More generous, better targeted

May 7, 2020

National has come up with a more generous and better targeted plan for small businesses hit by the Covid-19 lockdown:

Leader of the Opposition Simon Bridges has today announced the first part of National’s plan for getting New Zealand working again.

“New Zealand has flattened the curve. Our first priority now must be to lift the restrictions that are flattening the economy.

“We need to get cash flowing to the thousands of small businesses that were forced to close in the national interest, and left shouldering a disproportionate amount of the economic burden.

Businesses, and the jobs they support, come and go at the best of times.

But these are the worst of times owing to circumstances beyond their control and as a direct result of government directive.

The directive was made with the best of intentions and for the public good but that in no way softens the blow to businesses nor reduces their need for help.

“To reduce the damage and to save jobs, National would offer a GST cash refund of up to $100,000 – based off the GST they paid in the 6 months to 1 January 2020 – to the small businesses most affected. They would need to demonstrate a revenue drop of more than 50 per cent across two successive months due to the lockdown rules.

“We estimate this could benefit up to 160,000 businesses and save countless jobs.

“If the business paid more than $100,000 in GST over that period, then they would be able to claim up to an additional $250,000 as a repayable loan over 5 years.

“National understands the key to growing the economy is to encourage and incentivise business investment.

“That’s why we would temporarily lift the threshold to expense new capital investment for firms. The Government lifted the threshold from $500 to $5000 as part of its Covid response. We’d go much further and lift it to $150,000 for two years.

For example, if a company spends $145,000 on a new machine to improve its productivity, rather than depreciating that asset over many years, it will be able to expense the full $145,000 in this tax year.

“What we do in the next few months is critical to help businesses survive and save jobs.

“The Government took the right steps to contain the virus but already it’s stalling on what to do next.

“National will work alongside New Zealanders to achieve jobs, sustainable growth and boundless opportunities for New Zealanders and their families.

“Kiwis have done a great job self-isolating and social distancing to save lives. But with 1000 people a day joining the dole queue, we now need to turn our attention to saving jobs.

“National will get New Zealand working again.”

Business NZ approves:

BusinessNZ says National’s proposals for business support would help build investment and confidence.

Chief Executive Kirk Hope says National’s proposals for cash grants, low-interest loans and a higher cap on depreciation are sensible options. . . 

Luke Malpass says Bridges has hit the right note:

. . .For a start he has been positive: although all the usual political point-scoring applied, he has announced a new policy that, were it to be enacted, would greatly assist many small businesses which are currently being nursed through the continued lockdown. It is new, it has been roughly costed (at a cool $8 billion it is not chump change) and it is specifically designed to support small businesses which will struggle to make payroll once they can start operating again.

The second policy announced — a temporary instant asset write-off for investments of up to $150,000 (supercharging the Government’s $5000, which was increased only in March) is also good policy given the circumstances. It is designed to provide an extra incentive for firms to invest as the lockdown continues to wind down. 

Importantly, the policies are both forward-looking and recognise that as the economy loosens, the next wave of Government support is going to be needed. This will clearly be the focus of Grant Robertson’s Budget next Thursday.

The entire basis of the lockdown was that the Government was prepared to induce a sharp recession in order to avoid a surge of Covid cases  resulting in deaths, which would in turn lead to an elongated downturn, driven by fear and uncertainty.

Yet as the will-they-won’t-they nature of the Covid alert levels rolls along the Government risks having both the sharp and deep recession, followed by a drawn-out period of uncertainty which it sold the New Zealand public on hopefully being able to avoid.

It is this risk that Bridges is seizing on, pushing the Government to move to level 2 quickly, and it is not unreasonable. . .

The Prime Minister was praised for her announcement explaining the alert system levels but they no longer mean what she said, and what the Ministry of Health’s website, say they mean.

A couple of weeks with new cases in single figures, two days with no new cases and then just one confirmed and one probable case yesterday should mean the risk of community transmission is low.

People are losing patience with the constraints under which we’re working and the lack of information on what will happen next, and when it will happen.

We’ll learn today what will and what will be permitted at Level 2 but won’t know until Monday when we’ll get there.

Clutha Southland MP Hamish Walker writes of the need for certainty:

. . .The Government needs to be giving details of the conditions that will enable an easing of the alert levels, and when Southland will be able to function normally again. If normal functioning is not possible, the Government needs to tell us what restrictions will be put in place and what support there will be for businesses?

The Government needs to be providing details to us now so businesses can plan.

Sir Bill English once said to me “Hamish, it’s uncertainty which kills business and the economy. People can live with negative decisions that affect them, but you need to tell them so they can plan.” . . 

The government isn’t following this advice and National has stepped into the vacuum with a policy that would provide certainty and enable businesses to plan.  Unfortunately it’s in opposition and therefore not in a position to implement it.

That leaves us with uncertainty until the government deigns to provide us with the information we need and the assistance businesses require.

The full speech is here.


Rural round-up

May 16, 2017

Three Years On and more progress by dairy farmers:

Greenie groups who seek to bolster their fundraising campaigns by using dairy farmers as their favourite target need to read the Water Accord report released today.

Federated Farmers Dairy Industry chairman Andrew Hoggard says the Sustainable Dairying: Water Accord ‘Three Years On’ report underlines how seriously dairy farmers take their environmental responsibilities.

“None of us are claiming we’re perfect, or that there is no problem with dairy’s impact on waterways. But the latest report shows the strenuous and ongoing efforts the vast majority of dairy farmers are making to lessen their environmental footprint,” Mr Hoggard says.

The level of compliance for dairy effluent systems is at its highest ever, at a shade under 95 percent. . .

Latest Water Accord update shows good environmental progress by farmers:

Primary Industries Minister Nathan Guy has welcomed the latest progress report of the Sustainable Dairying: Water Accord project, showing dairy farmers have now fenced off over 97 per cent of waterways.

“The Water Accord is a voluntary project led by the industry to improve farming practices and water quality. This Year Three update shows a range of targets have been achieved, including stock exclusion from 26,197 km of measured waterways which is the equivalent of Auckland to Chicago and back again,” says Mr Guy.

“99.4 per cent of regular stock crossing points on dairy farms now have bridges or culverts to protect local water quality, and over 10 million dollars has been spent on environmental stewardship and farmer support programmes. . . 

Climate change report indicates challenges for NZ agriculture – Allan Barber:

GLOBE-NZ, a group of 35 MPs from all the main parties, has released a report by UK firm Vivid Economics which lays out various scenarios for New Zealand to meet the target of zero emissions by 2050. Business New Zealand and the Sustainable Business Council have both welcomed the cross party initiative, saying it gives confidence there will be collective and coordinated action towards meeting the target. It will also help to achieve commitments under the 2030 Paris climate change agreement to reduce emissions to 20% below the 2005 level.

The report, Net Zero in New Zealand, acknowledges this country’s unique characteristics: a significant amount of renewable energy, large share of land sector emissions (i.e. methane from sheep and cattle) and a large forestry sector. . . 

Waikato farmers launch innovative health and safety app:

Waikato farmers have developed an innovative app that aims help farmers meet their health and safety obligations and streamline communication to those who come to farm.

Husband and wife Horsham Downs dairy farmers Megan Owen and Jason Ham teamed up with Hamilton-based tech company Bridge Point to create the cloud-based app Orange Cross, which launched in late 2016.

Orange Cross will be showcased at the Innovation Centre at Fieldays from June 14-17. . . 

Feds’ keen to improve awareness with stock management on roads:

Federated Farmers is looking forward to working with Marlborough District Council on building more awareness and good practices around stock movement on local roads.

This follows a recent review of the council’s Traffic Bylaw which found current guidelines as being sufficiently “practical and enforceable”.

“It’s very pleasing to see the council have taken on board our feedback and listened to the local community,” says Sharon Parkes, Federated Farmers’ Marlborough Provincial President.

“Many farmers rely on the ability to use public roads in rural areas to move stock between different parts of their farming operations, while clear, workable bylaws assist everyone in their application and use. . . 

Forestry Training and Success Celebrated in the South:

Last Friday saw an outstanding turnout by local forestry companies, contractors and transport operators from throughout the lower South Island of New Zealand. The function was the 2017 Southern Wood Council Forestry Awards.

The Council, representing all major forest owners and most of the major wood processing companies in Otago and Southland ran the 2017 Awards programme in conjunction with the country’s industry training organisation, Competenz. . . 

High producing contract vineyard placed on the market for sale:

A boutique highly productive vineyard supplying grapes to one New Zealand’s largest contract winemakers has been placed on the market for sale.

Zaccarat Vineyard in Renwick on the outskirts of Blenheim consists of some eight hectares of grape plantings – encompassing 6.55 hectares of sauvignon blanc vines and 1.43 hectares of pinot noir. . . 


More ambitious climate change targets

July 8, 2015

New Zealand will commit to a new, more ambitious climate change target, Climate Change Issues Minister Tim Groser announced:

“This target is to reduce our greenhouse gas emissions to 30 per cent below 2005 levels by 2030,” Mr Groser said. “This is a significant increase on our current target of five per cent below 1990 emission levels by 2020.”

New Zealand will submit the target to the United Nations Framework Convention on Climate Change. All countries are expected to table targets as part of work towards a new climate change agreement, due to be concluded in Paris in December.

“While New Zealand’s emissions are small on a global scale, we are keen to make a fair and ambitious contribution to the international effort to reduce greenhouse gas emissions and avoid the most harmful effects of climate change,” Mr Groser said.

“Almost 80% of our electricity is renewable already, and around half our emissions come from producing food for which there aren’t yet cost-effective technologies to reduce emissions. So there are fewer opportunities for New Zealand to reduce its emissions right now.

Those who think New Zealand isn’t doing enough forget that we’re already doing quite a bit.

Some of that is because there aren’t many of us and we don’t have a lot of heavy industry but do have a natural advantage in generating renewable energy

It’s also important t take a global perspective and acknowledge that although farming contributes a high percentage of our emissions, most of what we produce goes to other countries few if any convert grass to protein as efficiently as we do.

“However, I’m optimistic about the future – our investment in agricultural research is beginning to bear fruit and the cost of electric and plug-in hybrid vehicles continues to fall. I think in 5-10 years we’ll be in a good position to reduce our emissions in both agriculture and transport.

“In setting the new target, the Government needed to ensure it was achievable and to avoid imposing unfair costs on any particular sector or group of people. . .

“New Zealand’s target is equivalent to a reduction of 11 per cent below our 1990 emission levels by 2030. Our target is expressed against 2005 emission levels similar to the approach of other significant players including the United States and Canada,” Mr Groser said.

“The target will remain provisional until we ratify the new international agreement. The detailed rules and guidelines for national reduction targets are likely to be set after the Paris meeting. These will cover matters such as the rules on accounting for the land sector, and ensuring international carbon markets meet high standards of environmental integrity.”

“The Government will adopt an appropriate mix of policies to ensure the target is met. In particular, we will begin a review of the Emissions Trading Scheme this year, which will include scope for further public discussion on what New Zealand will do domestically.” Mr Groser said.

Federated Farmers says the new target is an ambitious one:

Federated Farmers Climate Change Spokesperson Anders Crofoot says in line with the Intergovernmental Panel on Climate Change report which says reducing fossil fuel use will need to be the major focus to achieve this target. However agriculture will also play its part in development of technologies which will increase productivity whilst reducing carbon intensity of primary sector products.

“Agriculture takes its responsibilities as New Zealand and global citizens seriously and the primary sector already has an impressive track record in achieving carbon efficiency.”

“We continue to play an on-going role in meeting the world’s demand for nutrient-dense protein and finding solutions which addresses both climate change concerns and the food security dynamic.”

“To date, the amount of carbon released in producing a block of butter here in New Zealand is the lowest in the world. It is important to make sure our approach to reducing New Zealand’s emissions does not undermine our critical export industries.”

“In a resource-constrained world, it is vital to use resources efficiently and wisely. Climate change does not begin or end at New Zealand’s borders and New Zealand plays a vital world leading role as one of the most emission efficient food producers and exporters in the world.”

Beggering agriculture here would cause great harm to our economy and it would also increase emissions as less efficient producers in other countries increased production to fill the gap left by us producing less.

Anders Crofoot says New Zealand’s primary sector has made huge gains in carbon efficiency in the past three decades, through enhanced animal and plant genetics, as well as through a much greater understanding of livestock digestion and metabolism. He says our agricultural emissions intensity has declined more than 20 percent since 1990.

“Reducing emissions from biological systems such as dairy cows is not easy. That’s why since 2003, New Zealand’s agricultural sector has invested $30 million to help find solutions. AgResearch scientists have already identified five different animal-safe compounds that can reduce methane emissions from sheep and cattle by 30 to 90 percent. Further trials are needed to confirm that these compounds can reduce emissions in the long term, have no adverse effects on productivity and leave no residues in meat or milk. But all going well, we could possibly see a commercial product for use on-farm within five to ten years.”

“Continued investment will be required to develop science to reduce and treat biological agricultural emissions. This is how we can make a considerable contribution to reducing global greenhouse gas emissions by getting larger developing country emitters to adopt our technologies.”

“New Zealand is already sharing its developments and gains through the Ministry for Primary Industries and Federated Farmers Global Research Alliance World Farmers Organisation Farmer Study Tours. The aim is to increase global understanding on agricultural greenhouse gas research and engage farmers on environmental management practices that support sustainable productivity.”

Mr Crofoot concluded “The task before us now is to work on solutions built off an understanding of the strengths we have as an agricultural producer, and how best we can grow those strengths in a manner that improves emissions efficiency and farm productivity.”

Business New Zealand says the target is challenging but achievable :

. . .”Our unique profile, with unusual predominance of agricultural and transport emissions, means we must be deliberate about how we achieve reductions without harming the economy.

“Key to this will be a balanced outcome for all countries taking part in forthcoming negotiations in Paris, facilitating investment, technology development and access to markets in a way that provides New Zealand businesses with the confidence to invest in low-carbon solutions for emission reductions over the long term.”

Balance is indeed the key – balance between all countries and between environmental and economic concerns keeping in mind it is the most vulnerable people who would  pay most dearly if that balance isn’t achieved.


Cosy deal continuing to end of year

January 15, 2014

The Taxpayers’ Union blew the whistle on the $19m wasted on contracts for workplace safety training:

Material released by the Taxpayers’ Union show a cosy deal between Business New Zealand, the Council of Trade Unions (“CTU”) and ACC has cost ACC-levy payers $19 million since 2003.

The documents, available and summarised below show ACC knew that millions paid to Business NZ and the CTU to provide health and safety training did little, if anything, to reduce workplace accidents.

Recent ACC analysis concludes that, even with optimistic assumptions, for every dollar spent on the training 84 cents is wasted. 

A 2013 briefing to the Minister for ACC, Judith Collins, states that the CTU has found it “challenging” to meet its performance obligations even though it has been contracted for service since 2003. 

The documents show that Business NZ and the CTU worked together with ACC to create the venture and doubts about the value of the scheme have existed since at least 2008.

It appears that Business NZ and the CTU have created a nice little earner for themselves. But we think it’s a disgraceful example of big corporate and union welfare chewing through taxpayer cash. We think members of Business NZ and the CTU should be asking hard questions of their respective management teams.

Even the report in 2008 shows that that whole scheme was achieving little more than ‘engagement’. While ACC, Business NZ and the CTU must have known the scheme was worthless, they all allowed further millions to be spent.

This is the worst example of government waste the Taxpayers’ Union has seen to date. It involves two quasi-political organisations from the left and the right complacent in receiving taxpayer funds, likely knowing that the benefit was a small fraction of the amount being spent.

The Taxpayers’ Union is calling on Ms Collins to put an end to this hand out to Business NZ and the CTU.

ACC Minister Judith Collins says this has all the markings of a taxpayer rort:

. . . Ms Collins told Radio New Zealand’s Summer Report programme on Wednesday the scheme is clearly not working and she does not intend to waste more money on it by taking further action, since the contracts are unlikely to be renewed.

The minister said the programme looked like a very cosy deal set up in 2003, leaving the people it aimed to help with nothing.

“I think it’s pretty clear what happened and the review that’s been undertaken by ACC has already shown that it has been a waste of money,” she said.

“I actually think it has all the hallmarks of a rort.” . . .

There’s nothing new in cosy deals which give unions public funds for programmes which may or may not be value for money.

Business New Zealand members should be asking very serious questions of the organisation to find out why it too has been wasting money in this way.

Yesterday it looked like ACC was canning the scheme but today the Taxpayers’ Union says the schemes have been extended to the end of this year.

Despite the ACC telling media yesterday that it decided ‘late last year’ to can the programme, we learned this morning that the contracts were renewed in December. The end date is now 31 December 2014.

It appears that ACC only changed its tune since the Taxpayers’ Union publicly exposed the rort.

Remember, it’s not the Taxpayers’ Union who labelled the training scheme a waste of money, it’s ACC’s own experts. Telling the public that they will scrap the scheme but waiting for the new contracts to expire is not good enough. They conveniently failed to mention that the contracts have just been renewed…

The Taxpayers’ Union is also backing the Minister for ACC’s reported comments that Business NZ and the CTU should pay the wasted money back to ACC. With such clear evidence that the money did little if anything to improve workplace safety, we think Business NZ and the CTU are morally obliged to stop wasting this money and compensate ACC levy payers.

ACC fees are being reduced for most workers and businesses.

If it wasn’t wasting money on useless training it might be able to make further cuts.

Workplace safety is a serious business, it shouldn’t be a vehicle for a rort by unions and the group which is supposed to work in businesses’ best interests.


Accountability requires good information

August 9, 2012

Education Minister Hekia Parata announced that achievement education for schools will be publicly available on a Ministry of Education website, Education Counts,.

It will allow parents to see how their child’s school is performing and will allow the Government to see how well the system is doing as a whole in order to raise achievement for all learners.

Public Achievement Information will include National Standards data, Education Review Office (ERO) reports, schools’ annual reports and NCEA data. Over time other relevant national and international reports will be added.

National Standards data, reported for the first time this year, will be published on the website in September in the format that schools’ submitted it.

“I accept that the data is variable. It is the first year, and no consistent format was required so that was to be expected. It can only get better and better both in quality and its use over time and we want to work with schools to do this,” says Ms Parata.

Using a variety of data is a good idea because it will give a much fuller picture of a school’s performance than just one source, especially if that was reports on National Standards which the Minister admits is inconsistent.

Business New Zealand has welcomed the announcement:

BusinessNZ Chief Executive Phil O’Reilly says more accessible information is
essential to improve school performance.

“Accountability for performance requires good information. . . “

Unions and the left are painting this as an assault on schools and teaching. It’s not, it’s merely a tool to improve transparency and accountability.


Partner schools could help those other schools can’t

August 3, 2012

 

The government’s announcement on the framework for Partnership Schools has found favour with Business NZ  which says choice and flexibility are good for learners.

The inclusion of another option for quality schooling is welcome, says BusinessNZ.

Chief Executive Phil O’Reilly says all learners deserve a bright future and this requires choices and flexibility for learners and their families.

“One of the strengths of the New Zealand schooling system is the variety of different types of schools.

“Tai Wānanga, state, private and integrated schools, tertiary-high schools, service academies, and trade academies all bring different strengths and values to their learners and communities,” Mr O’Reilly said.

“Partnership schools will be a welcome addition to this suite of education options.

“The partnership school model will provide options for flexibility and innovation that some other learning options currently available are not able to provide.

“The focus has to be on meeting the needs of the learners and ensuring that their potential is realised“Business is particularly interested in improving outcomes for all students by ensuring that they are well equipped for success in work and further learning. Our hope is that increased choice and flexibility for learners will result in improved achievement for many more of our young people.”

New Zealand’s education system does very well for most pupils but it’s failing with the long tail of under-achievers who leave school with no qualifications and without the skills needed to get and hold down a job.

An alternative system provides an opportunity to help those the current system can’t.

 


Speakers lets sun shine on access

July 26, 2012

Proving once more that sunlight is a good disinfectant, Speaker Lockwood Smith has released a list of members of the public who hold access cards to Parliament:

Dr Smith said that members of the public were only given approved visitor status if they had been security cleared and agreed to their names being public.

“The benefit of being an approved visitor is that the person does not have to be security screened each time he or she comes to Parliament. Instead, an approved visitor can access the public areas of Parliament through a security cleared entrance”, said Dr Smith.

 CARD HOLDERS
Name Organisation
Nicholas Albrecht Vector
Tim Clarke Russell McVeagh
Peter Conway Council of Trade Unions
Daniel Fielding Minter Ellison Rudd Watts
Charles Finny Saunders Unsworth
Helen Kelly Council of Trade Unions
Tony O’Brien Sky TV
Phil O’Reilly Business NZ
Leigh Pearson L.A. Pearson Limited
Barrie Saunders Saunders Unsworth
Mark Unsworth Saunders Unsworth
Jordan Williams Franks & Ogilvie
Rasik Ranchord Parliamentary Breakfast Group
 Philippa Falloon Former MP’s spouse
Lady Jane Kidd Former MP’s spouse

Ag entry to ETS postponed to 2015

July 3, 2012

Changes to the ETS announced by the government are designed to maintain incentives for emission reductions, without loading large extra costs onto households, employers and exporters.

“Today’s decisions are a reflection of the balanced and responsible approach this Government has taken to reducing greenhouse gas emissions.  They offer Kiwi exporters, employers and households certainty in a challenging and changing world economy,” Climate Change Issues Minister Tim Groser says. . .

“We have considered in-depth the recommendations of the ETS Review Panel, listened to what those affected by the ETS are saying, and reviewed what our trading partners are doing.  We also considered feedback through community consultation, including written submissions, a series of regional meetings, and hui.

“The National-led Government remains committed to doing its part to reduce greenhouse gas emissions, but it is worth noting that we are the only country outside Europe with a comprehensive ETS.  In these times of uncertainty, the Government has opted not to pile further costs on to households and the productive sector.

“The Government remains an active and engaged participant in the on-going discussions focused on global agreements, and the changes announced today offer us useful flexibility to adapt in the future, while still demonstrating our commitment to doing our fair share,” says Mr Groser.

Not surprisingly the left reckon this is disastrous.

However, Business NZ says the government has taken a reasonably balanced approach to carbon pricing in its amendments.

The protections – companies having to surrender carbon units for only half the carbon they emit, and a cap of $25 per tonne in the price of emissions –recognise the fact that New Zealand is ahead of most of the world in accepting a price on carbon.

BusinessNZ Chief Executive Phil O’Reilly says the changes will maintain incentives for emissions reduction while shoring up New Zealand companies’ ability to compete against companies in other countries.

“The move recognises the financial constraints not only on businesses but also on consumers.  It guards against increases in the price of electricity and fuel that would otherwise occur because of an unequal international playing field.

“This is not a softening of the ETS.  The changes announced today will not reduce the costs currently faced by New Zealand business and consumers.

“We should remember that the current cost of carbon, although relatively low, is still more than is being faced by our trade competitors, and will doubtless increase as the global economy recovers.

“While these amendments do not make the environment harder for business, neither do they make it easier.  Moreover the frequent reviewing of the scheme’s design also loads uncertainty costs onto New Zealand business.

 Federated Farmers says the changes, which include delaying the entry of agriculture into the scheme, are one step towards reality:

The New Zealand Emissions Trading scheme (ETS) has taken a big step towards forward, yet remains the harshest treatment of any agricultural production system on earth.

“The Government realises even tougher measures would hurt not just agriculture but the wider economy,” says Dr William Rolleston, Federated Farmers Vice-President and climate change spokesperson.

“Both our Chief Executive, Conor English, at the Rio+20 Earth Summit  and our President, Bruce Wills, at the World Farmers Organisation, got the same message; targeting primary food production in ETS-type policies is anathema to sustainable primary food production.

“In a world preoccupied with the survival of their economies and with food security, there is no point in trying to lead where others will not follow.

“Yes biological emissions account for some 47 percent of New Zealand’s emissions profile.  They also represent 68.1 percent of our merchandise exports and indeed, 100 percent of the food we eat. 

“New Zealand is able to not only feed itself, but produces enough food to feed populations equivalent of Sri Lanka. 

“This is why it is positive the Government has listened to Federated Farmers and will keep agricultural biological emissions out of the ETS until at least 2015. 

“We have retained the one-for-two surrender obligation we asked for, along with the $25 fixed price option. Federated Farmers also wanted offsetting for pre-1990 forests and opposed the reduction of pre-1990 forest allocations. The Government has listened to that too, but those who do offset will be penalised. 

“We are pleased the Government has chosen not to further complicate matters by imposing additional restrictions on the importation of overseas emissions units.

“Despite what some Opposition parties are likely to say following these changes, our ETS remains the harshest on any agricultural production system, anywhere in the world. 

“Unlike other countries where agriculture is given special treatment, farmers here, just like every other business and family, pay the ETS on the fuel and energy we use.  This not only impacts a farm’s bottom line, but the cost of turning what we produce into finished goods for export.   

“Australia’s new Carbon Tax is really aimed at Australia’s 300 largest companies.  Meanwhile, Australian farmers are being financially rewarded for boosting soil carbon levels on-farm. 

“Since 1 January, all agricultural processors in New Zealand have been filing emission returns accounting for agricultural biological emissions.  We are still counting emissions no other government is contemplating, including our cousins across the Tasman.

“While agriculture emissions here grew 9.4 percent between 1990 and 2010, the dollar value these generated for NZ Inc exploded almost five-fold.  Our sector’s emission growth needs to be put into context alongside a 59 percent increase in electricity emissions and 60 percent for transport.

“What’s more former Labour Cabinet Minister, the Hon David Caygill, found emissions in every single unit of agricultural product have fallen some 1.3 percent each year, for the past 20 years. 

“We do not need an ETS to improve our productivity.  Global competition has done that for us. 

“That New Zealand’s farmers are among the world’s most carbon efficient, is an inconvenient truth New Zealanders are not hearing from Opposition politicians. 

“We can do more but that will be through productivity gains and research leadership exemplified by the Global Research Alliance on Agricultural Greenhouse Gases.

“In a world of increasing food deficit, our hope is for Opposition parties to realise being a carbon efficient food exporter is global leadership,” Dr Rolleston concluded.

The Kyoto Protocol was the triumph of politics and bureaucracy over science and negotiations have yet to reach agreement on its successor.

There is nothing to be gained for the environment and a lot to be lost from the economy if agriculture is forced into the scheme when none of our competitors faces similar costs.


Good news x 3

June 15, 2011

1.  After tax wages outstripped prices in march year:

After-tax wages continue to rise faster than prices, Finance Minister Bill English says.

The real after-tax average wage increased 2.5 per cent in the year to March 2011, after accounting for all consumer price increases including food prices and the one-off rise in GST last October.

“Everyone’s circumstances are different, and we appreciate things remain challenging for many New Zealanders. But it’s encouraging to see that, on average, take-home wages continue to rise faster than prices,” Mr English told Parliament today.

“In the latest March year, the after-tax average wage grew 7.1 per cent in nominal terms and 2.5 per cent after adjusting for inflation.

“This means that since September 2008, after-tax wages have increased 17 per cent in nominal terms and 10 per cent after adjusting for inflation.

“That compares with real growth of just 4 per cent over the entire nine years to September 2008.”

“To put these figures into perspective, New Zealand’s 2.5 per cent increase in inflation-adjusted after-tax wages in the latest year compares with just 0.6 per cent real growth in Australia.”

The figures use data on average weekly ordinary time earnings from Statistics New Zealand’s Quarterly Employment Survey. This is the official series used to calculate the wage floor for New Zealand Superannuation. Comparable data is drawn from the Australian Bureau of Statistics.

“This Government is committed to helping New Zealanders get ahead, enjoy higher incomes and lower interest rates for longer,” Mr English says. “This will require continuing change, year after year, to put the economy on a more competitive footing.”

2. Outlook for economy continues to improve:

The best terms of trade since the early 1970s and growing business confidence are bringing a positive outlook for the New Zealand economy, according to the BusinessNZ Planning Forecast for the June quarter 2011.

The BusinessNZ Planning Forecast incorporates BusinessNZ’s Economic Conditions Index (ECI) which tracks 33 indicators, including GDP, export volumes, commodity prices and inflation, debt and confidence figures.

The ECI for the June quarter is 22. This is up 10 from the previous quarter and up 10 from a year ago.

Key factors include the continuing rise in world commodity prices and continued strong growth in New Zealand’s largest trading partners Australia and China.

Projections of 3-4% growth for 2012 and 2013 appear feasible.

3. MAF expects good returns for primary produce to continue in the medium term:

MAF’s Situation and Outlook for New Zealand Agriculture  and Forestry says:

New Zealand exporters are receiving high prices for logs, wool, lamb, timber, beef and dairy products as the rebounding global economy drives demand for commodities.

With the exception of horticulture, these rises are more broadly based than the 2008 rise, which mainly affected dairy prices.

Short-term supply disruptions such as droughts and floods in various parts of the world are a significant factor supporting recent agricultural price increases.

At the same time, the strength of demand coming through from emerging markets, the recovery in many developed economies, and continuing demand for agricultural resources for biofuel production has led
the Ministry of Agriculture and Forestry to revise upwards its view of medium-term international agricultural prices.

The relative strength in the New Zealand dollar has seen only a portion of these foreign currency price gains passed through to New Zealand farmers and foresters. The strong New Zealand dollar has, however, also reduced the
impact of price rises in imports, especially fuel and fertiliser.

Beyond 2012, steady production growth in dairy, forestry, wine and kiwifruit, together with an assumed depreciation in the New Zealand dollar, leads to strong forecast growth in export revenues.

There is light at the end of the tunnel.

It isn’t a train coming towards us, it’s daylight and a sunny day at that.


Rural round-up

June 11, 2011

Women are “half the equation” – Sally Rae:

Women play a crucial role in farming operations, Eloise Neeley [Otago Federated farmers junior vice-president] says.

They were often overlooked yet they made a very valuable contribution, Mrs Neeley said, describing them as “half the farming equation”.

Frequently, their work was behind the scenes, either in administration or organising what was happening on the farm, and they were also “bringing up future farmers”, she said. . .

New president after “fair deal on farms” – Sally Rae:

Richard Strowger [North Otago Federated Farmers president] wants to see farmers get a “fair deal”.

Although New Zealand had a population of four million, there were just 45,000 farmers who produced “the wealth of the country” and Mr Strowger wanted to represent the farming community to help “give them a fair shot”.

He has been a longtime member of the farmer lobby group, saying it was the voice for farmers and he was pleased to see membership growing. . .

Partnerships contribute to global picture of sustainability:

BusinessNZ and Landcare Research have partnered with the producer of the world’s most widely used sustainability reporting framework, the Global Reporting Initiative (GRI), to provide an accurate and complete sustainability reports database for New Zealand.

BusinessNZ chief executive Phil O’Reilly said consumers are becoming increasingly aware of the environmental impact of products and services. “Businesses providing transparent and comparable reporting on how they manage their economic, environmental, social and governance impacts is a valuable way for them to respond to consumers’ concerns and demonstrate their commitment to sustainable development.” . . .

Contest winners entered to learn – Sally Rae:

It’s all about teamwork for New Zealand ewe hogget competition winners Phill Hunt and Lizzie Carruthers.

Ms Carruthers does the stock work on Fork Farm at Maungawera, near Wanaka, while her husband looks after the maintenance, tractor work and book work.

They give each other a hand when required – “not book work, though”, Ms Carruthers quickly quipped. . .

Bees working under radar

A TINY creature that plays a major role in the production of $5 billion worth of primary exports was recently celebrated by way of ‘Bee Week’.

The bee makes its greatest contribution by pollinating crops, but New Zealand also exports $100m-worth of honey products.

Daniel Poole, of the National Bee Keepers Association, says for many years bees have flown underneath the radar with people failing to recognise their value. He says this is now changing and people are starting to appreciate just how important bees are. . .

Why the Bee team is the A team

Since 2000, Varroa has seen the loss of at least 200,000 bee colonies.  Federated Farmers believes it doesn’t matter what hat farmers wear; sheep, kiwifruit, mohair or dairy, all farmers are on the bee team, which is actually, New Zealand’s A team.

“Last week, Bee Week celebrated the honey bee and the massive contribution it makes to our economy and farm system,” says John Hartnell, Federated Farmers Bees spokesperson.

“While our direct income as an industry sits at around $100 million, modest in the much larger agricultural scheme of things, bees enable almost all sectors except fisheries and forestry. . .

Federated farmers High Country conference  chair’s opening address:

The theme for this year’s High Country Conference is “Sensible Solutions”.

This could be viewed by some as being a bit optimistic. After all, this sector has been seeking sensible solutions for nearly 70 years and has found it an uphill struggle, particularly when faced with bureaucratic reticence and political ideology.

However, I believe we have seen more forward progress in the past 12 months in a variety of issues, than has been evident for many years. There is still much work to be done on a number of matters, but the fact that many people are constructively involved in that work is a positive sign . . .

Wet mowing kills weeds – Taranaki Daily News reports:

Research has provided evidence to show that mowing californian thistle in the rain really does help get rid of the weed.

It will come as no surprise to many farmers, but there is now evidence that mowing pasture in the rain helps to reduce the abundance of Cirsium arvense.

It is the most destructive pastoral weed in New Zealand.

Research has provided quantitative evidence that mowing in the rain really works, as well as uncovering a potential biological basis for the effect. . .

SC Finance receiver sued by Fonterra director – NZ Herald:

Dairy Holdings shareholder and director Colin Armer and his wife Dale have filed a High Court claim against their fellow shareholders, including South Canterbury Finance (SCF) receivers and government representatives Kerryn Downey and William Black of McGrathNicol.

They allege the receivers efforts to sell the company breach a shareholders’ agreement and that attempts to force the Armers out have stooped to blackmail. . .

Third milk inquiry looming – Andrea Fox:

A third official investigation could be imminent into how dairy giant Fonterra sets the price of milk for New Zealand after the chairman of Parliament’s commerce select committee said an explanation by government officials left her with more questions than answers.

Competition watchdog the Commerce Commission is due to report any day on whether a full price control inquiry into retail milk is warranted after official complaints, including an allegation from the processing industry that Fonterra is artificially inflating the price of milk. . .

Dags and fibre make grass grow – Owen Hembry:

An Auckland firm has rolled out an ingenious use for the byproducts of an unlikely combination; sheep and coffee.

Woolgro mixes dag wool – which is often exported for low grade products – and jute fibre from used coffee sacks to create a seed-infused mat to be rolled out over ground ready for a lawn.

Geoff Luke is a co-founder and director with a background in residential architecture and had struggled with different methods of laying lawns.

“The beauty of the mat is that it does create the perfect germination environment for the seed,” he said. . .

Success: funding helps make most of milk – Christine Nikiel:

Angel investors’ $500,000 aims to boost sales of dairy-based health products.

The word mastitis can strike fear into the heart of even the staunchest dairy farmer. The painful udder infection is the most common disease in dairy cows and can have a huge impact on milk production.

Antibiotics are the most common treatment, but using them means the cow must be isolated, sometimes for weeks, and the milk thrown away. . .

Honour shocks TB expert – Jon Morgan:

When Paul Livingstone opened the letter with the New Zealand Government seal on it he couldn’t believe his eyes.

“I had to check the envelope to see if it had my name on it,” the Animal Health Board expert in tuberculosis in possums says.

The letter told him he was to be awarded the Queen’s Service Order for services to veterinary science. “I was astounded. It never entered my head that I could get an award like that.”

But it had entered the heads of many other people. Farming, ministry and veterinary leaders in New Zealand and overseas wrote in to back the recommendation of the award and Dr Livingstone’s name was included in the weekend’s Queen’s Birthday honours . . .

 Preserving for posterity’s sake:

The region has already lost 97 per cent of its wetlands, and 75 per cent of its forest cover. JILL GALLOWAY talked to He Tini Awa trustees about how they are helping to change the balance a bit.

The project we visit is an eight-hectare wetland near Pohangina village.

It is owned by Gordon and Anne Pilone and is home to dabchicks, mallards and paradise ducks – and lots of pukeko. . .

 Raising chooks and cash –  Terry Tacon:

 New Zealander bidding to double the size of his Australian-based broiler chicken business was back in familiar territory last week.

This interview with Max Bryant, executive director of ProTen, was conducted in what was his former office in the Agribusiness Centre in Weld St, Feilding, these days occupied by NZX Agri editorial manager Tony Leggett.

Bryant was a sheep and beef farmer on a 120ha property at Halcombe when in 1982 he “virtually went broke” from a failed kiwifruit venture in which he had invested. . .

Merino farmers given chance – Gerald Piddock:

Merino growers have a watershed opportunity to take ownership of their marketing business from the sale of PGG Wrightson’s 50 per cent shareholding of New Zealand Merino (NZM) to Merino Grower Investments Limited (MGIL), NZM director Ross Ivey says.

The sale of the shareholding valued at $7.625 million, is subject to approval by MGIL’s 630 grower shareholders who own 50 per cent of NZM.

Mr Ivey, who farms merinos at Glentanner Station near Aoraki Mt Cook, said he would be very surprised if MGIL’s shareholders rejected the proposal. . .

More to bees than honey – Gerald Piddock:

The New Zealand bee industry is in good heart and in good health, but there are challenges ahead, according to an industry representative.

Although varroa was widespread throughout the country, diseases such as European foulbrood, small hive beetle and Israel acute paralysis virus were present in Australia, but have not yet been found in New Zealand, National Beekeepers Association (NBA) joint chief executive Daniel Paul said.

“That’s one of the reasons why we don’t want Australian honey imports, because they have the potential to bring in threats that could potentially undermine the health of the industry.” . . .

 


The subsidy myth

November 16, 2009

Business New Zealand has released a paper analysing claims that farms and other businesses will be subsidised by households under the proposed emissions trading scheme.

Chief Executive Phil O’Reilly says :

The subsidy myth is based on the mistaken belief that ‘households are good and business is bad’ and that business should be punished for any emissions.

“The truth is not so one-sided. In reality, we are all in this together. Businesses are consumer-driven, and consumers need to see a price signal on carbon in order for carbon emissions to be reduced.

“By making an early start on emissions trading we will be putting NZ export companies in a vulnerable position – they will have to compete against companies overseas that won’t be paying any carbon charges. Allocating carbon credits is simply a way of reducing that vulnerability in the short term, and is in the interest of all New Zealanders.

“Once other countries also adopt emissions trading that vulnerability will cease, reducing the need for carbon credit allocations. So, alarmist publications about ‘decades of subsidies’ are wrong in fact as well as assumption.

“Emotive statements about ‘bludging business’ have the effect of undermining confidence in emissions trading. They reflect an anti-business attitude that could harm our future prosperity.

“We have an altogether more positive view on how businesses and consumers can adapt to carbon pricing,” Mr O’Reilly said.

The Subsidy Myth paper is here.

One of the questions about the ETS no-one seems able to answer easily, is where will the money go? Paul Henry tried to get an answer from carbon credit expert Seeby Woodhouse on Breakfast this morning, but he wasn’t entirely successful.

If no-one can say where they money’s going how can anyone know if it will do any good?

Especially when, as Matthew Hooton pointed out in Friday’s NBR (print edition not online) that any government which seriously proposes paying a liability will be kissing re-election goodbye.


What’s holding them back?

May 22, 2009

The statistics supporting the business case for having women on company boards  are compelling:

For companies in the top 25% (of highest women’s representation on the board) the return on equity was 53% higher; return on sales 42% higher; and return on invested capital is 66% higher than companies in the bottom quartile.

Of course statistics tell only part of the story – it’s possible that these companies performed better in spite of the women on the board rather than because of them.

It’s also possible that having women on a board is a sign of the intelligence and foresightedness which results in a well run and high performing company.

But regardless of the story behind those stats it does seem strange that women make up 46% of the New Zealand workforce but hold only 8.65% of directorships on the NZX top 100. Just 45 women hold 54  of the 624 board positions available and 60 of the top 100 boards have n0 female directors.

That’s been recognised by the Ministry of Women’s Affairs, The Institute of Directors and Business NZ who launched a joint initiative last night to promote the economic benefits of having more women on boards.

A lot of women are actively involved in private rural businesses. Many farms are husband and wife partnerships, so are a lot of the small businesses which support farming and Rural Women’s Enterprising Rural Woman Award highlighted some of the successful rural businesses run by women.

There are plenty of urban business women too so it’s not lack of skills and experience which is holding them back.

The April edition of Next magazine opened a story on the issue with this:

The chairman of a large Kiwi agricultural company is asked why there aren’t any women on his corporate board.

“There’s no place for sheilas in this conservative, provincial boardroom, apart from making the tea,” is his gobsmacking response.

I’d hope that attitudes have changed for the better since this comment was made seven years ago but that still hasn’t translated into an increase in female directors.

What’s holding them back?

Are women choosing not to put themselves forward or  are they not being accepted when they do because, regardless of qualifications and experience, having a y chromosome makes some candidates for directorships and management more equal than others?

P.S.

The Hand Mirror posted on the MWF/ID/BNZ joint initiative when it was first announced.


Skills shortage biggest concern

September 12, 2008

Skills shortage was the biggest concern for the more than 2000 businesses which responded to Business New Zealand’s Election Survey.

Problems getting skilled staff, not being well positioned to innovate and concerns over the business environment including the Employment Relations and Holidays Act and ACC were the three big issues for respondents.

The education system wasn’t meeting the needs of 72% of respondents; 94% said more work was needed in apprenticeships and industry training and 91% said all school leavers should achieve at least NCEA 1 numberacy and literacy.

Problems mentioned included the quality of tertiary qualifications and stop-start immigration which are contributing to driving people overseas; the skills shortage is a symptom of underlying uncompetitiveness and and New Zealand economy isn’t growing enough high paying jobs so skilled workers go overseas.

The second biggest issue was innovation with 89% of respondents saying research & development credits are unlikely to lift the level of R & D; 54% want new policies to imporve access to venture capital and 54% said government assistance should be through a contestable fund.

The business environment was the third big issue. Under this category 71% of respondents said the dismissals provision in the ERA was below average; 54% said the ERA collective approach is the wrong way;89% don’t want laws for work-life balance and 65% want to open ACC to competition.

A flatter tax system was wanted by 64% of respondents; 62% want local government to stick to its core busienss; 55% support the FTA with China; and 73% said New Zealand shouldn’t be a world leader on climate change.

An NZ Herald report on the results is here; and the responses to Business NZ questions by political parties is here.


%d bloggers like this: