Elections and the level playing field

In an election year it is timely to remind ourselves how important it is to support good stable government, whichever party it is.

Even though the world has been going through some tough trying times, both economically and leadership issues, our National led Government has performed pretty well considering all facets.

Yes, I know there will be those folk out there that will disagree because they sit in other political arenas, but for an exporting nation as we are it is so important that our politicians get the right mix of policies.

Through most of my life I have avoided becoming a party political monster. Rather as a farming leader in Federated Farmers, FF, I always wanted to retain the right to criticise any party if it was deemed necessary. And I did!

So it was through some of this period that I wish to touch on today.

Many of our Taranaki Daily News readers are simply too young or not interested in how politics works but whether you like it or not sound government is really, really important.

However many of our more senior readers will recall the tough times of pre and post Rogernomics period of 1984 to 1990.

I got involved with FF at a young age, following 20 years in our Cardiff YFC. I became Junior VP of FF in 1981/83 then senior VP 1983/84 then was elected President in 1985/89.

But I want to take us back to the late 1970s through to the early 1980s when Robert Muldoon and his National lead Government introduced SMPs (supplementary minimum prices). This was brought about by very poor prices for all our agriculture products. So in an endeavour to save agriculture from collapse farmers got some top-ups as prices were below the SMPs that were set by Government

I recall that fat lambs were worth $10 and cull cows $20 each at that time. I guess if you’re milking cows or fattening lambs to go broke it sounds OK for the taxpayer to help you out. But the big question was, it didn’t address the main issues which was ‘‘why poor prices’’.

Then on top of poor prices we had shocking inflation rates in NZ. Over about a ten year period inflation was running at an average of 18 per cent yearly.

Also many were not aware that as minister of finance as well as PM, Muldoon was manipulating our then fixed exchange rate down, sometimes on a daily basis to help our exporters who mostly trade in US dollars. But whichever way you look at it, inflation kills the value of your currency.

So by the 1984 election New Zealanders had come to realise Muldoon was taking us down the wrong pathway and opted for Labour’s Rogernomics period.

How many recall that within a week of coming to power Labour devalued 20 per cent as the country was broke. Also our dollar had dropped as low as 38 cents against the US$.

Interest rates soured for many to over 30 per cent with the aim to stop we Kiwis from spending.

I do recall a FF member coming into our office and showing me a letter from his bank manager here in NP which basically said, ‘‘As you are in arrears with your interest mortgage payments of 24 per cent, I am now imposing a penalty of a further 12 per cent which equates to 36 per cent’’.

I recall seeing red and asked the farmer if he would take me to see his bank manager as I had something to say to him. After introductions I told him he was a bloody idiot, as anyone who can’t pay 24 per cent surely can’t pay 36 per cent. I then went on to tell him all the things he could do to help save his client.

I mention this only as a reminder of how bad it had really got as this was not an isolated case but one of thousands that got caught up within this Rogernomics period.

But it is a timely reminder as we lead up to the September elections to question all parties who are promising excessive spending, which can become inflationary but as well can lead to heavy government borrowing so please use your vote wisely!

Wise government spending is no different to you and I as if your expenditure is greater than your income then you either borrow or simple go broke.

The interesting thing is that the broad principles of the Rogernomics are still with us today regardless of changes of government.

I admit to supporting the need for change from the days of protectionism, tariffs and duties as in the long run they catch up with us all.

We in the farming community just want to stand on our own feet but do need that level playing field.