Word of the day

October 16, 2019

Intergern – to exchange grins or snarls.


Thatcher thinks

October 16, 2019


Rural round-up

October 16, 2019

Farmers backed by court – Jono Edwards:

The Environment Court has backed Lindis River farmers and water users with a potentially precedent-setting minimum-flow decision.

In a ruling released this week, Judge Jon Jackson set a minimum flow for the river of 550 litres per second and a primary allocation of 1640 litres per second, which are the limits proposed by the Lindis Catchment Group.

This will cancel the limits set by Otago Regional Council-appointed commissioners of a minimum flow of 900 litres per second and a primary allocation of 1200 litres per second.

The catchment group is hailing the decision, having long said the original limits would be devastating for farmers and the local economy.

Water users are awaiting the second proceeding from the court on the issue, which is an “application for a suite of water permits to take water from the river”. . . 

 

Water groups welcome Lindis ruling – Jono Edwards:

Central Otago water leaders hope the Otago Regional Council will back future minimum flows with evidence after an Environment Court decision in the Lindis River.

In a ruling released last week, Judge Jon Jackson set a minimum flow for the river of 550 litres per second and a primary allocation of 1640 litres per second, which are the limits proposed by the Lindis Catchment Group.

The decision could have implications for the setting of minimum flows in the Manuherikia, Arrow and Upper Cardrona rivers.

Manuherikia farmer and water leader Gary Kelliher, who is chairman of the Manuherikia subgroup of the Otago Water Resource Users Group, said water users all over Central Otago would be relieved “to see a sensible outcome has been found”. . . 

 

Cheap avocados: good for consumers but selling at a loss – Eric Frykberg:

Remember the bad old days of the $11 avocado? That was back in May.

The passage of the seasons has subsequently done wonderful things for deprived palates, which were forced to salivate in vain back then.

Vegeland in Christchurch has been advertising avocado at 39 cents each on Facebook.

In Waikato, a roadside stall went further, selling small avocados for $3 for a bag of ten.

However, the industry organisation, New Zealand Avocado, said these prices were unrealistic. . . 

NZ Dairy Industry Awards gives Taranaki sharemilkers confidence to expand

An award-winning South Taranaki couple has doubled the size of their dairy herd in less than four years.

Hollie Wham, 26, and Owen Clegg, 27, 50:50 sharemilk 400 cows across two properties at Manutahi, south of Hawera.

The couple bought their first 180-cow herd in 2016. Condensing the long calving spread was a priority. . . 

Nanotechnology solutions explored in agricultural sector :

Researchers from Lincoln University are investigating how to use nanotechnology in agriculture to increase productivity and reduce environmental impact.

Lincoln University Associate Professor in Animal Science Craig Bunt said his team was looking to develop a groundbreaking nano-coating which could be applied to fertiliser to control its rate of release into soil, and to seeds to control their timing of germination.

Dr Bunt said controlling the rate of release for fertiliser was important because release that was too rapid can result in excessive nitrogen being lost into soil and waterways, causing significant pollution and other negative environmental impacts. . . 

Time to be reasonable on convergence spend – James Porter:

This is going to be a difficult one, because I don’t think it is possible for us all to agree on what is a fair allocation of the promised ‘convergence’ money.

But, before we get started, can we at least agree the ground rules? Can we disagree without being disagreeable, can we listen to each other and assume the best and not the worst? Because tone matters – treating each other with civility and dignity matters.

We only have to look at the toxic state of UK politics to see what happens when the other path is taken and I – and I’m pretty sure most farmers, be they hill or lowland – want nothing to do with it.

My family has a foot in both camps, because although I farm on arable land, my heart is in the highlands. In 1976, my father bought a farm called Cashlie, near the top of Glen Lyon, that is where we spent our summer holidays growing up, fishing and swimming in the lochs and river, walking in the mountains, and helping with the gathering, marking, shearing and dipping. . .


Making more houses more expensive

October 16, 2019

Retirement Commissioner Peter Cordtz is suggesting people could be allowed to withdraw KiwiSaver funds to buy investment properties:

Home ownership has been declining for the past 30 years, from a high of about 78% in the 1980s, to about 55% today.

Māori and Pasifika have fared the worst – today only 35% of Māori and 20% of Pasifika own their own homes.

About 12% of New Zealanders aged 65-plus are renting, making them eligible to apply for the Accommodation Supplement if they are struggling. The cost to taxpayers of the accommodation supplement paid to people 65+ has already increased 92% in the past six years, from $88 million in 2013 to $170 million in the year ended March 2019.

This is on top of the cost of NZ Super, currently $39 million a day and forecast to rise to $120 million a day in 20 years due to the ageing population.

“Super wasn’t designed to cover rent – it currently pays $411 for a single person; $632 for a couple. At that rate, it assumes you have housing sorted,” says Cordtz.

“The cost of declining home ownership is a problem that affects all of us, and we need a circuit breaker,” says Cordtz. “If we can get more people on the property ladder earlier, there may be less liability to taxpayers later.”

One idea open to public submissions is to loosen the KiwiSaver rules related to withdrawing savings for a deposit on a first home. Currently, the KiwiSaver member has to live in that property, but high house prices in cities like Auckland, Wellington and Tauranga mean it is difficult for members who work in those cities to purchase a home there to live in.

“If they could buy a property in a more affordable part of the country, they could use it as an investment to progress on the property ladder or simply to retire to one day,” says Cordtz.

He says the idea originally came from a Māori mortgage broker who was trying to help clients buy property near whānau in areas other than where they worked.

“We see this as an idea that could help a lot of New Zealanders get on the property ladder and create a long-term investment to aid retirement,” says Cordtz. . . 

I see this as an idea that could make it harder for a lot of other New Zealanders get on the property ladder.

High prices in several places is a problem for people wanting to buy their first home or upgrade an existing one, and not just the cities mentioned. Wanaka and Queenstown are at least as expensive.

The root cause is one of supply and demand.

Allowing people to use KiwSaver funds to buy investment properties will give people a bit more to spend but do nothing to increase the number of properties available.

Won’t that spread the problem of rising prices fueled by demand outpacing supply to other places, many of which have lower wages than in the places where people are already struggling to buy a first home?

The last thing would-be home owners in smaller towns and less densely populated cities need is buyers from other places competing with them and spreading the problem of property inflation wider.


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