What’s fair about this?

February 27, 2019

A comprehensive capital gains tax that was inflation indexed and set at a modest rate could be okay.

The CGT proposed by the Tax Working Group fails on all three points.

One of the motivations for contemplating a CGT at all is fairness.

But Liam Hehir gives some examples that show how what’s proposed is anything but fair:

John is a supermarket manager and Alice has a small business as an in-home childcare provider.

They deduct part of their mortgage interest and outgoings from her taxable income, which helps them make ends meet.

Because they do this, however, they will have to pay Cullen’s tax when they sell their home.

Justin and Dana also have a house and children. Dana has a well-paying job as a dentist, which enables Justin to be a stay-at-home dad.

They have no need to use any part of their home for business purposes so will reap capital gains on their home untouched by the Cullen’s tax.

Terry is an IT contractor who worked hard to get on the property ladder.

Because house prices are expensive, he needs rent paying flatmates. He dutifully includes the rent in his tax return and claims a deduction for expenses.

When he decides to move he will become liable to pay Cullen’s tax on part of the sale proceeds.

Nick has a master of fine arts degree. It hasn’t led to a well paying job, but he is lucky to be supported by a family trust fund.

This has enabled him to buy a house and a number of paintings, some of which have become valuable in their own right. Nick decides he wants to travel the world on a voyage of self-discovery. He sells his property and art and incurs no liability to pay Cullen’s tax. . .

He gives several other examples which show how arbitrary and unfair the CGT proposal is.

There are plenty more, for example: Sue and Sam are lower order sharemilkers who save enough to buy a block of land on which they graze young stock. They get the opportunity to go 50-50 sharemilking, would have to sell the land to buy cows. Having 33% taken off them for CGT wouldn’t leave them enough to buy the stock without taking out a sizeable loan.

Pam and Pete are lower order sharemilkers on her parents’ farm. They save enough to buy a small block of land on which they graze young stock. Her parents give them the opportunity to go 50-50 sharemilking and gift them the money to do it.

It’s not hard to think of many more examples where the CGT will stop people getting ahead and it would also be far-reaching.

Contrary to the Prime Minister’s assertion that a CGT would affect very few people it will hit a lot and David Farrar lists those who will have to pay.

The list of 20 is only those who will pay directly. It doesn’t include everyone who will be affected indirectly, which will be everyone who buys goods or services from any business i.e. everyone.

There would be small tax cuts but they wouldn’t go far once costs start rising because of the CGT.

Whether you call it fairness or politics of envy, the motivation behind the CGT is to reduce inequality but it won’t do that.

The wealthy will find ways to avoid it and even if they don’t would still have plenty left.

Middle income people will have a third of their modest savings and investments eaten by the tax and they, like the poor will be hurt further by rising prices.

The CGT as proposed will not reduce inequality. It will provide a perverse incentive to over-invest in owner-occupied homes and it will apply a hand brake to the risk taking, innovation and investment which promote economic growth which creates jobs and – the government’s new word of the moment – wellbeing.

 


Let some knowledge flourish?

August 6, 2018

Then-vice chancellor of Massey Chris Kelly provoked outrage after making comments about women vets:

Kelly told Rural News that 75 to 85 per cent of vet students were women and in the first year when there was a high ‘cull’, it was the female students who continued because the work was largely academic.

“That’s because women mature earlier than men, work hard and pass,” he told Rural News. “Whereas men find out about booze and all sorts of crazy things during their first year.” . . 

When I went through vet school, many years ago, it was dominated by men; today it’s dominated by women. That’s fine, but the problem is one woman graduate is equivalent to two-fifths of a fulltime equivalent vet throughout her life because she gets married and has a family, which is normal. So, though we’re graduating a lot of vets, we’re getting a high fallout rate later on.” . . 

Shortly after the outrage, he stepped down.

He apologised yesterday and said the information he gave in the article was incorrect.

He told the university today that he intended to step down from his position, effective immediately.

In a statement, Mr Kelly said his decision followed media coverage of his comments.

“Having had time to carefully consider the views of many staff, students and stakeholders, I believe that it is in the interests of the university that I step aside,” he said. . .

Martin van Beynen wrote at the time that the chancellor’s point was lost in the silly vet sexism fracas:

 . . But there is a wider problem with jumping from a great height on a man like Kelly.

Kelly spoke his mind giving a view which was not hateful or disrespectful. Essentially he was saying the taxpayer gets more bang for their buck by training male vets because of the nature of the job and the fact women, due to an unfortunate quirk of biology, have babies and want to spend some time with them.

It sounds like a defendable view which should prompt some debate. There might actually be a problem brewing away in vet education due to the dominance of female graduates. That won’t be talked about now because no-one will be brave enough to raise it.

The danger is that due to the sensitivity of the issue and possible ramifications of expressing a view, the wrong decisions will be made, not because people don’t know the facts or what to do, but just because to raise the difficult matters is a career wrecker.

The last and important point is that it’s quite healthy for people to shoot their mouths off now and again. It’s much better to know what people think than to have their views massaged by public relations or communications staff into nothingness. People censoring themselves is far more dangerous than saying what they really think.

Exactly. It is far better to know what people think than to have their views and opinions, whether they be right or wrong, silenced.

The importance of free speech is not something the current Massey vice chancellor Jan Thomas appears to believe in:

The right to speak freely is a bedrock principle of democratic society. This includes the right to hold opinions and express one’s views without fear and the ability to freely communicate one’s ideas.

History is littered with examples of tyrants who have sought to stymie this freedom of expression and, conversely, reveals the tragedy of those whose voices have been silenced under such oppression.

So far so good but then she writes:

Freedom of expression is one thing, but hate speech is another. As a concept that has now entered common parlance, hate speech refers to attacks based on race, ethnicity, religion, and increasingly, on sexual orientation or preference. . .

But not all religions are equal when it comes to criticism. I’ve yet to read or hear anyone attacking Christianity accused of hate speech.

Let me be clear, hate speech is not free speech. . .

She’s right that hate speech, however, it’s defined, isn’t free speech.

But the point that free speech would permit people to indulge in hate speech appears to have escaped her.

. . . Academics have a responsibility to engage with the communities we serve, to correct error and prejudice and to offer expert views, informed by evidence, reason and well-informed argument.

Given the current dominance of wall-to-wall social media and the echo chambers of fake news, universities are in many ways obliged to make positive societal interventions.

Universities support our staff and students to push boundaries, test the evidence that is put to them and challenge societal norms, including examining controversial and unpopular ideas.

This also obliges our institutions to support staff if and when they are attacked for engaging in such debates.

In this regard, I am guided by the University of California’s former President Clark Kerr’s oft-cited maxim that “the role of universities is not to make ideas safe for students, but to make students safe for ideas”.

And as I regularly remind our graduates, with rights come responsibilities.

Public universities have an obligation to uphold our civic leadership role in society and our first responsibility, I would argue, is to do no harm.

Universities are characterised by the academic values of tolerance, civility, and respect for human dignity.

All of that is reasonable.

And that is why it is important to identify and call out any shift from free speech towards hate speech. The challenge we face is to clarify when that shift occurs and to counter it with reason and compassion.

While I have concerns about what exactly hate speech is, I can’t argue against countering it with reason and compassion.

But then she concludes:

Hate speech has no place at a university. My university values our commitment to ideas and scholarship and free expression. . .

Spot the contradiction: a commitment to free expression and the exlusion of hate speech.

A university of all places ought to be able to counter the misguided, misinformed and mistaken by reasoned and reasonable debate, not by shutting them up and shutting down their right to express their views, however wrong or revolting those views are.

Karl du Fresne writes we should be very suspicious about claims of “hate speech”:

. . . My first concern is that much of what is emotively described as hate speech isn’t hateful at all. Too often it simply means opinions and ideas that some people find distasteful or offensive. But merely being offended is no justification for stifling expressions of opinion in a liberal, open democracy that depends on the contest of ideas. 

More worryingly, accusations of “hate speech” can be used to intimidate people into silence and put discussion of certain issues and ideas off-limits. In fact I believe that’s the over-arching aim.

Anyway, who defines hate speech? The term is bandied around as if there’s some agreed definition. But there’s not, and freedom of expression is too precious to leave it to an aggrieved minority or an academic elite to define it and therefore determine what the rest of us may say.

It’s also an infinitely elastic term. In Britain, where police have the power to prosecute for hate speech, there have been some frightening cases of overkill and heavy-handedness. 

Better to set the legal bar high to allow plenty of space for free speech, as the courts have tended to do in New Zealand. By all means, draw the line at harmful acts, direct threats to people’s safety or incitements to violence against minorities. But the law already allows for criminal prosecution in such cases.

We have far more to fear from people who want to suppress speech than we do from those who say things that others find objectionable. The real issue here is language control – because if you can control the language people are allowed to use in political discourse, you can control the range of ideas people are permitted to articulate and explore. . .

No, language is the latest battleground in what is known as the culture wars. The mounting clamour for tougher laws against so-called hate speech is an outgrowth of identity politics, in which minority groups are encouraged to see themselves as oppressed or disadvantaged because of their colour, ethnicity, gender, religious belief or sexual orientation. 

Hate speech makes some colours, ethnicities, genders, religions and sexual orientations more equal than others.

This has generated a demand for protection from comments that might be seen as critical or belittling – hence the frequency with which we hear people being accused of xenophobia, racism, Islamophobia, homophobia and misogyny.

No one likes to have these labels pinned on them, so people keep their heads down. Accusing someone of hate speech has the same effect. It’s a quick way to shut down debate. . .

It’s so much easier to accuse someone of hate speech than it is to debate and counter what they say with facts and reason.

Journalists, of all people, should be ardent advocates of free speech because they have the most to fear if it’s abolished. In totalitarian regimes, journalists are often the first people to be imprisoned (as in Turkey) and even risk being murdered (as in Putin’s Russia).

But the most illiberal pronouncement I have read on the supposed dangers of free speech came from a university vice-chancellor who clearly thought that ordinary New Zealanders can’t be trusted to form their own sensible conclusions about contentious issues.

This pompous academic thought we needed guidance to keep us on the right path. And where from? Why, from universities.

We can infer from this that universities see themselves as having taken over the Churches’ role as moral arbiters. God help us all.

That the academic is vice chancellor of the same university the former-chancellor resigned from for saying something which got the crowd baying intrigues and concerns me.

Kelly wasn’t criticised for saying young men mature later and drink too much. He didn’t say that women don’t make good vets. He did say women work shorter hours than men.

He got his numbers wrong – saying women vets worked two-fifths of the time men did when younger vets work similar hours and after 30 women vets work an average of 37 hours a week and men an average of 45.

He might also be accused of not wording what he said better.

But over-egging the numbers and wording what he said somewhat clumsily ought to be a minor transgression.

A vice chancellor of a university, which is supposed to be a bastion of free speech, declaring that hers won’t  be ought to be a major one.

Kelly’s comments provoked an outrage, lots of media coverage and led to his resignation. All I’ve come across in response to Thomas’s declaration that Massey won’t uphold free speech are a very few well reasoned opinion pieces arguing against her.

Liam Hehir didn’t refer to Thomas’s remarks but he highlights the value of free speech and the danger in silencing it:

. . . New Zealand has developed a similar free-speech culture.

And the value of that culture isn’t that it protects racists and crackpots. It’s that it protects the humane and decent, who will not always hold the reins of power. The re-emergence of authoritarianism in continental Europe, where free-speech rights are less embedded, may well provide a warning here.

So should we accord liberal free speech rights to those with deplorable views? Yes. But it’s not to protect them from us. It’s to protect us from them.

Kelly stood down as chancellor for speaking freely, if what turned out to be unwisely in these politically-correct times. Vice chancellor Thomas declared Massey a free speech-free university and hardly raised an eye brow.

The uiniversity’s motto is floreat scientia – let knowledge flourish.

It isn’t qualified as some knowledge but if free speech can’t flourish there, can all knowledge?


Word of the day

April 10, 2018

Plenipotentiary – a person, especially a diplomat, invested with the full power of independent action on behalf of their government, typically in a foreign country; having full power to take independent action; invested with or conferring full powers.

Hat Tip: Liam Hehir


Quotes of the year

January 3, 2018

. . . And there it was, the secret of all overseas-born grandparents the world over who give up everything, their own brothers and sisters back home, their independence, their everything to look after grandchildren.

They do it so their sons and daughters can work or study full time (and keep the economy running) and avoid insanely expensive childcare options.

They do it because they love their grandchildren so much they are willing to live in a country where they can’t understand a lot of what is being said or written around them, but march on nonetheless.

And, in the case of Nai Nai, they do it knowing that even if they can’t teach their grandchild English they will do whatever they can to make sure someone else can. . . Angela Cuming

Cooking means you use better food and you have far more control over what you eat. It also brings a lot of the things to the table – manners, eye contact, social skills, the art of conversation and confidence. . . Ray McVinnie

. . .Yes, according to the science, dairying is a major factor in a decline in water quality. The science also shows this is the result of 150 years of farming, albeit escalated in the past 20 years.

Dairy farmers are doing everything asked of them to reduce the loss of nutrients from their farms. They have bridged stream crossings, fenced waterways, planted riparian strips and built highly technical effluent treatment systems. They want clean streams as much as any other New Zealanders.

But those with their own axe to grind don’t want to know this. And the ignorant follow along.

The opinion writers and the commenters seem to think that clean streams and lakes can be accomplished immediately, that 150 years of pollution can be erased overnight.

It can’t be – even if all farming was banned and the land converted to trees and bush, the leaching would go on. . . Jon Morgan

The brutal truth is that while the Treaty’s influence has grown to the point where it is now cemented into New Zealand’s unwritten constitution, Waitangi Day is sinking under the weight of its conflicting roles.

It doubles as a mechanism for acknowledging legitimate Maori grievances past and present while also serving as the country’s national day and which is about projecting an image of unity and happy families.

Divisiveness and inclusiveness are oil and water. They don’t mix.

The tiresome antics regularly on display at Waitangi have undermined the power and symbolism of the occasion.

The wider New Zealand public which should be happily embracing the proceedings instead feels alienated by them. – John Armstrong

I can perfectly describe why we’re dying on the roads.

It’s you.

It’s not the lack of cops, or lack of passing lanes, or sub standard roads. It’s you. It’s the 40% in 2016 who died or caused death on the roads due to drugs and alcohol. The 24% who died due to speeding and dangerous driving. And the majority of the remaining deaths caused by those who were so clever they didn’t need a seatbelt. Why the hell wouldn’t you put on a seatbelt when you get in a car? – Bernadine Oliver-Kerby

If you become what you are fighting you have lost. You must fight freedom’s cause in freedom’s way. Helen Dale

Trump is never more certain than when he is completely clueless. The truth is that protection against foreign trade leads away from prosperity and strength. A country that deprives itself of foreign goods is doing to itself what an enemy might try to do in wartime—cut it off from outside commerce. It is volunteering to impoverish itself. – Steve Chapman

Protectionism amounts to the claim that everyone benefits when choices go down and prices go up. The only reason more Americans don’t dismiss that claim as self-evident crackpottery is because it comes cloaked in the language of nationalistic resentment.  – Jeff Jacoby

Honesty is to be preferred. However, there is a genuine gulf between the burdens of opposition and leadership. Opposition is fun, and largely without responsibility.  Leadership only sounds fun, and carries abounding burdens, among them the inchoate demands of “American leadership” and the rather specific requirements of interagency coordination. –  Danielle Pletka

 Greater understanding, insight, knowledge – even wisdom – are  gifts we acquire if we’re lucky, as we grow older, yet it’s when we’re young that we have to step up, and so often blunder blindly into the unknown, sometimes realising fearfully that we don’t know, or often, thinking we know better. – Valerie Davies

It was not so long ago that I was a young boy, crying in my room, wishing that I had real legs.  In an attempt to lift my spirits, my dad said one day someone will build you legs that will allow you to run faster than your friends. – Liam Malone

If only I had known that broadening a church required merely climbing up the steeple to set the clock back 20 years, I could have saved a lot of ink and cognitive energy.  Apparently, all New Zealand voters have been waiting for is for Labour to finally reinvent itself as The Alliance Historical Re-enactment Society.  Is there anything Labour’s deviously brilliant internal polling can’t teach us? – Phil Quin

Agriculture is being attacked by misinformation. Agriculture is being attacked by ignorance. Agriculture is being attacked by science illiteracy. Agriculture is being attacked by deceitful marketing. And those things do not discriminate based on party lines. – Kate Lambert

Mr Average migrant is healthier with less character problems than the average New Zealander because they had to go through all of those hoops before they got permission to stay in our country.David Cooper

My challenge to employers is to hire people based on merit, to give women as many opportunities as men and to pay women what they are worth.

It’s 2017. It’s not about what you can get away with. It’s not about what she is willing to accept.

It’s about what she is worth.-  Paula Bennett

If borrowing to put money into the Super Fund is such a perfect ”free money” scenario, why stop at $13.5 billion? Surely we should borrow a couple of trillion. Nobody will notice – it’s all still on the books somewhere. Then we could make mega trillions, pay all our super costs, and never work again. – Steven Joyce

Not that it matters. None of it matters. Who came from where & what happened there. Because lets admit it, New Zealand is a tiny remote island at the ass-crack of the world…WE ALL CAME ON A BLOODY BOAT SOMETIME OR ANOTHER! – Deanna Yang

By nature, I am a pragmatist, not an ideologue. That is because, in my experience, most people just want results that work. Some people have said that my pragmatism indicates a lack of a clear set of principles. I do not think that is true. It is just that my principles derive mostly from the values and ethics instilled in me by my upbringing, rather than by the “Politics 101” textbook.  . .

Mum taught me the things that allowed me to succeed and which I think are echoed by so many Kiwi parents—that you get out of life what you put in to it, that hard work can create opportunities. And that you really can change your own life, not by wishing it was different but by working to make it different

I have brought to politics an unshakeable belief that, regardless of our circumstances, most of us share the same aspirations: we want our children to be fulfilled and we want them to do better than we have. To most of us, what matters more than anything else are the health, welfare, and happiness of those people about whom we care most. In the end, Mum did not leave me any money, our holidays were always pretty basic, and the house we lived in for a long time was owned by the State Advances Corporation. But, truthfully, she left me the most important gift of all: the determination to succeed and the work ethic to make it happen. . .  – John Key

God, I wish I ran a small country. – David Cameron

The only vision really worth having for any government in a democratic society is enabling individual citizens the maximum amount of freedom to pursue their own visions.

All the rest is just politicians indulging in their personal narcissism.Rob Hosking

But in these troubled times of shifting societal landscapes, the simple joy of a cheese roll is a throwback to when times were perhaps less complicated.

That such a simple dish has survived mostly unchanged and is still revered, is a sign that – at the bottom of the country at least – we still enjoy the simple things in life. – Oscar Kightley

He was another example of that unique Aussie — a New Zealander. We claim him with pride, along with Russell Crowe and Ernest Rutherford.  – Robyn Williams on John Clarke.

If humour is common sense dancing, John Clarke was Nureyev. He proved that you can laugh at this strange part of the world, and still keep your mind and heart fully engaged. – Don McGlashan on John Clarke.

 I think I thought he might have been immortal. The Great God Dead-Pan. – Kim Hill on John Clarke

I always said as long as my mind, my body and my heart were in it, then I could do this for as long as I like. My mind’s been pretty good, my body’s been pretty good, but it was my heart that was on the fence. So, it’s time to go.”  – Eric Murray

We prefer to be in a situation where we have a positive relationship with Australia and Kiwis get a good deal in Australia – that’s better than mutual ‘armed war’ to see who can treat each other’s citizens worse. – Bill English

Keep that moment. You get to hold the baby and the mother is there and it’s an experience you can’t prepare for. There’s going to be so many times when this looks hard and it is, so keep that moment. – Bill English’s advice to new fathers.

Beware of the guy with the soft hands – go with the guy with the calluses on his hands. – Neil Smith

Spend two minutes of the hour being negative, but you have to spend the other 58 being positive.Neil Smith

I’m the person who got us into this mess, and I’m the one who will get us out of it. – Theresa May

Civilisation is built on cultural appropriation.

Every society absorbs influences from other cultures, often cherry-picking the best of what’s on offer. This process cuts both ways, because disadvantaged societies learn from more advanced ones. It’s not all about exploitation.

Those who seek to outlaw what they arbitrarily define as cultural appropriation would condemn us to a monochromatic, one-dimensional world beset by sheer boredom – and one in which New Zealanders would be reduced to eating tinned spaghetti on toast, since it’s one of the very few dishes we can call our own.

On second thoughts, scratch that. Spaghetti’s Italian. – Karl du Fresne

Beaver’s far and beyond what I am – he’s a top man. There’s no movie here. I’m just a little white fella that’s chipping away in Dunedin. – Marty Banks

“Yeah, well just the same way you prepare every day,” Peter Burling in response to a reporter’s question:  “You know, looking back to 13, going, okay, you guys were on match point a lot in 13, how do you prepare for tomorrow?”

The biggest software company in the world just got beaten by little old New Zealand software.” – Grant Dalton.

 . . . it’s a privilege to hold the America’s Cup – it’s not a right. And was embodied in the way Team New Zealand was under Sir Peter Blake. If you’re good enough to take it from us then you will and we’ll try very hard to be good enough to keep it. We won’t turn it so to make sure you can’t.Grant Dalton

More so than any other industry, agriculture is a relationship industry. We work with, and spend money with, people we like. People we trust. People we often times consider part of our family. Sometimes those people work for “Big Ag”. Sometimes they don’t. But farmers don’t do business with corporations or small companies. Farmers do business with people.  – Kate Lambert

You only get 40 attempts at farming. From your 20’s to your 60’s, you get 40 seasons,” says Duncan Logan, the founder and CEO of RocketSpace, a tech accelerator company. “In tech, you get 40 attempts in a week. – Duncan Logan

My philosophy is that people who are born with a healthy body and a healthy mind can look after themselves, but people that are unfortunate [enough] not to have that blessing, I’m prepared to help. – Mark Dunajtschik

I am repeating the warning that free money to able-bodied humans anywhere can do just the opposite of what it intends: take away the will to work, the guts to struggle, the spirit to pick yourself up by the bootstraps. . . – Alan Duff

I got up again. – Bill English

Just because males talk loudly doesn’t mean they have anything to say. – Deborah Coddington

Those who work to change public perception in spite of the evidence use a number of tactics – they cherry pick data, they drive fear, they over simplify, they take data out of context, they deliberately confuse correlation with causation and they undermine trust. –  William Rolleston

Innovation in agriculture is where the future health and wealth of New Zealand lies. As a country we need to invest in how we can support this innovation and practice change. Taxation as an answer to agricultural challenges demonstrates a lack of imagination. – Anna Campbell

. . . once a society makes it permissible to suppress views that some people don’t like, the genie is out of the bottle and the power to silence unfashionable opinions can be turned against anyone, depending on whichever ideology happens to be prevalent at the time. . . . What we are witnessing, I believe is the gradual squeezing out of conservative voices as that monoculture steadily extends its reach.- Karl du Fresne

I learned from the film that if we want to have enough food to feed the 30 billion people soon to inhabit the planet and we only grow organically, we’ll have to chop down the rainforest and make it farmland. But if we grow GMO crops that need less space and less water, the rainforest is safe. – Lenore Skenazy

Personality doesn’t feed your children or keep the rivers clean, personality doesn’t make the country safe, it requires sound leadership strong intellect and the right policies. – Jim Bolger

I got up againBill English

The only thing that could bring English down is Winston Peters choosing to go with Labour and the Greens. – Patrick Gower

There are good and bad people in all parties. Sometimes, people with whom you agree will do something dumb. Sometimes, they will conduct themselves in a manner of which you do not approve.

If your chief criteria for judging propriety and competence boils down to partisan affiliation and advantage, then you really are contributing to a problem that is going to drain all the goodwill out of this country’s politics. – Liam Hehir

This is the only assurance to an irreversible path to national freedom, happiness and economic prosperity.
To our neighbours, you now all know the simple choice you face; either support our rights or our refugees. – Morgan Tsvangirai

Loss comes in all forms, not just death, but loss of careers, loss of confidence, loss of relationships and marriage, my own succumbing to the high percentage of those that end upon the death of a child.

With all our collective legislative wisdom, there shouldn’t also have to be loss of faith in a system supposedly designed to protect those that need it at precisely the time when they most need it. . . .

Politics really did become personal for me then. A flick of the pen, wording of an amendment, an exchange in the debating chamber – parliament’s processes affect everyday lives.- Denise Lee

We are not a nation of holier-than-thou busybodies. We are friendly, moral realists who face facts and credit others with doing the best they can when they are in circumstances we are fortunate not to share. That is how we should be represented to the world. – John Roughan

. . . Abundance is no long-term solution. We can’t have as much as we want, for as long as we want. That’s not how life works, it’s not up to us to decide when the fun ends.

We ought to make the most of moments, of the people, of the laughs, because we are numbered. They are numbered. As you wind through them, one day there will be a final click.

We all know this deep down, but we gloss over it day to day. Either because more pressing issues take centre stage, or because pondering mortality of loved ones and ourselves isn’t that enjoyable.

Yes, looking back on captured moments after they’re developed is great. But being present in these moments is key to truly appreciating the finite things in life. –  Jake Bailey

Telling the truth is colour blind. – Duncan Garner

. .  .New Zealand’s GST is uniquely, and admirably, clean. It applies broadly. Every producer has an incentive to report honestly because they also report the GST they paid to their suppliers on every item when claiming GST on their inputs.

Were New Zealand to exempt healthy foods from GST, we would well be on the slippery slope. It is one of those things that sounds really easy, but would be an utter disaster in practice. . . Eric Crampton

I must say, it has been a bit rich sitting here listening to the moral awesomeness and self-congratulation of the Labour Government over the family incomes package when they opposed every single measure that it took to generate the surpluses that they are handing out. That is why they won’t get the credit they expect from the New Zealand public, because the New Zealand public know it’s a bunch of people who found the lolly bag and ran the lolly scramble without having any idea where it came from.  – Bill English

Everybody wants to do the right thing; they just want to know what the expectations are, how long they have got, what it’s going to cost, where the tools are, and they will get up and they will get on with it.  – Barbara Kuriger

. . . the United Nations has just declared access to the internet a basic human right. It’s no more that than ownership of a Rolls Royce.

One can laugh at this stuff but for humanity to make progress it’s actually damaging, leading as it does to false expectations. Far better if the UN was to talk sense and describe it as an aspiration achievable through effort rather than by right. – Sir Bob Jones

The number of children the Labour-led government will lift out of poverty next year is 12,000. That’s over and above the 49,000 the previous government’s 2017 Budget was already lifting out. That”s right 80% of the new government’s achievement was already in train.

The new caring and sharing government’s achievement is much more modest when compared with the previous heartless government’s achievement. But that’s the power of the headline.   – Rodney Hide

Essentially, progressives tend to make up their minds about things according to a grievance hierarchy, which goes something like this: Worries about Palestine trump concerns about gay rights. And concerns about gay rights trump women’s rights which, despite the big and necessary push against harassment and abuse over the past several months, tend to wind up as the last unionised, fair-pay electric cab off the left’s organised and properly supervised rank.

Or to put it another way, being anti-Western means never having to say you’re sorry, but being female doesn’t mean that the left will let you get away with having your own opinion. – James Morrow

One of the wonderful things about living the years that I have, is that Time has taught me so much about myself. In doing so, Time and opportunity have set me free to be the essence of who I really am, rather than the person who has been beset by the grief of bereavement, abandonment, divorce, poverty, pain and rejection. The insights that Time has allowed me to gather, have set me free from those profound and painful experiences to be joyful, happy, fearless, and, – I hope -loving… – Valerie Davies


Rural round-up

December 10, 2017

Liam Hehir DESTROYS a neoliberal farmer – Liam Hehir:

When I went out to see my parents the other night, Dad looked pretty worried. Every now and then I would catch him looking out the window at the sea of yellowing grass on our little dairy farm. “It’s going to be one of the worst droughts in decades,” he said absentmindedly.

My patience wore thin. “You usually vote for National, right?” I asked. Dad said nothing in silent confirmation.

I adopted my most scolding voice.

“You farmers have a lot of nerve being upset about this. You lot are always voting National. But National is the party that allowed water bottling companies to dig up our water and ship it overseas. Surprise, surprise, we’ve run out – it’s all in other countries! Now you have the temerity to wince and try to guilt us over the great summer we’re enjoying?” . . 

James and Bridget’s farm:

From the farmers:

Hi, we’re James and Bridget and we run Quambatook farm near Oamaru. The Aboriginal name of Quambatook means ‘place of rest’. We are fifth generation farmers in partnership with James’ parents Ray and Kathrin McNally.

We converted to dairy ten years ago and currently milk 800 cows increasing to 900 in the 18/19 season. We have three children, Charlotte (5), Jimmy (3) and Olivia (1). They all love getting out and about on the farm and helping.

Our main purpose is to be environmental stewards for the next generation and dairy farming is providing us with a pathway to succession.  We would love to have people come and visit our farm to inform and educate them about how a sustainable dairy business works and show them how much we care about our environment. . . 

Open Gates day a chance for farmers to show they care about the environment – Gerald Piddock:

Wynn Brown hopes opening the gates of his dairy farm will put a human face on an industry that increasingly is offside with the public.

The Matamata dairy farmer is one of eight farmers around Waikato and 40 around the country taking part in Fonterra’s Open Gates day on Sunday, December 10.

The industry “had taken a fair bit of a beating” over the last six months and he hoped the day would go some way to changing that.

“My hope is that it bridges the gap between urban and rural and that urban people can see that we are trying hard to do the right thing.” . . 

Meat company choice clearer than it’s every been – Allan Barber:

November used to be the month when we could get a comprehensive idea of the financial state of the meat industry because annual results were published in quick succession by three of the major processors: Alliance, Silver Fern Farms and AFFCO. When AFFCO was absorbed as a wholly owned subsidiary of Talley’s, there were still the two cooperatives to provide a comparison, but now SFF’s balance date is 31st December. So we must now wait until March to find out about ANZCO and SFF. This means Alliance’s result is the only one which can give a factual record of the traditional meat year, while it is still reasonably fresh in the mind.

Therefore the headline numbers – turnover up 13%, $20.2 million operating profit (2016 $10.1 m), $11.4 million pool distributions ($9.8 m) and 71% equity (70.6%) – make encouraging, if not exactly overwhelming, reading and suggest Alliance has turned a corner after last year’s near breakeven performance, while also indicating a better trading environment for the industry as a whole. This has also occurred against the backdrop of improved returns for sheep and beef farmers. That said, last season was easier for sheep meat dominant processors than for those with larger beef businesses because of the respective climate effects on livestock flows. . . 

Mouldy fed threatens animal health – Pam Tipa:

Mycotoxins threaten animal health and producer profits, so identifying and addressing these hidden challenges is important for farmers.

The Alltech 37+ test now identifies five extra mycotoxins that can threaten animal health and producer profitability.

The testing is available to New Zealand farmers, but it is done in Ireland, an Alltech NZ representative says. At least 140 samples have been sent from NZ with interesting results. . .

‘Choose Black’ wins gold:

A campaign to market mastitis treatments to dairy farmers has been recognised at the Westpac Waikato Business Awards.

The Choose Black marketing campaign was developed to showcase Virbac New Zealand’s locally made mastitis treatments.

At the start of the 2016-17 season Virbac targeted the lactating cow intramammary market where rival products had been used for many years. . .


Rural round-up

December 6, 2017

Wrapping bales a job for kings – Liam Hehir:

If I could do anything with my life, it would be this…

When you grow up on a small farm you find that weird affections stay with you for the rest of your life. For example, the whiff of silage is really comforting to me. Same with cows first thing in the morning and the relentless beat of the engine room in the shed. It’s weird.

Then there are things like the wonderful feeling that comes with walking home after the morning milking, the day still crisp and new. Getting in bone tired from a miserable day, kicking off your boots and overalls and drying off in front of the fire is another one. So is letting a bunch calves into a paddock for the first time since they were born — the sigh of which will never not make me smile.

But nothing ever made me happier than the prospect of wrapping baleage in the early summer. If there were some way I could do that for a job and support my family, I’d take it in a heartbeat. Not even joking. . . 

European Meat Sector issues dire warning about impact of hard Brexit – Allan Barber:

The European Livestock and Meat Trades Union (UECBV), the body that represents producers, consumers and distributors of meat, has commissioned a report entitled The EU Meat Industry in a hard Brexit scenario – CRISIS. The major finding of the report concludes the impact of a hard Brexit would be a catastrophic disaster for both UK and Europe because of the reversion to WTO tariff arrangements.

A hard Brexit would arise if there is no agreement between the UK and Europe on key issues – divorce bill, the Irish border, citizens’ rights, future trade relationship – by the end of March 2019 when the notice period expires. At this point, nearly 18 months since the referendum voted to leave the EU and eight months since the final exit date was triggered, but looking at it from the outside British negotiators had made no tangible progress at all until an announcement of an unspecified agreement on the exit cost late last week. . . 

“Knack’ required to work with deer – Yvonne O’Hara:

Logan Bain and Caleb Neilson are among the next generation of deer farmers.

Both work at Landcorp’s Thornicroft Station near Lake Mahinerangi and both are interested in deer and can imagine their futures linked to the industry in some way.

Mr Neilson (22) is the station’s deer manager, along with station manager Lindsay Cunningham.

Mr Bain (21) has just finished his last year at Lincoln University and was on his second day as shepherd at the station when Southern Rural Life talked to him.

Mr Neilson starting working with the station’s sheep and cattle before moving to the deer unit, which has about 2500 hinds plus fawns, and 100 stags.

He grew up on a sheep and beef farm in the Maniototo but had always liked deer. . . 

Farmers’ Satisfaction with Banks Remains Stable, Survey Shows:

The level of investment required in modern dairy farming is underlined in the latest Federated Farmers Banking Survey, with the size of mortgages and the number of dairy farms with overdrafts increasing.

Across dairy and non-dairy sectors, three quarters of the 480 farmers who responded to the survey said they felt under the same pressure from their banks as six months ago. Eight per cent said they felt under more pressure and just under 10 per cent were feeling less pressure. . . 

New podiTRAP a long time in the making – Kate Guthrie:

Inventing a new kind of trap can be a slow kind of process. Sometimes you don’t even know you’re on that journey until you’re well on your way. Take the podiTRAP for example. It’s probably still a year away from commercial release, but the podiTRAP may well be ‘the tool to use’ in the future.

“I never expected it to be where it is now,” says its inventor, Pouri Rakete-Stones. “It’s evolved into this big monster project!”

Pouri is an engineer by trade. He spent 10 years as a fitter/welder, doing research and development work on machinery, before getting involved with Hawkes Bay kiwi conservation and outdoor education organisation ECOED in 2010. . . 

Bugs as snacks among UF/IFAS experts’ predicted 2018 food trends – Brad Buck:

From eating bugs for protein to raising chickens in your backyard to eat their eggs, University of Florida Institute of Food and Agricultural Sciences experts say some food trends grow in popularity over time. Here are the food trends for 2018, as predicted by some UF/IFAS faculty:

Are you bug-eyed for protein?

Insects are trending as a food source and are now being termed “micro-livestock,” said Rebecca Baldwin, a UF/IFAS associate professor of entomology. In fact, a chef who advocates for edible insects has attracted the attention of the Entomological Society of America and will speak to the group in Denver in November. . .


Popular yes but will it work?

November 1, 2017

Labour will make residential property ‘sensitive’ which will be a de facto ban on foreign buyers.

Anyone who was not either a citizen or resident of New Zealand would not be allowed to purchase existing homes.

“The Government will introduce an amendment to the Overseas Investment Act to classify housing as ‘sensitive’ and introduce a residency test,” Ardern said in her first post-cabinet press conference. . .

Ardern expected the legislation would be introduced by Christmas and passed in the new year.

“This does not impact our Korean FTA, nor will it impact the TPP – if we pass it before it takes effect,” Trade Minister David Parker said.

“Our underlying ethos here has been that if you have the right to live here long-term you have the right to buy here.”

The ban needed to passed fast because if New Zealand signed up to the Trans-Pacific Partnership (TPP) without passing the legislation the TPP provisions allowing foreign investment would then effect other trade agreements under “most favoured nation clauses,” effectively taking away the right to do this for good, Parker said. . .

National’s Finance spokesman Steven Joyce describes the proposal as half-cooked:

The first and strangest thing about Labour’s announcement is that it isn’t an actual ban. Putting houses through a sensitive land purchase criteria is definitely bureaucratic but does not constitute a ban on such sales,” Mr Joyce says.

“There are also all sorts of definitional questions. Is an apartment on the fourth floor of a building ‘sensitive land’? Is a two hectare property with two houses on it that’s being sold for development able to be sold to an international investor?

“This proposal would also be a massive compliance cost for house buyers of all types. For example, will somebody with a foreign sounding name have to prove their citizenship to the real estate agent?

“The whole announcement was very strange,” Mr Joyce says. “There has been no paperwork released and the Prime Minister indicated many of the detailed decisions remain to be made.

“This smacks very much as a ‘bright idea’ with absolutely no detail or evidence base behind it. The Prime Minister even spoke as if the Auckland property market was still rapidly appreciating whereas in actual fact it’s been flat to falling for the last year.

“Finally, if the idea gets over all the hurdles, would it actually work in terms of satisfying the concerns of our trading partners? It appears on the face of it that it would treat investors from other countries less favourably than New Zealand investors.

“This is a policy that’s designed to solve a political problem. Evidence in both Australia and here in New Zealand is that overseas buyers don’t have a significant impact on the housing market.”

Eric Crampton writes on the issue at Offsetting Behaviour and asks whether those on work-to-residence visas will be able to buy houses under this policy.

Even if they can, migrants on work visas will be caught by the ban. That will be many of the skilled people we need for jobs that we can’t find New Zealanders willing and able to do.

Liam Hehir also questions whether the proposal would be effective:

. . . Figures released earlier this year showed that home buyers without citizenship or residency accounted for about two percent of transferees. So while it might be effective as a ban, I wouldn’t be holding my breath about it doing much more than the scratching of a populist itch.

This will be popular but will it achieve its aim of making it easier for New Zealanders to buy houses?

Popular policy isn’t always good policy and only time will tell if this will help make housing more affordable without compromising any free trade agreements and deterring skilled migrants from coming here.


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