No taxpayer money for failing dairy farms, says Bill

As you know, I?m against the government propping up private businesses, but I can?t understand the lack of consistency here.

Bill English comes good but?I?bet that will give?Steve Joyce the shits.

Finance Minister Bill English said today the Government would not be offering special financial support to dairy farmers in trouble because of low prices.

But Primary Industries Minister Nathan Guy will head to Auckland on Thursday to talk to the dairy giant Fonterra and to major banks about their response to the downturn.

Fonterra last week revised its payout forecast from $5.25 to $3.85 per kilo of milk solids after a slump in prices Fonterra has got in the Gobal Dairy Trade auction.

It also offered interest-free loans to farmers which wont have to be repaid until the milk price goes above $6.

Mr English told Parliament his afternoon that the drop in prices would have a negative effect on the economy “but a containable effect”. ?

Acknowledging reports that the drop in milk prices over a season amounted to $7 billion less in the economy, he said it was a $7 billion reduction out of nominal GDP of $220 billion.

The economy could continue to grow at moderate rates of 2 per cent to 2.5 per cent.

“In respect of dairy farmers in distress, Government have had in place for some time measures for those families that are in severe financial distress,” Mr English said “but generally the Government would not be looking to financially support dairy farmers because of low prices”.

Lots of money for Rio Tinto, until the public revolted against it. ?Oodles for Sky City, until the public revolted against it, more and more for Team New Zealand, until the public revolted against it? ok, I get it now.

The government is too scared to bail out the dairy sector. ??More votes to be lost from the city folk than in the regions?

But the important thing here is no other small businesses get hand outs, so why should farmers.

What is also strange was watching James Shaw of the Greens start wailing for the government to prop up the farmers.

Is he from the same party that wants to kill our cows?to save the planet?

 

– A newspaper

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