Word of the day

November 5, 2019

Estrapade – an attempt by a horse to throw its rider; rearing, plunging, and kicking actions of a horse trying to dismount its rider.


Sowell says

November 5, 2019

This is not always the case.

Vigorous campaigning can bring about positive political or social change.

But it can at times be a case of doing something rather than doing something positive and effective and it can sometimes be doing something that does more harm than good.

 


Rural round-up

November 5, 2019

A tale of three shepherds :

Shepherding is more a lifestyle than a job for Kate White, Lesley Pollock and Kacey Johnson.

They’re among the youngest team of women shepherds in the country.

Kate White (23) groans when she remembers her first experience as a shepherd.

“I thought, I’m too soft for this,” she says, manoeuvring a grunty ute up steep hill country on the outskirts of Taupo. . .

Chairman keen to keep up world-class facility status – Yvonne O’Hara:

As the new chairman of the Southern Dairy Development Trust, (SDDT) fourth generation farmer Tim Driscoll brings years of farming and financial experience to the role.

He is a dairy farmer near Winton, milking 600 cows on 200ha with a 300,000kg of milk solids target this season.

The farm was converted to dairy in 2012 from sheep and beef property in 2012. . .

 

Her passion for farming the spur :

Kate Stainton-Herbert is one of the new members of the Southern Dairy Development Trust, which is a cornerstone partner in the commercial and research dairy unit, the Southern Dairy Hub, near Wallacetown.

Q Tell me a little about your background, family, your farm size, stock numbers, production etc. and your current career.

I grew up on a sheep, beef and deer farm in Balfour, Northern Southland.

I am the oldest of three girls, and from a very young age was lucky enough that my parents involved us heavily on farm and passed their passion for farming on to us.

After attending school and university in Dunedin I spent five years working in banking in Auckland. During this time, I gained incredible knowledge and experiences, as sitting in the dealing room during during the 2008 global financial crisis was something you do not see every day. . .

No silver bullet for phosphorus – Mike Manning:

In New Zealand’s soils, phosphorus does a great job at growing plants but unfortunately it does the same thing if it makes it into our water.

Once dissolved phosphate is in surface water, it assists in growing the wrong plants such as oxygen-depleting algae that starve other organisms.

There has been plenty of heat and noise about the Government’s proposed limit for dissolved inorganic nitrogen (DIN) in New Zealand’s waterways and its impact on food creation. But the proposed limit for dissolved reactive phosphate (DRP) deserves just as much focus because the implications are just as serious.

The proposed 0.018 parts per million limit for DRP is certainly ambitious. The impacts of such an in-stream phosphate limit could affect more catchments than the proposed nitrogen limit: approximately 30% of monitored river sites exceed this threshold.   . .

Look ahead with farm confidence – Annette Scott:

A programme to help sheep and beef farming partners plan for their future and adapt to change will next year extend to 20 rural centres.

The two-month Future Focus business planning programme, set up in 2017, equips farming partnerships to set a future path for their businesses, develop systems to achieve goals and lead their teams to success. 

The programme, delivered by the Agri-Women’s Development Trust to more than 130 sheep and beef farmers this year, will reach 320 farmers in 2020 with continued support from the Red Meat Profit Partnership. . .

Genomic testing helps farmers fair-track genetic gain:

David Fullerton can tell before a heifer calf is weaned if it’s going to grow into a profitable, high-producing dairy cow.

David and his wife Pip, along with their sons Alex and Dean, milk almost 600 Holstein Friesians at Ngahinapouri near Hamilton.

They’re using genomic testing to identify calves with the greatest genetic potential, enabling breeding decisions to be fast-tracked.

“Genomic screening has been one of the biggest advancements in cattle breeding in the last 100 years,” said Fullerton. . .

 


Subsidies begat subsidies

November 5, 2019

Why is the south subsidising power delivery to the north? Steven Joyce opines:

I hold no brief for Rio Tinto or its aluminium smelter but I am a fan of Southland, and I don’t think Southland is getting a fair deal.

It’s worse than that.  Southland looks like it might be getting lined up for the “Taranaki Treatment” from the government.

Rio Tinto is once again reviewing the future of the smelter, which directly and indirectly, pays the wage packets of about 3,500 people in a region of roughly 100,000. . .

That’s a lot of jobs and there will be more in businesses which service and supply the smelter and it’s staff, but that by itself isn’t a justification for subsidising Rio Tinto. But there’s a but:

But actually they have a legitimate point – or at least, the people of Southland do.  People and businesses in Southland, including the smelter, pay too much to get their electricity delivered to them.  More correctly they subsidise the delivery of electricity to everyone else, and they are sick of doing it.

The lower South Island produces much of New Zealand’s power, and at the lowest cost, but they see no benefit from having the big hydro power stations in their neighbourhood.  Electricity is expensive to shift around so it should make sense to set up your business near a power station, but it’s not because electricity transmission costs are currently averaged across the country.

If you live over the road in Te Anau from New Zealand’s biggest power station, you are not just paying to have your power delivered to you, you are paying to get it delivered to people in Auckland, 1700 kilometres away on a whole other island.

Given the loss of energy and cost of sending power so far that doesn’t stack up environmentally or financially.

And as Auckland grows, it needs more power. Transpower, which runs New Zealand’s electricity grid, has spent several billion dollars over the last decade upgrading their network and keeping the lights on, much of it for the benefit of Aucklanders.

 And Southland people and the smelter have been paying for a lot of that.  

And we’ve all been paying for the subsidy to Rio Tinto because the south is subsidising the north’s power.

The previous government put together a new Electricity Authority to, amongst other things, sort out a fairer price for electricity transmission. It’s taken a while because it’s controversial.

In 2016 the authority put up a fair proposal that would have saved Southlanders a lot of money. The smelter would pay around $20 million a year less than it does now in transmission charges, and other Southland power users would get a commensurate reduction.

That would be better for the company and other southerners than subsidising the smelter.

But people in Auckland and Northland who would pay a bit more kicked up a big public fuss and so did politicians, including New Zealand First.  The Authority went away to check its sums again. It has now come up with another, watered down plan. It still improves things for Southland, but only about half the amount as previously.  And its still a few years away from coming in.

Tanspower should not have bowed to political pressure to change it’s  mind about people paying the trues cost of power just because for once the south would gain and the north would lose.

So it’s not surprising the smelter is getting antsy, or anybody else in the deep south. Southlanders pay higher petrol prices because the population is smaller and there is less competition.  They pay higher electricity prices because they are subsidising getting power delivered to Auckland.

On energy costs they never win. And they risk large industries leaving – industries that should be attracted to their part of the country because of the abundant cheap electricity that is generated there.

Thanks to the mnemonic Love Many Fat Royal People Today I can still    recite the factors affecting the location of industry – Labour, markets, finance, raw materials, power and transport.

The market in the south is smaller, but if you’re exporting that, and transport are not a big consideration. Finance is mobile, the south has plenty of Labour so it’s just subsidised power that makes the north more attractive.

If the south wasn’t subsidising the north’s power at least some   of the businesses which locate in Auckland, would choose somewhere nearer where the power is generated instead?

That would have the added bonus of slowing Auckland’s growth.

Meanwhile the trendies in Auckland and Wellington opine that we’d be better off without the smelter anyway for all sorts of thinly argued environmental reasons. Of course it’s not their lives that would be up-ended if it goes.

All this is grimly familiar to Taranaki people, who have had one of their largest highest-paying industries sacrificed on a Greenpeace-inspired oil and gas ban that is now generally accepted will do absolutely nothing to reduce climate change. Because of the complex interplay between coal, gas and electricity, it may be making things worse. It’s certainly lifting gas and power prices.

And it is not just industry that is at risk in Taranaki and Southland. There was news out this week that the aggressive new water policy the Government wants to impose on food producers will disproportionately affect people and economies in places like Taranaki and Southland. . .

Our self-styled champion of the provinces might be a bit miffed that provincial people don’t show appropriate levels of political adulation when he shows up with the taxpayers’ cheque book and sprays $10m here and $10m there. The truth is his largesse is poor consolation for the damage other things are doing to the economic prospects of regions like Southland

We shouldn’t subsidise the smelter. Rather we should stop forcing Southlanders to subsidise Aucklanders. 

We should also revert to a more gradual water plan that gives farmers time to adapt, and we should let Southland retain control of SIT. Then we should get out of the way and let the sensible practical Southlanders get on with making a success of their province.

This illustrates how subsidies begat subsidies.

If transmission costs were levied where they fell, Rio Tinto would have cheaper power without subsidies and the rest of the south would also save on their energy bills.

 

 


%d bloggers like this: