Word of the day

July 10, 2020

Miscegenation – mixing of different racial groups through marriage, cohabitation, sexual relations, or procreation; producing children from parents of different races.


Sowell says

July 10, 2020


Rural round-up

July 10, 2020

No place for gender bias in farming – Milne – Sudesh Kissun:

Former Federated Farmers president Katie Milne says having women in the farmer lobby leadership team is a reminder that NZ ag is about couples working together.

Milne, the first woman president of Feds, stepped down last month after serving her three-year term.

In her final speech at the Feds’ annual meeting, Milne said men and women bring their own perspectives and strengths to farming, neither being more important than the other.

“It’s useful to remind the rest of the country by having men and women – all working farmers – speaking for the organisation that those old newsreels of men out on the land on machinery and women confined to baking scones for the shearers is pre-war history, and even then it was a stereotype rather than the truth,” she said. . .

Election forestry Policy unnecessary:

Right now, we are in a Covid-19 recovery phase and an election year. Farmers feel good about keeping the economy going, but are challenged by climate change, freshwater regulations and afforestation. Some press releases strongly defend pastoral farming against encroaching forests, as if we are fighting over land use. We’re not. What both the farming and forestry sectors are doing is searching for the best way forward, post-covid, in terms of investing and adapting. What neither sector needs are knee-jerk regulations that distract from finding real solutions of mutual benefit. A diverse range of viewpoints is good for innovation, so let’s encourage it. The NZ Farm Forestry Association suggests we should avoid the myths, maintain perspective and share some new ideas.

The long-term perspective is that land use change has and should occur in response to developing markets and scientific guidance. . . 

Dairy prices lift the gloom for farmers but their future meanwhile is being plotted by Beehive planners with a vision:

Fonterra’s  boss  might have been  ultra-cautious   but  out on  the country’s dairy farms there  was a  subdued  cheer  at the  news  that the wholemilk powder price had leapt  14%  at  the  latest  GDT  auction..

The  GDT  index  rose  8.3%,  the biggest  rise   since  November  2016,  and the fourth   successive gain.   Fonterra’s  CEO   Miles  Hurrell  says  it’s  “really  surprising—no-one  saw a number of  this  magnitude”.

It dispels  some of the   gloom generated  by the  Covid-19 pandemic.  And it generates  the  hope  that  Fonterra pitched  its  forecast  for  the season too  low,  in  the  broad range  from $5.40kg/MS  to $US6.90.

Hurrell  suggested   suppliers    should not  get “too excited” by the WMP  result. Fonterra had put out excess product for immediate shipment, which resulted in “a bit of a flurry in that first event” .. . .

Farmers, foresters and fishing folk rejoice – the govt is fixing your wellbeing to a 10-year plan (and film-makers have not been forsaken) – Point of Order:

Latest from the Beehive

The government’s economic engineers were hard at work yesterday.  One minister was set on establishing a base for film production in Christchurch while – much more critically for the wellbeing of the nation – a cluster of others led by the PM were unveiling their grand design for reshaping the primary sector.  If they get it wrong (and we should never be sure politicians will get this sort of thing right), our economy will be dealt a greater mischief than ever was done by a pandemic.

Environment Minister David Parker was busy in the planning business, too, announcing appointments to the newly established Freshwater Planning Process and the Expert Consenting Panels for fast-track consenting.

Wearning his Attorney-General hat he also announced a new Judge of the High Court.

Immigration Minister Iain Lees-Galloway, meanwhile, was announcing immediate short-term changes to visa settings to support temporary migrants already onshore in New Zealand and their employers, while ensuring New Zealanders needing work are prioritised. . . 

Accelerating our economic potential: – Primary Land Users’ Group:

The Government plans to increase primary sector export earnings by $44 billion over the next decade with a goal of getting 10,000 more New Zealanders working in the sector over the next four years.

Prime Minister Ardern said the sector, which has proven essential for New Zealand during the Covid-19 pandemic, will be vital to New Zealand’s economic recovery.

HOW?

The plan sets a target of lifting primary sector export earnings to $10b a year by 2030 which would bring in a cumulative $44b more in earnings in a decade. If successful, the plan would almost double the current value of the primary sector. . .

Sustainability stars pick up awards :

Ten kiwi dairy farmers who have shown exceptional care for the environment have been recognised with a DairyNZ sustainability and stewardship award.

The award was part of the Ballance Farm Environment Awards. 

“The dairy sector has made a commitment under the Dairy Tomorrow strategy to protect and nurture the environment for future generations,” says Dr David Burger, DairyNZ strategy and investment leader – responsible dairy.  . . 

How will we recover from social isolation? – Stephen Burns:

Our species has been put on notice: the natural world will no longer tolerate the abuse it has taken for centuries and only exaggerated by recent avarice.

A minute organism, unable to be seen except through a microscope has brought the world as we have enjoyed to a grinding halt.

Invisible to a naked eye yet more powerful than any despotic politician, more devastating than the Global Financial Crisis and more destructive than a nuclear war head, COVID-19 has the power to threaten our continued existence. . .


Need to get NZ working

July 10, 2020

National has a plan to get New Zealand working:

National Party Leader Todd Muller has revealed the framework for the party’s Plan to create more jobs and a better economy.

At a speech to the Christchurch Employers’ Chamber of Commerce today, Mr Muller outlined the five elements of National’s Plan.

“All the components of the framework are designed to grow our economy and create more jobs,” Mr Muller says.

“The framework comprises five components: responsible economic management; delivering infrastructure; reskilling and retraining our workforce; a greener, smarter future; and building stronger communities.

“National will be releasing each of these components in a series of major speeches through this month and into early August to give New Zealanders time to scrutinise each element.”

The full plan will not be finalised until after the Government releases the Pre-Election Economic and Fiscal Update (PREFU) in August. It will be available by September 2 when overseas voting begins, to be followed by early voting, which starts on September 5.

It’s sensible to await the PREFU and good to know the timetable.

“National has a plan to rebuild our communities, get Kiwis back to work and deal with the economic and jobs crisis,” Mr Muller says.

“With Labour not having anything to offer except ‘borrow, spend and tax’, National understands that responsible government is about creating a deliberate and considered plan – and then following it.” 

Labour and its coalition partners are very good at spending but bad at good spending. In focusing on the quantity of the spend they forget the importance of the quality.

They are also very good at announcements although as Jane Clifton points out, a lot of these policies aren’t shovel-ready, many are only press release ready:

In the full speech here,  Todd outlines National’s commitment to:

  • An open and competitive economy;
  • A broad-based, low-rate tax system;
  • An independent central bank with the primary goal of price stability;
  • The Fiscal Responsibility Act, now part of the Public Finance Act; and
  • A flexible labour market, underpinned since 2000 by good faith.

Our concern is that that basic macroeconomic framework is being diluted by the current Government – mainly through incompetence than the result of any plan. . .

Jacinda Ardern has admitted her party wasn’t prepared for government and it shows in all the over-promising and under-delivering before Covid-19 hit.

That failure to deliver then was bad enough, it is even worse now with their determination to borrow so much which is likely to deliver far more debt without the financial rigour necessary to ensure the quality of the spend and determination to get back to surplus as soon as possible.

Todd says National won’t panic.

Nor will National cut family incomes. National has already announced that, whatever lies ahead of us through the crisis, we will not raise the taxes you pay or cut the benefits paid to those who need help. We would like Labour to make the same commitment to New Zealand families too.

Nevertheless, National will work to keep borrowing as low as possible. Out of the $80 billion plus they spend each year, all governments have wasteful spending that needs to be trimmed. All finance ministers review all spending each time they bring together a Budget. And we will do the same.

Since the Fiscal Responsibility Act, the economic and political debate in New Zealand has tended to be on the quantity of borrowing or debt repayment each year. These remain critically important. Getting back to fiscal surplus and then paying down debt to 20 per cent of GDP is necessary, not least because New Zealand will inevitably confront another natural, economic or health disaster in the next couple of decades or beyond. But just as important is to focus on the quality of spending.

Labour forecasts net core debt will reach 53.6 per cent of GDP in 2024 under their policies. That’s an eye-wateringly high level. We will work hard to try to keep it lower than that, which would put New Zealand in a better position to recover. But of far greater longer-term importance is that Labour projects that under its policies, but with a far stronger economic environment than we face today, net core debt will still be as high as 42 per cent by 2034. That means Labour intends a mere 11 per cent reduction in net core debt, over a decade. At that rate, we will not get back to the safe 20 per cent mark until perhaps the mid-2050s.

National does not regard Labour’s attitude as anything like prudent. It would leave an enormous debt, not so much to our children but to our grandchildren. And it would leave our children and grandchildren – and also ourselves – profoundly vulnerable were the global economic and strategic outlook anything other blissful for three successive decades. . . .

We learn two lessons from Labour’s economic and fiscal projections and their refusal to rule out higher taxes. First, they don’t have anything to offer except borrow, spend, hope and then tax. Second, and even more important, they don’t think any of their borrowing and spending will actually do anything useful to improve New Zealand’s productivity, economy or the overall wellbeing of every one of us.

I’m not hiding that my Government will borrow large amounts over the next three years, and in 2020/21 in particular. National will always be more disciplined in its spending than Labour. Yes, we will borrow what we need to, to support New Zealanders through the crisis – neither more nor less. But we will not just fling money around, the way the Labour Party is. Instead, we promise to spend it better and invest it better than Labour, in a way that does in fact improve New Zealand’s productivity, economy, the overall wellbeing of every one of us, and which, in turn, makes it easier to pay the debt off. . . .

Labour and its coalition partners have been flinging money round since they got into government.

National went out of office with the government’s books in surplus and forecasts of that to continue.

Even before Covid-19 hit, this government was taking us back to deficit.

If it couldn’t manage the economy well in reasonable times, it can’t be trusted to do it now we’re facing the worst of times.

That matters now more than ever.

It matters because we need a government that knows that taxing more in a recession is counter-productive – making it harder for people to look after themselves and making it harder for businesses to grow.

It matters because we need a government that understands that borrowing for hard times is only the start, it must also plan to pay back the debt, and have a plan that will work to do that.

It matters because we need a government that will get New Zealand working and the failures of this one to deliver on so many of its promises show we can’t trust it to do that.


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