A tale of two countries

Is Australia still the lucky country? When it comes to Budgets, Luke Malpass says it’s not.

In 2008, Australia had a mining boom, rising wages and no debt. Its government had delivered consistent surpluses, tax cuts and targeted cash payments to targeted voter groups. Growth was assumed and household wealth doubled during the Howard years. It even avoided recession.

In contrast, New Zealand was lurching into debt, had a collapsed non- bank finance sector, a tradeables sector that had been squeezed for several years, a real recession in advance of the global recession, and a structural deficit. . .

But last week, our Finance Minister Bill English announced New Zealand is on track back to surplus while Australian Treasurer Wayne Swan  announced an A$19.4 billion deficit, with several years of deficits to follow.

Budgets are ultimately about choices. The Australian Government chose to run it close to the wind, increasing spending by as much as the most optimistic revenue forecasts would allow.

New Zealand made a very different and far more difficult set of choices. In 2008 the issues were obvious: productivity growth was poor, taxes too high – particularly at a relatively modest level of income – and the tax system had little internal integrity.

Government was chomping its way through far too much of the national pie, crowding out private sector activity.

One important thing the New Zealand Government has done is tamp down expectations of spending increases, concentrating on core activities and not using government as a vehicle to give handouts to partisan coalitions of voter groups. As part of this strategy, the Government is reducing both its spending and revenue to GDP ratios. It has reaffirmed its commitment to getting core government spending down from 35 per cent of GDP in 2008-09 to 31 per cent in 2014-15. The rate of spending increase has slowed to less than CPI and population growth. . .

This hasn’t just been an economic success, it’s been a political one.

The government has managed to reduce costs while maintaining services and has managed to convince most people of the necessity for doing that.

. . . New Zealand’s books look in better shape than Australia’s, not least because of New Zealand’s public accounting system. It is more difficult to fudge the figures and render the accounts opaque than is the case in Australia, where payments can be brought forward and/or shifted backwards to create fiscal illusion in any given year.

We have Roger Douglas, Ruth Richardson and the ‘failed’ policies of the 80s and 90s to thank for that.

New Zealand’s Budget is commendable and, compared with Australia’s, it looks extremely positive. In the long run, nations can only excel and grow living standards by being competitive and living within their means. The current situation in Europe attests to that.

With all the advantages in the world, the Aussies have not managed it, and face some very difficult decisions in coming years. In contrast, from a pretty poor position New Zealand is getting its fiscal house in order.

And getting its fiscal house is putting New Zealand on a far stronger foundation than many other countries.

Rural roundup

Communication key in success of group – Sally Rae:

The importance of communication has been stressed by those involved with Mitchell and Webster Group – the supreme winner of this year’s Otago Ballance farm environment awards.

The intensive cropping operation and wholesale business producing bird and small animal feed is based on the Mitchell family’s historic Rosedale farm at Weston and covers 1375ha of arable land in North Otago.

A large crowd attended a field day hosted last week by Peter Mitchell and Jock and Nick Webster and their families. . .

Exceptional Family-Run Business Scoops Supreme Award In Otago Ballance Farm Environment Awards:

An extraordinary cropping and wholesale business run by two families has won the Supreme Award in the 2013 Otago Ballance Farm Environment Awards.

Jock Webster, Nick Webster and Peter Mitchell of the Mitchell Webster Group received the special award at a Ballance Farm Environment Awards (BFEA) ceremony in Wanaka on April 12, 2013.

Producing bird and animal feed, their intensive cropping business spans 1380ha of arable land in North Otago and is based from the Mitchell family’s historic ‘Rosedale’ farm at Weston.

The Mitchell and Webster families joined forces in 1972, creating, said BFEA judges, “an extraordinary and inspirational family business that has withstood the test of time”. . .

Scale, diversity of Asian markets noticed – Sally Rae:

An industry-backed trip to Asia has given Blair and Jane Smith a deeper understanding of the challenges facing marketers of New Zealand meat and dairy products.

Mr and Mrs Smith, from Five Forks and the national winners of the 2012 Ballance farm environment awards, recently returned from South Korea, China, Taiwan and Singapore.

They visited various markets for New Zealand sheep, beef and dairy products, with the aim of learning more about offshore markets, exchanging views on topics of interest to New Zealand farmers and of highlighting New Zealand’s stance on agricultural sustainability. . .

Ace shearer special guest – Sally Rae:

Top shearer David Fagan will be the special guest at the Royal Agricultural Society of New Zealand’s national Golden Fleece competition in Mosgiel this week.

The Otago-Taieri A&P Society is hosting the event, which is open to both fine- and strong-wool growers throughout New Zealand.

The competition has been held for more than 40 years and has moved around the country, although it had predominantly been hosted in the South Island as that was where most of the entries came from, RAS executive member Kelly Allison said. . .

Slow and steady wins farm race – Annette Lambly:

A simple but effective stocking policy has earned Paparoa farmers Janine and Ken Hames recognition in this year’s Ballance Farm Environment Awards.

The couple, who own Ewenny Farms, a 351ha (256ha effective) beef-only farm on Paparoa-Oakleigh Rd, achieve meat production of 277kg CW/ha (three-year average).

This is well above average for this class of land (Waiotira clay loam) in Northland and is accomplished with all-grass feeding, with no hay or silage.

Janine, a veterinarian, has a comprehensive animal health plan for the cattle, and does regular drench checks and faecal egg counts. . .

Tradeable slaughter rights useful but may not be the answer – Allan Barber:

The Tradable Slaughter Rights concept, raised by me several weeks ago and promoted last week by Mike Petersen, was first proposed by Pappas, Carter, Evans and Koop in 1985. But its purpose was specifically to solve the problem of an industry that consisted of a lot of weak competitors with little innovation or variation in killing charges. The report identified excess costs between farmgate and shipside of $100 million or 8%.

Although the meat companies are not exactly making huge profits or enjoying strong balance sheets, it would be entirely false to accuse them of lack of innovation and high operating cost structures. What is still relevant is the issue of excess capacity, but the end result today is not too much cost, but too much procurement competition. . .

Tackling poverty

The left are criticising the Budget for not tackling poverty.

But they are wrong as Finance Minister Bill English pointed out:.

“It is widely acknowledged that paid employment is the best way to lift vulnerable families out of poverty,” Mr English says. “The Government will invest a further $188.6 million over four years for the next stage of welfare reforms, to help more New Zealanders into work. . .

Helping people help themselves by moving from welfare to work is one of the most effective, long term solutions to poverty.

Blue Budget

Today’s Budget is a blue one, literally and figuratively.

It’s got a bright blue cover and it will be one which is written with the understanding of the importance of sound financial management.

Finance Minister Bill English was looking cheerful in his pre-Budget interviews yesterday and he deserves to.

In spite of the woeful state in which Labour left the economy, and the natural and financial crisis with which the government has had to deal, National has done what it said it would.

It took the rough edges of the worst effects of the recession, reduced the cost of government while maintaining services and has on back on track to surplus in the next financial year.

Only the blinkered would believe that this would have been possible with a red or a red/green budget.

The government is launching an update of its Budget app for smartphones and tablets with interactive features that allow users to see how much tax they pay and how their tax dollars are spent.

It went live at 2pm as the Budget delivery began.

You can find it here.

IMF, S&P give NZ tick

The International Monetary Fund has confirmed that the Government’s economic plan strikes the right balance between supporting growth and limiting public debt, Finance Minister Bill English says.

In its final staff report issued this morning, the IMF endorses New Zealand’s balanced and pragmatic economic management.

“Coming out the day before the Budget, this is a strong vote of confidence in the Government’s programme over the past four years,” Mr English says.

“It follows a string of encouraging economic figures, which shows the economy growing at 3 per cent last year, an extra 50,000 jobs over the past two years, falling unemployment and healthy consumer and business confidence.”

In particular, the IMF notes the New Zealand economy appears to have strengthened in the last few months of 2012, with subdued inflation and fiscal policy that strikes the right balance between supporting growth and limiting public debt growth.

The IMF says: “The benefits of the plan are many. First, it withdraws fiscal stimulus at the right time by making room for the expected increases in private sector and earthquake-related reconstruction spending.

“Second, it has improved the macroeconomic policy mix by reducing pressure on monetary policy.

“Third, it creates fiscal space to help the country deal with aging and health care costs that are expected to increase over the long-term, and to cope with any negative shocks that may cause a sharp reduction in domestic economic activity or potential liabilities associated with the banking sector.

“Last, it could help raise national savings, reduce the current account deficit, and limit the increase in foreign liabilities.”

The IMF also notes the New Zealand banks remain sound.

However, it says New Zealand’s longstanding external liabilities remain a risk, reflecting historically low household savings rates.

“The Government has acknowledged this as New Zealand’s largest vulnerability and we have a sound, long-term plan to help turn that around,” Mr English says.

“Our economic programme includes a large number of measures aimed at improving the competitiveness of businesses. They include increasing exports and innovation, improving skills and infrastructure, deepening the capital markets and sustainably developing our natural resources.

“We are making progress in all of these areas.”

We can look across the Tasman to see what a Labor government has accomplished there. We could expect the same, or worse performance from a Labour-led one here.

By contrast National has done exactly what it said it would do – protected people from the worst effects of the global financial turmoil, maintained or enhanced public services while reducing the costs and put us on track to return to surplus in 2014/15.

The IMF report isn’t he only one which gives National’s policies a tick.

Standards and Poors have put New Zealand in its top 10 of least risky countries.

New Zealand, and Australia, have entered credit rating agency Standard & Poor’s list of the world’s top 10 least risky countries.

The list, included in S&P Capital IQ’s latest quarterly Global Sovereign Debt Credit Risk Report, has New Zealand ninth, sandwiched between Australia and Austria. The report focuses on changes in the risk profile of sovereign debt issuers, with the intention of identifying key trends and drivers of change.

New Zealand and Australia are new entrants in the top 10 least risky list replacing Britain and the Netherlands. . .

Lower risk helps takes pressure of interest rates which is good for the economy.

The IMF report is here.

Rural round-up

Bee decline worries unjustified says honey producer:

A New Zealand honey producer and exporter says there’s too much unjustified doom and gloom about the health of the world’s bees.

Reports of wide-spread bee losses and colony collapses in Europe, Asia and North America have raised the alarm about the survival of honey bees.

The European Union has recently banned a group of systemic neonicotinoid insecticides.

However, Airborne Honey managing director Peter Bray says global honey statistics show bees are actually doing well.

He says world honey figures show beehive numbers and honey production per hive are up, and world trade is increasing. . .

Taranaki recognised for riparian management:

Taranaki’s flagship riparian management programme, which has “gone the extra mile” in developing relationships with dairy farmers, has been recognised for its outstanding contribution to protecting the environment.

 The Taranaki Regional Council programme is a finalist in two categories of the Ministry for the Environment’s 2013 Green Ribbon Awards: the Caring for Our Water and Public Sector Leadership categories.

Environment Minister Amy Adams announced the finalists in 11 award categories last week. . .

Crusoe wheat variety set to make dough for break makers – David Jones:

When Robinson Crusoe was cast away on his tropical island he would have probably found good use for the breadmaking wheat that is his namesake, to aid his survival until rescue.

The promising eponymous milling variety, named after Daniel Defoe’s hero, could now be delighting growers and breadmakers alike and be the future foundation of the British loaf.

From deserted isle to Kent’s sparsely populated Romney Marsh, one bread wheat grower is planning for the variety to take a big slice of his farm this autumn. . .

Fonterra Tankers Get a School Milk Makeover:

Fonterra Tanker Drivers Mike Courtney, Ian McKavanagh and Jess Drewet with one of the new Fonterra Milk for Schools tankers.

From this week, Fonterra drivers will be hitting the roads in 14 brand new Fonterra Milk for Schools themed tankers.

Fonterra Tanker Driver, Jess Drewet, says the team is excited to get behind the new wheels.

“Not only are these completely new vehicles, they are displaying something of which our team is really proud. When you drive as much as we do, you get quite attached to your tanker, and the team can’t wait to get out on the roads and show the new ones off,” says Mr Drewet. . .

Agriculture extravaganza in Fielding:

Feilding’s Manfeild Park has become a sort of one stop shop for beef and sheep farmers this week.

Three farmer events that have been running for years in Manawatu are being rolled into a single four-day extravaganza.

The Aginnovation programme began on Saturday with Future Beef New Zealand, an event designed to encourage young people into the beef industry. . .

Argentine farmers expected to plant more wheat this coming season -

Argentina will plant more wheat this season than last year because of farmer-friendly adjustments to the government’s export policy and the bad luck that growers had last season with alternative crops such as barley, a key grain exchange said.

At a time of rising world food demand, the grain-exporting powerhouse can expect 3.9 million hectares to be sown with wheat in the 2013/14 season, up from 3.6 million planted in 2012/13, the Buenos Aires Grain Exchange said in its first wheat area estimate of the year. Planting starts next month.

“Our survey of growers shows a clear improvement in terms of intention to sow wheat,” the exchange said in a statement. “This improvement is due primarily to the poor experience that growers had with alternative crops (mostly barley) last season.” . . .

The Frankenchicken kerfuffle – Moon over Martinborough:

“I want us to raise chickens for meat,” CJ said. “Like proper farmers.”

“Seriously?” I said. “When you wanted to breed pigs for meat you fell in love with the pigs and ended up screaming, ‘I will never eat their babies!’ Remember?”

 “That was different. That was pigs.”

It turns out CJ had already arranged to pick up five meat birds from our friend Claudia. He was trading them for our olive oil. . .

NZ nurse awarded Florence Nightingale Medal

The International Committee of the Red Cross (ICRC) has awarded New Zealand nurse  Janet Askew the highest international distinction a nurse can receive.

The Florence Nightingale Medal honours exceptional courage and devotion to the victims of armed conflict or natural disaster.

The medal also recognizes exemplary services and pioneering spirit in the areas of public health and nursing education.

“Janet has extensive international nursing experience. Her first mission with New Zealand Red Cross was in 2003 when she went to Sudan (Juba) as a Health aid worker,” says New Zealand Red Cross Secretary General Andrew McKie.

“Janet has exemplified the personal qualities of courage and bravery many times during her career. The Florence Nightingale Award recognises her outstanding commitment and devotion to duty,” he says.

This year 32 aid workers throughout the world will receive the Florence Nightingale Medal. It is the 44th award of the medal. Janet Askew is only the 26th New Zealander to receive the award.

Janet will deploy to Lebanon next month on her sixth Red Cross mission.

Can conservation and devleopment co-exist in Mackenzie?

Conservation Minister Dr Nick Smith and Environment Minister Amy Adams have welcomed a report proposing a way to manage the contentious land intensification, water, landscape, and biodiversity issues in the Mackenzie Basin.

“This report is the result of a collaborative process by more than 30 groups and individuals working together to develop options for the future of the basin,” the Ministers say.

“The focus has been on investigating ways the biodiversity and special character of the land can be enhanced, while ensuring tourism and farming continue to develop.”

This collaborative process was initiated in preference over protracted court proceedings for development proposals in the district.

“It is far more constructive to have diverse interest groups working together on a shared vision for an area than having years of protest, court proceedings and community tensions.

“The report makes a number of recommendations for both central and local government. The Ministry for the Environment and the Department of Conservation will now take time to consider the report and its recommendations. . .

Getting more than 30 groups with very different views on what’s best for the area together was a major undertaking.

David Bruce  says goodwill is key to the future:

The ”Mackenzie Agreement” has been described as ”innovative” and ”unique”, but announcing the details tomorrow is only the first step in achieving a collaborative approach to issues facing communities in the region.

The agreement, signed by 22 local and national organisations, is a shared vision and strategy for the future development of land and water resources in the region. Details are being kept under wraps until tomorrow.

But what will happen from now on will determine whether it is a success, a template for use in other areas of New Zealand.

While its title is the ”Mackenzie Agreement”, it in fact covers the Mackenzie, Ohau and Omarama Basins and has been developed under the auspices of the Mackenzie Sustainable Futures Trust, set up in 2011 by Waitaki MP Jacqui Dean, who is also its chairwoman.

The aim was to bring together local people and groups and national organisations with an interest in the future of the three basins.

It was an attempt to end a growing divide between people who lived and relied on the region for their livelihoods and those from outside the area who opposed any extensive development.

Mrs Dean has described the agreement in glowing terms, a way forward for an area that became a battleground between those who wanted progress, and those who opposed it.

But its success will depend on the goodwill continuing in the future. . .

As the ministers said, collaboration is preferable to court proceedings and community tensions.

But it will require continued good will and good communication to ensure the promise of the plan is realised and show that conservation and development can co-exist.

No regrets

From Story People by Brian Andreas.

Welcome boost in employment

The economy grew 3% last year and at last there’s a sign that the growth is leading to more jobs.

The drop in the unemployment rate from 6.9 per cent to 6.2 per cent in the March quarter is encouraging news, Tertiary Education, Skills and Employment Minister Steven Joyce says.

The Household Labour Force Survey released today showed that 38,000 more people were employed in the quarter.

“The result follows news the economy grew 3 per cent in the year to December and is another sign the economy is continuing to head in the right direction,” Mr Joyce says.
“While the fall in unemployment is a good result it may be a little too good as this survey is known to move around and we need to be cautious.” . . .

Caution is sensible. With surveys, like polls, it’s the trend which is more important than an individual result.

The result puts New Zealand in 11th place in the OECD, which has an average unemployment rate of 8 per cent. Our participation rate grew from 67.2 to 67.8 per cent and remains higher than Australia’s at 65.3 per cent.

Hours worked increased 3.2 per cent for the quarter – the highest since 1994.

“The Government’s economic management and Business Growth Agenda were praised last month by IMF Managing Director Christine Lagarde who described the New Zealand economy as being ‘very stable’ and ‘very promising’ and a lot better than other parts of the world,” Mr Joyce says.

“The National-led Government is encouraging more investment right across the New Zealand economy as we know that nothing creates jobs and grows incomes for New Zealand families better than business growth.”

The left still think it’s governments which create jobs.

The government’s role is to get the environment right so that businesses have the confidence to employ people.

MPI founding DG moves to LIC

The man who oversaw the creation of the Ministry of Primary Industries and became its first Director General, Wayne McNee,  has resigned to take up the role of chief executive of Livestock Improvement.

. . . After becoming the General Manager of PHARMAC in 1998, then Chief Executive of PHARMAC in 2001, Mr McNee became Chief Executive of the Ministry of Fisheries (MFish) in 2008. He was appointed as Chief Executive of the Ministry of Agriculture and Forestry (MAF) in 2010 and then as Chief Executive of the Ministry for Primary Industries in 2011, following the merger of MAF and MFish. . . 

Primary Industries Minister Nathan Guy said:

“I’ve enjoyed working with Wayne over the last two years. He has overseen the merger of MAF with the New Zealand Food Safety Authority and the Ministry of Fisheries to create the Ministry for Primary Industries (MPI) in 2012,” says Mr Guy.

“The merger has resulted in savings of over $20 million a year and created a new strategy of ‘grow and protect’. MPI now has the ambitious target of doubling exports from the primary sector from $30 billion to $60 billion by 2025.

“Wayne has created great relationships with key stakeholders, both here and internationally. He knows that businesses are the engine room of economic growth.

“I’m sorry to see Wayne go but his new role as Chief Executive of the Livestock Improvement Corporation will utilise his skills, experience and knowledge. . .

MPI’s loss is LIC’s gain.

We’lll pay for it

Keeping  Stock asks how much we’ll really save on power under a LabourGreen government?

Ministers Bill English and Steven Joyce gave the answer at yesterday’s National party Mainland conference: nothing, we’ll be paying more.

They’re promising households a $300 saving on power bills. Even if they can deliver on that which is most unlikely, they’re also going to impose a $500 cost through their ETS.

The best we can hope for under LabourGreen is a net $200 increase in our power bills, not any decrease.

Rural round-up

Lies, damned lies and statistics or historical facts about sheepmeat – Allan Barber:

A brief comparison of sheepmeat and milk solids prices since 1991 throws up some interesting facts. These give the lie to the belief that the dairy industry is consistently more profitable than the sheep sector.

The statement that there are three kinds of lie – lies, damned lies and statistics – is often attributed to Benjamin Disraeli, 19^th century British Prime Minister, but it was popularised by Mark Twain. Students of two of this country’s best known (and generally most profitable) agricultural commodities may find it hard to believe, but you can’t really argue with the facts.

In 1991 soon after I started my agricultural career in the stock and station industry before moving to the meat industry two years later, the price of lamb hit a low point of $14 a lamb; mutton was even worse, being down around $4 a ewe at the meat plant. In contrast the 1991 dairy payout was $3.40 per kilo of milk solids. . .

Committees starting point for law – Tim Fulton:

Environment Canterbury is assuring the public the plans it is generating in land and water committees won’t be obliterated by the Resource Management Act process. Tim Fulton examines what Hurunui-Waiau’s ground-breaking process means for other catchments.

Cantabrians have heard a lot about the exhaustive toil of their zone committees.

They have also had a sense that most of the recommendations will be merged into law.

The Hurunui-Waiau zone committee is the first to have its recommendations to a hearing panel measured against a Resource Management Act-based regional river plan. . .

My new job and youth employment - Milking on the Moove:

I’ve decide to trial a video blog, simply because I don’t seem to have much time to write a blog post any more.

So when I’m busy I’ll just talk about whats on my mind for 5 minutes and just post the video.

I’ll be honest and say I’m a little nervous about posting the video. I’ve followed people on blogs or read their books etc and formed an opinion about the person based on what they have written. . .

A cow portrait for the neighbours – Moon Over Martinborough:

When our neighbors John and Aussie Bronwyn announced that they were selling their property and moving away, CJ and I were mortified. More than anyone, those two have taught us how to live on 20 acres. How could they abandon us?

Aussie Bronwyn is our High Priestess of Chicken Wisdom. John lets CJ borrow and break his tractor on a regular basis. And every Tuesday we spend wild evenings with them – playing cards, accusing each other of cheating, and heading home to bed by 8:30pm. . .

The sun is up and so is the sparky (or the day began pear shaped) – Milk Maid Marian:

Dairy cows are rounded up before dawn but, today, they slept in. We had a bit of a disaster in the dairy last night that would have meant the girls missed breakfast. That certainly would not do, so while they waited for the sparky to weave his magic in the grain auger control box, this is how the cows enjoyed watching the sunrise. . .

April 23 in history

215 BC A temple was built on the Capitoline Hill dedicated to Venus Erycina to commemorate the Roman defeat at Lake Trasimene.

1014 Battle of Clontarf: Brian Boru defeated Viking invaders, but was killed in battle.

1229 Ferdinand III of Castile conquered Cáceres.

1343 St. George’s Night Uprising.

1348 Edward III announced the founding of the Order of the Garter.

1521 Battle of Villalar: King Charles I of Spain defeated the Comuneros.

1564 – William Shakespeare, English writer and actor was born. (Traditional approximate birth date (in the Julian calendar) based on April 25th baptism) (d. 1616) .

1597  William Shakespeare’s The Merry Wives of Windsor was first performed, with Queen Elizabeth I in attendance.

1621 William Penn, English admiral was born (d. 1670).

1635 The first public school in the United States, Boston Latin School, was founded.

1660 Treaty of Oliwa was established between Sweden and Poland.

1661King Charles II of England, Scotland and Ireland was crowned in Westminster Abbey.

1815 The Second Serbian Uprising – a second phase of the national revolution of the Serbs against the Ottoman Empire, erupted shortly after the annexation of the country to the Ottoman Empire.

1867 William Lincoln patented the zoetrope, a machine that showed animated pictures by mounting a strip of drawings in a wheel.

1895 Ngaio Marsh, New Zealand writer, was born  (d. 1982) .

1910 Theodore Roosevelt made his The Man in the Arena speech.

1920 The national council in Turkey denounced the government of Sultan Mehmed VI and announced a temporary constitution.

1920 The Grand National Assembly of Turkey was founded in Ankara.

1923 1st official celebration of Children’s day, world’s only Children’s day that is offically being celebrated since 1923 and with international participation since 1979.

1928 – Shirley Temple, American actress and politician, was born.

1932  The 153-year old De Adriaan Windmill in Haarlem burned down.

1935  The Polish Constitution of 1935 was adopted.

1935 The first official Children’s day was celebrated in Turkey.

1940  The Rhythm Night Club fire at a dance hall in Natchez, Mississippi, killed 198 people.

1941 World War II: The Greek government and King George II evacuated Athens before the invading Wehrmacht.

1942  World War II: Baedeker Blitz – German bombers hit Exeter, Bath and York in retaliation for the British raid on Lübeck.

1948 1948 Arab-Israeli War: Haifa was captured from Arab forces.

1949 Chinese Civil War: Establishment of the People’s Liberation Army Navy.

1955 The Canadian Labour Congress was formed by the merger of the Trades and Labour Congress of Canada and the Canadian Congress of Labour.

1961  Algiers putsch by French generals.

1967 Soviet space programme: Soyuz 1 (Russian: Союз 1, Union 1) was a manned spaceflight, Launched into orbit carrying cosmonaut Colonel Vladimir Komarov.

1967 A group of young radicals was expelled from the Nicaraguan Socialist Party. This group went on to found the Socialist Workers Party.

1968  Vietnam War: Student protesters at Columbia University took over administration buildings and shut down the university.

1979 – New Zealander Blair Peach was killed during a clash between police and protesters at an anti-fascism rally in Southall, London.

1982  The Conch Republic was established.

1983 Prince William met Buzzy Bee.

1985 Coca-Cola changed its formula and released New Coke. The response was overwhelmingly negative, and the original formula was back on the market in less than 3 months.

1987 28 construction workers died when the L’Ambiance Plaza apartment building collapsed while under construction.

1988 Pink Floyd’s album The Dark Side of the Moon left the charts for the first time after spending a record of 741 consecutive weeks (over 14 years) on the Billboard 200.

1990  Namibia became the 160th member of the United Nations and the 50th member of the Commonwealth of Nations.

1993 Eritreans vote overwhelmingly for independence from Ethiopia in a United Nations-monitored referendum.

1997  Omaria massacre in Algeria: 42 villagers were killed.

2003 Beijing closed all schools for two weeks because of the SARS virus.

2009 The gamma ray burst GRB 090423 was observed for 10 seconds as the most distant object of any kind and also the oldest known object in the universe.

Sourced from NZ History Online & Wikipedia

Give a little take a lot

The LabourGreen power play is supposed to save people money.

It is unlikely to do so in isolation and certainly won’t when other policies are taken into account.

Claims that households would save money on power under a Greens-Labour Government are demonstrably false, Economic Development Minister Steven Joyce says.

“When National was elected to Government in November 2008, Labour’s Emissions Trading Scheme was estimated to cost an average family of four around $330 a year based on a carbon price of $25/tonne,” Mr Joyce says.

“The National Government amended the ETS and more than halved the cost to families and businesses. However the Greens-Labour coalition have stated publicly as recently as the beginning of this year that if they were the Government they would increase the price of carbon to $50/tonne.

“This would see a family of four paying $495 extra a year on electricity and fuel; which would more than wipe out any of their claimed savings from their plan to nationalise the power supply.

“They need to answer for their policy inconsistency before making any claims about power savings to the New Zealand public.

“The reality is that under a Greens-Labour ETS – or carbon tax – and the so-called power ‘plan’ it announced this week, households and businesses would be paying significantly more for electricity and fuel.

“And the worst part is that there would be fewer jobs for New Zealanders. As we already heard from firms like JB Were, investment in New Zealand would dry up as a result of government effectively nationalising such a big industry.

“What the opposition either doesn’t know, or doesn’t want to understand, is that savers and investors in this day and age can choose which country to invest in. This Government is working hard to attract investment and jobs for New Zealanders by applying good quality regulation that encourages competition, new investment and jobs. This sort of policy would do the exact opposite.”

Like many other socialist policies, the LabourGreen power play would give a little with one hand while taking a lot with the other.

April 21 in history

753 BC – Romulus and Remus founded Rome (traditional date).

43 BC Battle of Mutina: Mark Antony was again defeated in battle by Aulus Hirtius, who was killed.

1509  Henry VIII ascended the throne of England on the death of his father, Henry VII.

1519 Hernán Cortés landed in Veracruz.

1651 Blessed Joseph Vaz, Apostle of Ceylon, was born.

1671 John Law, Scottish economist, was born  (d. 1729) .

1729 Catherine II of Russia, known as ‘Catherine the Great’, was born  (d. 1796) .

1792 Tiradentes, a revolutionary leading a movement for Brazil’s independence, was hung, drawn and quartered.

1809 Two Austrian army corps were driven from Landshut by a First French Empire army led by Napoleon I of France as two French corps to the north held off the main Austrian army on the first day of the Battle of Eckmühl.

1816  Charlotte Brontë, English author, was born  (d. 1855) .

1836 Texas Revolution: The Battle of San Jacinto – Republic of Texas forces under Sam Houston defeated troops under Mexican General Antonio López de Santa Anna.

1838 John Muir, Scottish environmentalist, was born (d. 1914) .

1863 Bahá’u’lláh, considered the founder of the Bahá’í Faith, declared his mission as “He whom God shall make manifest“.

1894 Norway formally adopted the Krag-Jørgensen rifle as the main arm of its armed forces, a weapon that would remain in service for almost 50 years.

1898 Spanish-American War: The U.S. Congress, recognised that a state of war existed between the United States and Spain.

1915 Anthony Quinn, Mexican-born American actor, was born (2001) .

1918 World War I: German fighter ace Manfred von Richthofen, known as “The Red Baron”, was shot down and killed over Vaux sur Somme.

1922 The first Aggie Muster was held as a remembrance for fellow Aggies who had died in the previous year.

1923 John Mortimer, English barrister and writer, was born (d. 2009) .

1926  Queen Elizabeth II was born.

1942 World War II: The most famous (and first international) Aggie Muster was held on the Philippine island of Corregidor, by Brigadier General George F. Moore (with 25 fellow Aggies who are under his command), while 1.8 million pounds of shells pounded the island over a 5 hour attack.

1952 Secretarys’ Day (now Administrative Professionals’ Day) was first celebrated.

1959 Robert Smith, British musician (The Cure), was born.

1960 Brasília, Brazil’s capital, was officially inaugurated. At 9:30 am the Three Powers of the Republic were simultaneously transferred from the old capital, Rio de Janeiro.

1960 – Founding of the Orthodox Bahá’í Faith in Washington, D.C.

1961 The first Golden Shears contest was held – won by Ivan Bowen.

1962 The Seattle World’s Fair (Century 21 Exposition) opened – the first World’s Fair in the United States since World War II.

1963 The Universal House of Justice of the Bahá’í Faith was elected for the first time.

1964 A Transit-5bn satellite failed to reach orbit after launch; as it re-entered the atmosphere, 2.1 pounds of radioactive plutonium in its SNAP RTG power source was widely dispersed.

1965 The 1964-1965 New York World’s Fair opened for its second and final season.

1966  Rastafari movement: Haile Selassie of Ethiopia visited Jamaica, an event now celebrated as Grounation Day.

19967 – New Zealander Dave McKenzie  won the Boston Marathon in a course record time of 2:15:45.

1967  A few days before the general election in Greece, Colonel George Papadopoulos led a coup d’état, establishing a military regime that lasted for seven years.

1970 The Hutt River Province Principality seceded from Australia.

1975  Vietnam War: President of South Vietnam Nguyen Van Thieu fled Saigon, as Xuan Loc, the last South Vietnamese outpost blocking a direct North Vietnamese assault on Saigon, fell.

1987 Tamil Tigers were blamed for a car bomb that exploded in Colombo, killing 106 people.

1989 – Tiananmen Square Protests: In Beijing, around 100,000 students gathered in Tiananmen Square to commemorate Chinese reform leader Hu Yaobang.

1993 – The Supreme Court in La Paz, Bolivia, sentenced former dictator Luis Garcia Meza to 30 years in jail without parole for murder, theft, fraud and violating the constitution.

1994 – The first discoveries of extrasolar planets were announced by astronomer Alexander Wolszczan.

2004 – Five suicide car bombers targeted police stations in and around Basra, killing 74 people and wounding 160.

Sourced from NZ History Online & Wikipedia

Unifiers not unified

The Meat industry Excellence Group’s first public meeting in Gore attracted around 1000 people.

A couple of days ago organisers were hoping for a good turnout at a meeting in Christchurch:

Chairman Richard Young . . .  is seeking support to form a united farmer group with open communication lines to meat companies and other industry people.

The Christchurch turnout would give farmers a clearer picture of support for an opportunity that could not slip by, he said.

“We are hoping for a good turnout and the indications from our Christchurch people are for a strong attendance so here’s hoping. The models we have got are not working and I think there are plenty of reasons why so it’s certainly time for a change.” . . .

But yesterday’s meeting didn’t get a big crowd.

Before a disappointing attendance of between 250-300 farmers the Meat Excellence Group held its second national meeting in Christchurch.

Their aim was to get a mandate to negotiate significant meat industry change toward sustainability for all the red meat sector.

While all the main meat companies were invited, it was disappointing that AFFCO refused, and ANZCO was also a no-show but with an apology. However representatives from the co-operatives Silver Fern Farms and Alliance were in attendance and contributed constructively. . . .

Since the first meeting Gerry Eckhoff, who chaired it, has resigned from the group because he didn’t agree with the way it was going but he will be chairing a meeting in Fielding.

Ohakune farmer John McCarthy who’s organising the meeting says he’s not a member of the MIEG.

“I am not a member of their group,” McCarthy said. “Our aims are broadly the same. But I’d be more hard-line than them.

“I think we shouldn’t be chatting amicably to the meat companies…this system has let us down.”

When the would-be unifiers aren’t unified and meeting turnout is disappointing, the chances of getting enough farmers and meat companies united on future direction aren’t looking good.

 

 

Why waste water?

A woman once told me that water should be left to flow from the mountains to the sea as God intended it.

I wasn’t quick enough to ask her if God also intended oil to be left in the ground and if so was she going to stop driving a car.

Not everyone uses God as a reason to oppose irrigation but the objections by some of a dark green persuasion have a religious fervour which I don’t understand.

Irrigation has positive economic, environmental and social impacts and the absence of it where it’s needed inflicts a very high cost.

New Zealand has “heaps” of water, but the country is not good at using it efficiently, says Federated Farmers president Bruce Wills, as the country suffers one of the worst droughts in 70 years.

“We let most of it run out to sea in the winter, and the economy gets whacked, (by drought)” Wills said. . .

Government officials now believe the drought could carve as much as $2 billion out of the economy.

After selling off lots of stock because of the lack of grass and feed, farms were now like supermarkets with only half their shelves full.

“It is very hard to make money on that basis,” Wills said and when they restocked it would be at higher prices than when they bailed out and sent stock off to the works.

“It will be a tough few years to go, the impact will go on for some time,” Wills said.

There would be a “good number” of farmers making losses this year, but he hoped only a small number would be pushed to the wall and forced to sell up.

Fertiliser spending had already halted so trucks and planes were not moving and that meant a tough impact on provincial towns.

“Belts will be tightened and chequebooks put away,” Wills said. . .

But for all drought-hit farmers: “If winter comes early it will be tough,” Wills said. “A lot of farmers are still on a knife-edge and a lot will depend on what happens next month, if we get some more rain and more warmth.

“Drought is far from over when the rain comes; that’s just the start of the recovery.”

Farmers had to get through the latest drought, but plan better to get through similar future events, Wills said.

“We have massive potential in this country to sensibly and carefully irrigate vast areas of land,” Wills said.

There were big-scale proposals to help make more parts of the country less prone to drought. . .

These include the $230 million Ruataniwha water storage scheme in Hawke’s Bay.

It is proposed a public-private scheme will build a dam west of Waipukurau that would hold 90 million cubic metres, capable of eventually irrigating 30,000 hectares. At present, just 6000 hectares of land in Hawkes Bay is irrigated.

“That’s on a big scale to be more efficient, so there’s lots we can do,” Wills said, to lessen the impact of drought, including water storage, pasture management and different feed regimes and breeds that cope with drought.

The Ruataniwha scheme would build “sensible” resilience into the economy.

In South Canterbury, the Opuha dam irrigation schemes made the area “substantially” drought proof.

The Wairarapa Water Use Project plans to irrigate more than 60,000 hectares and fuel a boom in farming in the region. But the nine proposed reservoirs would also destroy 35 homes, sever roads and flood land, with local home owners concerned about the secretive process.

But Wills said water storage and irrigation had wider benefits.

“It is not just for farmers. It is for the entire economy,” he said, with the 2008 drought costing the country $2.8 billion. Those costs could be mitigated far more than they are today.

Government studies of Opuha suggest that every 1000ha irrigated created 27 jobs and injects $7.7 million into the local economy. With 30 potential projects covering around 1 million ha up the eastern seaboard that’s about $7.5 billion extra revenue for the country each year and 27,000 new jobs. . .

A few decades ago farmers often waited for government help before making decisions. Now there are no subsidies they know they have to make decisions early, and to be prepared for drought.

Wills says most farmers are good at responding to the signals of drought.

He changed the way he farmed dramatically after the last bad drought in 2007.

“This has been tough, but we have got through this drought much better than 2007, because we have done dramatic things,” he said.

In 2007, his farm had 85 per cent sheep and the balance in cattle. This year he had 60 per cent cattle and just 40 per cent sheep. “We massively changed,” he said.

Wills farms in hill country in Northern Hawke’s Bay, but after the 2007 drought he built 60 new dams for stock water, which was a cheap way to store water.

“We learnt last time, when you run out of water, you run out of options,” he said. “We get plenty of rain in the winter, just not enough in the summer”. . .

That’s where storage, for stock water and irrigation comes in.

Why waste water when there’s too much when it’s possible to store it?

If you accept that some use of water is alright, taking it from rivers at high flow and storing it until it’s needed has the least impact on rivers and a big impact on soil health, pasture growth and farming profitability.

Free trade is fair trade

Federated Farmers’ president Bruce Wills explains that everyone benefits from free trade:

. . . Trade has been good for China and it has been great for New Zealand.

This is not lost on the World Farmers Organisation, which will be discussing a potential breakthrough policy on international trade.

A strong and viable global agricultural sector is essential if the world’s population is to be assured of stable and secure supplies of food.

Farming globally is vital for employment, economic development and to ensure that our precious but finite land and water resources are looked after. 

Our hope is that the World Farmers Organisation will commit to ambitious trade policy objectives.

Farmers need a fair, transparent and predictable trading environment but international trade itself needs to be guided by some fundamental principles. Federated Farmers, having recently met with our Nepalese colleagues, knows full-well the special needs of the least developed countries have to be taken into account. 

The biggest problem farming runs into are trade barriers.

Through the TPP we have hope that for New Zealand at least, we can negotiate these barriers away.

Anything less would be a disastrous cop-out.

For developing farm systems, there are initiatives like “Aid for Trade,” which has seen over US$200 billion mobilised in funding since 2005; US$60 billion of that for the least-developed. This sounds impressive until you consider that over the same period of time, the United States and Europe have between them paid out some $500 billion in agricultural subsidies to their farmers.

The easiest solution is perhaps less ‘Aid for Trade’ but free trade.  These give emerging economies market access instead of blockages that creates the need for aid funding.

We know from first hand experience that trade is an important way of ensuring efficient resource use.

Trade helps to even out demand and supply helping to meet the world’s need for food. Providing farmers everywhere with increased market opportunities helps to improve incomes, prosperity and economic growth.

That benefits not only rural communities but all communities.

Subsidies and trade barriers are unfair to those who pay for them directly and those who have to compete unfairly because of them.

Free trade is fair trade, if trade isn’t free, it isn’t fair either.

 

Tale from #10′s table

Whether or not you agree with what Baroness Margaret Thatcher did and how she did it, she transformed Britain.

Until I read this in Trans Tasman, I hadn’t realised what she did for New Zealand.

. . . She was the first UK prime minister who treated NZ as an equal. It helped that she was the only one (other than Lady Muldoon, to my knowledge) who ever dared call the Prime Minister “Bob.” Mrs Thatcher stood the line over NZ access to the EU. It helped that she was a healthy sceptic and a vigorous champion of the Commonwealth.

My most abiding, touching and heart-wrenching moments were at a dinner at Downing Street during the Falklands war. It began with an amusing entree. We arrived at No 10 and immediately behind the black door was Mrs Thatcher and her formidable press secretary Bernard Ingham – a towering, battle-scarred, bear-like Yorkshireman, in a robust exchange on a Commons matter. They got on very well, on first names terms. She said, “Bob, this is Bernard.” Sir Robert, who always addressed his staff formally, gulped long and squeezed out, “this is, ahh, ahh, ahh, Brian.”

It had been a good day. Sir Robert had scored well with Fleet Street by proposing the loan of a frigate to replace a British ship in the Indian Ocean. The dinner went well until the butler intervened, calling Mrs Thatcher from the table. There was a serious pause. Dennis Thatcher sensed trouble and leapt up. Minutes later they returned with Mrs Thatcher evidently distressed. He was holding her closely. A British ship had been attacked off the Falklands and was sinking with much loss of life.

Sir Robert rose and proposed a toast to the Royal Navy and those in peril on the sea. He suggested we adjourn but Mrs Thatcher would have none of this. On with business. So we (she with more than a tear in her eyes) continued. Sir Robert would never have subscribed to her economic programme but this never blunted a solid friendship. – Brian Lockstone