No Surprises Budget Best For Farmers

Food and Fibre Minister John Luxton today said the Budget was great news for farmers because it provides the stability and strong economic growth necessary for the rural sector to prosper.

Speaking at the Taranaki Federated Farmers Conference Mr Luxton said the Budget laid the fiscal foundations on which to base future farming decisions.

"The Budget provides a direction on the eve of a new millennium that gives every reason for farmers to look forward with optimism. It puts farmers on the path to prosperity and puts more money into the pockets of those in the rural sector."

"Abolishing stamp duty will save about $14,000 on the sale of a $750,000 farm. It frees up the $35 billion of investment capital tied up in our farms, which should make a huge difference for the rural sector."

"We know farmers have had a tough time of it recently. That is why National has listened to calls from Federated Farmers to abolish stamp duty. The Government is committed to improving farm incomes and providing the right economic conditions to plan for the future."

"A competitive economy keeps farm costs such as fuel prices at record low levels. 30 year low mortgage interest rates and a competitive dollar will contribute to a sharp turnaround in the economy and ensure a resilient agricultural sector in the face of two years of drought and the Asian crisis."

"National's recipe of low inflation, flexible labour laws, smart micro-economic reform, prudent fiscal policy and tax cuts, will on current forecasts, deliver three times as much growth in the decade to 2002 than achieved in the previous decade."

"Farmers can plan for the future certain that a National-led Government has their best interests at heart. Under National the New Zealand heartland is on the path to prosperity. Labour on the other hand has lost the map and replaced it with a credit card."