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Watt Gives a Dam For Dollars

The Labour Government decided the formers had earned too much and asked them to deposit $80 million in a Income Retention Scheme (with the threat that it would be taken if the farmers did not do it voluntarily). The money is kept for more than a year during which it earns' no interest. However if the farmer has a lower income in subsequent years it means he pays a lower rate of taxation. While the government lets inflation rise at 15% this means that at the end of the year the farmer has effectively lost 15% purchasing power on his money while saving a small amount in taxation. What other group could the government con in this way? Imagine if they said to the companies that made excess profits to put this excess amount aside for a year. There would be a hell of a row.

The fact that the government has allowed rampant inflation which the farmer has to try and absorb has very much disturbed them. Many farmers are most upset at the strife in the freezing industry and blame it on the militant unions. However the blame lies more on the government and the archaic management methods practiced by the foreign controlled freezing companies. The government could do much more to help solve disputes. Remember the farmer only has his stock in prime condition at one time and any hold up in processing means serious repercussions for all involved. Then there is the matter of the new hygiene regulations in the freezing works to bring works up to standard so products can be marketed in the good old USA. Expansion for this has cost millions of dollars which of course are passed on to the farmer, but in the case of beef exports, an announcement is expected by Nixon soon that they will not allow any more NZ beef in. Was this just a waste of money?

Another thing which has upset the farmers is the governments determination to pass the Wool Marketing Cirporation Bill. I will not go into the pro's and con's of it here but it would be true to say that the vast majority of farmers oppose this piece of legislation and were very surprised when the government announced a second reading of it in Parliament a couple of weeks ago.

At present stock numbers (cattle, sheep, etc) are at the lowest point for some years and farmers see the outlook as bleak. Until the government gives the farmers some much needed confidence New Zealand is heading rapidly into a recession.

After reading all these problems of the hill country sheep farmer I have listed, some cynics will probably ask "why don't they get out?" The answer is that many have and many are trying but are tied down by mortgages. Also for many it is their only way of life and they would not consider anything else, living in a crazy mad city just doesn't attract some people.

In summary, the three major problems of farming are communication, the stock and station agents and the government. The farmers know what is going on in the cities, but they don't know why and the city folk don't even know what's going on in the country. The government could also put some controls on some of the questionable activities carried out by the stock and station agents and help farmers rid themselves of them by making the State Advances lending policy more liberal. If the government controls inflation better then this may give the farmers what they are badly lacking in—confidence. There is every reason for the government to give, farming this confidence for there are 1000 million starving people out there in the world and who knows, we might all gain something.

In 1972 the Labour Party promised that the banks of the Clutha River would not be raised above their natural level. Yet now they have put forward a $400 million dam project for the Clutha River. This will flood a large part of the town Cromwell. Mr Kirk felt justified in issuing a statement saying that locals supported the proposals because the only people the government has consulted have been the businessmen, who stand to gain substantial compensation.

More recent developments have shown that other sections of Cromwell are not so enthusiastic. The locals were not given the chance of a public meeting; this was a privilege only for businessmen. The public meeting was cancelled because "it was felt that more people would have been outside the hall than in it. Greater frustration and disappointment could have resulted had the meeting proceeded." (Otago Daily Times) Instead three weeks were given from the time the interim report of the government committee was made available on June 13, until public submissions could go before the committee.

From the limited information given, townspeople have based their opposition on the effects to Cromwell. Orchardists and farmers are concerned about the effect a large expanse of water will have on the climate of the region. When Lake Karapiro was created on the Waikato River there were several climatic changes, among them, thick fogs and a more irregular rain-fall, both of which would have bad effects on orchards. Residents of Cromwell are also worried that re-siting the river could lead to the town being by-passed.

One of the letters to the Otago Daily Times about the plans for Cromwell, stated "For some, the dam will be a shot in the arm: for others—a low kick in the stomach" Another letter pointed to the amazing powers of the dollar, when it can "induce life-time residents of this area to sell off this area for a series of concrete ponds." Other letters have echoed the point that no amount of compensation can buy sentimental associations people hold.

There are other disturbing facts involved in the issue. The day before the plans were to be announced, Dominion Breweries were reported to have purchased two hotels, the Lowburn and the Golden Age, that are to be flooded under the proposed scheme.

Also, it is strongly suspected that certain elected representatives in local body and government positions may have financial interests in the proposed areas for flooding People are wondering why Cromwell was chosen as the construction site for the dam ahead of Clyde, reckoned to be better suited geographically and closer to material sources.

For this scheme to be of maximum benefit to NZ a high dam is essential. In hydro-generation it is the top few feet of the dam that are important in water storage. Only the water that is above the penstock entrances is any use in generating power. The proposed low dam is considered a political compromise between the Labour Party's present non-disruptive environmental policies and increasing demand for greater power generation. Yet the low dam will have minimal effect on increased power supply.

The Cromwell scheme is a substitute for the mis-guided effects of the original Manapouri and Wanaka power projects. Cromwell is being forced to pay the price for the wasteful use of electricity in such activities as Colmalco's aluminium smelter.