GOVERNMENT BACKS DROUGHT-HIT FARMERS

"Farmers in North Canterbury and other drought-hit parts of the country have my admiration and support as they deal with the devastating effects of the drought," Prime Minister Jenny Shipley said today.

Speaking to the North Canterbury Federated Farmers annual provincial conference, Mrs Shipley said the Government is being kept fully briefed on the impact of the drought on the rural sector and the economy in general.

"We are aware of the stresses and strains caused by the drought, and we have recognised the need for extra support through drought assistance packages in North Canterbury, Marlborough, Hawke's Bay and Wairarapa.

"Following the Federated Farmers drought summit held in Wellington earlier this week I expect the Minister of Agriculture to bring the organisation's views to the Government at the June 8 cabinet meeting, if the information is collated by then.

"The Government is willing to look seriously at Federated Farmers' submissions.

"The determination of New Zealand's rural people to be self-reliant is one of their great strengths, and I know how hard it is for many farmers to admit they need help. It is to their credit that the only request made of the Government has been to support farming families by meeting their immediate needs as they get back on their feet.

"They have never asked us to bail out their businesses or made other unrealistic demands, and I respect them for that responsible attitude.

"The one sure thing I can say about this drought is that one day it will be over, and in the medium term there is plenty to be optimistic about.

"New Zealand's economy continues to owe much to the productive sector - with food and fibre contributing 15.5 per cent of GDP and over a quarter of a million jobs.

"For this sector to continue to grow and do well, we have to ensure we keep up with international trends, opportunities and developments. This means looking for opportunities to add value to our products and target the top end of the market.

"New Zealand's rural people have a well-deserved reputation for being able to do anything with a piece of number 8 wire. We have to continue to be adaptable and innovative, and I have every confidence our farmers can rise to the challenges ahead," Mrs Shipley concluded.