger now saying that a National Government would reintroduce rate controls?" "While inevitably there would be some adjustment pain, it is not the market approach which is failing, it is Government's failure to free up the labour market and to reduce its own expenditure which has been responsible largely for the high interest rates and inflation. The Federation has strongly criticised these shortcomings in Government policies as Mr Bolger should be aware." "Because of the Government's and the union's refusal to free up the labour market, the Federation has requested that the Government issue a low wage guideline and penalise any employer or union who negotiates above that level because of their monopoly positions. Farmers would be interested to hear Mr Bolger's views on this issue." "The Federation has placed strong pressure on the Government to dismantle more rapidly the high protection given to the manufacturing sector — protection which costs the general consumer very dearly and the individual farmer about $12,000 per year. Again, farmers are keen to have clarification of the Opposition's views on this issue particularly in the light of Mr Bolger's reported negative attitude towards reducing New Zealand's extremely high tariff levels." "Rather than indulging in destructive criticisms, Mr Bolger should provide constructive alternatives to the extremely serious financial position which faces many farmers, particularly sheep farmers, over the immediate future," concluded Mr Elworthy.