Word of the day

August 29, 2017

Natant – swimming or floating; of aquatic plants – floating on the surface of water.


More tax, more spending, more debt

August 29, 2017

Labour’s recipe for government is more tax, more spending and more debt:

. . To help cover the additional spending, Labour would ditch National’s promised tax adjustments, extend the bright line test to tax capital gains on residential housing, aggressively target multinational corporate tax avoidance, and impose a tourist levy, which would cumulatively reap some $9.73 billion over the period. Labour would also take a slower path to cutting debt a proportion of the economy, with net debt peaking at $68.09 billion, or 21.9 percent of gross domestic product, in 2019/20, adding an additional $1.11 billion interest bill to the government over the horizon. . . 

It’s the same old tax and spend:

Labour is once again proving they’re the same old Labour Party with plans for big increases in both government spending and debt over the next four years, National Party Campaign Chair Steven Joyce says.

“In their fiscal plan released this morning, Labour has committed to $13.7 billion in additional spending over the next four years funded by cancelling tax changes for Kiwi families and increasing debt,” Mr Joyce says.

Cancelling the tax cuts would leave people on middle incomes paying more because of bracket creep.

It also shows Labour thinks it’s better to spend more of other people’s money than to leave a little more with them to spend, or save, as they choose.

“This nearly doubles the additional expenditure of $17 billion over four years already allowed for in the pre-election fiscal update. All up Labour is proposing to add more than $30 billion in new operating spending over the next four years. And then there’s additional capital spending as well.

“All this flows through into increased debt. Again by their own numbers, Labour will increase debt by $11 billion over four years compared with the pre-election fiscal update. This is not the stage of the economic cycle to be increasing debt. We should be reducing debt and putting money aside for the next rainy day.

The natural and financial disasters of the last nine years reinforce the importance of lower debt to provide headroom for more when the next one strikes.

“Labour’s tertiary policy announced today alone has an additional $3.4 billion over four years in expenditure in just one announcement.

“And the ink had hardly dried on their fiscal plan when they made another commitment to fund 26 weeks paid parental leave, which isn’t listed anywhere in the document.

“Labour also has some questions to answer about how their numbers add together. For example, their remaining annual operating allowances don’t seem to be cumulative.

“Big increases in expenditure and debt can only flow through into higher interest rates, and that would be bad for Kiwi businesses and homeowners. That’s before you even get in to Labour’s extra taxes.

Higher taxes and  higher interest rates would put pressure on businesses and households.

“We need to keep the country moving in the right direction and Labour’s approach to spending and debt would only slow the country down and put up costs for consumers.”

It’s the same old Labour Party with the same old recipe which will increase the burden of government, undo a lot of the good that’s been done in the last nine years and act as a hand brake on the growth needed to generate the income required for first world services.

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Rural round-up

August 29, 2017

A2 Milk outperforms once again – Keith Woodford:

The a2 Milk Company (ATM) took a big step forward with its 2016/17 results which were released on 23 August. Sales were up 56 percent from the previous year to $549 million, and post-tax profits tripled to $NZ90 million. The market was impressed.

Everyone knew that a strong result was in the offing, and so the shares had already risen 50 percent over the preceding three months, and almost trebled in value on a 12-month basis. The share price then rose another 15 percent over the following three days to close at $5.74 at week’s end.

The most important messages within the annual report were not about the present but the future. The picture drawn by CEO Geoff Babidge was of a fast-growing company with no debt and lots of free cash in the bank to fund ongoing developments. . . 

A School of Rural Medicine to be established:

The Government will establish a new School of Rural Medicine within the next three years to produce more doctors for our rural communities, Tertiary Education, Skills and Employment Minister Paul Goldsmith says.

“Every New Zealander deserves quality healthcare services, and we want to grow the number of doctors in rural and regional areas to make it easier for people in those areas to access other key health services,” Mr Goldsmith says.

“The new School of Rural Medicine will be specifically geared toward meeting the challenges faced by high need and rural areas of the country, and will produce around 60 additional doctors per year. . . 

Primary industries feel under siege as prospect of Labour-led government firms:

INSIGHTS ABOUT THE NEWS – The divide between regional and urban politics is being thrown into ever sharpening contrast as the election campaign unfolds. Agricultural industries and rural communities feel under siege in the looming election.

As reported in Trans Tasman’s sister publication The Main Report Farming Alert, weeks ago the chances of a Labour-led government seemed unlikely, but now the chance of this happening seems possible with policies which could prove ruinous for NZ’s main export industries.

Labour will tax users of water, including farmers (but not those companies using municipal supplies). Both the Greens and Labour are committed to bringing agriculture into the emissions trading scheme and say the carbon price should be higher. They have not stated how high they want animal emissions to be taxed. . . 

Hawke’s Bay Regional Council to vote on ending Ruataniwha funding, writing-off $14M debt – Jonathan Underhill:

(BusinessDesk) – The Hawke’s Bay Regional Council will vote this week on whether to stop any further investment in the Ruataniwha Water Storage Scheme and write-off a $14 million debt owed by its investment company.

The vote on Wednesday comes as a result of a report into options following the Supreme Court decision to reject a Department of Conservation land swap need to create the storage scheme reservoir. 

The council’s investment arm, Hawke’s Bay Regional Investment Co (HBRIC), owes $14 million to the council made up of $7 million of charges and $7 million of cash advances, according to the council report. For its part, HBRIC has an intangible asset of $19.5 million on its books related to the feasibility and development costs of RWSS. This was funded with the $14 million advance from the council and $5.5 million from external debt. . . 

Feds Wonder Why We Would Need A Tourist Tax?:

Labour’s suggestion of taxing international visitors to raise funds to pay for tourism infrastructure raises questions about why we can’t find the money already from existing tax.

Federated Farmers has been concerned about the pressure councils, particularly small rural councils, are under to maintain services for tourists, including public toilets and other facilities.

“We agree that tourism is placing increasing pressure on our nation’s infrastructure and these costs are being unfairly borne by regional economies.

“But surely it is possible to find the additional targeted funding for councils in need from within this already increasing area of tax take?” Federated Farmers president Katie Milne says. . . 

Behind the hype of lab-grown meat -Ryan F. Mandelbaum:

Some folks have big plans for your future. They want you to buy their burgers and nuggets grown from stem cells. One day, meat eaters and vegans might even share their hypothetical burger. That burger will be delicious, environmentally friendly, and be indistinguishable from a regular burger. And they assure you the meat will be real meat, just not ground from slaughtered animals.

That future is on the minds of a cadre of Silicon Valley startup founders and at least one nonprofit in the world of cultured meat. Some are sure it will heal the environmental woes caused by agriculture while protecting the welfare of farm animals. But these future foods’ promises are hypothetical, with many claims based on a futurist optimism in line with Silicon Valley’s startup culture. Cultured meat is still in its research and development phase and must overcome massive hurdles before hitting market. . .

Wine exports reach record high:

The export value of New Zealand wine has reached a record high according to the 2017 Annual Report of New Zealand Winegrowers. Now valued at $1.66 billion, up 6% in June year end 2017, wine now stands as New Zealand’s fifth largest goods export.

Over the past two decades the wine industry has achieved average annual export growth of 17% a year states the Report. “With diversified markets and a strong upward trajectory, the industry is in good shape to achieve $2 billion of exports by 2020” said Steve Green, Chair of New Zealand Winegrowers. . . 

More Kiwis than ever are enjoying speciality cheese:

As Kiwis prepare to celebrate New Zealand Cheese Month, sales data shows we are enjoying more locally made cheese than ever before.

Nielsen data shows supermarket sales of New Zealand Specialty cheese have increased in value by 6% in the 12 months to August 2017 . What’s more, in the first quarter of 2017 Nielsen says 771, 383 Kiwi purchased specialty cheese, an increase of more than 20% compared with the same period in 2014 .

Every October the New Zealand Specialist Cheesemakers Association (NZSCA) members host a variety of tastings, inviting cultured Kiwis to events across the country to meet cheese makers and taste their wares. . . 

Largest ever Bayer Young Viticulturist of the Year National Final:

2017 sees the largest National Final ever held for the Bayer Young Viticulturist of the Year competition. Taking place next Tuesday 29th August at Villa Maria in Marlborough, there will be a total of six national finalists representing six of our wine regions: Tim Adams – Auckland/Northern; Ben Richards – Hawke’s Bay; Ben McNab Jones – Wairarapa; Laurie Stradling – Nelson; Anthony Walsh – Marlborough and Annabel Bulk – Central Otago.

Bulk is the first woman in the competition since 2011, so it is great to see viticulture is very much a serious career option for both men and women. . .  


Question of the day

August 29, 2017


Another hole in water tax bucket

August 29, 2017

Canterbury farmer and former National Minister and MP, Kate Wilkinson pokes another big hole in Labour’s water tax bucket:

This is my “office”. No cows. Actually no rivers. Actually no streams. I am a sheep/arable farmer – trying economically to keep cows off my farm. But…… the latest Labour Party policy to tax me over $8000 a year may force me to consider dairy grazing. Where is the sense in that??? PS I already pay for the privilege of accessing water at a rate of some $6000 plus per month whether or not I access water. AND I pay for water I actually use.

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This shows so clearly that the policy is based on emotion not facts, sentiment not science, politics not practicality.

We all want clean waterways.

The water tax won’t help improve water quality.

It will take money from farmers like Kate who aren’t even near a waterway.

It will take money from farmers who have been spending, and continue to spend, their own money ensuring they are doing everything possible to keep waterways clean.

It will use the money to take responsibility from those who aren’t doing what they should be.


Quote of the day

August 29, 2017

We should have a great fewer disputes in the world if words were taken for what they are, the signs of our ideas only, and not for things themselves. – John Locke who was born on this day in 1632.


August 29 in history

August 29, 2017

708 Copper coins were minted in Japan for the first time.

1350  Battle of Winchelsea (or Les Espagnols sur Mer): The English naval fleet under King Edward III defeated a Castilian fleet of 40 ships.

1475  The Treaty of Picquigny ended a brief war between France and England.

1526  Battle of Mohács: The Ottoman Turks led by Suleiman the Magnificent defeated and kill the last Jagiellonian king of Hungary and Bohemia.

1632 John Locke, English philosopher, was born (d. 1704).

1655 Warsaw fell without resistance to a small force under the command of Charles X Gustav of Sweden during The Deluge.

1758  The first American Indian Reservation was established, at Indian Mills, New Jersey.

1777  – Hyacinth, ( Nikita Yakovlevich Bichurin), Russian religious leader, founded Sinology,  was born (d. 1853).

1786  Shays’ Rebellion, an armed uprising of Massachusetts farmers, began in response to high debt and tax burdens.

1809 Oliver Wendell Holmes, Sr., American physician and writer, was born (d. 1894).

1831  Michael Faraday discovered electromagnetic induction.

1833 The United Kingdom legislated the abolition of slavery in its empire.

1842 Treaty of Nanking signing ended the First Opium War.

1862 Andrew Fisher, 5th Prime Minister of Australia, was born (d. 1928).

1869  The Mount Washington Cog Railway opened, making it the world’s first rack railway.

1871  Emperor Meiji ordered the Abolition of the han system and the establishment of prefectures as local centers of administration.

1876 Charles F. Kettering, American inventor, was born (d. 1958).

1885  Gottlieb Daimler patented the world’s first motorcycle.

1898 The Goodyear tyre company was founded.

1903 The Russian battleship Slava, the last of the five Borodino-classbattleships, was launched.

1907 The Quebec Bridge collapsed during construction, killing 75 workers.

1910  Japan changed Korea‘s name to Chōsen and appoints a governor-general to rule its new colony.

1911  Ishi, considered the last Native American to make contact with European Americans, emerged from the wilderness of northeastern California.

1914 New Zealand forces captured German Samoa.

NZ force captures German Samoa

1915 US Navy salvage divers raised F-4, the first U.S. submarine sunk by accident.

1915 Ingrid Bergman, Swedish actress, was born (d. 1982).

1915 Nathan Pritikin, American nutritionist, was born (d. 1985).

1918  Bapaume was taken by New Zealand forces in the Hundred Days Offensive.

1923 Richard Attenborough, English film director, was born (d. 2014).

1924 Dinah Washington, American singer, was born (d. 1963).

1929 Thom Gunn, British poet, was born (d. 2004).

1930  The last 36 remaining inhabitants of St Kilda were voluntarily evacuated to other parts of Scotland.

1943  German-occupied Denmark scuttled most of its navy;Germany dissolved the Danish government.

1944  Slovak National Uprising – 60,000 Slovak troops turned against the Nazis.

1949  Soviet atomic bomb project: The Soviet Union tested its first atomic bomb, known as First Lightning or Joe 1, at Semipalatinsk, Kazakhstan.

1958 Lenny Henry, British writer, comedian and actor, was born.

1958 Michael Jackson, American pop singer, was born (d. 2009).

1958  United States Air Force Academy opened in Colorado Springs.

1966  The Beatles performed their last concert before paying fans at Candlestick Park in San Francisco.

1970  Chicano Moratorium against the Vietnam War. Police riot killed three people, including journalist Ruben Salazar.

1982  The synthetic chemical element Meitnerium, atomic number 109, was first synthesized at the Gesellschaft für Schwerionenforschung in Darmstadt, Germany.

1991 Supreme Soviet of the Soviet Union suspended all activities of the Soviet Communist Party.

1991  Libero Grassi, an Italian businessman from Palermo was killed by the Mafia after taking a solitary stand against their extortion demands.

1996  Vnukovo Airlines Flight 2801, a  Tupolev Tu-154, crashed into a mountain on the Arctic island of Spitsbergen, killing all 141 aboard.

1997  At least 98 villagers were killed by the Armed Islamic Group of Algeria GIA in the Rais massacre, Algeria.

2003 Ayatollah Sayed Mohammed Baqir al-Hakim, the Shia Muslim leader in Iraq, and nearly 100 worshippers were assassinated in a terrorist bombing, as they left a mosque in Najaf.

2005  Hurricane Katrina devastated much of the U.S. Gulf Coast from Louisiana to the Florida Panhandle, killing more than 1,836 and causing over $80 billion in damage.

2007 – 2007 United States Air Force nuclear weapons incident: six US cruise missiles armed with nuclear warheads were flown without proper authorization from Minot Air Force Base to Barksdale Air Force Bae.

2012 – The opening ceremony of the Summer Paralympic Games was held in London.

2012 – At least 26 miners were killed and 21 missing after a blast in theXiaojiawan coal mine, located at Panzhihua in Sichuan Province, China.

Sourced from NZ History Online & Wikipedia


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