Word of the day

29/02/2020

Premiate – to give an award, prize or premium to or for; reward with a premium.


Sowell says

29/02/2020


Rural round-up

29/02/2020

Attacking the noblest profession – Hamish Marr:

In this, the second in a series written by the latest crop of Nuffield Scholars farmer Hamish Marr says farmers are down because they are constantly being attacked while at the same time being denied access to the tools that can help them feed the world while addressing critics’ concerns.

After almost half of this year travelling the world there are a lot of thoughts in my head regarding agriculture and farming.

The biggest take-home for me is the universal problem of people wanting what they haven’t got simply through believing the grass is always greener over the fence and genuinely not understanding agriculture and what is involved in food production. . .

Country Calendar: busy life for Young Farmer Of The Year contestant – Melenie Parkes:

Lisa Kendall is a farmer with a full plate. As well as running her own business, she also works at a rural supply store and volunteers with Riding For The Disabled. 

She also won the Northern Regional final of Young Farmer Of The Year competition and is in the running for the Grand Final in July. As if that’s not enough, she is also pregnant with her first baby.

“The baby will be a farming baby,” says Kendall emphatically. “It will have to be,” she laughs. . . 

Energy the next ag evolution? – Cameron Henderson:

This is the first in a series of articles written by the latest crop of Nuffield Scholars. This week Canterbury farmer Cam Henderson looks at the possibility of farmers generating energy while combatting climate change and being easier on the environment.

Prices are good and interest rates are low but farmers’ moods are down because the regulatory pressure gives them little hope for the future. 

Researchers are furiously searching for more sustainable ways of farming food and fibre but what if there was a whole new sector that could provide a light at the end of the tunnel? . . 

Fonterra reaffirms forecast farmgate milk price and earnings guidance, and revises milk collections:

Fonterra Co-operative has reaffirmed its forecast Farmgate Milk Price range at $7.00-7.60 per kgMS and its forecast full-year underlying earnings guidance of 15-25 cents per share. It has also revised its forecast milk collections for the 2020 season down from 1,530 million kgMS to 1,515 million kgMS.

Fonterra CEO Miles Hurrell says the Co-operative remains confident in its forecast Farmgate Milk Price range and it is also maintaining its underlying earnings guidance of 15-25 cents per share despite current market conditions as a result of coronavirus. . . 

A2 Milk profit rises as infant formula sales increase:

A2 Milk has delivered a strong financial result, with increased sales in its infant nutrition business and with better than expected profit margins.

The specialty milk company’s net profit rose 21 percent in the six months to December to $184.9m, with an underlying sales margin of 32.6 percent.

Sales rose 32 percent to $806.7m, with a 33 percent gain in the infant nutrition business. . . 

West Coast DHB recruiting ‘rural generalists’ to solve doctor shortage – Lois WIlliams:

The West Coast District Health Board is planning to tackle a shortage of hospital doctors with a new breed of medics: rural generalists.

The Association for Salaried Medical Staff (ASMS) released a staffing survey this month, revealing what it called “a whopping 43 percent shortfall of senior doctors” at the DHB.

Five out of eight heads of department at the West Coast DHB said they did not have enough specialists for their services and estimated they were eight doctors short. . .

NFU tells government to honour UK farm standards pledge :

The government has been urged by the NFU to honour its manifesto commitment in the Agriculture Bill to safeguard UK food and farming standards.

The government has published its future farming policy updates, as the Agriculture Bill goes through the Committee Stage in the House of Commons.

And at the same time, new details on the future post-Brexit Environmental Land Management Scheme (ELM) has been unveiled.

This will see farmers paid for work that enhances the environment, such as tree or hedge planting, river management to mitigate flooding, or creating or restoring habitats for wildlife . . 

 

 


Quotes of the month

29/02/2020

Hallelujah! A victory for sanity and the reasonable belief of most New Zealanders that personal mobility in the form of cars, trucks and motorbikes will continue to be the norm well into the future, even as the fuel that drives those vehicles radically changes for the better. – Steven Joyce

When they’re older, Anahera and Māia can look at that image knowing they are descendants of the Māori chief in it and the English-born photographer who took it. However, I hope they will recognise the multifaceted aspects of their whakapapa and understand they are first and foremost themselves – individuals who have the freedom to determine their own paths in life without being constrained by historical events that occurred before they were born.

That’s right, none of us was there when the treaty was signed, nor were we there when some of our ancestors stole land from some of our other ancestors, and I’m talking about my Māori ancestors – don’t get me started on the Pākehā ones. Complicated isn’t it? And, no, I’m not proposing “we are one people”, aka Hobson’s Pledge. How about “we are individuals”?Steve Elers

It’s customary these days to criticise politics as too tribal but, the case of the New Zealand Labour Party, at least, it’s the wrong analogy: in practice, it’s less tribe than sect.

Whereas tribes tend to protect their own, and forgive individual sins in service of the collective good, a sect is unforgiving of perceived heretics. Shane Te Pou

Children in arts-rich schools do significantly better at the basics than schools which focus on measuring literacy and numeracy outcomes. The arts build the key skills that employers value most highly: risk taking, collaboration, curiosity and an ability to think across rather than in disciplinary silos.

The arts train the imagination. The imagination is vital for individual and social well-being because we can only make our own and others’ lives better if we can imagine a different, a better world. The arts are carriers of hope, and young people need hope like a fish needs unpolluted water.

When schools deny children the arts, they deny them their imagination. We know the arts train us to think critically, to see things in different and multiple ways, that creativity is part of the puzzle of making democracy work. Education systems that train children how to answer questions rather than question answers leads us into the traps of demagogues and their easy recipes. –  Peter O’Connor

But the point is most Kiwis – most humans – want to earn what they own, not take it from those who already have it. – Kerre McIvor

We’ve become so consumed by climate change, we’ve lost the ability to think rationally. Which is why everyone is running around panicking about Huawei and no one is wondering about a much bigger problem: where their next sandwich is coming from. – Jeremy Clarkson

I’ve said many times before I’m proud of my whakapapa, I’m proud of my English, my British heritage. Ultimately… I’m a New Zealander first and foremost … if I think about Waitangi Day, what I see is a day that yes, that is historic in its significance but is ultimately, at its most basic, about good relations between New Zealanders. – Simon Bridges

For whereas the Left generally prefers to discharge its moral obligation to others through the transformation of society, the Right — sceptical of the grand plan — prefers to discharge it through particular acts of individual kindness and practical generosity.  Though not ever believing that such acts will totally change the world, the Right fights back against the darkness nonetheless, little by little and at local level. Without the showy drama of the revolutionary, the Conservative responds on the human scale, organically.Giles Fraser

Which is all a long and convoluted way of saying that lamenting Waitangi Day for not being a day of national unity misses the point. There are many great things about our country’s history that we can celebrate in an unadulterated way, but the events and subsequent history of Waitangi do not lend themselves to that. They are occasions for introspection, discussion and – yes – argument.

And there’s nothing wrong with having one day in the year for that.  – Liam Hehir

In fact, it’s a stretch to call the arts a “community”. In politics, a community tends to be defined, however broadly, in terms of its interests. Those interests could be based on geography, ethnicity, sexual orientation or gender identity, or economic imperatives. The arts are a community more in the sense of the Balkans after the fall of communism – an intractable, internecine turf war based on ancient and obscure grudges. – Ben Thomas

We need people to see that this is not Paharakeke (Flaxmere) , this is not what we do behind closed doors. And to bring the mana back, the aroha back, because unfortunately, from what’s happened to that baby, it’s just gone and broken. – Lynsey Abbott

If there is a solution, it cannot be legislated. If there is a solution you won’t find it in Wellington. If there is a solution, you won’t find it in council … we need to take a look in the mirror.Henare O’Keefe

Paharakeke deserves better, Flaxmere families deserve better. Each and every one of us deserves better. . . Whānau isn’t harden up, it isn’t hide. It’s open up, share. It’s where you be vulnerable. If we can change our family unit, we change our community.  – Michael Ngahuka

The city of sails? Sadly no, the city of fails . . . in a world of work-life balance, it’s all work, little balance.Mike Hosking

In a zinger that already sounds dated the ascendant John Key described Clark and Cullen’s administration as “a Walkman government in an iPod world.” As Ardern and Robertson consider the influence of their former employers and political forebears, they may think Key was being too kind: the ghosts of the fifth Labour government are still firmly tuned in to the wireless. – Ben Thomas

I don’t think New Zealand as a whole has particularly valued research in science and therefore things like opportunities and funding and chances to grow are really quite limited in this country. – Professor Jane Harding

Kids will do better when the adults and the country they live in does better. – Lindsay Mitchell

You can recover from an economic recession, but you can’t recover from a President who thinks the job of the Justice Department is to only apply the law to his political opponents.David Farrar

I am no right-winger, but I find myself unusually in the space occupied by the right – that is, I cannot fathom how property rights can be trampled on in this way, nor how Labour and the Greens can tolerate it. – Sue Bradford

The Washington Post observed after Ardern hobnobbed with the wealthy worthy in Davos that, while many were enthralled, ­others saw the NZ PM as being cut from the same poseur cloth as Canadian Prime Minister Justin Trudeau, only less annoying and with an easier country to run. – Graham Lloyd

But let me be really clear: we cannot afford to panic. When we panic, we actively harm our ability to respond to difficult situations. So, let’s stay calm and start preparing. What happens in the months to come is going to depend on how we all behave. Siouxsie Wiles


Saturday soapbox

29/02/2020

Saturday’s soapbox is yours to use as you will – within the bounds of decency and absence of defamation. You’re welcome to look back or forward, discuss issues of the moment, to pontificate, ponder or point us to something of interest, to educate, elucidate or entertain, amuse, bemuse or simply muse, but not abuse.

Integrity is doing the right thing, even when no-one is watching. C.S. Lewis

 


Word of the day

28/02/2020

Mellifluous – having a smooth rich flow; filled with something (such as honey) that sweetens; flowing with honey; sweetened with or as if with honey; pleasingly smooth and musical to hear; sweet-sounding.


Sowell says

28/02/2020


Mixed messages

28/02/2020

The government is introducing a bill it says could lead to a drop of up to 30 cents a litre in petrol prices.

But, as the Taxpayers’ Union keeps reminding us, around half the contributor to fuel prices is tax, including the one that is supposed to make us use less to reduce carbon emissions.

They’re sending mixed messages.

They’re talking out one side of their mouths by taxing us more to increase the price of fuel to encourage us to use less and then the talk from the other side is a threat to legislate to force  fuel companies to bring prices down because fuel is too expensive.


Rural round-up

28/02/2020

Farming needs policy certainty – SImon Bridges:

Our reputation as a producer of quality agricultural products is well known around the world and the sector contributes close to $48 billion in export revenue to our economy. The primary sector provides an economic shot in the arm to New Zealand, and we want to see it continue to grow.

If there’s one thing I’ve picked up from the many farmers I’ve spoken to over the past couple of years, it’s that they want certainty. Farmers and growers already have enough variables to deal with such as the weather, interest rates, disease and international markets. There needs to be a clearly sign-posted direction of travel from the Government that allows everyone to get on board without adverse effects. . .

Former National MP Shane Ardern builds New Zealand’s ‘fastest’ cow shed – Catherine

A former politician has built what could be New Zealand’s fastest dairy shed – able to milk 600 cows an hour.

Two 40-bail rotary platforms turn like giant clockwork dials side by side, and the cows choose the one they prefer to be milked on.

Shane Ardern, who farms at Te Kiri, South Taranaki, with his wife Cathy, is still remembered for driving a tractor named Myrtle up the steps of Parliament in 2003 to protest the Labour Government’s plans to impose a ‘fart tax’ on farmers.

Ardern returned to farming in 2014 after 16 years as National’s Taranaki King Country MP. . .

Southern peas please big producers  :

The Maw family, of Mid Canterbury, has been been farming at Barrhill for four generations, dating back to 1925.

They rotate a broad range of crops including cereals, grass and clovers for grazing and seed production, vegetable seed crops and peas, which are currently being harvested for produce giant, Wattie’s.

Colin Maw has been supplying Wattie’s for over 20 years.

Wattie’s farmers had vast experience in growing the very best peas with knowledge handed down and nurtured between generations, he said. . .

 

The importance of the humble blueberry – Dr David Chagné:

New Zealand is involved in a US$12.8 million USDA grant to improve the quality of blueberry and cranberry.

The four-year project, led by North Carolina State University, is part of the USDA’s National Institute of Food and Agriculture Specialty Crop Research Initiative, which funds multi-year, multi-institutional collaborative projects.

Genomics Aotearoa and Plant and Food Research Ltd have just become part of this project, and we’re very excited about what that offers – for blueberry producers here, for the New Zealand economy, the consumer and for other genomics researchers.

But what does this actually mean for us? . .

Robotics Plus a THRIVE Top 50 agtech company:

Robotics Plus, a world-leading robotics and automation company developing innovation to unlock new levels of productivity in agriculture, has been named in the THRIVE Top 50, an annual ranking of leading global AgTech companies exemplifying the best in agriculture innovation. Robotics Plus, the only New Zealand company to make the 2020 Top 50 ranking, was just one of five companies featured in the Robotics & Automation category.

Robotics Plus CEO Dr Matt Glenn says it’s a huge honour to receive a coveted spot on THRIVE’s Top 50 global list. “We’re thrilled to be showcased in such a prestigious list alongside exceptional AgTech companies from around the world who are pushing the boundaries of technology and innovation. . . 

Don’t mess with farmers – Peter Burke:

Policymakers in Ireland have learned the lesson about demonising farmers – just don’t do it.

That’s the word from a leading Irish scientist, Dr Karl Richards from Teagasc, that country’s semi-state organisation that is responsible for R&D, training and advisory services to farmers.

Richards told Rural News, at recent seminar at Massey University, that policy makers in Ireland have realised that farmers will react badly to being constantly demonised and are less likely to react positively to improving the environment. . .

 


Taxes for public services, not propaganda

28/02/2020

How would you feel about the tax you pay funding a political party?

An email from the Taxpayers’ Union explains:

The Government are gearing up to use Winston Peters’s and Jami-Lee Ross’s donation scandals to justify replacing electoral donations with taxpayer funded political parties.

Here’s a different idea for cleaning up political donations, which is similar and more cost-effective than taxpayer funding: obey the law.

It’s that simple.

The law is clear. If there is a problem it is politicians and parties not obeying it, and possibly the powers the Electoral Commission has to ensure they do.

Taxpayer funding wouldn’t solve that.

Politicians should let the Serious Fraud Office do its job, instead of exploiting the situation to get their hands on more of your money.

Just this morning, the Greens were on Radio New Zealand calling for reform. Labour’s friendly activists have been in the media calling for the same. And it’s no pipe dream: the Prime Minister Jacinda Ardern has previously said she’s keen on the idea.

Oh yes. These parties never let an opportunity to try to get taxpayer funding for themselves go by.

James Shaw says “We have a donor-driven democracy, and we’ve got to get rid of that.” That’s code for the Greens taking your money.

Democracy is supposed to be of the people, for the people, by the people; not of the politicians, for the parties, with the people’s money.

It’s not donors funding parties that’s the problem, it’s too many parties with too few members and supporters. That would only get worse if parties could rely on taxes rather than members and supporters for funds.

We pay taxes for public services, not propaganda. 

In a democracy we have to accept governments that gain power legitimately spending taxes on policies we don’t support. We should not have to support our taxes going to support parties, whether or not we support them and what they stand for.

Taxpayer funding for political parties cements the status quo and makes it even harder for new political parties, or groups outside of Parliament, to hold politicians to account.

State funding would also negate the need for parties to build broad membership bases. This is particularly important under MMP because nearly half our MPs are elected through party lists, rather than directly by voters. Taxpayer funding would let parties ignore their members’ views when selecting candidates.

Taxpayer funding would also make it even easier for parties with very few members to thrive.

Like MPs’ pay increases, taxpayer funding of parties could come from nowhere, and be passed through Parliament very quickly. That’s why we need your financial support now to ensure there is a strong voice ready to campaign against these proposals.

The Greens and Labour could try to campaign on taxpayer funding.

That would almost certainly ensure they wouldn’t be returned to government with the power to make that happen.

You can donate to the Taxpayers’ Union to help them campaign against this and other abuses of public funds by going here.

 

 


Word of the day

27/02/2020

Glocal – reflecting or characterised by both local and global considerations; of or relating to the interconnection of global and local issues or factors; of or relating to the tailoring of globally available products and services to local markets.


Thatcher thinks

27/02/2020


Rural round-up

27/02/2020

Water will be currency of 21st century – Todd Muller:

Water is one of our nation’s critical strategic assets, perhaps second only behind our people. Therefore water storage is essential for ensuring we have a thriving primary sector for years to come, writes National’s Agriculture spokesman Todd Muller.

Water will be the currency of success in the next century.

In the 19th century it was coal, in the 20th century it was oil and in my view in the 21st century it is water.

We are a tradeable economy and water is a critical strategic asset in developing our commodities. The ability to store it will be a key infrastructural necessity if we are to leverage the value of water over the next few decades. . .

Wild rabbit enterprises shot down by red tape:

Federated Farmers is dismayed by reports that at least two businesses which process meat from wild rabbits are being strangled by compliance costs.

“It’s tough times on farms at the moment, with rising rabbit numbers in dry conditions.  With all the focus on predator-free and biodiversity, surely we should be working with and encouraging the commercial use of pest species, not making it harder for operators,” Feds Meat & Wool Chairperson Miles Anderson says.

Radio NZ has reported that the owner of a business supplying wild rabbits to high end restaurants, and for pet food, is spending up to 40 hours a week on paperwork, never mind growing MPI audit fees at $176 an hour.  As with another Canterbury-based processor, he told Radio NZ he was thinking of closing down. . .

Dairy returns too tiny for farmers – Hugh Stringleman:

Dairy farmers have many reasons for optimism though three out of four say the returns are not worth the effort, DairyNZ strategy and investment leader Bruce Thorrold says.

Many farmers are asking themselves why they still bother dairying and his task is to help clear the fog and rekindle motivation, he told the DairyNZ Northland farmers forum.

Farmers are worried about environmental, banking, farm value, alternative food, drought and disease pressures. . .

Weevil win – we knocked the bastard off – Karen WIlliams:

Hats off to you, Wairarapa.  In the words of another Kiwi who achieved a world-first, “we knocked the bastard off”.

Okay, eradicating the region’s pea weevil incursion isn’t as grand as Ed Hillary and Tensing Norgay climbing Everest but in terms of biosecurity, and protecting an industry that earns us $50 million in domestic sales and $84 million in exports, it is a big deal.  It’s also another bug we don’t have to spray for.

As far as we know, no other country has successfully combatted this pest after an incursion.

It’s taken a region-wide and government agency effort to get where we are – that’s growers/farmers, home gardeners, Federated Farmers, local councils, Greater Wellington, local MPs, MPI, Biosecurity NZ, the Foundation for Arable Research, Assure Quality…a big thank-you to you all for your perseverance, flexibility and understanding. . .

New app to help hunters track tahr during culling –

A long-term plan is being developed to control Himalayan tahr in the South Island.

The Department of Conservation (DOC) said the large goat-like animals, introduced to New Zealand during the early days of European settlement, posed a threat to the country’s native alpine plants.

To combat the loss of native vegetation, DOC said it had been working with ecological experts to start a new monitoring system.

The long-term control plan is led by DOC and Ngāi Tahu. . . 

Beef bans based on ‘popular opinion, not facts’, Harper Adams says:

Harper Adams University has said it will never ban beef from its campus menus as it criticises other institutions for their ‘knee-jerk reactions’ to the climate crisis.

In recent years, and even more so in recent months, several UK universities have attracted significant media attention for voting motions to ban beef.

Earlier this month, thousands of students at Edinburgh University rejected proposals to ban the meat in all student union run outlets. . .

 


Are we ready?

27/02/2020

New Zealand has no reported cases of coronavirus (COVID-19).

That doesn’t mean it isn’t here. If it takes 14 days to incubate someone could have been in contact with someone who has it and be incubating it themselves.

Whether or not it is here now, it is very, very likely it will be sooner or later.

The economic impact is already being felt.

Crayfish export orders have been cancelled; sheep meat and beef orders have slowed; dairy prices have fallen, tourism has slowed and the share market has had three falls in a row.

Are we ready for the impact of that on export income, tax receipts, jobs and the flow-on effect as all that flows through the economy?

It’s not just exports not going out, it’s imports not coming in.

A lot of our food, medicines, medical equipment, machinery and parts, components for manufacturing, construction materials and packaging are imported.

Are we ready for that flow to slow down or even stop?

Then what happens when people become ill and schools and businesses close?

Are we ready for that?

And what happens to our already overburdened and under-resourced health system?

Are we ready for that?


Word of the day

26/02/2020

Alveolate – having alveoli;  hollowed out from alveolus; deeply pitted; resembling the deep pits of a honeycomb.


Sowell says

26/02/2020


Rural round-up

26/02/2020

Wharves in China can’t take more logs from New Zealand:

Lack of space in Chinese ports is bringing a virtual halt to New Zealand log exports to China.

The Forest Owners Association says precautions in China against coronavirus have resulted in almost no offtake of logs in China for processing and exporters understand that the remaining log yard space at most ports near processing centres is quickly disappearing.

The Association President, Peter Weir says exporters had hoped that business would return to normal after the extended Lunar New Year holiday finished in China two weeks ago. . . 

Northland drought: iwi to divert farm water to Support town supply :

Northland iwi Te Rarawa and Ngāi Takoto are on stand-by to supply water to drought-stricken towns, including Kaikohe and Kaitaia.

The water will be sourced from an aquifer which runs through the iwi-owned farm, Sweetwater.

Once a 4km pipe is installed, up to 2700 cubic metres of water will be pumped from the aquifer a day . .

Chickens come to (mobile) home to roost – Sally Rae:

It is the ultimate in mobile homes.

Thousands of hens are living the life of Riley on Tony and Michelle Pringle’s South Otago farm; pecking their way around the 445ha property near Clydevale from their transportable hen houses.

When it comes to their farming operation, the couple, who milk 450 cows and farm 6500 laying hens, think outside the square — and a lot.

They have a focus on regenerative agriculture and soil health to produce nutrient-dense food. Hens were part of that as they added “another system within a system” — introducing poultry to their farming operation, while not affecting their stock numbers.

The Pringle family, who feature on the first episode of the new series of Country Calendar on March 1, started with 50 hens and quickly discovered people liked their eggs. . . 

Hemp farm opens gates to the curious to promote ‘wonder crop’ – Katie Todd:

Growers of industrial hemp say red tape is stopping industries from making the most of what many regard as a potential wonder crop.

Although it lacks the mind-altering power of its close cousin marijuana, hemp can only be grown and sold subject to Ministry of Health restrictions.

Brad Lake, co-founder of Christchurch hemp food company The Brothers Green, helped organise a hemp farm open day in Culverden yesterday, to showcase the farmers and business utilising the crop and help de-mystify how it’s grown and used. . .

Backing the trillion tree campaign to combat climate crisis – Tom Crowther:

Politicians and influencers are signing up to the campaign, but to get things right we must keep in mind the science behind it, says Tom Crowther:

The recent explosion of interest in tree restoration has transformed the climate change conversation. Although the trillion tree campaign – 1T.org – is now in the realm of politicians and influencers (Greta Thunberg: Davos leaders ignored climate activists’ demands, 24 January), it emerged from scientific literature. But what exactly did the science show?

We estimated that there is up to 0.9bn hectares of degraded land that might support a trillion trees outside of existing forest, urban or agricultural land. Although the exact carbon storage potential is debated, scientists agree that ecosystem restoration is a powerful tool for carbon drawdown.

But with anything this powerful, the risks of getting it wrong can be huge. To avoid these risks, any organisation pledging to the trillion tree campaign should uphold these basic principles. . .

Industrial property investors set to plough funds into agricultural engineering site up for sale:

The land and buildings housing a long-standing farm equipment and machinery engineering plant in the heart of the North Island’s premier dairying region has been placed on the market for sale.

The premises at 5855 State Highway 2 in Netherton features a 620 square metre industrial building complex sitting on a 1.89-hectare block of land zoned rural 1A under the Hauraki District Council plan.

The property has been the headquarters of Quinn Engineering since the 1960s – with the company producing hay-bailing machinery, crate-lifting forklift extensions, and tractor extensions for crop and soil management. Its products are sold throughout New Zealand as well as Australia and the South Pacific. . . 


False kindness is cruel

26/02/2020

Benefits have been indexed to inflation rather than wages for good reason – to ensure there is a big enough gap between the two to make work more attractive than a benefit.

Lindsay Mitchell points out that the previous government understood the danger of this:

 “…it is desirable to create a margin between being dependent on a benefit and being in employment….
The Labour Party isn’t the party that says living on a benefit is a preferred lifestyle. Its position has always been that the benefit system is a safety net for those who are unavoidably unable to participate in employment. From its history, the Labour Party has always been about people in employment.”
Michael Cullen, 2008

This is supposed to be a government of kindness but linking benefit increases to wage rises is false kindness, cruelly disincentivising work and trapping more people in poverty.

The Taxpayers’ Union points out that beneficiaries are getting something denied to the people who pay the taxes that fund the benefits:

The indexation of benefits to wages means that taxpayers are treated less fairly than ever, says the New Zealand Taxpayers’ Union.
 
Taxpayers’ Union spokesman Louis Houlbrooke says, “The Government says it’s fair to index benefits to wages because we already do this with superannuation. So about tax brackets? These aren’t indexed to inflation, let alone wages. The result is that each year, taxpayers keep less, while beneficiaries get more.”
 
“Politicians often say we cover the costs of super and benefits by increasing productivity. But under this Government’s policies, increases in productivity will automatically trigger hikes to benefits and super, meaning we can never dig ourselves out of this spending hole.”

 

Mike Hosking also raises the issue of productivity:

Most who got a three per cent wage rise did so because they did something productive. They made more, produced more, worked more – that’s the productive side of the economy. That’s how you incentivise people: there is reward for work

Beneficiaries got the same rise, that’s the non-productive side of the economy. Nothing more was produced, but more was put into it. And that is why the money is gone and we are borrowing.

Economies grow because of productivity, not because of non-productive spending. You need one to fund the other, and one must be stronger than the other. That’s how you move forward, run surpluses, and afford to cover difficult days.

A level of redistribution, the likes of which we are currently experiencing, leads nowhere sound fiscally. It makes us increasingly vulnerable to global shocks, and we are too small to be running that risk.

The spread of coronavirus (COVID-19) is bringing a global shock ever closer, threatening jobs and increasing the likelihood of more people on benefits.

It is neither kind nor sensible to be doing anything that will discourage work and add to the burden placed on taxpayers.

 


Word of the day

25/02/2020

Retral –  situated at, near or toward the back; posterior; moving, directed or tending in a backward direction or contrary to a previous direction; backward, retrograde.


Sowell says

25/02/2020


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