McLay new minister

Rotorua MP Todd McLay will  be appointed as a new Minister outside Cabinet, becoming Revenue Minister and Associate Health Minister.

These are two of the portfolios held by Peter Dunne until he resigned on Friday.

The third, associate conservation, will be discontinued and the responsibilities will be picked up by Conservation Minister  Nick Smith.

Dunne had an interest in that area from the hunting,s hooting, fishing perspective of the Outdoor Recreation Party which is one of the many wee parties which have been absorbed into United Future.

Good news for the Coast

Conservation Minister Nick Smith’s decision to allow access to Bathurst Resources for its Escarpment Mining Project on the Denniston Plateau, near Westport is very good news for the West Coast.

“This approval is for an open-cast mine on 106 hectares of the 2026 hectares that comprise the Denniston Plateau. This area is not National Park, nor Conservation Park nor does it have any particular reserve status. It is general stewardship land, which is the lowest legal status of protection of land managed by the Department of Conservation. The area does have conservation values although there has been some disturbance from previous mining including roads, bulldozer tracks and an artificial reservoir. The area also has some infestation from weeds like gorse and broom,” Dr Smith said.

It’s not a big area and it’s not pristine land.

“The loss of conservation values is compensated by a $22 million package by Bathurst Resources. This will fund pest and predator control over 25,000 hectares of the Heaphy River catchment in the Kahurangi National Park, 4,500 hectares on and around the Denniston Plateau, as well as for historic projects on the Plateau itself. This is the largest ever compensation package negotiated by DOC for a mine or other commercial venture.

“I am also satisfied that the comprehensive conditions associated with this access agreement covering rehabilitation of the land, enhancement of water quality, health and safety, debris, rubbish and fire hazards, will minimise the adverse effects of the mine. The agreement also contains detailed provisions for monitoring environmental effects, bonds and insurance.

“I wish to signal, that in giving this approval, I do not consider it is acceptable to open-cast mine all of the Denniston Plateau. The plateau does have unique biodiversity and landscape values from its raised elevation, high rainfall and unusual land form. I wish to see some of the high value areas reserved and put into permanent protection.

“I am encouraged by the constructive discussions that have been taking place between mining companies, environmental, historic and recreational groups over recent months. A better way forward than having long protracted legal proceedings would be for the parties to come to a common agreement on the remaining areas of the plateau that should be set aside permanently for conservation and for mining.

“The Government will be working with all parties to try and find a ‘bluegreen’ long term plan for the whole Denniston Plateau that balances conservation protection with the need for jobs and development,” said Dr Smith.

While the usual suspects are unhappy with the decision, Economic Development and Energy Ministers Steven Joyce and Simon Bridges point out the benefits.

The decision today by Conservation Minister Nick Smith to approve the access agreement for Bathurst Resources’ Escarpment Mine near Westport is good news for jobs and economic growth on the West Coast, Economic Development Minister Steven Joyce and Energy and Resources Minister Simon Bridges say.

The announcement follows an interim decision by the Environment Court in March that it was likely to grant resource consent to the open-cast mine subject to appropriate conditions being agreed.

“The decision by the Minister under the Crown Minerals Act is a significant step forward for this project and will be welcomed by many West Coasters as balanced and pragmatic,” Mr Joyce says.

“Once open the Escarpment Mine is expected to create 225 direct jobs and approximately $100 million each year will go to employees, suppliers, contractors and transport providers.

“This will be a significant injection into the economies of Buller, the West Coast and New Zealand.”

Mr Bridges says the mine will produce high-quality coking coal that can be exported overseas for the production of steel.

“The project aims to inject almost $1 billion into the New Zealand economy over six years and provide $45 million each year in royalties and taxes that the Government can invest back into key infrastructure such as schools and hospitals,” Mr Bridges says.

“Unlike what opponents might say, this is exactly the type of business investment New Zealand needs to grow jobs and incomes for New Zealanders.”

The Coast has had a series of economic blows.

The ending of sustainable logging more than a decade ago led to a loss of employment. More recently there’s been the tragedy and subsequent closure of the Pike river mine, job cuts by Solid Energy and the downstream job losses which resulted from all of this.

This decision will bring economic and social benefits with the environmental cost mitigated by the compensation package and strict requirements on how the company operates.

 

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.

Rural round-up

New Lincoln Hub plans unveiled:

Science and Innovation Minister Steven Joyce and Primary Industries Minister Nathan Guy have today unveiled concept plans for a world-class agricultural research and education facility to be sited at Lincoln, near Christchurch.

The Lincoln Hub concept plans and business proposal have been developed by a partnership of Lincoln University, DairyNZ and Crown Research Institutes (CRIs) AgResearch, Plant & Food Research, and Landcare Research.

“The Lincoln Hub has the potential to transform New Zealand’s farming productivity by providing a one-stop shop allowing information and ideas to be shared more easily,” Mr Joyce says. “Internationally, science and innovation parks that collect together public and private organisations in one place drive a lot of education, science and innovation. The Lincoln Hub can achieve this for New Zealand farming.” . .

AgResearch capitalises its strengths to boost science:

A mammoth $100 million investment in AgResearch’s core science resource will help boost its potential to support exports from the primary industries in reaching $60 billion by 2025, on current policy settings.

“It is no secret that some of AgResearch’s physical scientific infrastructure is getting a bit creaky,” says Dr William Rolleston, Federated Farmers Vice-President.

“It was a genuine pleasure to be at the unveiling of an impressive roadmap that will also see the “hubbing” of primary research capabilities at and with Lincoln University. . .

Meat Industry excellence Group campaign warms up - Allan Barber:

The MIE organised farmer meeting in Feilding on Friday was attended by about 700 farmers which one speaker from the floor compared unfavourably with 2000 at the Drought Shout. However there is obviously an increasing level of support for substantial change to the meat industry’s operating method which results in volatile market returns.

Alliance and Silver Fern Farms were both represented and the respective chairmen, Owen Poole and EoinGarden, spoke in support of the group’s aims. Poole told the meeting the industry was working constructively to develop an improved model which was simpler than MIE’s plan and it was important to ensure the two plans were complementary. . .

MPI’s loss is LIC’s gain but Primary still comes out on top:

The resignation of Wayne McNee, Ministry for Primary Industries Director-General, to take up the position of Chief Executive at Livestock Improvement Corporation (LIC), will still see this talented person working in and for New Zealand’s primary industries.

“This role shows the versatility of Wayne who has performed to a very high standard with the public service and now departs for a high profile leadership role in a company important to New Zealand agriculture,” says Bruce Wills, President of Federated Farmers.

“Wayne has put the Ministry on the right path for farmers following the merger of the old MAF with the Ministry of Fisheries. I feel disappointed in one regard because he leaves it, just when we are starting to see the fruits of his work appear in this new and dynamic Ministry. . .

Budget 2012; support for frontline conservation work:

An additional $20 million over four years has been allocated to the Department of Conservation in Budget 2013 to provide for additional frontline roles and the upgrade of recreational facilities, Conservation Minister Nick Smith announced today.

“The four year funding package complements the Government’s recently announced tourism investment. It recognises that DOC is the Government’s primary agency responsible for providing infrastructure, visitor services and nature-based experiences that support the tourism industry,” Dr Smith says. . .

Innovative Dairy Companies Form Partnership to Boost Exports:

Two of New Zealand’s most innovative dairy companies are forming a partnership to boost exports to one of the world’s fastest growing consumer markets.

Synlait Milk will next month despatch the first consignment of a2® Platinum™ infant formula destined for mothers and infants in China. a2 milk™ contains only the A2 version of the beta casein protein which is more comparable to protein that mothers naturally produce than other versions of the beta casein protein found in standard milk.

Synlait Milk will be processing a2 milk™ from 10 suppliers from August this year and will further expand production to meet the requirements of A2 Corporation when a2® Platinum™ infant formula becomes available to mothers in New Zealand and Australia later this year. . .

Brancott Estate Celebrates the End of a “Sensational” Vintage:

Vineyard beats the weather to harvest pristine, flavoursome fruit

Early predictions of an outstanding vintage have proven true for Brancott Estate, the pioneers of the original Marlborough Sauvignon Blanc, who have successfully completed harvest ahead of autumn rain, and with fruit that bears all the characteristics of the region.

“The season has been so dry until now and this has delivered a sensational vintage for Marlborough” says Patrick Materman, Chief Winemaker for Brancott Estate. “While we’ve enjoyed the sunshine, it hasn’t been a particularly warm season, tracking around the long-term average in terms of Growing Degree Days. This, combined with the lack of rain, is a real positive for vineyards. The dry conditions mean pristine fruit development and allow us to make harvest decisions based on optimal flavour development, while the relatively cool temperatures ensure the aromatic expression and balance of natural acidity that has made Marlborough famous.” . .

Too little regard for OPM

The NZ Herald points out:

The Government’s income tax take dropped from $30 billion to $25 billion as New Zealand dipped into recession, but new figures show local authorities increased their rates each and every year. So why are city and district councillors allowed to spend first, then go banging on ratepayers’ doors demanding the money to pay for their pet projects?

It’s far too easy for them:

What you pay in rates is largely determined by what your property is worth, but ratepayers should not assume that just because their latest home valuation goes up or down, their rates bill will follow. Councils still have to make the decision on what rates revenue they need – and then work out how to pay for it.

Imagine if you were able to manage your household budget that way. In your New Year’s resolutions, you might decide to build an extra bedroom, and take a holiday to Fiji. You’d work out how much money you would need – then you would go to your boss and demand that extra money as a pay rise.

In the real world, your boss would fall about the floor laughing.

But if you are a city or district councillor, you can insist ratepayers stump up the extra cash. Ratepayers’ only option is to grit their teeth, pay the bill – then sack their councillors at the next election.

Does it have anything to do with councillors’ ability?

There aren’t many jobs where someone with no financial knowledge or experience can walk in off the street and find themselves managing a multi-million-dollar budget. But being a councillor is one of them.

Councillors are not required to have any qualifications or credentials beyond the ability to win an election. That, says Massey University local government specialist Dr Andy Asquith, may be why rates sometimes run awry. “The majority of councillors in New Zealand and around the world have trouble putting their shoes on the right feet in the morning. They get elected simply because they are known. It’s not unusual for someone to one day be reading the weather on television and the next to be on the local council with no knowledge of what council is about.”

Last year, a Massey survey found less than a third of councillors reported having access to governance education and even fewer had done that education. “I think that’s a major shortcoming in councils in this country.”

Sounds like a failing of the Labour Party too – far too heavy on union and public service experience, far too light on private sector experience and the knowledge and skills gained from putting their own money at risk.

The Labour Party and councils are top heavy with people who have far too little regard for OPM – other people’s money.

The National-led government has brought financial discipline to the public service and Local Government Housing Minister Nick Smith is now doing his best to ensure councils do the same when it comes to housing policy.

Fonterra, DOC partner to clean waterways

Fonterra and the Department of Conservation have  announced a $20 million community investment to improve the natural habitats of some key waterways aver the next decade.

As part of Fonterra’s Living Water initiatives, Fonterra Director John Monaghan and the Minister of Conservation Hon Dr Nick Smith officially launched the 10-year investment this morning at Lake Areare, a Peat Lake in the Waikato. The investment will initially focus on five key catchments in significant dairying regions.

Mr Monaghan said Fonterra and DOC will work together to make these waterways living examples of how dairy farming and natural New Zealand environments can work alongside each other.

“Our streams, rivers, lakes and wetlands are important to every New Zealander. Today’s announcement is about investing time and resources to improve their quality so that we can all enjoy our natural environment at its best and ensure this can occur alongside a sustainable dairy industry.”

 DOC Director General Al Morrison said quality waterways are pivotal to maintaining the healthy environments which protect native wildlife and also underpin a sustainable dairy industry.

“We all realise that our waterways need ongoing support and it makes perfect sense for DOC to be working with New Zealand’s largest dairy co-operative to improve water catchment health.

“By working together, we can deliver additional conservation gains in some of our most sensitive catchments.”

Initially, Fonterra and DOC will work with local communities to make a difference to the water quality at five waterways:
• Kaipara Harbour
• Firth of Thames
• Waikato Peat Lakes
• Te Waihora-Lake Ellesmere
• Awarua-Waituna

As the expert in conservation and biodiversity, DOC will work with Fonterra, local communities, iwi and farmers to help clean up waterways and wetlands at the five selected catchment areas. This will include planting trees alongside streams and rivers to improve water quality, managing pests and weeds and making sure that the right habitats are in place around farms to enhance biodiversity and provide homes for native fish and birds.

Mr Monaghan said the work with DOC will build on the good progress made by Fonterra’s Catchment Care programme, which has seen improvements to two million square metres of land and waterways through planting, weeding and other volunteer work over the past three years.

“Working together with DOC is part of Fonterra’s Living Water initiative and the long-term commitment we are making to do what’s right for the land and waterways in their communities,” he said.

Mr Monaghan said that while improving water quality and on-farm water management practices has been a priority for Fonterra and our farmers for a number of years, the dairy industry still has work to do.

“This initiative with DOC is part of our ongoing determination through all of our Living Water initiatives to work together, and engage with local communities to make a real difference to the health of waterways.”

Local Waikato farmer, Bas Nelis, said it is great that Fonterra is working on both sides of the farm gate to make a difference to water quality and the environment.

“I believe farming is going to be here for a long time ahead of us, I’m still young so I want to look after this farm for the next generation, for my kids, to make sure it is sustainable for the future.”

Conservation Minister Nick Smith describes this initiative as a major break-through:

“Fonterra’s commitment of $20m is the largest ever corporate contribution to conservation work. It will fund a massive programme to be undertaken with communities to restore wetland habitats, better control nutrients, reduce pests and weeds and enhance native wildlife,” Dr Smith says.

“The investment is important but the partnership is even more significant. The greatest benefit from this DOC/Fonterra agreement is getting conservationists and farmers side-by-side in their local communities doing the practical work to improve waterways. . .

“DOC and Fonterra working so closely together will come as a bit of a shock for some conservationists and farmers who see the two groups as protagonists and not partners. This is DOC wanting to help Fonterra succeed as New Zealand’s largest exporting business and major land user and Fonterra adding its muscle to DOC’s critical work caring for the natural environment.

“This partnership is part of the Government’s Bluegreen agenda of drawing business and conservation closer together to support economic growth and jobs while protecting our natural environment and great Kiwi lifestyle,” Dr Smith says. . .

The Sustainable Business Council says the partnership demonstrates a recognition by business of its dependence and impact on ecosystem services:

“Without fresh, quality water, it’s not just our environment that will suffer, but our economy too,” says Penny Nelson, Executive Director of the Sustainable Business Council.

“Fonterra plays a major role in New Zealand’s primary industry-based economy, and this initiative to improve the biodiversity and water values in some of the catchment areas it affects is exciting. It’s really encouraging to see business’s commitment to conservation partnerships scaling up. We fully support this new partnership and look forward to seeing more New Zealand companies engaging with DOC in this manner.

“Fonterra and DOC are actively engaged in the Sustainable Business Council’s ecosystem services work programme. There are some really useful corporate tools & training that have been developed by the World Business Council for Sustainable Development which are starting to be used in New Zealand”.

The response isn’t entirely positive though, the Green Party shows its bias against business in general and dairying and Fonterra in particular:

Through budget cuts the National Government is forcing the Department of Conservation (DOC) to rely on handouts from companies like Fonterra, the co-operative behind one of New Zealand’s most polluting industries, Green Party conservation spokesperson Eugenie Sage said today. . .

“DOC has a responsibility under the Conservation Act to advocate for nature to protect the rivers, lakes and streams that Kiwi’s love and native fish and invertebrates that live in them. This agreement puts that at risk.

“The continued restructuring and downsizing of DOC with loss of technical and field staff and closure of area offices also risks staff being diverted from other tasks to work on the five Fonterra projects.

“National Government funding cuts mean DOC has to beg for money while environmental NGOs and community organisations attempt to do key parts of DOC’s work.

“The Conservation Department should be funded adequately so it can pursue its own priorities and not be steered into projects that corporates want.

“If Fonterra really wanted to do something for the environment it could work to restrain the growth of intensive dairying and stop dairy expansion in sensitive catchments like the Mackenzie Basin and Southland’s Waituna Lagoon.”

The Green Party is quick to criticise any business for a negative impact on the environment and is incapable of acknowledging the good a partnership like this could do.

It would rather spend taxpayers money than accept help from business but appears not to realise that the money the government gives to DOC comes from taxes paid by businesses including Fonterra and individual taxpayers including dairy farmers.

The party is so blinkered it can’t see past its anti-business, anti-dairying bias  to the environmental benefits from this initiative.

DOC and Fonterra in partnership will do more to improve waterways than either could do separately and at far less cost to the taxpayer.

Rural round-up

Commission updates Primary Production select committee on interest rate swaps investigation:

Commerce Commission Chairman Dr Mark Berry has today provided an update to the Primary Production select committee on the Commission’s progress in its interest rate swaps investigation.

In August 2012 the Commission began enquiring into whether interest rate swaps, a financial derivative product, were misleadingly marketed from 2005 onwards. The Commission has received 42 complaints since concerns were raised in the media.

“The investigation is at an early stage, but we are giving the issues full consideration. To date we have spent more than 1,000 staff hours on the investigation,” Dr Berry said.

The Commission is primarily considering whether the swaps were marketed in ways that may have misled customers as to their true risk, nature and suitability. . .

Minister welcomes King Salmon report:

The final report of the Board of Inquiry on New Zealand King Salmon’s application to develop new marine farms in the Marlborough Sounds was welcomed today by Minister of Conservation Dr Nick Smith.

“The Board has undertaken a thorough process being mindful of the need for New Zealand to conserve its natural resources with the need to grow exports, jobs and wealth,” Dr Smith says.

“The substantive decisions in the final report are consistent with the draft released last year, with the Board approving four new farms. These farms will occupy an area of just six hectares of surface water space out of a total of about 100,000 hectares in the Marlborough Sounds. They will enable King Salmon to grow its production from 7,500 to 15,000 tonnes per year, employ another 170 people and boost its annual export earnings by an extra $60m. . .

Good For Marlborough, Good For New Zealand:

The EPA Board of Inquiry’s (BOI) final determination will enable New Zealand King Salmon to deliver long-term benefits to the region, the community and the national economy.

Aquaculture New Zealand Chairman Peter Vitasovich said the four new salmon farms approved in the decision would create permanent full-time jobs and provide significant downstream benefits for associated industries while generating export earnings through the sustainable production of premium seafood.

“Four new working salmon farms in the Marlborough Sounds will provide valuable employment opportunities within the community, while also attracting skilled labour to the region, to work across the spectrum of production – from farming to processing to marketing and business roles,” Mr Vitasovich said. . .

Final decision on King Salmon released by EPA

The EPA’s Board of Inquiry has issued its final decision on the King Salmon applications today, approving four out of nine salmon farms in the Marlborough Sounds.

“An earlier draft decision announced that 5 of the 9 nine sites would be refused consent and approvals given for 4 sites. This final decision doesn’t change anything in that respect,” said EDS Chairman Gary Taylor.

“We acknowledge that the Board has declined consent for 5 sites but it has not gone far enough.

“The areas the industrial scale consented farms are to be located in are highly natural and in prominent locations in the iconic and internationally renowned Marlborough Sounds. . .

Fonterra And A-Ware Food Group Confirm European Partnership:

New Zealand-based Fonterra and Netherlands-based A-ware Food Group have given the green light to develop a new cheese plant and dairy ingredients plant in Heerenveen in the north of the Netherlands.

Fonterra CEO Theo Spierings and A-ware Food Group CEO Jan Anker have today confirmed the partnership would proceed and signed a final agreement.

Under the agreement a greenfields site will be developed where A-ware will operate a cheese plant and Fonterra will operate a dairy ingredients plant alongside it. Cheese will be produced for A-ware’s customers in Europe and the whey and lactose produced will be processed into premium nutrition dairy ingredients for Fonterra’s global customer base. . .

Wools Of New Zealand Closes Capital Raise:

Wools of New Zealand has closed its capital raise with more than 700 applications for shares totalling approximately $6 million, representing approximately 14.5 million kilograms of annual strong wool production and a five-year marketing commitment.

As a 100% grower owned company, Wools of New Zealand is now positioned to drive its commercial, market-pull strategy, for the benefit of its shareholders.

Mark Shadbolt, chairman of Wools of New Zealand, said there had been a lot of late interest right up to the close of the offer. . .

Minister to decide Milford projects

Conservation Minister Nick Smith will decide the fate of two projects seeking concessions for development in Fiordland National Park.

Proposals for the Milford Dart Tunnel through Fiordland and Mt Aspiring National Parks and the Fiordland Link Experience of a catamaran, all-terrain vehicle track and monorail through the Snowdon Forest are major development projects.

” . . . I have decided that given the scale of these Fiordland projects and the huge public interest it is not appropriate for these decisions to be delegated to a departmental official. These are public lands and it is proper that these decisions are made by a publicly elected and accountable official,” Dr Smith says.

This decision is consistent with the powers of delegation dating back to 1997, where the Director-General of Conservation shall refer matters of national interest, or involving significant environment, social or economic implications, to the Minister.

“The decisions on the Milford Dart Tunnel and Fiordland Link Experience will be difficult. Parks and reserves are much loved areas of New Zealand set aside for conservation and recreation. There is a particularly high threshold for projects in our National Parks. However, New Zealand also needs jobs and economic development.

“I have taken advice on ensuring a robust process. My primary advisor will be the Department of Conservation and its advice will be a matter of public record. I expect to receive the Department’s reports on the Milford Dart Tunnel soon and on the Fiordland Link Experience in the next few months.

“I will visit the affected areas and meet with the commissioners who heard the public submissions after I have received each Departmental report. I also intend to meet with the applicants of each project and seek the advice of the New Zealand Conservation Authority before making a decision.

“I will be taking a careful and considered approach and I am very conscious of the importance of coming to a fair and balanced decision.”

Both proposals have attracted a lot of opposition.

The minister will be in for a lot of lobbying.

The cost of renewable energy

Greenpeace doesn’t think its important to address the costs in its report on on renewable energy.

In answer to a question from Nikki Kaye on advice he’d received on the proposition of a 40 percent reduction in emissions by 2020 and whether a 100 percent renewable electricity supply would be achievable then-Minister for Climate Change Issues, Nick Smith, said:

. . . I am advised that that would require, first, the writing-off of $4.5 billion of thermal generation assets. It would also require $11 billion for the replacement capacity of 2,500 megawatts, and $2 billion for additional renewable peaking stations needed to ensure security of supply in a dry year. This amounts to a total capital cost of $17.5 billion, excluding the additional transmission investment that would be required, and this would amount to a 30 percent increase in the power price for all consumers. Going 100 percent renewable would also require the equivalent of another seven Clyde Dams to be built by 2020. I do not describe $17.5 billion, a 30 percent power price increase, and seven Clyde Dams as being easy.

New Zealand is blessed with plentiful supplies of water and already have a high proportion of hydro electricity.

But many of the people who want more renewable energy are also opposed to more hydro generation and it would be difficult to find anyone who thought a 30% increase in power charges for everyone was acceptable.

Kaye, Woodhouse in, Heatley, Wilkinson out, Smith back, Carter Speaker

Prime Minister John Key has announced a bigger Cabinet reshuffle than anticipated:

Mr Key confirmed the Government’s nominee for Speaker to replace the departing Lockwood Smith will be long-serving National MP and Cabinet Minister David Carter.

“I’m pleased to announce David Carter as the Government’s nominee for Speaker and I’d like to thank him for his service as a Minister,” Mr Key says.

“I have taken the opportunity presented by the change of Speaker to look at the Cabinet line-up as a whole, in the context of the Government’s priorities.

“As we begin a new year I am optimistic about the progress we can make, while being mindful of the challenges created, in particular, by the uncertain international economic environment.

“New Zealanders expect their elected Government to get on, and not only do what it has promised to do, but to do so with a sense of urgency and purpose, with real energy and new thinking along the way.

“It is in this context I have decided to make changes to the Ministry.”

Two other Ministers will also be leaving Cabinet on 29 January – Phil Heatley and Kate Wilkinson.

“Phil and Kate have both made a real contribution to the Government in their four years as Ministers and I’d like to thank them for that,” Mr Key says.

“I have made the judgement that it is time for fresh energy and ideas, and for other members of our talented 59-strong caucus to be given an opportunity.”

Returning to Cabinet is Nick Smith, who will take on the Housing and Conservation portfolios. Mr Key says Dr Smith will bring his trademark energy to housing market and social housing issues, which are of real public interest.

“I have also asked Social Development Minister Paula Bennett to work with Nick as Associate Housing Minister, reflecting the strong links between these two areas. Tariana Turia will remain as Associate Minister and a part of that housing team.”

Auckland Central MP Nikki Kaye will be appointed to Cabinet where she will become Minister for Food Safety, Youth Affairs and Civil Defence. She will also be Associate Education Minister, reflecting her work as Chair of the Education select committee.

Senior Whip Michael Woodhouse will be the third new Minister, serving outside Cabinet as Immigration and Veterans Affairs’ Minister as well as Associate Transport Minister.

“I’d like to congratulate Nikki and Michael on their promotions, which are both well deserved,” Mr Key says.

The remaining position inside Cabinet will be filled by Simon Bridges, who will be promoted from outside Cabinet and take on the Labour and Energy and Resources portfolios.

“Simon has had a very good first year as a Minister and is ready to step up and take on more responsibility,” Mr Key says.

Nathan Guy will pick up the Primary Industries portfolio to be vacated by David Carter, with Jo Goodhew assisting him as Associate Minister.

Mr Key says Chris Tremain will be appointed as Local Government Minister and is well placed to work with the sector on the Government’s well-advanced reforms.

Mr Key says he had also decided to make a change in relation to Novopay.

“I share the concerns of teachers and principals at continuing problems in the operation of Novopay, and fixing this as quickly as possible is a priority,” he says.

“A fresh set of eyes is needed and I have asked Economic Development Minister Steven Joyce to take on this responsibility.”

The change will be done through a transfer of responsibility to Mr Joyce under section 7 of the Constitution Act.

“Getting Novopay working as it should may take some time, given what appears to be the systemic issues involved. I can assure teachers that we want to get Novopay sorted as soon as possible.

“With this change and Nikki Kaye’s appointment, there is no need for Mr Foss to remain as Associate Education Minister. I have instead asked him to pick up the role of Minister of Consumer Affairs, which will link in with his existing responsibilities as Commerce Minister.”

Mr Key says there are also two notable promotions in terms of Ministerial rankings in the Cabinet changes – with Jonathan Coleman rising to 10, and Amy Adams to 15.

The resignations of Mr Carter, Mr Heatley and Ms Wilkinson will take effect on 29 January, and all the other changes will take effect on Thursday 31 January, when the Governor-General appoints the new Ministers, and the necessary paperwork will have been completed.

Mr Key says it is anticipated that a new Senior Whip will be elected at National’s first caucus meeting of the year on 29 January 2013.

“This refreshed Ministerial team is ready to continue the Government’s focus on its four key priorities for this term – responsibly managing the Government’s finances, building a more competitive and productive economy, delivering better public services within fiscal restraints, and supporting the rebuilding of Christchurch,” Mr Key says.

“I will have more to say about how we intend to meet these priorities in coming days.”

The promotion of David Carter to speaker and Nick Smith’s reinstatement aren’t a surprise.

The other changes are unexpected but refreshment is a good.

Nikki Kaye and Michael Woodhouse have earned respect as chair of the Education Select Committee and Senior Whip respectively.

Promotions always cause disappointment for those who miss out but these two are deserved.

Rural round-up

Efficiency with farm inputs – a recipe for productivity

An increasingly complex and volatile global farm input market is making it imperative for New Zealand farmers to have in place good purchasing strategies, while focusing on ways to conserve soil nutrients and input use, according to a new industry report.

The report, Efficiency with farm inputs – a recipe for productivity, by agribusiness banking specialist Rabobank, says more efficient use of farm inputs – including fertilisers, chemicals and fuel –will be essential in ensuring profitability, driving productivity growth and improving environmental sustainability of farm businesses into the future.

Report author, Rabobank senior analyst Michael Harvey says, with farm inputs a vital component of modern production systems, all farmers in New Zealand are exposed to the dynamics of procuring farm inputs. “In more recent times these markets have been evolving and becoming more sophisticated, which is altering the business landscape for farmers as end users,”he says. . .

Country life # 4 –  Quote Unquote:

Very late last night – me dozing off to the Economist, my wife dozing off to her novel – we heard a cow mooing, mooing for ages and we knew from which paddock. . .

Welcome to the Hotel van der Bijl – Shawn McAvinue:

More dairy farmers are building wintering sheds in Southland.  Shawn McAvinue  talks to one, who says those building them need to “do it once and do it right”.

The back rubs end abruptly when the music wanes. Then the stampede begins. 

    Car Wash, the 1970s disco hit by Rose Royce is playing to 750 cows and a party of about 20 curious farmers, who have come to see a new $4 million wintering barn in Dunearn, near Mossburn. 

    The $9000 wireless sound system is struggling to stay tuned to The Breeze radio station and the 24 speakers in the shed begin to crackle. Then the music stops. It’s like a gunshot fired in a packed nightclub. The cows get startled then stampede. Then there’s a crackle, the radio reception kicks in and Rose Royce returns: “Talkin’ about the car wash, yeah”. 

    The fickle cows are instantly content and return to chewing on feed or massaging their rumps.

Grand plans for NZ lamb in China - Shawn McAvinue:

The sleeping giant is wide awake and has a taste for our meat, say Alliance Group marketers from Southland. 

  Alliance Group staff went to China for 10 days to meet executives from Grand Farm, the largest single importer of New Zealand sheepmeat in China. 

    Alliance marketing development services manager Gary Maclennan said he was surprised how advanced the Grand Farm processing plant in northeast China was, “and how huge their plans are for target growth. They plan to double in two to three years.” . . .

Waikato cattle farmers at higher risk of fatal disease – Natalie Akoorie:

Waikato beef and dry stock farmers have higher rates of leptospirosis, a potentially fatal bacterial disease passed to humans through animals and infected water, according to a study in the New Zealand Medical Journal.

The farmers were probably more at risk because beef and dry stock cattle were less frequently immunised against the deadly disease, according to the report by Waikato District Health Board medical officer of health Dr Anita Bell and health population officer George Cowie.

The study, done over seven years, found the Waikato has one of the country’s highest annual rates of notified cases of the infectious disease, with the majority coming from the Waitomo district. . .

Online tool could enhance farm compliance -  Shawn McAvinue:

The former head of Environment Southland says new technology can ensure good farmers having a bad day are not unfairly prosecuted by compliance officers. 

    Former Environment Southland chief executive Ciaran Keogh said among the well-attended environmental conference in Auckland yesterday were Environment Minister Amy Adams, Primary Industries Minister David Carter and Nelson MP Nick Smith. 

    Mr Keogh was invited by the Environmental Defence Society to talk about new AG-HUB technology at Aotea Centre. . .

Scott seeks higher honours - Gerald Piddock:

Mid Canterbury arable farmer Andrew Scott is now be turning his attention to the Young Horticulturist competition after being crowned the country’s top young grower. 

    The 29-year-old beat three others to win the Young Grower of the Year title at Horticulture New Zealand’s annual conference in Auckland, 

    He earned his place in the competition after winning the Young Vegetable Grower competition earlier this year. . .

Lifestyle blocks a source of tension – Peter Watson:

Rural subdivision is about to come under the spotlight as the Tasman District Council reviews its rules and research shows the region losing some of its  best land at an increasing rate.   Peter Watson reports on what  is set to be a difficult debate. 

    Tasman and Nelson are losing their most productive land to lifestyle blocks and urbanisation at one of the fastest rates in New Zealand, sparking calls for councils to take a much tougher stance on rural subdivision. 

    Recent research by Landcare shows that 24 per cent of 16,000 hectares of high-class land in Tasman is now occupied by lifestyle blocks – the third highest level among regions and well above the national average of 10 per cent. Another 1 per cent of this land has gone on urban development, double the national rate. . . .

New wine frontman takes pride in region:

Richard Flatman describes himself as a “pretty passionate, outspoken bloke who loves Nelson” and good wine. 

    They are qualities that will come in handy in his new role as chairman of the Nelson Winegrowers Association. 

    The 41-year-old viticulturist at Neudorf Vineyards takes over from Mike Brown, who stepped down last month after six impressive years as industry spokesman. . .

Good Things Come in Eights for Misha’s Vineyard

Cromwell, Central Otago, 8 August 2012 – Misha’s Vineyard has announced a distribution expansion into eight markets around the world. The number eight, a lucky number in Chinese culture, has been an auspicious number since Andy and Misha Wilkinson first planted their vineyard on an old Chinese gold mining site on Bendigo Station, Central Otago, just eight years ago.

In the northern hemisphere the new markets are the Scandinavian countries of Denmark and Sweden through Gastro-Wine and across in the important US market, Misha’s Vineyard will be represented by Vindagra USA. . .

Conference reflections

My first National Party national conference was way back in 1996 – a few months before our first MMP election.

I was thinking about that while getting ready to go to his year’s conference and wondering if I’d been to enough and was in danger of suffering from conference fatigue.

The warmth of the welcome as I registered on Friday morning told me the answer to that was no and that was continually reinforced throughout the weekend.

As a regional chair I was privileged to sit through the candidates’ college, where I met some aspiring MPs and learned from two existing ones – first term MP Simon O’Connor and Prime Minister John Key.

The conference opened on Saturday morning. Speeches from ministers were informative and interesting with plenty of time for questions. Several workshop sessions also enabled plenty of interaction from the floor and we had the opportunity to debate seven remits too.

Saturday night’s dinner agenda included the presentation of a presidential citation to party stalwart and Super-Blue founder Bernie Poole and the Sir George Chapman Cup to retiring Young Nats president Daniel Fielding.

MC for the evening, senior whip Michael Woodhouse then introduced David Farrar who was chairing the debate for the Westminster Shield.

The moot was that the South Island should declare independence from the North.

Chris Finlayson led the affirmative team of Young Nats incoming president Sean Topham and Simon Bridges.

Nick Smith led Amy Adams and Neil Miller in putting the contrary case.

I thought of taking notes so I could repeat some of the hilarious lines but I was too busy laughing to write.

The judges were David, John Key and Bill English who almost upstaged the debaters with their humour.

The negative team won by .5 of a point.

Sunday’s programme began with an ecumenical church service followed by a session on law and order, more policy breakouts and concluded on a high with the Prime Minister’s address.

A first-time conference goer who I met at the airport was fizzing. It was a reminder to those of us who have been to several conferences that we shouldn’t take for granted the easy access to MPs, that we can still be inspired by the speeches, that the networking opportunities between formal sessions is part of the fun and that the best way to treat fears of conference-fatigue is to go to one.

It was a wonderful weekend and I’m already looking forward to next year’s.

Water too important for dog’s breakfast

Canterbury doesn’t need another dysfunctional elected council making decisions on water, former Environment Minister Nick Smith says:

As a cabinet minister, he sacked elected Environment Canterbury councillors and replaced them with commissioners.

When their term expires next year, he hopes they will be replaced by a mixed council of elected and Government-appointed representatives.

In Ashburton on Thursday at a Federated Farmers water forum, he said there were some big water decisions ahead of Canterbury, including bulk storage and tapping into alpine rivers protected by Water Conservation Orders.

He said a fully-elected regional council making those decisions would result in the same “dog’s breakfast” left by the previous council, with views polarised into urban and rural camps.

What is it about Canterbury? From the outside, the Christchurch City Council seems to be similarly troubled by dysfunction and it doesn’t have theexcuse of a rural-urban divide.

Sacking the elected councillors from ECan  was not a decision taken lightly. The Commissioners appointed to replace them were tasked with forming a water plan which ECan had been struggling to do for 20 years.

That plan has been superseded by a national Land and Water plan but it still needs a  local body to oversee it.

Nature has made more than enough of a dogs’ breakfast in Canterbury without aggravating problems with another dysfunctional regional council.

Mr Smith said there was no shortage of water in Canterbury, but too much of the water taken for economic use came from aquifers and lowland streams.
“They only make up 15 per cent of our water resource; 85 per cent is in the big alpine river systems but the moment anyone comes along and tries to use the water everyone says ‘no’.”
He said there was a good chance water rights would be pegged back if there was no progress on storage or alpine river resources could not be tapped. 
That would have consequences for both farmers and the economy.
Mid Canterbury has around 160,000ha of irrigated farmland, returning a gross farm income of $1.36 billion. 
Farmers spent around $800 million. 
By contrast, a 250,000ha Australian cattle station currently had a gross farm income of $50m.

Those with short memories might have forgotten the economic, environmental and social devastation caused by droughts in Canterbury and North Otago before we had irrigation.

Those who farmed and lived through them appreciate the value of water applied carefully when required.

Those of a deep green persuasion believe that water should flow from the mountains to the sea untroubled by human and technological intervention.

Those of more moderate views know  it is possible to irrigate in a way that increases production and protects soils without degrading waterways.

Land and Water Forum report has wide support

The Land and Water Forum’s latest report calls for national bottom lines to be set for the state of the country’s waterways.

. . .  the LWF, a group representing iwi and key freshwater stakeholders, said iwi and urban and rural communities should then collaborate to develop specific water quality objectives for each catchment and identify local solutions to achieve them. . . 

. . .  The Forum’s second major report provides a national framework within which Regional Councils will work with their communities and iwi to set freshwater objectives and develop limits for its use.

It provides a consistent and transparent process for setting objectives and limits, and one that will lead to effective and enduring outcomes, including greater certainty for investment and development.

“The way in which water issues have traditionally been decided has ultimately benefited no one,” said Mr Bisley. “We all agree we need to do better for the sake of both the economy and the environment.”

What is remarkable about the report is the degree of consensus achieved on it and Colin James gives the credit for that to the process:

. . . the forum’s report is important in substance. It is also important as process. Federated Farmers and Forest and Bird at the far ends of the spectrum of interest groups have publicly backed it, along with many others. So, too, have Government ministers, Labour, the Greens and the Maori party.  The word is that similar consensus and party backing is close on the allocation report.   

In short, on a matter of vital importance to economic and social life there is a real prospect of settled policy that can transcend changes of government.

This is no small achievement and if memory serves me correctly former Environment Minister Nick Smith and Waitaki MP Jacqui Dean had a lot to do with setting up the forum and ensuring it ran well.

The process has worked well for water, is it too much to hope a similar process could work as well for other important matters?

A link to the report is here.

Bridges promoted to Minister

Prime Minister John Key has promoted Simon Bridges to the position of Minister outside Cabinet:

Napier MP Chris Tremain, who is currently a Minister outside Cabinet, will  move up to become a Minister in Cabinet at number 20 on the Ministerial  list.

Mr Key also announced a minor reshuffle of portfolios with the departure of Dr Nick Smith.

David Carter will assume the role of Local Government Minister in addition to his current portfolio of Primary Industries.

“The local government reforms announced recently remain an important part of the Government’s agenda. Mr Carter is an experienced Minister and I’m  confident he will drive these reforms along,” Mr Key says.

Amy Adams will take over as Environment Minister and hand the Internal Affairs portfolio to Mr Tremain.

Tim Groser will also become the new Minister for Climate Change Issues.

“Mr Bridges will be the new Consumer Affairs Minister and Associate  Minister of Transport, taking over from Mr Tremain. Mr Bridges will also be Associate Minister for Climate Change Issues,” Mr Key says.

The National caucus had strong intakes in 2005 and 2008 which means there are several candidates for any vacancy.

Simon had a promising career in law before he entered parliament and is a popular MP.

Tim was already Minister for Climate Change negotiations and a logical choice for the Climate Change Issues portfolio.

The NBR says:

 Mr Groser is believed to be less supportive of the emissions trading scheme (ETS) than his predecessor Nick Smith. As Climate Change Negotiations Minister, he is more aware than most that the while Kyoto system, on which the ETS is based, is likely to collapse at the end of this year. His record is of favouring more direct initiatives on the matter, such as the Global Research Alliance on agriculture that he set up, which has been the only real outcome from recent UN climate change summits and now boasts more than 30 countries as members.

Working on an initiative which could make a difference is far better than wasting time on an agreement which is the result of bureaucracy and politics triumphing over common sense.

Nick Smith’s resignation

Nick Smith has resigned as a Minister:

Prime Minister John Key said today he had accepted with sadness the resignation of Dr Nick Smith from his Ministerial portfolios.

The resignation follows questions about Dr Smith’s judgement in supporting an ACC claimant while he was Minister during the previous term.

“It is important that Ministers are seen to actively manage both real and perceived conflicts of interest in the exercise of their duties,” says Mr Key.

“I have always expected high standards from my Ministers – and I will continue to do so.

“Dr Smith has been a hard-working and diligent Minister, but perceptions do matter and he knows he has let himself down.

“I am very disappointed to have lost such a capable Minister. Dr Smith has made a huge contribution to the National Party and to this Government.

“Dr Smith did excellent work in the climate change, local government and environment portfolios. His obvious expertise in these, and other, complex areas will continue to be valued by our Caucus.”

The following Ministers will act in portfolios previously held by Dr Smith: Gerry Brownlee in Local Government, Craig Foss in Climate Change Issues and Chris Finlayson in Environment.

This is the correct step to take after making such an error of judgement but I am very sorry that it has happened.

It is particularly sad that the resignation has come just as he announced plans for much needed reforms in local government.

Welcome changes for local government

Local government Minister Nick Smith’s has announced an eight point reform programme for local authorities:

1. Refocus the purpose of local government - to change from the ‘social, economic,environmental and cultural well-being of communities’ to ‘providing good quality local infrastructure, public services and regulatory functions at the least possible cost to households and business.’
2. Introduce fiscal responsibility requirements – will allow Government to set fiscal limits for Councils such as debt, income and expenditure levels. Flexibility in case of disasters though.
3. Strengthen council governance provisions – will allow Councils to set a cap on staff numbers and set a remuneration policy. Also salaries to be disclosed in bands like for central Govt.
   Also powers of Auckland Mayor to be extended to all Mayors – to appoint Deputy Mayor, Committee Chairs and propose the budget.
4. Streamline council reorganisation procedures
5. Establish a local government efficiency taskforce
6. Develop a framework for central/local government regulatory roles
7. Investigate the efficiency of local government infrastructure provision
8. Review the use of development contributions.

The first point by itself will mean better focus for councils, less work for staff and councillor’s and lower costs for ratepayers.

The power of general competence was a mistake which took council’s focus from core business an added significant costs to ratepayers.

Hat tip Kiwiblog.

 

Bluegreen future

National’s Bluegreen Future,an environment policy paper reporting on the progress of the National-led Government over the past three years and setting out the next steps to be taken in this term was launched at the party’s Bluegreen’s Forum at the weekend.

The Bluegreen approach is based on five principles:

Resource use must be based on sustainability.

Economic growth and improving the environment can and must go hand in hand.

Good science is essential to quality environmental decision making.

People respond best to change when engaged and given incentives.

New Zealanders have a unique birthright to access and enjoy our special places.

In launching the report, Environment Minister Nick Smith said:

“This plan is about bringing together policies that support a strong growing economy with sound stewardship of our natural environment. It has been put together by National’s 18-strong Bluegreens Caucus and covers our work on climate change, energy, transport, biosecurity, freshwater, biodiversity, oceans, recycling, contaminated sites, air quality, and outdoor recreation,” . . .

”We are proud of our record in Government. New Zealand is planting more trees, building more renewable power stations, insulating more houses, cleaning up more lakes and rivers, converting more homes to clean heating and recycling more waste.”

“We have an ambitious legislative plan for improving the environment: We will pass by 1 July 2012 new laws to protect New Zealand’s huge ocean area known as the Exclusive Economic Zone. We will be making improvements to the Emissions Trading Scheme by 1 January 2013 to ensure New Zealand continues to do its fair share on the global problem of climate change. We will also pass new laws on environmental reporting and marine reserves.”

“We also have an exciting programme of initiatives to advance this term covering the clean-up and better management of lakes and rivers, electrification of rail, extending incentives for electric cars, improving biosecurity and biodiversity, recycling TVs as part of the digital switchover, managing contaminated sites, and implementing tighter rules to improve air quality.” . . .

“These practical environment policies are right for the times. New Zealanders want balanced policies that will create jobs and improve living standards while ensuring we protect our clean green brand and great Kiwi lifestyle,” says Dr Smith.

The Green Growth Advisory Group also released its report at the weekend.

It says:

New Zealand needs a whole-economy approach to greener growth. The best outcomes for our economy and environment will come from many and various shifts within and between sectors towards greener products, services, technologies, practices and markets.

 Innovation involving knowledge and technology is critical to greening the growth of every sector, and this will often occur through the raising of productivity in current economic activities.

 Improved environmental performance and net gains in biodiversity protection are integral to New Zealand’s green growth.

 New Zealanders have a positive orientation towards green growth – confirmed in the Advisory Group’s engagement programme – but they need greater focus and more consistency of effort if they are to benefit more fully from the world’s shift in this direction.

 The report gave 26 recommendations for the government to consider.

“This is a useful report for bringing together policies that will help the Government build a more productive and competitive economy, while meeting environmental objectives,” Economic Development Minister Steven Joyce says.

“We see real opportunities for New Zealand in industries covered in the report such as the food and beverage industry, tourism, high-value manufacturing and services, and the petroleum and minerals sector.”

“The Government agrees with the report’s conclusion that New Zealand needs a broad growth strategy where all sectors take into account their environmental performance rather than focusing on a few green industries.”

Dr Smith says: “There is significant national and international interest in how to achieve strong economic growth that delivers jobs with policies that improve the environment. This report reinforces the value of the achievements of our first term in areas like water, waste and climate change but also new ideas for us to consider in this term.”

“It will feed into New Zealand’s contributions to the OECD Environment Roundtable in March and the UN Rio +20 Conference, both of which are focused on green growth.”

Respect for the environment and the need to protect and enhance it across the political spectrum but there are differing opinions on how to do that.

Those of a dark green philosophy have an unbalanced approach which puts the environment ahead of social and economic considerations even though environmental protection and enhancement need economic growth.

The Bluegreen approach is better balanced, acknowledging the importance of both economic growth and environmental improvement.

Councils borrowing too much

From Question Time on Thursday:

Local Authorities—Increase in Council Debt Since 2002

6. JACQUI DEAN (National—Waitaki) to the Minister of Local Government: What reports has he received on increases in local government council debt since the Local Government Act 2002 was enacted?

Hon Dr NICK SMITH (Minister of Local Government): The local authority financial reports show that council debt has quadrupled from $2 billion in 2002 to over $8 billion today. The increase

in debt is significantly greater than any other sector, and is noted by local government analyst Larry Mitchell to be the No. 1 issue facing that sector.

Jacqui Dean: Has local government borrowing slowed in response to the global debt crisis, in the same way that households and businesses have become cautious of debt?

Hon Dr NICK SMITH: No, household debt grew sharply between 2000 and 2008, but stabilised in 2009 and has reduced in 2010 and 2011. Farm debt has also responded prudently to the global financial crisis and not increased since 2008. In contrast, council debt has been growing at a faster rate—$500 million of borrowing in 2007, $800 million in 2008, $1,100 million in 2009, and $1,800 million in 2010. This ongoing increase in local government debt is not sustainable.

Jacqui Dean: Why is this increase in debt a concern?

Hon Dr NICK SMITH: There are three concerns. The first is that council debt is actually just rates deferred. The greater the debt the less opportunity there is in future for containing the cost of rates for households and businesses. Secondly, council debt contributes to New Zealand’s overall indebtedness. Households and businesses are doing their bit by pulling back their borrowing, and local government needs also to tighten its belt. My third concern is that for some councils their level of debt-servicing costs is becoming so great that it puts the financial viability of their council at risk.

Central government and households have tightened their belts and are doing their best to reducedebt.

Councils must cut their costs and reduce debt  too.

CCC needs unity

We can’t blame the water – Christchurch is reputed to have the purest supply of any city in the country.

But something’s rotten in the city. ECan turned into ECan’t and matters got so bad the government stepped in and replaced the regional council with commissioners.

Now the city council is exhibiting signs of major dysfunction.

Councillor Tim Carter has called for a commissioner to replace chief executive Tony Marryatt and Councillor Sue Wells wants the government to sack the whole council and appoint a commissioner.

The idea of a unitary authority combining the regional council commisioners, CERRA and the city council has its appeal. The city is facing an extraordinary situation and the ordinary democratic system is showing the strain. But the government isn’t considering that:

The Government will not “interfere” in the troubled Christchurch City Council, says Local Government Minister Nick Smith.

Smith, who visited Christchurch today, said the Government had no plans to appoint commissioners to run the council, despite calls to do so from two councillors.

Problems at the council were “not entirely surprising”, given the scale of the challenge facing the council, but needed to be dealt with without government intervention, he said.

If central government isn’t going to interfere the local one must get its act together.

Polling before the 2010 local body elections indicated that Jim Anderton would win his challenge against mayor Bob Parker which was far from a vote of confidence in the latter.

But the September earthquake turned the tide and Parker was re-elected.

There were rumbles of dis-satisfaction about the chief executive but he was re-appointed in a decision supported by a majority of councillors.

Whether either of these decisions was in the best interests of the city is irrelevant. That’s what democracy delivered.

If councillors aren’t happy with what’s happening they have to persuade a majority of their colleagues to agree with them to get change or accept they’re in the minority and either shut up or resign.

Christchurch people have had more than enough trouble from nature they don’t need more from their council. The people and their city need unity and action any councillors who can’t deliver both should not be in that role.