Rural round-up

January 12, 2019

The story of genetics and Mt Albert’s forbidden fruit – Farah Hancock:

A controversial new apple created by New Zealand scientists has to be seen to be believed – and has to be eaten offshore. Farah Hancock reports.

The red-fleshed apples developed by Plant and Food Research’s scientist Professor Andrew Allan and his team are so contentious they’re not allowed to eat them in New Zealand.

“In the end we had to take them to America.”

The cores were removed from the apples so no seeds were present. They were triple-bagged and sealed. Phytosanitary certificates were gained to get approval to move the apples from their glasshouse in Auckland’s Mount Albert to the airport, and then on to the United States. Allan and the science team flew the precious cargo to San Francisco where a taste-testing panel of 50 people waited. . . 

Good grass growth but drought on horizon if rain delayed for Taranaki farmers – Mike Watson and Leighton Keith:

Taranaki dairy farmers are keeping an eye out for rain clouds with the summer heat taking a toll on grass cover.

Favourable growing conditions since spring, following a devastating one in 40 year drought last summer, meant many farmers had good supply of feed to prepare an extended dry period.

“The conditions have been good, in fact fantastic, to date but it is starting to get dry now and we will be looking for some rain by the end of the month,” Okato farmer Ray Barron said. . . 

Plant pines, not natives to make money from carbon farming, says consultant – Heather Chalmers:

Landowners planting forests for carbon credits should plant pine trees rather than natives to achieve the best returns, a carbon consultant says.  

Ollie Belton, a partner of Permanent Forests NZ a Christchurch-based carbon consultancy, said that the rate that natives absorb carbon dioxide was much lower than for pinus radiata. 

Sequestration calculations used by the Emissions Trading Scheme for forests under 100 hectares showed that pinus radiata absorbed almost 1000 tonnes of carbon over 25 years, while native forests absorbed less than 300 tonnes.     . . 

Short stature corn on the way from Bayer Cropscience – Gil Gullickson:

Farmers who have waded and stumbled through corn decimated by green snap or stalk lodging may be in luck in a few years. Bayer CropScience is developing what it calls short-stature corn that company officials say will likely debut early next decade. Bayer officials discussed this development and others on a conference call this week with agricultural journalists. 

“Over the next two to three years, we will demonstrate them (short-stature hybrids) to growers and give them a feel and sense of how they will work on their farms,” says Bob Reiter, Bayer CropScience head of research and development. “I think this is a little like what was experienced with the Green Revolution in rice and wheat through Norman Borlaug, which is the foundational shift in how crops are produced and how growers will be able to unlock and enjoy additional productivity value.” . . 

Help for SMEs to accelerate Health & Safety appreciated:

Extra investment in workplace injury prevention, with a focus on small to medium businesses, will pay dividends not only in reducing pain and suffering but also in economic terms, Federated Farmers says.

“We see the announcement by ACC Minister Iain Lees-Galloway this morning of a $22 million, five-year programme to incentivise SMEs to boost Health & Safety efforts as very useful,” Feds President Katie Milne says. . . 

Te Pa Family Vineyards & Cloudy Bay Clams team up for Marlborough Wine & Food Festival 2019:

Two award-winning, family-owned local Marlborough producers, te Pa Family Vineyards and Cloudy Bay Clams, are teaming up for the Marlborough Wine & Food Festival for 2019 and the companies are celebrating their collaboration with a series of exciting events, competitions and food pairings.

The two flourishing Marlborough companies, will be selling award-winning wine and sustainably harvested clams, marking their collaboration at the much-loved festival, which attracts around 8000 guests each year. Attendees can expect to see beautiful fresh clams on the half shell, paired with lively and expressive Marlborough te Pa Sauvignon Blanc, and crispy and decadent fried popcorn clams served with light and effervescent Pa Road Sparkling Rosé. . . 


Rural round-up

June 15, 2016

New regulations for bobby calves:

New regulations to strengthen the law around the management and treatment of bobby calves are planned to be in place before the 2016 spring calving season, Primary Industries Minister Nathan Guy has announced today.

“Most farmers care for their animals and do a good job of looking after them. However it’s important we have clear rules and enforcement in place. Animal welfare is important not just to animals, but to consumers and our export markets,” says Mr Guy.

“The new, strengthened regulations will go to Cabinet for final approval shortly. I want to give farmers, transport operators and processors advance warning of these changes before the start of the calving season.” . . 

New Regulations Part of Wider Initiative to Strengthen Bobby Calf Welfare:

Details announced today for new regulations for the management and treatment of young calves are part of a wider programme of work by farmers, industry and government to strengthen bobby calf welfare.

The eight organisations that formed the Bobby Calf Action Group at the end of 2015 have accelerated and added to existing measures aimed at ensuring everyone involved with bobby calves applies best practice in their handling and care. . . 

Updated tool-kit to help farmers improve health and safety:

An updated tool-kit designed to help farmers better manage risks on their farms will be distributed at National Fieldays at Mystery Creek.

The tool-kit, which provides practical advice and resources to help farmers improve health and safety on their farms, has been developed by Safer Farms, ACC and WorkSafe New Zealand’s health and safety programme designed with farmers and the wider agricultural sector.

Beef + Lamb New Zealand and Federated Farmers were among the groups which provided input to the tool-kit. Beef + Lamb New Zealand, in addition to working with WorkSafe on the new tool-kit, is working with sheep and beef farmers to help them meet their obligations under the Health and Safety at Work Act. Beef + Lamb New Zealand Chief Executive, Sam McIvor, says that by the end of June, the organisation will have run over 70 health and safety workshops for more than 2,100 attendees around the country. . . 

Nominations & entries open for South Island Farmer of the Year:

Nominations and entries are open for the 2016 Lincoln University Foundation South Island Farmer of the Year competition, and organisers are expecting wide interest.

Foundation Chair Ben Todhunter says, “Last year we had excellent entries which resulted in a tie, with Omarama Station and Clearwater Mussels sharing the honours. This substantially boosted public interest and we had excellent attendance at all of our events. We anticipate this level of interest will continue in 2016.” . . .

Genetic base cow change brings breeding worth back:

The genetic base cow – the genetic reference point for all dairy cattle in New Zealand – will be updated this month when it will become younger, moving from a 2000 to a 2005-born base cow.

New Zealand Animal Evaluation Limited (NZAEL) manager Jeremy Bryant says the genetic base is updated every five years and will be again on June 19, 2016.

Jeremy says the base cow update reflects genetic progress and prevents the gap between today’s animals and the genetic base becoming too large. This keeps the scale of genetic predictions relevant. . . 

Asia-Pacific’s Growing Appetite For NZ Blueberries Produces Record Industry Sales:

Huge demand for New Zealand blueberries is being welcomed by local growers who have exported a record 1.37 million kilograms of fruit this season.

Blueberries New Zealand (BBNZ) today announced over 10 million punnets of berries (worth an estimated $30 million FOB) were shipped to the end of March – a 40 per cent increase on the season before.

“Demand is continuing to grow, especially in Asia-Pacific where a ‘food-as-a-medicine’ culture prevails,” explains Blueberries NZ Chairman Dan Peach. “Asian markets have demonstrated a clear and voracious appetite for blueberries thanks to the wide range of amazing health benefits they offer.” . . 

DairyNZ announces new associate directors:

Two dairy farmers from Canterbury and south Auckland will join the DairyNZ Board of Directors this year.

New associate directors Jessie Chan-Dorman and Stu Muir have been selected to join the DairyNZ board for successive six month terms. Jessie begins this month and Stu from January 2017.

DairyNZ chair Michael Spaans says Jessie and Stu bring great industry experience to the roles, which are about providing experience to future leaders, showing first-hand how a board works and what goes into making key decisions. . . 


Rural round-up

May 30, 2016

Dairy farmers not  looking for handouts – Jamie Gray:

Farmers want better infrastructure, roads and greater access to broadband, but are not looking for any handouts from the Government in Thursday’s Budget.

Dairy farmers across the Tasman are looking to politicians to support them through the current milk price slump but their New Zealand counterparts do not expect any such treatment from the Budget.

Deputy Australian Prime Minister Barnaby Joyce, after a three-day trip to Victoria, last week called for a bipartisan approach to develop a dairy industry support package to help dairy farmers struggling with milk price downgrades from the two biggest players in that market – Murray Goulburn and Fonterra.

But New Zealand dairy farmers, many with memories going back to the farm subsidy days of the 1970s and early 1980s, don’t expect any special treatment from the Budget. . . 

Guy looks to trim access to Fonterra’s raw milk for big processors in DIRA review – Paul McBeth

 (BusinessDesk)Primary Industries Minister Nathan Guy is seeking feedback on proposals to reduce the amount of raw milk Fonterra Cooperative Group has to sell to large independent processors in the latest step towards full deregulation of the dairy sector.

The minister’s discussion paper on proposed changes to the Dairy Industry Restructuring Act was triggered last year when independent processors in the South Island passed the threshold needed to review the law. Guy’s preferred options would amend regulations for raw milk so Fonterra didn’t have to sell to large, export focused processors and reduce the volume of raw milk available to other processors by 60 percent over three years. Submissions close on June 29. . . 

New Zealand hoki fisheries meet international best practice standard for sustainability:

Following a report from the University of British Columbia (UBC), the Marine Stewardship Council (MSC) has confirmed that the New Zealand hoki fisheries meet the high requirements of the MSC Fisheries Standard, widely recognised as the world’s most credible assessment of the sustainability of wild-caught seafood.

In 2001, New Zealand’s hoki fisheries became the first large-scale whitefish fisheries to achieve MSC certification, and have since been re-certified twice in 2007 and 2012. To achieve certification, fisheries must demonstrate to a third party certifier that they: ensure the long-term sustainability of fish stocks; minimise impacts on the marine environment; and are well managed, with effective governance and enforcement systems. Certification requires robust evidence to demonstrate that requirements are met. . . 

It  all started at school for beef ambassador – Kate Taylor:

A high school careers expo led Gisborne’s Emma Pollitt into an agricultural career and a love of working with cattle.

The 23-year-old was named the Allflex Senior Beef Ambassador at the Future Beef event held during the 2016 Beef Expo in Feilding. Wellsford 16-year-old Cara Doggett is the new Allflex Intermediate Beef Ambassador.

Pollitt grew up in Gisborne city and attended Gisborne Girls’ High School, where a careers expo opened her eyes to the possibility of farming.  Pollitt says she was into horses at high school, in terms of local shows and pony club, but hadn’t thought about any career options. She was accepted into Taratahi in Masterton and completed a Certificate of Agriculture (Levels 1-3) in the first year, staying an extra six months to complete Level 4. 

Her first job was on high country station Loch Linnhe at Kingston, near Queenstown, for a couple of months. . . 

NZ Yarn targets high fliers with the ‘Viagra’ of carpet – Amanda Cropp:

A high tech process to make the “Viagra” of carpet that doesn’t mat down is helping NZ Yarn carve out a niche market for custom-made floor coverings among the jet set. 

The Christchurch company recently sent samples to two American companies that carpeted the oval office and presidential plane, Airforce One, and executive chair Ross Callon said getting NZ Yarn product into the White House would be quite a coup.

The company, which exports its entire output, is also targeting the specialist carpet market for private jets, super yachts and high end apartments.  . . 

Manawatu stock buyer is about  to retire after 45 years on the job – Jill Galloway:

Kerry Lewis has been a prime stock buyer for 45 years. Jill Galloway talks to him about the changes he has seen from the 1970s to today.

In the 1970s there was only one phone in the Kerry Lewis’ household. These days there are two phones, a fax and Lewis always has a cellphone at his side.

Keeping pace with technology has been part of the job for Lewis who is retiring after 45 years in the business as a “fat” stock buyer in Manawatu.

The buying veteran has been through a few companies in his time. . .. 

Seeka’s avocado policy pays off for its growers with improved returns:

Seeka Kiwifruit Industries’ commitment to its avocado growers has paid off with average export returns of $26.86 per export tray for the 2015-16 season, well up on last season’s $16.64 per export tray.

“Our growers have done a great job in producing really good quality fruit,” said Simon Wells, Seeka General Manager Grower Services.

“And because Seeka is fully integrated, we are able to control our supply chain and manage the quality of the fruit all the way through from orchard to market.” . . 

Sanford almost doubles first-half profit; shares rise to month high – Tina Morrison:

(BusinessDesk) – Sanford, the country’s largest listed fishing group, almost doubled its first-half profit as it focused on lifting values over volumes and benefited from lower fuel costs and a weaker New Zealand dollar.

Profit jumped to $18.8 million, or 20.1 cents per share, in the six months ended March 31, from $9.6 million, or 10.2 cents, a year earlier, the Auckland-based company said in a statement. Revenue from continuing operations edged up 1.3 percent to $215.6 million even as sales volumes sank abut 20 percent as the company extracted more value from its catch. . . 

Fonterra Co-operative wins major health and safety award:

Two innovative employee health and wellness initiatives from Fonterra Co-operative Limited brought the company the WorkSafe New Zealand and ACC sponsored Supreme Award at last night’s Safeguard Workplace Health and Safety Awards in Auckland.

The company won WorkSafe’s category award for the best initiative to address a workplace health risk with a programme addressing milk tanker driver fatigue. Fonterra also won another category award for its employee wellbeing initiative which created a village concept where facilities for all contractors and subcontractors on site were centralised in one spot. . . 


Rural round-up

May 28, 2015

Surveyor believes in power of cooperative model, but says it’s up to farmers – Allan Barber:

Four months into his new job as CEO of Alliance, David Surveyor is really loving the challenge of heading a global business which is so crucial to farmers, consumers and New Zealand as a whole. He has always been interested in the agrifood space, as he terms it, and enjoys getting to know New Zealand through its agricultural producers.

In contrast with his previous roles in steel and building materials, the biggest difference in the meat industry is the question of livestock supply with so many factors outside the company’s control. Variable climatic conditions and land use change are just two of the main ones. At Alliance its cooperative status demands a lot of time seeing things from the supplier perspective which is not such a major factor in manufacturing industries, while all meat companies need to spend more time focused on the market. . .

Positive Signs Ahead as Farmers Look to Put Season Behind Them:

Fonterra Shareholders’ Council Chairman, Ian Brown said Farmers will be cautiously optimistic following today’s announcement by Fonterra of an opening forecast Milk Price for the 2015/16 season of $5.25 per kg/MS, including an opening advance rate of $3.66 per kg/MS.

Mr Brown: “Farmers will view next season’s forecast as a positive given the situation we have experienced this past season.

“They will also see the announcement as a signal from their Board that the market should start to move in a positive direction in the near future, which is welcome news. . .

Fonterra Announces Board Change:

Fonterra Co-operative Group Limited today announced that Sir Ralph Norris has indicated he will not seek to continue his term on the Fonterra Board, following the Co-operative’s Annual Meeting on 25 November 2015.

Sir Ralph joined the Board in May 2012 as an Independent Director, and made this decision because of his other commitments.

Sir Ralph is also resigning from the Board of the Manager of the Fonterra Shareholders’ Fund, from 25 November 2015. . . 

Funding bost for Irrigation Acceleration Fund:

Irrigation projects will receive a kick-start of $25 million in operating funding for five years from 2016/17 through the Irrigation Acceleration Fund (IAF), Primary Industries Minister Nathan Guy has announced today.

“This funding will help to complete the investigation and development of new regional scale irrigation proposals,” says Mr Guy.

“The need for more water storage projects is obvious given that nearly every part of the country has suffered through drought at some stage over the past three years.

“Providing a reliable water supply for farmers and growers has massive potential to boost growth, creating jobs and exports in provincial regions.” . . .

New Zealand National Party's photo.

Call for more water storage heard by Government – more funding allocated:

IrrigationNZ today welcomed the post budget announcement by Primary Industries Minister, Nathan Guy, of a $25 million allocation of new funding to the Irrigation Acceleration Fund.

“This will boost the development stages of water storage and irrigation distribution infrastructure, which is desperately needed in our summer dry east coast regions. Reliable water supply will sustain communities and maintain the environmental health of their rivers,” says Nicky Hyslop, IrrigationNZ Chair.

“With additional IAF funds contributing to the early stages of this infrastructure development, it will be essential that RMA process reforms that empower collaboration also occur so that the funds do not go to waste,” says Mrs Hyslop. . .

Choice of chair underlines importance of forest safety:

A safety council has been set-up, chaired by Dame Alison Paterson, to make forests safer places to work. Establishing the council was a key recommendation of the Independent Forestry Safety Review Panel that reviewed forest safety in 2014.

The Forest Industry Safety Council (FISC) was launched tonight at a function at parliament. Its board includes representatives of forest owners, contractors, workers, unions and Worksafe New Zealand. Funding will come from the Forest Grower Levy and from government – ACC and Worksafe. . .

Kanuka right at home on winning farm – Kate Taylor:

Kanuka is very much part of our landscape, says Simon Beamish, who with wife Josi was named the 2015 Pan Pac Hawke’s Bay Farm Forester of the Year in April.

They farm alongside the Ngaruroro River that slices between the Kaweka and Ruahine ranges in Hawke’s Bay, west of Hastings, with the farm rising to 690 metres above sea level.

Their 1121ha Awapai and 992ha Waitata properties have been owned by the Beamish family for almost 130 years. They were both part of the original Whanawhana block leased and then freeholded by Simon’s great great grandfather Nathaniel Beamish in 1886. Nathaniel’s son George was sent up to manage the block of land at the young age of 18. . .

Cervena venison piloted in Europe:

New Zealand venison exporters have started a trial to test the appetite of European consumers for Cervena venison in the summer grilling season.

The trial, which began in April, is part of the Passion2Profit initiative that was formally launched today at the Deer Industry Conference in Napier. P2P is a joint venture between the deer industry and the Ministry for Primary Industries (MPI) under the Primary Growth Partnership programme.

“We are really excited that this pilot is underway. Launching Cervena in Europe has been talked about in the deer industry for many years, but it needs careful branding and substantial promotional support to make it a sales success,” says DINZ venison manager Innes Moffat. . .

Horticulture’s future may lay with city slickers:

Increasing urbanisation means more support for initiatives like the ‘NZ Young Horticulturist of the Year 2015 Competition’ is needed to encourage fresh talent into primary industries, like horticulture, to sustain this country’s edge as a top quality food producer.

The horticultural industry has a bright future and is fundamentally important to New Zealand’s economy, but the fact that more than 85 per cent of kids under 15* now live in urban areas is prompting some of the country’s top companies to throw their weight behind career awareness and development initiatives in the sector. . .

Rural Connectivity Symposium 2015 gets underway today:

After months of planning TUANZ and RHAANZ are delighted to announce that the Rural Connectivity Symposium kicks off in Wellington today.

“The event has sold out with over 150 people attending. The Symposium will be opened by the Communications Minister, The Hon. Amy Adams and has been well supported by sponsors across the health and ICT spectrum” said Craig Young, CEO of TUANZ.

“Rural satellite service provider, Wireless Nation, is the premier sponsor for our one-day event, which is a mixture of presentations and workshops.” . .

New dairy mineral blend ticks all the boxes:

As mineral deficiencies continue to cost dairy farmers time, money, livestock and lost production, a unique new mineral blend is offering a comprehensive, cost-effective solution.

Developed specifically for New Zealand dairying by BEC Feed Solutions, Main Stay Macro Minerals, delivers key nutritional minerals in a convenient, palatable, accurate and dust-free blend. And, because it incorporates the revolutionary Bolifor Mag 33 and MGP+ Magnesium products, farmers won’t have to worry about pasture dusting again, consequently saving valuable time and labour costs. . .


Rural round-up

February 10, 2015

Watt family all pulling together – Sally Rae:

They say many hands make light work.

At Waitaki Orchard, near Kurow, there are many hands, although the workload is not always light, particularly over the busy harvest season.

But the remarkable Watt family, who own and run the summerfruit operation, take it all in their stride.

Justin and Julie Watt, along with their eight children, aged between 9 and 20, do not consider themselves anything out of the ordinary.

But their story is anything but ordinary as the close-knit family work together and the children step up to take on more responsibility, due to their parents’ serious health issues. . .

Challenge for A&P Shows to satisfy demands of new public – Allan Barber:

The 148th Warkworth A&P Show was held on the Saturday of Auckland Anniversary Weekend on a very warm day with no fear of rain which at least alleviated the committee’s first concern. In the north at least feed is still plentiful, although rain would be welcome, but there is as yet no major worry of drought; so we were able to plan the event and welcome the weather forecast without a guilty conscience.

Two years ago there were rather more serious concerns the Show wouldn’t reach its 150th anniversary, but a few things have happened since then which have pushed this undesirable outcome into the background. . .

– Allan Barber:

Ever since the Korean War over sixty years ago the price of wool has been in decline with a few upturns along the way. Over the period the fortunes of wool growers have suffered from massive lifestyle changes leading to reduced demand for woollen textiles and fibres and the rise of synthetics with properties capable of imitating, if not matching, those of wool at a lower price. Wool is not the only natural fibre to be affected, with cotton being hit even harder.

There are a remarkable number of parallels between the red meat and wool industries in the reactions to the situation which is not surprising given the respective price trends and the fact many of the farmers are the same individuals. Sheep and beef farmers’ opinions of the deficiencies of the meat industry are virtually identical to those of the wool trade, while proposed solutions are also remarkably similar. . .

Smoke-tainted grapes could be an issue:

The fire which burned through almost 600 hectares of forest and farmland in Marlborough in the past week could be costly for some grape growers as well.

Vineyards in the vicinity of the fire which burned over five days in the Onamalutu Valley near Renwick, may now have a problem on their hands with smoke-tainted grapes.

Wine Marlborough’s general manager Marcus Pickens said they did not know yet how many vineyards may have been affected by smoke from the fire, on the edge of one of Marlborough’s main wine producing areas.

But they were acting on advice from the Australian wine industry and its experience in dealing with the impact of bush fires on grape production. . . .

Minister welcomes launch of Safer Farms:

Workplace Relations and Safety Minister Michael Woodhouse today welcomed the launch of the government’s Safer Farms programme.

Safer Farms is a multi-year programme designed by farmers and the wider agricultural sector, WorkSafe New Zealand and the Accident Compensation Corporation (ACC).

“The death and injury rate behind the farm gate is simply unacceptable. Someone is killed nearly every fortnight – this needs to change,” Mr Woodhouse says.

“Safer Farms is a new way of tackling a long standing problem hurting rural New Zealand. It’s about education, awareness and support for rural communities.” . . .

Sharing a passion for smart farming – Diane Bishop:

All eyes will soon be on Brian and Kristine Russell’s deer farming operation.

The large-scale deer farmers are the new Southland deer focus farmers. Their first field day will be held later this month, with Browns farmer Dave Lawrence as facilitator.

“We wanted a farmer with the right attitude and who is prepared to change. Brian is extremely positive and extremely passionate about the deer industry,” Lawrence said.

The Russells farm almost 10,000 stock units on two properties totalling 2165 hectares in central and northern Southland.

The 845ha Dipton West block, where the couple live with their three children, is used mainly for finishing, while the 1320ha Kowhai hill block, 20 kilometres away, is primarily used for breeding. . . 

 Attention to deer health can boost farm profits:

Deer farmers are being encouraged to have a close look at their animal health as part of the Passion2Profit initiative.

P2P aims to improve deer farm profits by developing new high-value markets for venison and removing barriers to performance on the farm. The initiative, which has just won funding support from the government’s Primary Growth Partnership, already has several activities underway.

“Animal health, feeding and genetics are the three big areas where farmers can influence the profits they make from deer,” says Deer Industry NZ chief executive Dan Coup. . . 


ACC fees dropping

August 6, 2014

The government is delivering a $480m reduction in ACC fees:

ACC Minister Judith Collins today announced reductions to motor vehicle levies in 2015/16 meaning the average New Zealand vehicle owner will be $135 better off each year.

“Earlier this year the Government signalled our intention to reduce ACC levies as part of Budget 2014 – today’s announcement delivers on this,” Ms Collins says.

“ACC continues to improve its financial situation, transforming the way it supports injured New Zealanders and building on its investment returns.”

In the last levy round significant reductions were made to the Work and Earners’ Accounts. This year’s focus is on reductions to the Motor Vehicle Account. The average levy will fall from around $330 to $195. This includes reductions to the licence fee and a drop of 3 cents per litre off the petrol levy.

In addition, the average levy paid by employers and self-employed people into the Work Account will fall to 90 cents per $100 of liable earnings, down from 95 cents.

“These reductions to Work and Motor Vehicle levies represent an annual saving of $480 million to New Zealand households and businesses in the 2015/16 levy year,” Ms Collins says.

“This year’s reductions, which come on top of reductions over recent years, have meant that New Zealand households and businesses will keep almost $1.5 billion, since 2011/12.

“The Government will also introduce risk rating for light passenger vehicles (cars). This will place vehicles into bands, based on their crash safety ratings, from most safe to least safe and charge each band a levy based on the cost to the scheme of different vehicles.

Pricing based on safety ratings matches the costs with the risks.

“While all vehicle owners will receive considerable reductions in their ACC levies, we want to ensure the amount people are paying reflects the cost to the Scheme.”

As an example, the introduction of risk rating for cars, together with the overall reduction of motor vehicle levies, owners of petrol-driven cars in the safest grouping will see the ACC component of their annual vehicle licence fee fall by 66 per cent.

Ms Collins says while the Government remains on track for further levy cuts across all accounts in 2016/17, it’s important levies continue to be set in a way that is fair, fiscally responsible and maintains ACC’s ability to fund entitlements in the future.

“We are working through the exact amounts and timing of those levy reductions and a review of the residual levy – whose role is effectively completed – is part of that consideration,” Ms Collins says.

The new ACC levy rates for motor vehicles will come into effect on 1 July 2015. The lower Work Account levy rate takes effect on 1 April 2015.

 

Today we announced $480 million in levy cuts for 2015/16 which will include the average motor vehicle registration being $135 cheaper from July next year. This is wonderful news for households and businesses and is a testament to ACC’s fantastic performance. Well done! http://www.beehive.govt.nz/release/government-delivers-480-million-reduction-acc-levies


ACC proposes across board cuts next year

May 20, 2014

ACC is proposing significant cuts to motor vehicle levies, including the ACC petrol levy, next year, as well as further reductions to work and earner levies.

The corporation is seeking feedback on these and other proposed changes as part of its annual levy consultation process, which starts today. . .

“On average, we’re proposing a forty per cent cut to motor vehicle levies, which are paid when relicensing a vehicle and through the petrol levy paid at the pump,” says ACC Chair Paula Rebstock.

“We’re also proposing an average twenty-one per cent cut to work levies, and a five per cent cut to the earners’ levy in 2015.”

This would have a similar effect to tax cuts, leaving more money in the pockets of workers and motorists.

This follows the significant reductions to work and earner levies which took effect in April this year.

Ms Rebstock says “This is a significant package of proposed levy cuts, made possible by the fact that the Scheme has achieved its goal of being fully funded.”

Full funding means ACC has sufficient financial assets to meet the lifetime costs of all existing claims.

That is the only way to ensure the scheme is sustainable.

As well as reducing motor vehicle and petrol levies, ACC is also proposing the introduction of ‘risk rating’ for cars in 2015.

Risk rating would see the levy paid by car owners reflect how their vehicle’s design affects injury outcomes in a crash.

Motor vehicle levies already reflect the different risk and cost of injury associated with different classes of vehicle. Risk rating would enable a more sophisticated classification of risk, based on real life crash data, within the ‘light passenger’ classes, which essentially comprise cars.

“Risk rating would mean owners of safer cars pay lower levies, to reflect the fact their vehicle is less likely to cause injury if involved in a crash.

This means the cost would reflect the risk.

The alternative is people with safer vehicles subsidising those whose vehicles are more dangerous.

Wait for the uproar from the usual suspects pointing out that poorer people are likely to have less safe cars and therefore will be paying more.

“While owners of the safest cars may receive the largest levy cut, I’d like to emphasise that all car owners will pay lower levies under our proposed changes.”

Ms Rebstock says ACC is not proposing levy reductions for motorcycles next year. This is because motorcycle-related injuries continue to generate disproportionately high costs for the scheme, and motorcycle levies are already heavily subsidised by owners of other types of motor vehicle.

Proposed changes to levies in 2015/16
• combined average motor vehicle levy reduced from $330.68 to $200 (40% reduction)
• petrol levy reduced from 9.9 cents to 5.9 cents per litre (40% reduction)
• average work levy reduced from $0.95 to $0.75 per $100 of liable earnings (21% reduction)
• earners’ levy reduced from $1.26 to $1.20 per $100 of liable earnings (5% reduction)

Other changes that ACC is proposing for 2015/16 include:
• increasing the minimum and maximum liable earnings limits for work and earners’ levies. . . 

There’s more on the proposed changes here.


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