29 JUNE 2015

National Watching From Sidelines as Tragedy Looms for NZ Economy

A rural tragedy is looming in New Zealand, and its tentacles will reach out everywhere, warns New Zealand First Leader and Member of Parliament for Northland Rt Hon Winston Peters.

“Dairying, which has been propping up the economy along with the Christchurch Rebuild, has taken its biggest ever hit with prices falling nearly 50 per cent since February last year.

“Meanwhile, the National Government is sitting back and leaving everything to the free market.

“This lack of strategy spells doom for New Zealand.

“Many farmers who spent millions on dairy conversions will be forced on their knees before foreign banks.

“Cities and towns in provincial New Zealand will already be hurting as farmers tighten spending,” says Mr Peters.

“It’s not getting any better with Europe now awash with dairy products after a ban on exporting to Russia by the European Union.

“Europe will support its own producers first, so New Zealand will be shut out and our chief buyer, China, will see a chance to purchase elsewhere.

“In this environment the China Free Trade Agreement won’t help and neither will the TPPA. Even Trade Minister Tim Groser admits that.

“The dairy payout for 2015/16 was meant to be $5.20. For that to happen $US3300 per tonne for milk powder is required ,whereas currently the price is $US2300.

“Fonterra is relying upon the production surplus overseas being temporary but volumes around the world are rapidly climbing and Fonterra and certain industry and political optimism about what temporary means is simply not justified.”

ENDS

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