I’d be prepared to pay a bit more tax for . . .

August 19, 2014

About half the people polled in Britain say they would be prepared to pay a bit more tax if it went directly to the health service.

That is what they say but Tim Worstall points out what people say is not the same as what they do.

. . .The reason it’s not true is our old friend revealed preferences. We should never try to divine what people really want from what they say: we should instead look at what they do. And we do have a method of being able to pay extra tax: simply send the cheque to “The Accountant, 2 Horse Guards Road, London SW1″ and they’re absolutely delighted to apply it to whatever area of public spending you wish to inform them you favour. Admittedly it’s a few years since I looked into this but in that year an entire 5 people had actually done so and four of them were dead, leaving bequests.

So revealed preferences tells us that exactly one live person was actually willing to pay higher taxes for any reason at all, not just for the NHS. . .

Would a poll in New Zealand have a similar result?

Probably, but anyone in New Zealand could send money to Treasury or the ministry or department of their choice now but how many do?

I suspect it is very, very few.

I used to be deputy chair of a health board and we often got donations from grateful patients and their families.

A whole range of charities which work in areas where the government provides services survive on donations from thousands of people.

Would those people give as much if they paid more tax?

Would they prefer to pay more tax than to keep more of their own money to do with it what they wished?

They might say yes would but their actions suggest a very strong no.

Government services need our tax revenue but it takes more than a dollar in tax to provide a dollar of services.

Most of us would prefer to keep more of our own money and be free to donate directly to organisations where every cent gets to the destination we choose.

Every organisation has administration costs but with some administration costs are covered by local committee fund raising, and donations all go to projects. Save the Children is one which operates in this way.


70,000,000 reasons for sale

August 10, 2014

Tim Worstall, writing at Forbes, says there’s 70,000,000 reasons for selling Lochinver Station:

There’s a slightly bizarre argument going on over in New Zealand over the ownership of a large farm, Lochinver Station. The argument is over whether it’s right or not for it to be sold to a Chinese company. There’s so many things wrong with even having the debate that it’s difficult for we foreigners to get our minds around it. For a start the very definition of private property is that you can dispose of said property as you wish. If you can’t then it’s not actually private property any more. But more than that the basis of the argument against allowing the sale seems to be that the sale should be in New Zealand’s economic interest as a whole. Which, of course, it is, there’s 70 million benefits coming into the country in the form of the $70 million that’s being paid for it. Why the debate continues after this is a mystery. . .

The debate continues because of emotion and politics.

. . . To which I would just add that one about the 70 million benefits. A foreigner (a corporation, an individual, it doesn’t matter) is bringing money into the country to pay for Lochinver Station. The price that’s being paid is, by definition, everyone’s best guess as to the total current value of all of the future profits from that farming operation. This is thus an addition of $70 million to New Zealand’s capital stock. Before, there was the farm worth $70 million. After the sale there will still be the farm, which will still employ people, pay taxes and so on. And also the family operation that used to run the farm now has $70 million. The deal adds to the capital stock of the country and what makes a place richer is increasing the amount of capital that is added to the labour of that place. Thus there’s 70 million benefits to the sale, each dollar being paid over being a benefit of one dollar.

Other than a xenophobic appeal to economic populism (and those with long memories might care to ponder on where said autarkic populism led the economy under Robert Muldoon) there’s really nothing at all to support the idea that Lochinver Station cannot be sold to anyone at all who wants to buy it.

Private property rights and economics mean nothing to the xenophobes opposing the sale.

They also fail to see the benefits to the seller and the country from those $70,000,000 and all the other money the would-be purchaser, Shanghai Pengxin,  will have to put into the farm to meet the very strict criteria of the Overseas Investment Office.


Quota bad for health

July 21, 2014

Tim Worstall shows that public health campaigners  don’t understand economics:

. . . The European Union is taking the next step in reforming the entirely absurd sugar regime, making it marginally less awful. The public health wallahs are shouting that this might make sugar cheaper, to the point where everyone will explode from eating too much of it.

No, really:

Controversial agricultural reforms by the European Union could cause sugar levels in food and drink to rise, experts have warned.

Campaigners said it was “perverse” that the EU was planning to lift sugar production quotas at a time when health authorities are advising people to reduce their consumption of the ingredient. . . .

The move is expected to make sugar cheaper for food and drink manufacturers, prompting fears it will encourage them to use rising levels of the ingredient. Dr Aseem Malhotra, science director of Action on Sugar, a campaign group, said it would be “disastrous” for public health.

Oh dear.

They’ve really not understood what’s going on here at all.

In the nightmare world of EU agricultural policies the abolition of quota does not mean that prices are going to fall. For what actually happens is that if you grow sugar beet then there’s two prices which you can sell that deformed mangelwurzel to the processor at. One, a guaranteed one, much higher than a free market price, is only available if you have quota to go with your sugar beet. The other price is very much lower than a free market price and almost no one ever tries to grow beet without quota as a result.

The important point about the abolition of quota is not that it abolishes quota. It is that if there is no quota then beet with or without quota cannot gain that guaranteed price. Thus the price on offer to Europe’s sugar beet growers is going to fall: all other things being equal we’ll thus have less beet being grown. And thus less sugar being taken into storage and then subsidised by the EU when it is later dumped on the food manufacturers.

The abolition of quota will lead to less sugar being produced. And the public health campaigners are arguing against the abolition of quota to stop less sugar being produced. . .

Removing quota will not just have economic benefits, contrary to what the campaigners say, it could have health ones too.


Floral fiends

May 8, 2014

An elderly couple have been told the flower bed outside their home is ‘criminal damage’ by a council which has demanded they rip it out.

An elderly couple have been warned they face a court charged with ‘criminally damaging the highway’ – after they planted a flower bed outside their home.

Colin Halsey, 77, and his wife Kath, 76, had decided to grow daffodils, pansies and other bushes and plants as long ago as 1999 to stop motorists churning up the grass verge whenever they parked their cars.

But almost 15 years on, a council official carrying out an inspection of the village where they couple live, spotted the illicit flower bed growing at the front of their former council house.

He spoke to Mr Halsey claiming his ”planting activity” was a ”criminal offence” under Section 131 of The Highways Act 1980 and then warned the retired salesman, the plants and bushes had been ”planted without permission.”

Afterwards he fired off a legal letter when the pensioner failed to remove them warning he had even added extra plants. . .

Gosh, imagine what the world would look like if we let floral fiends like these two indulge in “planting activity” without the necessary permission.

Hat tip: Tim Worstall


Rural round-up

February 16, 2014

Price fixing doesn’t work Part XVII - Tim Worstall:

Thailand is finding out, in a most painful manner, what happens to those who try to fix prices:

Thailand, once the world’s biggest exporter, is short of funds to help growers under Prime Minister Yingluck Shinawatra’s 2011 program to buy the crop at above-market rates. After the government built record stockpiles big enough to meet about a third of global import demand, exports and prices have dropped, farmers aren’t being paid, and the program is the target of anti-corruption probes. Political unrest may contribute to slower growth in Southeast Asia’s second-largest economy.

In order to curry favour with the rice farmers who compose a substantial part of the electorate prices were fixed and fixed high. The inevitable thus happens, magically more is produced than anyone wants to consume and here at least it is looking like the government will go bust over it. “Produced” is of course a flexible word: there are long running reports of rice being smuggled over the Burmese border to take advantage of those high Thai prices. . . .

NAIT helps clear Northland TB infection:

ONLY ONE bovine tuberculosis (TB) infected herd remains in Northland.

Six other herds have been cleared by TBfree New Zealand. The single, remaining infected herd has recently had a whole herd TB test and is also on the verge of being cleared of the disease. The six other herds were linked by stock movements made before the disease was diagnosed.

TBfree Northland committee chair Neil MacMillan QSM said the cooperation of farmers and landowners in allowing TB testing and wild animal control contractors’ access to their properties to remove the disease was appreciated. . .

Rain and visitors pour into Waimumu - Terry Brosnahan:

It was cold, wet and muddy, but the money still poured in at the Southern Field Days at Waimumu, near Gore, this week.

Persistent rain on the second day of the three-day event didn’t deter farmers from attending and spending.  

Exhibitors spoken to reported strong sales and enquiries. They said farmers and contractors had done their research and were ready to do business rather than just come for a day out.

Field days chairman Mark Dillon said 12,100 people paid to attend the first day and 12,500 the second. Figures for Friday, the final day were not available when Farmers Weekly went to print. In 2012 a record 33,000 people went through the gates of the biennial event. Based on the area filled, a record number of cars were parked. . . .

Biocontrol bugs on show at Waimumu:

THEY’RE CREEPY, they’re crawly, and they’re on display in the Environment Southland marquee at Southern Field Days.

Following on from biocontrol success in several areas, a raft of biocontrol agents including Dung beetles, Broom galls mites, Green thistle beetles; Gorse soft shoot moths and Ragwort plume moths are making an appearance in the council’s tent this year.

Senior biosecurity officer Randall Milne says it’s an opportunity to educate the public about biosecurity and biocontrol agents. . .

Success: farming smarter, not harder -

Fifteen years ago Doug Avery was locked into failure.

The Marlborough sheep and beef farmer was barely coping, personally and financially, after years of successive drought had ravaged his farm.

“The severity of eight years of drought, including four one-in-one-hundred-year droughts, was so bad that I recognised the road that I was travelling was completely stuffed,” Avery says.

His 1500ha farm, Bonaveree, overlooking the Dominion Salt facility at Lake Grassmere, has been in the family for nearly 100 years.

But the glorious sunshine and drying nor’westerly winds that create perfect conditions for extracting salt from seawater were destroying the 59-year-old and his farming business.  . .

From white gold to kiwi gold:

Exchanging the dairy farm for kiwifruit vines came down to seeing the golden-sweet potential that was ripe for the picking for Bay of Plenty couple Elaine and Wayne Skiffington.

After 28 years of dairy farming, the couple decided to invest all their efforts into kiwifruit around 12 years ago and have never looked back.

“We saw the potential kiwifruit had to offer and went for it,” Wayne says.

Originally purchasing their 50 hectare property in Pongakawa, in the Western Bay of Plenty 20 years ago for run-off purposes for the dairy farm, it also happened to include a kiwifruit orchard. Not knowing much about kiwifruit but not wanting to get rid of the vines, the couple decided to lease the orchard to Direct Management Services (DMS), while they ran the farm. . .


Rural round-up

December 24, 2013

Proactive approach prevents dog fight – Sheryl Brown:

As a battle about water quality rages between farmers and regional councils throughout New Zealand, a group of farmers in the Lake Rerewhakaaitu catchment have drawn nationwide attention through a proactive approach.

Nestled under Mount Tarawera, Lake Rerewhakaaitu is the southernmost of the 12 Rotorua lakes and is surrounded predominantly by dairy farms.

In 2001 a report by Bay of Plenty Regional Council showed nutrient levels in streams flowing into the lake were increasing.

The report suggested tightening dairy disposal consent conditions and setting a ceiling level of nitrogen fertiliser application. . .

Talley’s to lift Open Country stake to as much as 70.5%:

(BusinessDesk) – Talley’s Group, the privately-held maker of foods ranging from frozen fish to ice cream, agreed to buy up to 14.99 percent of Open Country Dairy from Singapore’s Olam International for as much as $46.5 million.

The deal would lift Talley’s holding of the dairy company to as much as 70.5 percent from 55.5 percent, increasing its control of a business that returned to profit in 2012 while tapping shareholders for funds to repay debt. The sale price is close to the current carrying value of the investment in Olam’s accounts, it said.

Olam’s stake would reduce to as low as 10 percent, leaving it as the second-largest shareholder just ahead of Dairy Investment Fund on 9.99 percent. Talley’s is required to make a partial takeover offer under the terms of the Takeovers Code and its transaction with Olam will be a combination of direct sale of shares and acceptance of the offer, Olam said. . .

Santa delivers farmers the perfect weather present:

While holidaymakers may not be relishing widespread rain over Christmas, it will certainly bring a smile to many farmers one-third of the way into summer.

“The guy in the big red suit is delivering farmers the best present; widespread rain,” says Katie Milne, Federated Farmers Adverse Events Spokesperson.

“Farmers won’t have an excuse to get out on-farm but will instead have to get stuck into wrapping last minute presents. Aside from essential jobs on-farm, a few day’s weather enforced relaxation with family is the best way to recharge the batteries. . .

Scholar slams stubble burning as bad for soil – Tim Cronshaw:

A Nuffield scholar visiting Canterbury, who would never burn crop stubble on his farm, has criticised the worldwide practice.

Arable farmer Tom Sewell, who grows crops on a 400-hectare farm in southeast England, was one of two scholarship holders studying the long-term benefits of no-tillage in New Zealand.

He left for Australia a week ago convinced farmers could avoid stubble burning, banned in his home country.

“There are loads of problems with it. In the UK it would be a [non-runner] in public relations and would be a shot in the foot. The public perception is it’s bad for the environment, creating carbon dioxide and it’s burning a valuable carbon source for the soil and losing organic carbon.” . .

30 animals on offer at NZ’s first annual game sale -

The efforts of South Canterbury man Neville Cunningham, to have game animals such as red deer and white tahr recognised as being of value rather than simply termed a pest to be eradicated, came to fruition yesterday when he staged New Zealand’s first annual game animal sale.

The sale, held at his Timaru property, offered 30 animals by tender including a black tahr and a white tahr, chamois, trophy elk bulls, trophy red stags, a highland bull, two bison and arapawa rams.

All the animals have been bred by Mr Cunningham at one of his two properties, at Timaru or Aoraki/Mt Cook and some, such as the white tahr, have come from animals originally recovered from the bush, but now part of a managed breeding programme. . .

Two new farmer directors elected to Beef + Lamb New Zealand Board:

Two new farmer directors will join the Beef + Lamb New Zealand Board after the annual meeting in Feilding on 14 March 2014.

They are Waikaka Valley farmer, Andrew Morrison who will represent the Southern South Island electorate and Wairarapa farmer, George Tatham who will represent the Eastern North Island electorate.

They were both elected unopposed.

They replace Beef + Lamb New Zealand directors who had not sought re-election. . .

Bumper crop boosts NZ apple and pear exports:

The largest crop in nearly 10 years has allowed apple and pear growers to crack the $500 million mark for exports.

The pipfruit industry believes the result has placed it on track to reach its export target of $1 billion by 2022.

Pipfruit New Zealand Incorporated (PNZI) chief executive Alan Pollard said the economic impact of apple and pear exports on regions was “extraordinary”.

“North Island centres such as Hawke’s Bay received $350m in export receipts, up $100m on 2012, and South Island centres such as Nelson have received $150m, $50m more than 2012,” he said. . .

The master has not finished just yet – Hugh Stringleman:

The world’s greatest competition shearer believes he has at least one more successful year left in him.

Five-time world champion David Fagan, 52, wants to add to his tallies of 16 titles each at the Golden Shears and New Zealand Shearing Championships.

At the Te Kuiti-based NZ championships David has reached the open final 28 out of 29 times, and the 30th edition in March will provide the best-possible stage for his last hurrah. . .

How do politicians manage to believe such things? – Tim Worstall:

I’m slightly boggled by this statement:

Tim Farron, South Lakes MP and chair of the all-party parliamentary hill farming group, said: “We need to do all we can to support our farming industry, particularly in the uplands where life can be a real struggle. This support and funding could make a massive difference to upland farmers throughout Cumbria and help show the next generation that there is a real future in a career in farming.”

It appears to me to be an example of cognitive dissonance. For we’re also being told this about that same occupation: . .

Vineyards on sustainable, diverse path:

A rapid rise in exports fuelled New Zealand wine industry growth in the 1990s and the industry recognised it needed a proactive approach to sustainable production.

Considerable research led to a holistic programme that eventually became known as Sustainable Winegrowing New Zealand.

All but 6% of NZ’s producing vineyard area is certified under the Sustainable Winegrowing NZ approach, with a further 3-5% of operating under certified organic programmes.

Members are committed to protecting the unique places that make the country’s famous wines by reducing the use of chemicals, energy, water, and packaging and wherever possible reusing and recycling material and waste. . .


Rural round-up

October 11, 2013

Effluent may be power house for farmers - Collette Devlin:

Effluent – often a headache for Southland dairy farmers – could soon prove beneficial by offsetting electricity bills, recent research shows.

As part of the Southland Energy Strategy, Venture Southland has been working with farm consultants, Scandrett Rural, Niwa, and EECA trialling the capture of methane emissions from covered anaerobic effluent ponds on dairy farms.

The principle behind the project was to demonstrate that methane could be used as an energy source to reduce electricity use on farms and also reduce greenhouse emissions. . .

Jealous Jillaroo – Jackaroo Joins the Largest Drove In Aussie Memory – Jillaroo Jess:

Something very exciting is happening in eastern Australia at the moment. Well, not for me, I’m stuck at home taking care of the farm. Jackaroo has been lucky enough to be involved in the biggest drove in Australian history. A ‘drove’, is moving cattle/sheep from one place to another, feeding them along the way. They can be very long and hard distances travelled. Often, drovers live on the road, going from one job to the next. Cattle baron Tom Brinkworth has taken advantage of the drought and bad cattle prices by buying 18,000 head of cattle from the ages of 8months to 2yrs old. These cattle are being taken down the TSR (Travelling Stock Route), or ‘The Long Paddock’ to their new properties, some 2500km away (over 1500miles). The herd has been split up into 9 mobs, and are travelling 10km a day. There is about 80km/8days between the different mobs of cattle. . .

Let’s smash a cartel today - Tim Worstall:

I’ve pointed out here before that parts of the fertiliser industry seem to be run as a cartel. Now we’ve evidence that much of the fertiliser industry is run as a cartel.

C. Robert Taylor and Diana L. Moss have written “The Fertilizer Oligopoly: The Case for Antitrust Enforcement,” as a monograph for the American Antitrust Institute. Those looking for examples of possibly anticompetitive behavior, whether for classroom examples or for other settings, will find the argument intriguing.

The effect of which is:

Taylor and Moss write: “Damages from supra-competitive pricing of fertilizer likely amount to tens of billions of dollars annually, the direct effects of which are felt by farmers and ranchers. But consumers all over the world suffer indirectly from cartelization of the fertilizer industry through higher food prices, particularly low income and subsistence demographics. … [I]t is clear that corporate and political control of essential plant nutrients may be one of the most severe competition issues facing national economies today.”

Part of the detail of how the cartel works is that it is not allowed to affect domestic US prices (Ho ho). So therefore the richest farmers in the world are not affected: but all of the poor world ones are. . .

New appointments to Biosecurity  Ministerial Advisory Committee :

Primary Industries Minister Nathan Guy has announced five new appointments to the Biosecurity Ministerial Advisory Committee today.

The Committee plays an important role in providing the Minister with independent advice on the performance of New Zealand’s biosecurity system as a whole, and on specific biosecurity issues where necessary.

“Biosecurity is my number one priority, and hugely important to New Zealand as a trading nation,” says Mr Guy.

“A world class biosecurity system protects New Zealand from unwanted pests and diseases. This is essential for working towards our goal of doubling the value of our primary sector exports to $64 billion by 2025. . .

New Zealand’s diversity recognised at International Wine and Spirit Competition:

New Zealand’s diverse wine styles have stolen the show at the prestigious UK-based International Wine and Spirit Competition (IWSC). In the results released today, New Zealand wines beat all international competition to win not only the international Sauvignon Blanc and Pinot Noir Trophies, but the Chardonnay Trophy as well, while Gold Outstanding Medals went to a Gewürztraminer and a dessert Riesling. . .

Ceres Wines wins the coveted IWSC Bouchard Finlayson Pinot Noir Trophy:

Ceres Wines, a tiny artisan wine producer from Bannockburn in Central Otago, has won the coveted International Wine and Spirit Competition (IWSC) Bouchard Finlayson trophy for Pinot Noir. The trophy is awarded to the top Pinot Noir from entries received from around the globe. It is the third time in a row that the trophy has been awarded to wines produced in Central Otago, with Peregrine receiving the award in 2011 and Valli in 2012. . .

Re-wire on a Hayes Roast:

Hayes Roast is this season’s new addition to the offering at Hayes Engineering & Homestead, a Central Otago property cared for by the New Zealand Historic Places Trust (NZHPT).

“It’s been inspired by the inventions and ingenuity visitors experience at the site,” says Property Manager Scott Elliffe.

“We believe Ernest Hayes – inventor of the Hayes wire strainer that is still in use in farms around the world – would have quickly adapted to the new market of urban trail riders biking past his front door and developed a roasting machine to meet their needs for ‘city coffee, country food’.”

In partnership with Vivace Coffee, the NZHPT asked third generation artisan master roaster Bernard Smith to develop a blend of three original coffee beans that best emulated the strength of the site, the body of the ‘big skies’ Central Otago landscape and the sweetness of its sun overhead. . .


Follow

Get every new post delivered to your Inbox.

Join 1,409 other followers

%d bloggers like this: