Concern is rife in rural New Zealand about what would happen to interest rates if Labour and the Alliance formed the next Government.

Speaking from the Coromandel electorate today, National MP John Carter said the prospect of economic policy being tampered with and forcing interest rates up scares the life out of many farmers and rural people.

"Farmers have an appreciation of what the Government has done to help their cause. They realise that reducing costs across the economy has been hugely beneficial to the rural sector," said Mr Carter.

While Mr Carter makes his way down the North Island on his rural tour, fellow National MP Eric Roy and others are heading up the South Island.

Speaking from North Canterbury today, Mr Roy said farmers remember only too well the 15% interest rates of the late 1980s, under the last Labour Government.

"The message we've been getting is very clear. With product prices not all that great at the moment, it would only take a slight increase in interest rates to bring on huge casualties.

"Wool growers for example, who have also been severely affected by drought, are only holding on at the moment because interest rates are low," said Mr Roy.

He said a small hike in interest rates would make a significant difference to farmers' balance sheets. He pointed out that some dairy farmers are a million dollars in debt.

"Naturally, the Anderton factor scares them no end. Farmers realise the fundamental importance of this year's election. After all, a change of Government could pull some under," said Mr Roy.

ENDS

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Gordon Campbell: On the Sony cyber attack

Given the layers of meta-irony involved, the saga of the Sony cyber attack seemed at the outset more like a snarky European art film than a popcorn entry at the multiplex.

Yet now with (a) President Barack Obama weighing in on the side of artistic freedom and calling for the US to make a ‘proportionate response’quickly followed by (b) North Korea’s entire Internet service going down, and with both these events being followed by (c) Sony deciding to backtrack and release The Interview film that had made it a target for the dastardly North Koreans in the first place, then ay caramba…the whole world will now be watching how this affair pans out. More>>