RSA – fan brigade

September 19, 2020

Saturday soapbox

September 19, 2020

Saturday’s soapbox is yours to use as you will – within the bounds of decency and absence of defamation. You’re welcome to look back or forward, discuss issues of the moment, to pontificate, ponder or point us to something of interest, to educate, elucidate or entertain, amuse, bemuse or simply muse, but not abuse.

For a nation to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle. – Winston Churchill


Kupu o te ra

September 18, 2020

Whakahoahoa – to make friends; be friendly.

To celebrate Wiki o te Reo Maori.


Leaving us with more

September 18, 2020

National is promising tax cuts to help us through the Covid crisis:

National’s massive tax stimulus package will put more than $3000 extra into the pockets of hard-working Kiwis on middle incomes, National Party Leader Judith Collins says.

You can read a copy of National’s Economic & Fiscal Plan here.

Ms Collins has announced the next National Government will let Kiwis keep more of what they earn by lifting the bottom tax threshold from $14,000 to $20,000, the middle threshold from $48,000 to $64,000 and the top threshold from $70,000 to $90,000.

These changes will be in place from December 1, 2020 until March 31, 2022. The total cost of this over the 16-month period is estimated to be $4.7 billion.

“Today we are facing the biggest economic downturn the world has seen since in living memory. But with the right leadership and economic plan we can grow our economy and keep Kiwis in jobs,” Ms Collins says.

“To keep our economy ticking, New Zealanders need money to spend. National will deliver temporary tax relief that puts more than $3000 – or nearly $50 a week – into the back pockets of average earners over the next 16 months.

“This will give Kiwis the confidence to go out and spend, which will be crucial for our retail, tourism and hospitality businesses to survive this economic crisis.

“New Zealand is facing a much longer and more painful economic shock than earlier forecast. We need a serious plan for economic growth to get us back on track.”

National’s Finance spokesperson Paul Goldsmith pointed to higher taxes as Labour’s only plan to get New Zealand out of this economic hole.

“No country has ever taxed its way out of a recession – and this is a big one we’re in now.”

As well as tax relief for households, National will double the depreciation rate for businesses that invest in new Plant, Equipment and Machinery over the next twelve months. This will bring forward the amount a business can claim in depreciation for new investments, which will stimulate investment by increasing the return on capital.

Doubling the depreciation rate is expected to cost $430 million a year for five years, while increasing tax revenues in out years.

“Our stimulus package has been fully-funded and costed, and is included in our independently reviewed Economic and Fiscal Plan released today,” Mr Goldsmith says.

“National’s plan carefully balances the need to drive economic stimulus, increase investment in core public services and restore government debt back to prudent levels.

“Labour, on the other hand, has announced it will increase taxes during a recession. The contrasting approaches to the economy at this election could not be clearer.

“Judith Collins and her strong National team will bring the leadership, experience and vision needed to get our country back on track.”

You can read a copy of National’s Economic & Fiscal Plan here.

You can view a copy of National’s Personal Tax Relief Policy here.

You can view a copy of National’s Double Depreciation Rate Policy here.

David Farrar has worked out what the tax cuts mean for different income levels and conclude:

This provides New Zealanders with a real choice – a Government that will help people through the tough times by temporarily reducing taxes, or a Government that will increase taxes.

If you’re not sure which would be better, ask yourself who would make better use of the money you earn – you or the government?

If you’re still not sure, think about what’s more efficient, letting us keep a bit more of what we earn and giving us the choice about how, and how much we spend, or having the government take more and absorbing some of that in the bureaucracy before the rest can be spent and only then dribble through the economy?


Sowell says

September 18, 2020


Rural round-up

September 18, 2020

Dr Doug Edmeades responds to Green Party agriculture policy:

The Green Party’s plan to help Kiwi farmers transition from traditional agriculture to regenerative and organic practices is a bit redundant, according to Dr Doug Edmeades.

Most farmers are already using many regenerative agriculture practices, such as rotational grazing, and zero tillage, the soil scientist told The Country’s Jamie Mackay.

“Let’s not delude ourselves that if we follow RA, we will improve soil health, we will reduce greenhouse gas emissions and improve water quality – that’s nonsense.”

Edmeades listened with interest to yesterday’s interview with Green Party co-leader James Shaw, where the Minister said regenerative agriculture would result in better profits for farmers. . . 

‘This just cannot happen’: $9.5 billion at risk as horticulture sector struggles to fill $25-an-hour jobs – Bonnie Flaws:

The shortage of horticultural workers due to Covid-19 border restrictions is putting $9.5 billion of the country’s economy at risk, says New Zealand Apples and Pears chief executive Alan Pollard.

About 10,000 seasonal workers would be needed starting from next month to prune and pick $1 billion worth of fruit across Hawke’s Bay alone, he said.

The shortage had the potential to cripple the region’s economic recovery.

“This just cannot happen.” . . 

Fonterra set to return to profit, but will it pay a dividend? – Jamie Gray:

Fonterra’s annual result this week is expected to show that the dairy giant is back in the black, but will it pay a final dividend?

The co-op last year posted a net loss of $605 million, driven mostly by writedowns of its overseas businesses, dwarfing the previous year’s shortfall of $196m, and sparking a major change in direction.

Fonterra did not pay a dividend in its previous financial year but in its latest earnings update, it said it would reassess a payout at the end of the latest year to July 31. . . 

The future of food – Greg Bruce:

Most of New Zealand’s lowland areas are now devoted to food production. How we produce food for consumption, sale and export continues to shape our landscape and lives, but the 90 per cent of New Zealanders who live in cities have little contact with those processes and the social and environmental considerations they create.

Can farmers improve yields and use resources more efficiently? Can consumers reconnect with the land and farm practices to make more informed choices and reduce waste? What is the future of our food?

THE LATE MAY EVENING my wife and I went to Coco’s Cantina for dinner, it was appallingly cold, probably the coldest night of the year. I wore a long black double-breasted wool coat, which I call ‘The Aucklander’ because it so obviously marks me as a stereotypical city person, which I am—lacking DIY skills, any sort of self-sufficiency, and any idea of what it takes to survive without a supermarket within easy driving distance. . .

Ewe’ll be seeing spots with quintuplets – Daisy Hudson:

You could be forgiven for thinking you were going dotty.

Sue Rissman certainly did when one of her ewes delivered five spotted black and white lambs on Sunday.

The quintuplets, four girls and a boy, seemed perfectly unaware of the interest in them yesterday as they trotted around after their mum on the 21ha lifestyle block Mrs Rissman and her husband, Grant, own inland from Palmerston.

The pair have 47 ewes, which have overwhelmingly delivered twins and triplets. . .

Two farming families form state of the art dairy business :

Two farming families from the Conwy Valley in Wales have gone into a partnership to run as a single state-of-the art dairy business.

The families decided to join together for a better work-life balance, more stock, less pressure and the prospect of new opportunities.

Young farmer Emyr Owen, 30, from Bodrach, near Pandy Tudur, farms in partnership with his parents on a 185-acre former beef and sheep farm.

He joined up with his next door neighbour Gwydion Jones, 38, whose family formerly farmed a herd of 150 dairy cattle at the neighbouring 95-acre Ty’n Ffynnon farm.. . 


When they don’t learn from mistakes . . .

September 18, 2020

New Zealand is in recession for the first time in 11 years.

Gross domestic product (GDP) fell by 12.2 percent in the June 2020 quarter, the largest quarterly fall recorded since the current series began in 1987, as the COVID-19 restrictions in place through the quarter impacted economic activity, Stats NZ said today.

“The 12.2 percent fall in quarterly GDP is by far the largest on record in New Zealand,” national accounts senior manager Paul Pascoe said.

There’s no surprise about being in recession when the country was locked up  down for weeks., but how did we compare with other countries:

Measures to contain COVID-19 have led to historically large falls in GDP in many parts of the world, with countries’ results reflecting the nature and timing of their responses, and the structure of their economies. For example, New Zealand’s result compares to falls of 7.0 percent in Australia, 11.5 percent in Canada, 7.9 percent in Japan, 20.4 percent in the United Kingdom, and 9.1 percent in the United States. . . 

New Zealand did worse than all of those countries except the UK, including our nearest neighbour which had a less harsh lockdown and, the debacle in Victoria excepted,  similar health outcomes; and our performance was worse than the OECD average.

Contrary to the government’s line of going early and hard, it was lax, late and harsh.

We should have locked down sooner, been much rigorous about returnees from overseas self-isolating and introduced MIQ sooner then used safe rather than the arbitrary essential  when determining which businesses could operate during lockdown.

That could have been excused the first time had the government learned from its mistakes, but it repeated them and made more when it locked Auckland down again.

Businesses and greengrocers weren’t allowed to open and there was an omnishambles at the region’s borders with staff not able to get to work. That was compounded by animal welfare issues when farmers couldn’t get into Auckland to look after their stock and millions of bees died when beekeepers couldn’t get to their hives.

The economy isn’t just about money, it’s about businesses, jobs, livelihoods and lives and both physical and mental health.

The government admits that health and the economy are linked but, as in so many other instances in the past three years, its actions haven’t followed its words.

Worse given there is a very real risk that there will be other leaks at the border it hasn’t learned from its mistakes and, should it be re-elected, there is a very real risk it will repeat them.


Wrecking ball politics

September 18, 2020

David Clark writes:

Over the weekend I had a phone call from a mate who lives in urban Auckland and he wanted to have a yarn about the new Green Party Agricultural Policy, that to his mind seemed logical, fair and reasonable, almost an exciting step forward, but he wanted to see the policy through the lens of a farmer as well,

I have been reflecting on his question regarding the launching of the Green Party Agricultural “Policy” trying to quantify the feeling of hopeless that I and many farmers feel.

So let’s unpack this a bit.

How our business works is we have a farm income, that is the culmination of all the stock we sell and the grain and seed crops that we grow and sell to processors as it’s eventually makes it way to your local Supermarket.

Out of that income, we pay our farm expenses, seed, fertiliser, fuel and electricity, farm supplies, and various other goods and services. Most of this expenditure benefits businesses in our local town Ashburton and across the wider Canterbury economy.

Once we have sold our produce and paid for our expenses, there is hopefully a wee bit left over, which is what most business owners refer to as their return on investment.

Last year our arable and stock farming business made a pre-tax return on total assets of 3.6%.

The Greens intend to impose a “Wealth Tax” of 2%.

That leaves us with 1.6% return on assets before we pay any Income Tax.

The Greens then plan to “charge a fair price” for the Methane burped by our sheep. I have previously heard prices of $50-$250/t of Carbon Equivalent suggested by the Greens, but let’s say at the low end of that range, our Climate Change cost just for Methane will be 1.5% of total assets.

That leaves us with 0.1%.

The Greens intend to develop a Water Charge in consultation with Iwi.

Previously the Greens have stated that charge should be 10 cents per cubic metre. David Parker publicly stated an intention for a water charge of 2 cents per cubic metre.

Here a Valetta, even at the lower charge of 2 cents per cube, the cost of watering our arable crops would be another 0.4% of total assets annually.

That leaves us making a 0.3% loss.

The Greens then want to impose a levy of fertiliser, want us to run a zero-till or minimum-till system, not sure how that works in a long term seed production system and adopt Regenerative principles.

But here’s the clanger, they intend to impose a Dissolved Inorganic Nitrogen (DIN) level of 1mg/litre for all waterways in NZ. Currently water flows out of DoC land at western side of Mid Canterbury at 3.2mg/l.

To meet a DIN of 1mg/l, Environment Canterbury’s own report from 2017 found that land use in the neighbouring Selwyn Te Waihora Catchment would have to revert to dryland sheep grazing.

We have budgeted that impact on this farm and it looks like this-

Crop Income, down 92%

Sheep Gross, down 62%

Expenditure, down 70%

Wages, down 91%

EBIT, down 68%

Capital Re-investment, down 74%

Net Profit, down 105%

Tax Paid, down 75%

The actual numbers are irrelevant, because the percentage drops will be seen across many or most farm businesses, regardless of size.

Of course, that is before any of the other new taxes and levies they wish for detailed above.

This conversation hasn’t even begun to touch on the significant investment in technology and infrastructure we have made in the last 15 years to reduce our environmental impact, all of which would be both unaffordable, and irrelevant because none of it will get us even close to meeting the limits the Greens wish for.

The end result of all this is we would now own a totally unviable, un-bankable business that is not much more than a glorified life style block and has no economic future in food production. The knock on impact is that land values will collapse.

My suggestion to my mate, or anyone else in urban New Zealand reading this is to enjoy and savour the standard of living that you currently enjoy, make diary notes, take photographs so that you can look back on the “good ole days” as we embark on our journey to becoming a Zimbabwe or Venezuela of the South Pacific.

It was not sensible policy announced this last weekend, it was the framework for economic destruction.

Given the catastrophic economic news released in the PERFU today, I’m not sure we can afford to take a wrecking ball to the agricultural and horticultural sectors right now.

We definitely can’t afford the wrecking ball approach to agriculture and horticulture which are two of the country’s very few bright economic bright spots and we don’t need to.

Most farmers and horticulturalists have been doing, and are continuing to do, everything they can to operate sustainably environmentally, socially and economically and they are using science to guide them in the best way of doing it.

The Green policy isn’t science based and focuses on the environment with no consideration of the enormous economic and social costs.


Kupu o te ra

September 17, 2020

Tika –  to be correct, true; upright; right; just, fair; accurate; appropriate; lawful; proper; valid.

To celebrate Wiki o te Reo Maori.


Sowell says

September 17, 2020


Rural round-up

September 17, 2020

Rethink needed:

Environment minister David Parker has had a long and tempestuous relationship with the farming sector.

His latest fight with farmers has come about due to the new freshwater regulations that recently came into force. Especially aggrieved are southern farmers who have pointed out that many of the new rules concerning winter cropping were “almost unfarmable” in the south.

Southland Federated Farmers president Geoffrey Young even called on farmers in the region to ignore the new requirements on getting resource consents for winter grazing until there was more practicality concerning it. This got Parker’s goat and he came out of hiding to decry Young’s call saying that “no one was above the law”.  . . 

Waikato A&P Show cancelled due to uncertainty around Covid-19 – Maja Burry:

The Waikato A&P Show, due to get underway late next month, has been cancelled due to the uncertainty around Covid-19.

The event was meant kick off in Hamilton on 30 October, marking its 128th year.

Showing Waikato said uncertainty about the Covid-19 alert levels which would apply on the traditional dates meant instead it would be holding a handful of small events open to competitors only.

There would also be an inaugural National Online Show involving other A&P show associations. . . 

Local Government NZ’s manifesto asks the right questions:

Local Government New Zealand is spot on when it says that all political parties’ policies should be assessed on how well they provide for local voices to be heard and taken into account, Federated Farmers says.

“We agree that central government policy and legislation must be able to be tailored for the differing needs, circumstances, capacity and capability of local communities,” Feds national board member Chris Allen says.

Federated Farmers also agrees with the assertion in the LGNZ manifesto released today that successive governments have placed too much weight on the use of top-down, one-size-fits all solutions. . . 

Kiwi dairy innovation leading the way:

Dairy is New Zealand’s top earner following the impact of COVID on tourism and education. Much now rests on the shoulders of busy farmers, some of whom are still struggling to get key staff back through New Zealand’s borders.

Annual breeding is a key pressure-point in the dairy calendar that requires skill and experience. A local Hamilton company is now attracting global attention for an imaginative solution to a perennial farming headache.

Kiwi dairy farmers need to know exactly when to artificially inseminate cows. FlashMate was created to stick to cow hair during the breeding period to interpret cow behaviour. The red light comes on at just the right moment when the cow is on heat and the unit is easily removed after breeding without bothering cows. “Reading body language when you have as many as 1,200 cows isn’t easy” says Matt Yallop, one of the creators of FlashMate. . . 

NZ Plant Producers issues its manifesto for the 2020 election:

Our organisation represents more than 100 plant producers who produce the plants growing food Kiwis eat and export, regenerating New Zealand’s forests, beautifying our urban landscapes, and being planted by millions of Kiwis in their backyards.

New Zealand Plant Producers is a voluntary organisation with more than 100 plant producer members, comprising New Zealand’s most respected nursery leaders and businesses. While our work benefits all New Zealand plant producers, it is funded by our members as proof of their commitment to our industry and the benefits it produces for New Zealand’s economy and well-being.

This election we raise eight issues which much be addressed so our members can continue to thrive and produce the plants New Zealand so badly needs. . . 

Pacific seasonal workers could be a lifeline for horticulture:

John Fiso, Chairman of the Pacific Cooperation Foundation (PCF), believes New Zealand can achieve a win-win by providing financial support for Pacific people from neighbouring island nations to head to New Zealand and help our horticultural sector in the upcoming fruit picking season.

“Our brothers and sisters in the Pacific islands are struggling for income due to the collapse of tourism in the region, this is a way to help them – and help our growers who are extremely concerned about labour shortages,” says Mr Fiso.

New Zealand is heading into a busy summer fruit season with a shortage of 60,000 workers. The impact of this on the economy could be $9.5 billion according to New Zealand Apples and Pears.

“Bringing seasonal workers in from the Pacific could be a win-win for the severely short staffed orchardists and fruit growers of New Zealand, and the people struggling in the Pacific,” says Mr Fiso. “The reality is, bringing in the Pacific workers would be hugely beneficial for humanitarian reasons in the Pacific and at the same time prevents millions of dollars of produce in New Zealand going to waste.” . .


Decade of deficits

September 17, 2020

Treasury is forecasting more than a decade of deficits:

With deficits projected out to 2033/34, there needs to be urgent action from all political parties on addressing the national debt, says the New Zealand Taxpayers’ Union. 

Taxpayers’ Union Campaigns Manager Louis Houlbrooke says “After many years of prudent fiscal management from National and Labour, it Treasury is now projecting 15 years of deficits in a row. As a result, net debt will be $31 billion higher – or $17,000 a household – in 2033/34 compared to the Budget 2020 projection. The Government needs to give us a credible path back to surplus rather than leaving taxpayers on the hook for a never-ending accumulation of debt.”

“The major reason for the more than a decade of deficits ahead is Treasury’s belief that our economic recovery from Covid-19 will be more anaemic than previously expected. The message is clear: our recent track-record of weak economic growth isn’t just hurting incomes and entrepreneurship; it’s going to have a serious impact on our public debt.

“The solution to the forecast decade of deficits is to cut wasteful spending, end regulatory taxes on business which stifle growth and employment, and deliver modest tax relief to households and employers to get the economy growing again.” 

It’s 12 years since Treasury last forecast a decade of deficits.

That was when a Labour-led government propped up by New Zealand First was on its last legs. It was also before the global financial crisis hit.

National came to power and in spite of the GFC and Canterbury earthquakes, returned to surplus in less than 10 years.

Who will you trust to turn the Treasury forecast round this time – the government that squandered the surplus and had the country back in deficit before Covid-19 hit, or a National-led government that understands that the quality of spending is far more important than the quantity?

Today’s Pre-election Economic and Fiscal Update forecasts a longer and more painful economic crisis than earlier forecast and requires a serious growth plan to get New Zealand back on track, National Party Leader Judith Collins and Finance spokesperson Paul Goldsmith say.

“Our economy is forecast to have shrunk by 16 per cent in the June quarter, and we will be taking on even more debt, an extra $200 billion. Every dollar and cent of this will have to be paid back by our children and grandchildren,” Ms Collins says.

“Unemployment will be substantially worse in 2022 and 2023. Treasury predicts 100,000 more New Zealanders will lose their jobs in the next two years.

That’s more than 10,000 more than the total population of Palmerston North.

“The Minister of Finance shouldn’t try to sugar coat these figures. He has taken a rose-tinted glasses view at a dreadful picture that cannot be described as anything other than catastrophic. Any short-term improvement on the Budget forecasts is far outweighed by the worsening picture past 2021.

“The contrast between Treasury’s estimate of more than 16 per cent contraction in our economy in the June quarter compared with 7 per cent in Australia shows he should be careful about making comparisons,” Ms Collins says.

“Grant Robertson’s only plan is higher taxes, and no country has ever taxed its way out of a recession, and this a huge one,” Mr Goldsmith says.

“Treasury is forecasting that under Labour New Zealand will be in deficit every year for at least the next 15 years. Grant Robertson and his Government have no plan to get New Zealand back into surplus. Ever.

“New Zealanders have a choice for our economic recovery: more government programmes, welfare and costs for business under Labour or lower taxes, more business investment and quality infrastructure under National.

“National has a comprehensive plan to secure our border and prevent New Zealand from yo-yoing in and out of lockdown. Effective border management, coupled with common sense and pragmatism around the rules, is an important aspect to help our economy can recover.

“We will do everything we can to make it easier for businesses to hire – 90 day trials, flexible employment laws, low taxes and innovative policies like JobStart and BusinessStart.

“Our economic plan of job friendly policies and investment in quality infrastructure will grow our economy, give businesses the confidence to grow and restore household incomes for New Zealanders,” Mr Goldsmith says.

“National will release our fiscal plan soon which will carefully balance the need to inject stimulus, increase investment in core public services and restore Government debt back to prudent levels,” Ms Collins says.

We couldn’t afford the current government before Covid-19 hit, we certainly can’t afford another three years of mismanagement.

 


Kupu o te ra

September 16, 2020

Tau o te ate – heart-strings, deep emotion, feelings; soul mate, lover, partner, darling.

To celebrate Wiki o te Reo Maori.


Sowell says

September 16, 2020


Rural round-up

September 16, 2020

Greens warned fertiliser tax will ‘create pressure on farmers’ :

The Green Party is being warned that a fertiliser levy is not a solution to more sustainable farming.

The Greens unveiled its agriculture policy in Canterbury at the weekend, where the party announced its plans to levy nitrogen and phosphorus fertiliser sales.

They also want to establish an almost $300 million fund for the transition to regenerative and organic farming.

Environmental consultant Dave Ashby runs a dairy farm in North Canterbury.

Keeping animals fenced out, planting along the banks and adding oxygen weed are just a few of the measures he takes to keep his waterways clean.

To prove how clean the water is at his man-made drain he took a handful and drank it. . . 

Independently assessed candidates for Fonterra Board of Directors’ election announced:

Incumbent Director Brent Goldsack, along with Nathan Guy, Cathy Quinn and Mike O’Connor have been announced as the Independently Assessed Candidates for the 2020 Fonterra Farmer Directors’ election. This year there are two Board positions up for election.

Nathan Guy, Mike O’Connor and Cathy Quinn were recommended by the Independent Selection Panel after their assessment process.

Incumbent Director Brent Goldsack is seeking re-election and chose to participate in the Independent Assessment Process. The Panel’s assessment of Brent will be included in the voting pack and as a re-standing Director he automatically goes through to the ballot. . .

Farm worker shows what folk with disabilities can do – George Clark:

A South Canterbury-based farm hand hopes to shed light on people with disabilities who have been overlooked for employment.

Timaru’s David Hanford Boyes has no balance and requires a walking stick to move.

While picking fruit in Australia in 1996, he was swept off a ladder by a branch and fell to the ground, crushing three vertebrae in his back.

Mr Hanford Boyes said he was lucky to have leading surgeons in Melbourne at the time offering a surgery not before tried on humans. . . 

Sharing his passion for dairy farming – Mary-Jo Tohill:

Telford dairy farm manager John Thornley has played a key role in getting the first GoDairy course under way at the Southern Institute of Technology Telford campus. He has first-hand knowledge of making a career change, as Mary-Jo Tohill reports.

After going from cook to cow cocky, Telford dairy farm manager John Thornley can relate to change.

He played a key role in getting the first GoDairy course under way at the Southern Institute of Technology (SIT) Telford campus near Balclutha last month, and said he got a real kick out of seeing the 13 people taking part make big changes to their lives.

“They’re like a breath of fresh air and they’re wanting to learn all they can about dairying.” . . 

New director will help push for smarter farming:

Intellectual property lawyer and farm owner Jane Montgomery is Ravensdown’s newest shareholder-elected director, announced at yesterday’s 2020 annual meeting.

Christchurch-based Jane owns a farm in North Canterbury and has been elected as director of Area 3, which extends from Selwyn to the top of the South Island and includes the West Coast.

Ravensdown Chair John Henderson says Jane’s new perspective will be important as the co-operative and its shareholders tackle opportunities and challenges in a volatile world. . . 

 

Commission releases final report on Fonterra’s milk price:

The Commerce Commission has today released its final report on Fonterra’s base milk price calculation for the 2019/20 dairy season.

The base milk price is the average price Fonterra sets for raw milk supplied by farmers, which is currently forecast to be $7.10 – $7.20 per kilogram of milk solids for the 2019/20 dairy season.

The Commission is required to review the calculation at the end of each dairy season under the milk price monitoring regime in the Dairy Industry Restructuring Act (DIRA). The regime is designed to provide Fonterra with incentives to set the base milk price consistent with efficient and contestable market outcomes. . . 

 

 


Shareholders should be first call

September 16, 2020

The Taxpayers’ Union says the taxpayer funded lolly scramble for tourism ventures is morally wrong:

New Zealand Taxpayers’ Union spokesman Louis Houlbrooke says, “The latest round of funding by the Government’s COVID-19 tourism rescue package demonstrates how completely arbitrary, unfair, and wasteful this corporate welfare programme is.”

“The lucky recipients include river cruise companies, spa resorts, and helicopter tour operators. While we’re sure these companies have struggled with effects of the pandemic, so have their competitors who aren’t getting handouts.”

“While 130 applicants were successful, another 170 were turned down, and many more potential applicants would have lacked the knowledge or confidence to navigate the bureaucratic grant process. When politicians give taxpayer money to select grant applicants, they distort the market, rewarding companies that devote resources to impressing bureaucrats, and making it easier for those companies to put their self-sufficient competitors out of business. That’s not just wasteful, it’s morally repugnant.”

“We’re calling on all political parties to pledge an end to ad hoc COVID handouts, and instead introduce fairer, less discriminating measures. For example, a temporary cut to GST could motivate New Zealanders to bring forward their holiday plans and spend more. Alternatively, lower excise tax on petrol could make the Kiwi road trip great again.”

A government who took seriously the knowledge that every cent it’s spending is borrowed would not be throwing money at businesses in this way.

Most businesses involved in tourism will have been, and continue to be, hard hit by the impacts of Covid-19 and our closed borders. That isn’t an excuse for giving some money that allows them to compete unfairly with others that missed out on, or didn’t apply for, grants.

What will the money do and what will the businesses do if/when it runs out and the border is still closed?

The responsibility for the viability of these companies is first and foremost that of their shareholders, not taxpayers.


Kupu o te ra

September 15, 2020

Māramatanga – enlightenment; insight; understanding; light; meaning; significance; brainwave.

To celebrate Wiki o te Reo Maori.


Sowell says

September 15, 2020


Rural round-up

September 15, 2020

Fears for harvest as seasonal workers locked out by Covid-19

Hawke’s Bay growers are facing a serious seasonal labour shortage as the reality of Covid-19 sinks in.

The horticulture and viticulture sectors in Hawke’s Bay need about 10,000 seasonal workers to work across the region starting from next month.

They expect there will be a significant shortfall of people for the upcoming season – which will affect harvest time the most.

Hastings Mayor Sandra Hazlehurst said if the fruit was not picked, thousands of permanent jobs would be at risk. . . 

Green Party’s agricultural policy ignores basic science:

The Green Party’s agriculture policy is based on a mistaken understanding about the environmental impact of livestock farming FARM spokesman Robin Grieve said today

James Shaw attempted to justify his Party’s policy to price livestock emissions on his belief that livestock produce half New Zealand’s greenhouse gas emissions. The science and the facts about ruminant methane emissions do not support that.

FARM was set up to present the facts about ruminant methane and the Green Party policy demonstrates how much the facts and the science of ruminant methane emissions are missing from the political debate about global warming. . . 

Farming passion through a lens – Cheyenne Nicholson:

A love of capturing a moment in time through the lens is helping a Manawatu farmer reach her goal of 50:50 sharemilking. Cheyenne Nicholsonreports.

Six years ago Renae Flett combined her love of farming with her love of photography to create her photography business Renae Flett Agri and Events Photography.

Her photos feature in farming magazines and agricultural marketing campaigns, and she has shot several weddings, maternity shoots and everything in between.

“I love to take photos of anything farming. I love farming. It’s my passion just like photography, so being able to combine the two makes me pretty lucky, (and) it’s all grown pretty organically,” she says. . . 

 

Fonterra targets community support where it’s needed most:

Fonterra is taking a new approach to how it provides nutrition to communities, to better reach those most in need across New Zealand.

CEO Miles Hurrell says, as a New Zealand farmer owned co-op, with employees spread right across regional New Zealand, Fonterra is part of many communities.

“We’ve taken a good look at what the country is facing into, particularly in the context of COVID-19, and asked if our current way of doing things is supporting the people who need it most.

“We can see there’s a need for us to expand our thinking and take a more holistic approach that reaches more people – which is why we’re making these changes,” says Mr Hurrell. . . 

New Zealand hemp industry set to generate Hemp $2 billion per annum and create 20,000 jobs:

A new report says a fully enabled hemp industry could generate $2 billion in income for New Zealand by 2030, while also creating thousands of new jobs.

Written by industry strategist Dr Nick Marsh, the report has prompted calls from the New Zealand Hemp Industries Association (NZHIA) for the government to take the shackles off this burgeoning ‘wellness’ industry.

“We are well behind other countries in our attitude to hemp,” says NZHIA Chair, Richard Barge. “Although it is non-psychoactive, many of our current laws treat it as though it is. This report highlights just how short sighted those laws are in economic terms, and how out of step New Zealand is with the rest of the world.” . . 

Lower North Island butchers sharpen up for competition:

Butchers from across the lower North Island sharpened their knives and cut their way through a two-hour competition in the regional stages of the 2020 Alto Young Butcher and ANZCO Foods Butcher Apprentice of the Year competition.

It was a close call, but after a fierce competition Braham Pink from Evans Bacon Company in Gisborne placed first in the Alto Young Butcher of the Year category and Jacob Wells from New World Foxton, claimed first spot in the ANZCO Foods Butcher Apprentice of the Year category.

This was the first regional competition in a national series to find New Zealand’s top butchers to compete in a Grand Final showdown in November. The lower North Island contestants put their boning, trimming, slicing and dicing skills to the test as they broke down a size 20 chicken, a whole pork leg, and a beef short loin into a display of value-added products. . . 

 


Who do you believe?

September 15, 2020

. . .  who do you believe on why Jami-Lee Ross has pulled out of the contest for the Botany electorate?

Jami-Lee Ross:

. . . It’s a safe National seat, but Ross said he believes it was a three-way race this election between himself, Luxon and Labour’s candidate, Naisi Chen.

Or David Farrar:

. . . In no way was it a three way race. In a poll done by Curia in August 2020, Jami-Lee Ross was at 1.8%. And no that is not a typo – 1.8% not 18%.

Jami-Lee has pulled out because he knew it was going to be a humiliating thrashing. Otherwise he would still be standing.

A disgraced politician or an experienced and highly regarded pollster?

I believe the pollster.

 


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