Budget viewed from the paddock

Agriculture Minister David Carter explains the Primary Growth Partnership.

The scope of the Primary Growth Partnership initiative includes pastoral and arable production; horticulture; seafood; forestry and wood products; and food processing.

Federated Farmers said the Budget will assist farm productivity and competitiveness.

“The Government has walked a tightrope in looking to boost productivity and competitiveness without flaming debt.

“That said, business is facing a very difficult environment and many New Zealanders are being insulated at the expense of business.  Its okay to ‘preserve entitlements’ for workers but without business owners, there would be no jobs. 

“Despite this, Federated Farmers is pleased to see the projected debt track trending downwards.  This means we will be returning to surplus a lot earlier than previously forecasted. 

“Any credit downgrade would have seriously impacted the interest rates farmers pay when farm incomes are highly constrained.  Every one percent on interest rates takes around $450 million out of farm incomes.

Feds approved of the funding for research,  is happy with the Infrastructure Board, was delighted to hear Bill English use the word water in his speech, is luke warm about funding for broadband, would like to see wool used for insulation and welcomes the commitment to reforming the RMA, Building Act and electricity markets.

“Federated Farmers understands the tightrope walked by Government in its first Budget.  Fonterra’s revised forecast, announced yesterday, tempered any expectations we had. 

“That said, there are positive indications for the future in respect of infrastructure, regulatory reform, water and research and development.  What Federated Farmers will be looking for is for acceleration in the areas that will drive the economy forward,” Mr Nicolson concluded.

NZBio  supports the investment in innovation. CEO Bronwyn Dilley said:

“Support for New Zealand’s future in the form of $1.1 billion operating and $747.3 million capital investment in transforming the New Zealand economy, including $205 million new funding for Vote RS&T, is a critical step in ensuring this country remains internationally competitive and a desirable place to work. . .

“This is a budget with foresight and strong commitment to New Zealand’s long term success. It signals a step change towards a high value, high skill, knowledge based economy for New Zealand, and the biotechnology industry will be an essential element in achieving that outcome.”

Meat and Wool NZ  welcomed the commitment to primary sector research.

Meat & Wool New Zealand Chairman, Mike Petersen said that the level of investment made available highlighted the Government’s recognition of the sector’s considerable earning potential.

“The budget has signalled that New Zealand is in for a challenging few years with the financial crisis that has dominated the world economies. However New Zealand is well placed for an earlier recovery than other countries with the sheep and beef sector leading the way.

“It’s pleasing to see the Government growing its support to the primary sector which makes up 64 per cent of exports and generates $24.5 billion for the New Zealand economy.”

Science NZ  welcomed the benchtop RS&T increase.

“The Prime Minister’s Science Prizes ($1m pa) and the appointment of the Prime Minister’s Chief Science Adviser also signal that the public are being appealed to in a new, high profile, way.

“This will help build a broad, national constituency for RS&T investment and careers. The business sector is engaging as never before, with a 20 per cent rise in its RS&T investment over the last two years. That is the thinking that will create higher wage jobs in New Zealand and build export businesses.

“The Budget recognises that RS&T is critical to improving New Zealand’s productivity and thus our national wealth and living standards.

The previous Prime Minister established PM’s awards for the arts.

I’m not averse to that, but by establishing prizes for scientists this Prime Minister is sending a message about the importance of science and signalling a change of focus towards innovation and productivity.

2 Responses to Budget viewed from the paddock

  1. JC says:

    An excellent roundup of the real news from the budget. Very good to see the real economy is pleased with the direction taken by the Govt.

    JC

  2. Inventory2 says:

    Excellent post thanks Ele.

    I heard an interview with Prof Peter Gluckman on RadioLive at the weekend. I hadn’t given much thought to his appointment as the government’s first Science Advisor up to then, but after hearing him speak, I’m convinced that Key has made an inspired decision. It’s yet another decision that Labour is going to look churlish if it tries to criticise.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: