Word of the day

September 22, 2015

Oligopsony – a state of the market in which only a small number of buyers exists for a product or service; a market situation in which the demand for a commodity is represented by a small number of purchasers.


Rural round-up

September 22, 2015

Oceania Dairy Guarantees Minimum Payout:

Oceania Dairy has delivered good news to its supply farmers with a guaranteed minimum milk payout of $4.50 per kilogram of milk solids for the 2015/16 dairy season.

As the New Zealand dairy sector reels from continued turbulence in global dairy markets Oceania has sought to support its local supply farmers and their communities with the guarantee.

“With Fonterra reducing its forecast payout for the season to $3.85, we wanted to send an important signal of support and partnership to our supply farmers,” said Roger Usmar, General Manager, Oceania Dairy Limited.

“Backed by our owner, Yili, Oceania Dairy has looked at how we can practically support our suppliers at a difficult time for the sector. . . 

Dairy prices a ‘hot topic’ at world summit – Jemma Brackebush:

Farming leaders from around the globe are gathering in Europe this week for the World Dairy Summit.

The week-long summit gets under way today in the Baltic State of Lithuania.

Federated Farmers dairy chairperson Andrew Hoggard is attending and said the main focus would be on science, the environment, animal welfare and international trade.

A hot topic will be how farmers around the world react to low dairy prices, he said. . . 

Factory expands in ‘leap year’ – Allison Beckham:

The addition of three further milk processing plants to Fonterra’s Edendale factory – already the largest in the world by volume – means Fonterra can make a wider range of products and respond more quickly to demand, managing director of global operations Robert Spurway says.

The company has almost completed a $157 million expansion. A new 2900sq m building houses three processing plants – a milk protein concentrate (MPC) plant to separate protein from skim milk and turn it into protein powder, a reverse osmosis plant to increase the capacity of an existing drier by about 300,000 litres a day, and an anhydrous milk fat plant capable of processing 550,000 litres of cream daily. . . 

Synlait annual profit slumps 46% as lactoferrin sales struggle, forecast payout cut – Paul McBeth:

(BusinessDesk) – Synlait Milk, which counts China’s Bright Dairy & Food as its biggest shareholder, posted a 46 percent drop in annual profit as lactoferrin sales missed expectations and it kept milk payments high enough to ensure supply. Synlait cut its payout forecast for the current season.

Net profit dropped to $10.6 million, or 7.21 cents per share, in the 12 months ended July 31, from $19.6 million, or 13.4 cents a year earlier, the Rakaia-based milk processor said in a statement. That was just within the $10 million-to-$15 million forecast Synlait gave when reporting its first-half results in March. Revenue fell 25 percent to $448.1 million, and the bottom line was also weighed on by a $1.6 million unrealised loss on foreign exchange.

Synlait is “in a global operating environment where milk prices have fallen to unsustainably low levels and this is reflected in our FY15 revenue,” chairman Graeme Milne said. “Our suppliers are an important part of our business and we’ve prioritised paying them higher advances and final payments for their milk, relative to our earnings, in what has turned out to be the first of probably two very challenging years on farm.” . . .

 .s on for New Zealand’s next generation of agri-leaders:

• Applications for the 2016 Zanda McDonald Award now open

Agriculture’s young leaders in New Zealand are being urged to step forward and apply for the 2016 Zanda McDonald Award.

Open to agri-business professionals with natural leadership skills from across New Zealand and Australia, the award comes with a $30,000 prize package comprising; an overseas mentoring trip, a place on Rabobank’s Farm Manager’s Programme and $1,000 cash.

Applicants aged 35 or younger and currently in paid employment in agriculture have until Friday 30th October 2015 to submit their entries. . . 

B+LNZ CHIEF EXECUTIVE SIGNALS MARCH 2016 DEPARTURE:

Beef + Lamb New Zealand chairman, James Parsons has today announced the resignation of the organisation’s chief executive, Dr Scott Champion. Dr Champion will leave the industry body, and also his role as chief executive of the New Zealand Meat Board, at the end of March 2016, after 10 years with the organisations.

Dr Champion commenced with then Meat & Wool New Zealand, as General Manager Market Access and Market Development in March 2006. He then stepped up to the CEO roles in late September 2008.

Most recently, Dr Champion has successfully led Beef + Lamb New Zealand (B+LNZ) through the 2015 Sheepmeat and Beef Levy Referendum which secured over 84 per cent support for the organisation to continue working on behalf of farmers. . . 

First-Time Entrants Enjoy Farm Environment Competition:

It took West Otago farmers Richard and Kerry France about eight years to enter the Ballance Farm Environment Awards (BFEA) but they finally gave it a go last year.

Richard says the experience was well worthwhile and his recommendation to other first-time entrants is to not leave it as long as they did.

“It’s a very well-run competition and it makes you take a ‘big picture’ look at the sustainability of your operation,” he says.

“We put up our hand this year because we felt our farm was ready, but my advice to other farmers would be to get in as soon as you can because that way you will get the benefits earlier.” . . .

Red Meat Profit Partnership and New Zealand Young Farmers partner for education programme:

The Red Meat Profit Partnership (RMPP) has teamed up with New Zealand Young Farmers to promote the value of Education in Agriculture. This new programme offers teachers and students the chance to engage with the Primary Sector to highlight the opportunities within New Zealand’s largest export led industry. This journey is to be “triggered off” with a launch event in Christchurch on September 22.

This programme will offer teachers and students the chance to engage with the Primary Sector to show the vast learning and career opportunities within the industry. Much more than “on-farm” careers this programme encompasses the full value chain – the science, innovation, marketing as well as the global consumer. . . 

Fonterra Shares Further Results of Its Business Review:

Fonterra Co-operative Group Limited today provided a further update on its business review.

Fonterra Chief Executive Theo Spierings said the purpose of the review was to ensure that Fonterra remains well positioned to compete in a rapidly changing global dairy market.

One-off savings generated by changes the Co-operative is making during the business review, such as improving working capital, have already enabled the Co-operative to support our farmers during challenging market conditions. . . 

Zespri shares innovation in inaugural Symposium

Zespri invests over $15 million in kiwifruit innovation science each year and the inaugural Kiwifruit Innovation Symposium on 29 October in Mt Maunganui gives people a chance to see the latest developments for themselves.

Zespri General Manager Marketing and Innovation Carol Ward explains innovation is huge part of the industry with significant investment from Zespri, along with the NZ government and industry. Zespri wants to share this work with its community and hear their ideas about where innovation could go in the future.

“We want to show our growers and industry what’s coming up and the future challenges we’re tackling. The focus for the past few years has been on developing tools and techniques to grow profitably with Psa – now we’re turning our focus back to other areas again and we want to bring industry along with us. . . 

Keeping on top of worms – Mark Ross

Managing internal parasites (worms) is one of the biggest challenges that farmers face in producing healthy stock.

According to research, there is widespread resistance to several drench families in sheep, cattle, deer, and goats on New Zealand farms. This is estimated to cost farmers in excess of $20 million per annum.

Resistance can develop to any drench. So every farmer needs a plan to manage the risk of worm resistance on their farm. Animal welfare and productivity in the future will rely on farm plans that are developed today to control the emergence of drench resistance on farms. . . 


Top 10 fixes for loopy rules

September 22, 2015

The Rules Reduction Task Force, co-chaired by Jacqui Dean MP and Michael Barnett has released its report.

In their introduction they say:

New Zealanders are fed up wasting time and money trying to work with loopy rules. We were tasked with identifying rules and regulations which are not fit-for-purpose and which impose unnecessary bureaucratic burdens on property owners and businesses.

Everyone we heard from has had tales to tell of loopy rules – requirements that are out of date, inconsistent, petty, inefficient, pointless or onerous. These are the things that really annoy people, whether they run a business or own their own home.

In the last few months we have travelled around New Zealand listening to people in their communities. We have also met with councils, sector interest groups, and government agencies.

We thank all those who have candidly shared their frustrations and given us their views on how rules could be changed to make more sense.

We did hear of rules that protect people, the environment, infrastructure and our heritage but which still enable individuals, businesses and our economy to prosper and grow. But we are struck by the number of instances where the good intentions of the rule-makers are somehow lost in the translation to the real world. Examples abound of inappropriate interpretation, over-zealous enforcement, and lack of focus on the customer. (My bold).

New Zealanders have told us they are confused and frustrated by frequent changes in the rules. They are exasperated by inconsistency, time-consuming processes and unreasonable costs. It was a surprise to us to find out that a number of the loopy rules are in fact just myths. They are misinterpretations and misunderstandings that have been repeated so often that they have taken on the status of facts. (My bold).

We heard many examples where people are not clear about what they need to do and why. Myths fill the gap when clear information is hard to find. We highlight these myths in this report along with the loopy rules that need to be changed or removed. We discovered that loopy rules are difficult to get rid of because they’re part of a wider system, because a focus on the customer is absent, or because of the interests of experts or the fears of their administrators. What’s clear is they thrive when rule makers fail to take responsibility for them. Most importantly, we identify opportunities to fix many loopy rules and bust the myths. Our top ten fixes are listed on page 7. We call on both central and local government to stop making more loopy rules.

The legislation which causes most problems are the Resource Management and Building Acts – the source of 32% and 27% of complaints respectively.

They give examples of loopy rules which include:

The rule is not practical The owners of a bus depot structure that has no walls are forced to install four exit signs, just in case people can’t find their way out if there is a fire.

The rule makes no sense The Health and Safety mining regulations define a tunnel as ‘what it is not’ rather than ‘what it is’.

Compliance with the rule defeats its very purpose An owner of a rural property had to spend $30,000 putting in a driveway and watertank to meet the fire requirements. The tank was at the back of the house. When the house caught fire, the fire chief would not drive his truck past the house to the tank in case it caught fire too.

A small change is treated the same as a big change: As part of the refurbishment of an earthquake-damaged building, a pharmacy is being added to the front of a 1950s building. The pharmacy is to be 3.5% of the building. The rest is residential. The pharmacy has triggered the need to upgrade the fire rating of the entire building at a cost of $50,000.

The rule sets a standard that can never be achieved: Converting a shop into a two-bedroom residential unit required a reduction in noise levels from 70db to 35db. We tested the required noise levels in our brand new home; the only place that complied was the wardrobe.

The rule is inflexible and imposes costs far in excess of any benefits: Under direction from Wellington, our council enforces clean air standards. For 12 days of the year our town does not meet the standard for PM10 particles. For the other 353 days of the year the air is great. The council has subsidised the replacement of hundreds of fires – often very efficient ones – and replaced them with inferior models for little or no change.

The rule requires permission to fix something the property owner doesn’t want: An owner had two protected trees on his property, listed by the council. One was dying, the other was unsafe and needed trimming. The owner is expected to get resource consent to maintain the trees on behalf of the council.

The rule means I cannot assume to benefit from value I have created from my own efforts: A farmer planted 5,000 kauri trees and asked the council if he could eventually harvest them. The council said it could not guarantee he could harvest them because they were kauri.

A rule can be interpreted in many ways: Having a level entry to showers: Some councils say yes, some say no, and then charge for an opinion or ruling.

There is no mechanism to update legislation as circumstances change: Long ago, hairdressers were once a source of infection – but no more. Even so, councils must register and inspect them yearly.

A rule has a compliance regime that does not allow for the fact nothing may change: Rigging loops have to be put in to a specified standard but then must be re-certified each year. If a year is missed, they must be abandoned and new ones inserted into the concrete, which would weaken the concrete.

The rule arises from officials’ zealousness and has no material effect: A council advised a farmer it was going to classify his land as a significant natural area under the Resource Management Act. Such a classification would limit his ability to use the land in certain ways, including turning his car lights on at night in case it disrupted the flight of Westland Petrels. The council acknowledged the birds never landed, swam, nested or mated there. It was simply on their flight path.

The report lists its top 10 fixes for loopy rules:

1. Make it easier to get building consents

 Speed up the development of risk-based consenting and investigate other ways to simplify the consenting of minor structures.

 Promote the use of building consent exemptions under Schedule 1 of the Building Act 2004.

 Complete the fix-up of the building fire upgrade regulations this year. Ensure additional requirements imposed reflect the extra costs imposed and the benefits to be gained.

 Use progressive building consents so work can begin sooner, with nonstructural details confirmed later.

 Streamline the determinations process for applicants.

2. Get serious about lifting the skills of building sector

 Develop an industry-wide strategy to lift the professional practices of builders.

 Work towards builders certifying their own work so as to deal with joint and several liability pressures on councils.

3. Make it easier to get resource consents

 Establish an end-to-end relationship management approach for all resource (and building) consenting within councils.

 Require councils to report publicly on their actual performance in meeting the statutory 20-day deadline (for building and resource consents), as well as the total time (including all delays resulting from information requests and so on).

 As part of the planned Resource Management Act 1991 reforms, eliminate the need for resource consents for minor and technical breaches.

 Introduce a faster, more flexible process for changing plans under the Resource Management Act 1991 reforms.

4. Reduce the cost of consenting fees

 Cap government building levies. 5. Sort out what “work safety” means and how to do it  Define what is meant by “all practicable steps” in the Health and Safety in Employment Act 1991 and any replacement term in the Health and Safety Reform Bill.

 WorkSafe should do more about mythbusting, correcting misunderstandings and providing consistent information.

 Develop clear and accessible guidelines and codes of practice once the Health and Safety Reform Bill becomes law, working with all other agencies involved.

6. Make it clear what the rules are

 Define what is meant by “as nearly as is reasonably practicable” in the Building Act 2004.

 Require the Ministry for the Environment to work more closely with the other agencies to provide more timely and comprehensive guidance when developing and issuing national directives.  Make government agencies accept their responsibility to correct misunderstandings about their policies and regulations, particularly in the building and resource management areas, and as noted in health and safety.

7. Establish a new customer focus the public sector  The State Sector Act 1988 and the Local Government Act 2002 should include customer service responsibilities for chief executives.

 All Local Government Chief Executives should have a customer focus component in their Key Performance Indicators. They should consider utilising the Customer Champion and Fast Fix approaches.

 To maintain a permanent focus on loopy rules, establish a website for people to report loopy rules, which are then referred to the responsible agency to put right.

8. Departments should introduce a stakeholder engagement approach to developing local government policies and regulations

 Require all government departments to adopt a stakeholder approach, such as that used by the Ministry of Transport. The Ministry signals policy changes in advance, involves stakeholders early on and is open to critical feedback.

 Require central government to develop a project-specific engagement approach when developing policies and regulations that local government must implement. This approach could be useful for example, in the development of proposed changes to amended shop trading hours (Easter Sunday trading) and the implementation of the Building (Earthquake-prone Buildings) Act.

 Amend the guidelines for Cabinet papers so they include “consultation with the Minister of Local Government” when a proposal will affect local government.

9. Reform the Local Government Act 1974 and the Reserves Act 1977

 Update the remaining provisions of the Local Government Act 1974 Act.  Review and update the Reserves Act 1977. And, most importantly:

10. Stop making loopy rules

 Develop a coordinated pipeline approach to regulation.  Include a cost-benefit analysis prior to development.

 Create a mechanism to actively review central and local government regulations.

 Extend Treasury’s annual review of departmental regulations, and incorporate an assessment of local government regulations.

In releasing the report, Local Government Minister Paula Bennett findings from the Rules Reduction Taskforce show real opportunities for both central and local government to make life easier for New Zealanders.

‘The loopy rules report: New Zealanders tell their stories’ is being released by the Government today following 50 public meetings and close to 2,000 submissions.

“We have listened to New Zealanders and the message is clear: there are too many frustrating rules and regulations, and too many are being applied inconsistently, and it is holding our communities back,” Mrs Bennett says. 

“The Report outlines practical opportunities for Government departments and local councils to improve the level of customer service they offer, and give that clarity people need. We will be embracing these opportunities finding practical solutions.”

The range of submissions cover 11 Ministers’ portfolios, with the majority relating to the Resource Management Act and the Building Act.

“Over the next few weeks, Ministers will be working with their departments and agencies to progress the quick fixes and what will take a bit longer to tackle. We’ll continue to update www.rulesreduction.govt.nz and make announcements as this work progresses,” Mrs Bennett says.

“The Government will also be working with local government to ensure they are providing the right advice to their residents about what rules and regulations mean and how they apply in their communities.

“The members of the Taskforce also heard loud and clear that there are several myths about rules and regulations that don’t actually exist. This includes the misconception that lolly scrambles have been banned, and that people can’t use three-step ladders.

“By breaking through this misinformation, New Zealanders will be better placed to focus on the serious rules designed to keep people safe and our economy growing.”

Several common ‘myths’ can be found on the Rules Reduction Taskforce website atwww.rulesreduction.govt.nz. New Zealanders can continue to share their experiences by sending a message through the Rules Reduction Taskforce’s social media pages.

“I’d like to thank everyone that took the time to share their experience with the Taskforce. I would also like to acknowledge the dedication of co-chairs Jacqui Dean MP and Michael Barnett, as well as the other members of the Taskforce,” says Mrs Bennett.

A lot of these problems  would not have arisen if regard for property rights and common sense were both at the basis of legislation.

If this report is acted on, loopy rules fixed in existing legislation and not added new legislation it will make a significant and positive difference to the country.

 


Quote of the day

September 22, 2015

“More chance of me holidaying on the lunar space station I would’ve thought,” he said at his post-Cabinet news conference today.

“There’s no chance. . . 

“It’d be totally unacceptable to the New Zealand public. Being Prime Minister is not something that is traded away with a bit coalition partner to get them over the line.”

Mr Key wasn’t sure how that would even work.

“He could take the weekends? Give me the time off, it’d be quite nice. Outside of that, I don’t see it working. It’s a joke.” –  John Key commenting on the suggestion that Winston Peters could be Prime Minister in a National-led government.,


September 22 in history

September 22, 2015

66  Emperor Nero created the Legion I Italica.

1236 The Lithuanians and Semigallians defeated the Livonian Brothers of the Sword in the Battle of Saule.

1499 Treaty of Basel: Switzerland became an independent state.

1515 Anne of Cleves, wife of Henry VIII, was born (d. 1557).

1586  Battle of Zutphen: Spanish victory over English and Dutch.

1598 Ben Jonson was indicted for manslaughter.

1692 Last people hanged for witchcraft in the United States.

1761  George III and Charlotte of Mecklenburg-Strelitz were crowned King and Queen of the Great Britain.

1784  Russia established a colony at Kodiak, Alaska.

1789 Battle of Rymnik established Alexander Suvorov as a pre-eminent Russian military commander after his allied army defeat superior Ottoman Empire forces.

1862  Slavery in the United States: a preliminary version of the Emancipation Proclamation was released.

1866 Battle of Curupaity in the War of the Triple Alliance.

1869 Richard Wagner’s opera Das Rheingold premiered in Munich.

1880 Dame Christabel Pankhurst, English suffragist, was born (d. 1958).

1885 Ben Chifley, Prime Minister of Australia, was born (d. 1951).

1885  Lord Randolph Churchill made a speech in Ulster in opposition to Home Rule e.g. “Ulster will fight and Ulster will be right”.

1888 The first issue of National Geographic Magazine was published.

1893  The first American-made car, built by the Duryea Brothers, was displayed.

1896  Queen Victoria surpassed her grandfather King George III as the longest reigning monarch in British history.

1906 At a meeting held in Wellington, Marianne Tasker attempted to establish a domestic workers’ union. Central to their demands was the call for a 68-hour working week.

Domestic workers call for 68-hour week

1908 The independence of Bulgaria was proclaimed.

1910  The Duke of York’s Picture House opened in Brighton, now the oldest continually operating cinema in Britain.

1915 Arthur Lowe, British actor, was born (d. 1982).

1919 The steel strike of 1919, led by the Amalgamated Association of Iron and Steel Workers, began in Pennsylvania.

1924 Rosamunde Pilcher, English novelist, was born.

1927 Jack Dempsey lost the “Long Count” boxing match to Gene Tunney.

1931 – United Party Prime Minister Forbes informed an inter-party conference that a coalition government was needed to ‘share the responsibility’ of dealing with the Depression.

1934  An explosion at Gresford Colliery in Wales, lead to the deaths of 266 miners and rescuers.

1937  Spanish Civil War: Peña Blanca was taken; the end of the Battle of El Mazuco.

1939  Joint victory parade of Wehrmacht and Red Army in Brest-Litovsk at the end of the Invasion of Poland.

1941  World War II: On Jewish New Year Day, the German SS murdered 6,000 Jews in Vinnytsya, Ukraine.

1951  The first live sporting event seen coast-to-coast in the United States, a college football game between Duke and the University of Pittsburgh, was televised on NBC.

1955 The British television channel ITV went live for the first time.

1958 Andrea Bocelli, Italian tenor, was born.

1960 The Sudanese Republic was renamed Mali after the withdrawal of Senegal from the Mali Federation.

1965 The Indo-Pakistani War of 1965 (also known as the Second Kashmir War) ended after the UN called for a cease-fire.

1970  Tunku Abdul Rahman resigned as Prime Minister of Malaysia.

1971 Princess Märtha Louise of Norway, was born.

1975 Sara Jane Moore tried to assassinate U.S. President Gerald Ford, but was foiled by Oliver Sipple.

1979 The Vela Incident (also known as the South Atlantic Flash) was observed near Bouvet Island, thought to be a nuclear weapons test.

1980  Iraq invaded Iran.

1985 The Plaza Accord was signed in New York City.

1991 The Dead Sea Scrolls were made available to the public for the first time by the Huntington Library.

1993 A barge struck a railroad bridge near Mobile, Alabama, causing thedeadliest train wreck in Amtrak history. 47 passengers were killed.

1993  A Transair Georgian Airlines Tu-154 was shot down by a missile in Sukhumi, Georgia.

1995 An E-3B AWACS crashed outside Elmendorf Air Force Base, Alaska after multiple bird strikes to two of the four engines soon after takeoff; all 24 on board were killed.

1995 Nagerkovil school bombing, carried out by Sri Lankan Air Force in which at least 34 died, most of them ethnic Tamil school children.

2003  David Hempleman-Adams became the first person to cross the Atlantic Ocean in an open-air, wicker-basket hot air balloon.

2011 – CERN scientists announced their discovery of neutrinos breaking the speed of light.

2013 – At least 75 people were killed in a suicide bombing at a church in Peshawar, Pakistan.

Sourced from NZ History Online & Wikipedia


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