Word of the day

29/06/2020

Penological – the study of the punishment of crime, in both its deterrent and its reformatory aspects; the study of the management of prisons; a sub-component of criminology that deals with the philosophy and practice of various societies in their attempts to repress criminal activities, and satisfy public opinion via an appropriate treatment regime for persons convicted of criminal offences.


Thatcher thinks

29/06/2020


Rural round-up

29/06/2020

Agriculture emerges from lockdown relatively unscathed, but coming global recession will bite, says economist – Bonnie Flaws:

Agricultural incomes are expected to take a hit later this year as the effects of the global recession caused by coronavirus kicks in, says Westpac senior agri-economist Nathan Penny.

The sector was likely to remain profitable, however.

Despite having come through the lockdown and its immediate effects relatively unscathed, due largely to agriculture’s classification as an essential service, the forecast 3 per cent hit to global growth over 2020, meant there would be less demand for the forseeable future.

As a country that exported over 90 per cent of its agricultural production, New Zealand would be heavily exposed, Penny said. . .

McBride optimistic about Fonterra’s future despite global uncertainty – Esther Taunton:

Fonterra will face “bumps in the road” as the global economy rebuilds after the coronavirusoutbreak, but chairman-elect Peter McBride is optimistic about the dairy co-op’s future.

“Businesses learn more from challenges than successes and there will be plenty learnt from this,” the South Waikato dairy farmer said.

And McBride should know.

As the chairman of the Zespri board from 2013-18, he led the kiwifruit marketer through a crippling outbreak of the vine disease Psa, estimated to have cost growers close to $1 billion . .

Few winter grazing issues found – Neal Wallace:

Soutland farmers are being given a pat on the back for their winter grazing management so far this year, which Environment Southland says is an improvement on last year.

An aerial inspection by regional council staff prompted chief executive Rob Phillips to conclude farmers have made positive improvements.

“I’m encouraged by what we’ve seen. Farmers appear to have made a real effort, which is exactly what we need.”

Phillips said it is early in the season so wet weather will change conditions. . . .

Outstanding vintage despite Covid-19 conditions:

While it will be forever remembered as the Covid-19 harvest, an excellent summer throughout most of the country has contributed to an outstanding vintage for New Zealand’s wine regions.

“Although Covid-19 restrictions did have a huge impact on the way the harvest was run, they will not affect the quality of the wine, and we are really looking forward to some exceptional wines coming from this year’s vintage” said Philip Gregan, CEO of New Zealand Winegrowers.

The New Zealand wine industry had hoped for a larger harvest in 2020, after smaller than expected crops over the last three years. With 457,000 tonnes of grapes harvested, this year’s vintage will help the industry to meet the high demand for New Zealand wine.

With New Zealand moving into Alert Level 4 just as Vintage 2020 began, the industry was acutely aware that it was in an incredibly privileged position to be allowed to pick the grapes, says Gregan. . .

Tug-of-war fan desperate to keep sport alive – ‘It’s weightlifting lying down’ – Carol Stiles:

A Waikato farmer is building a museum on his farm to preserve memorabilia from New Zealand’s oldest introduced sport – tug-of-war.

Graham Smith has a dairy farm 50 minutes south of Hamilton.

He is also a passionate advocate for a sport which is dwindling. He’s preserving the memory of tug-of-war in case one day it sparks up again.

He is the president of the New Zealand Tug of War Association and has been involved for more than 40 years. . .

Record on-farm price for EC Angus – Hugh Stringleman:

An Angus bull from Turiroa Stud, Wairoa, has made $104,000 at auction, believed to be a New Zealand on-farm sale record.

Turiroa’s best-ever sales performance also featured a price of $86,000 and an average of $12,560 for a full clearance of 50 bulls.

Andrew Powdrell said there was good buying further into the catalogue and there was a bull for everyone.

The Powdrell family was humbled by the result and thrilled the bulls are going to good homes. . .


Paula Bennett retiring from parliament

29/06/2020

Paula Bennett has announced she will retire from parliament at the next election.

. . .Bennett said in a statement she was “looking forward to her next career”.

“Now it is time for the next chapter. I am excited to take the skills I have out of Parliament and into the business world. I have always wanted another career after politics and now is the right time for me to go and pursue that,” Bennett said. . . 

Paula held several ministerial portfolios and was deputy Prime Minister under Bill English.

She has put her heart and soul into her work for the party, her constituents and the country.

I am sorry that she is choosing to leave parliament but happy that she will have the opportunity to use her talents in other ways.


Reds’ policy path to poverty

29/06/2020

The Reds have announced an $8 billion tax grab:

The Green Party have unveiled a sweeping new welfare policy that would guarantee a weekly income of at least $325, paid for by a wealth tax on millionaires and two new income tax brackets on high-earners. . . 

The $325 after-tax payment would be paid to every adult not in fulltime paid work – including students, part-time workers, and the unemployed. The student allowance and Jobseekers benefit would be replaced. . . 

It would be topped up by $110 for sole parents, and the current best start payment would be expanded from $60 per child to $100 per child, and made universal for children up to three instead of two.

This guaranteed minimum income plan would cost $7.9b a year – roughly half what is spent on NZ Super, but almost twice what is spent on current working age benefits.

Paying for all this would be a wealth tax of one per cent on net wealth of over $1 million and two per cent for assets over $2 million. The party expects this would hit only the wealthiest 6 per cent of Kiwis.

This would take the form of an annual payment and would only apply to those who owned those assets outright – not someone who still had a mortgage on their million-dollar home, for example.

That looks like everyone could avoid the tax by never paying off their mortgage, but the party wouldn’t be that stupid, would it?

Any party that thinks up this sort of economic vandalism could be.

The Taxpayers’ Union is slamming the Green Party’s proposed wealth tax as bureaucratic economic vandalism that would hammer job creators.

Taxpayers’ Union spokesperson Jordan Williams says, “The proposed wealth tax would mean the return of the dreaded compulsory asset valuations that made a capital gains tax so unpopular. A bureaucratic valuation scheme would incentivise people to hide their wealth, or shift it offshore. It would be a dream for tax accountants but hell for small business owners.”

“The policy also appears not to differentiate between asset types.  It would tax entrepreneurs creating jobs the same as someone sitting on an art collection. Ultimately it would cost jobs at the very time New Zealanders need entrepreneurs to create them.”

“Wealthy iwi groups sitting on often unproductive land would also be smashed under this scheme.  It’s bumper sticker type policy which is poorly thought through.”

“Any party that says you should raise taxes in the middle of a recession is divorced from reality. It is scary that all the work James Shaw has done to try and make the Greens more economically credible appears to be for nothing.”

Commenting specifically on the Green Party’s income support policy, Mr Williams says, “Under the Greens’ policy, a family of five with both parents on the dole would receive $1180 a week in taxpayer funds, assuming one of the kids is younger than three. That goes beyond generosity: it is using taxpayer funds to encourage long-term unemployment. Combined with the policies to tax job creators, this package would take a sledgehammer to New Zealand’s productivity.”

There’s no good time to increase taxes and a recession is an even worse time.

Recovery from the economic carnage wrought by the Covid-19 response requires investment, expansion and increased employment opportunities.

This policy will be a handbrake on all of those and an accelerator for benefit dependency which is a pathway to increased poverty.

This policy is typical of a party that’s more red than green and doesn’t understand that a greener country has to be well and truly in the black and you don’t there by taxing more.

New Zealanders gained a glimpse today of what a Labour Greens government would look like, and it involves a lot more taxes, National’s Finance spokesperson, Paul Goldsmith, said today. . . 

At a time when we need our successful small business people to invest and create more jobs, the Greens want to tax them more.

Rather than celebrating Kiwis doing well, the Greens seem to want to punish them.

The Greens never have the influence to get their way entirely, but they would push a Labour Greens coalition in the direction of higher taxes.

Labour have so far refused to rule out taxing people more if they win the election.

The very real fear many New Zealanders have is that this current government, which has $20 billion available for election spending, will spend whatever it takes to try to keep its poll numbers up until the 19 September election.

Then on the 20th, if they win, the smiles will drop and New Zealanders will be presented with the bill – higher taxes.

National has committed to no new taxes for Kiwis in our first term.

While the economy is going down, the Greens want to tax us more, and Labour haven’t ruled out doing the same.

That’s another very good reason to vote for a National/Act government that will focus on policies which foster the economic growth necessary to provide a pathway for progress.


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