Waste tax starting at wrong end

November 29, 2019

Yet another proposed tax from the government that said no new taxes:

Eugenie Sage’s proposed six-fold increase in the levy rate for landfills will not only cost households more but lead to more illegal dumping, National’s Environment spokesperson Scott Simpson says.

The plan was a key policy in the Government’s Waste Discussion Document released today.

“The proposal will have perverse outcomes on both the environment and New Zealanders’ back pockets,” Mr Simpson says.

“Fly tipping is already a huge problem in New Zealand, and knee jerk price hikes like this will only make it worse.

“Sadly people will realise it’s cheaper and easier to dump their rubbish over a bank or into the bush rather than paying the exorbitant fee to use their local tip.

Most mornings I walk along roads bordering our farm and each time I come across odd bits of rubbish – usually bottles and food wrapping – that has been thrown from car windows. Fortunately there are no banks or bush on my usual route to encourage fly-tipping but every now and then I venture further afield and it’s not unusual to find rubbish that ought to have been taken to a tip.

“People in some parts of the country are already paying close to $200 per tonne at their landfill. This will only drive the price even higher.

“Meanwhile expanding the number of landfills to which the levy applies is a belated follow-through on plans National had already announced in Government.

“Eugenie Sage should be investigating practical ways of addressing our waste problem like waste to energy systems used in other countries. Instead she seems happy to indulge her ideological preferences and hit the tax button.”

The Taxpayers’ Union points out this tax will hit the poor hardest:

. . .Taxpayers’ Union spokesman Louis Houlbrooke says, “Like any levy, this will be a regressive tax hike, with a disproportionate impact on the budgets of large households in the country’s poorest suburbs. If it brings in the forecast $220 million, that’s a tax hike of $120 per Kiwi household, per year.”
 
“This is yet another painful tax hike that betrays the Government’s claims of compassion for the poor.”
 
“Meanwhile, the beneficiaries of this proposal will be the businesses taking handouts from the poorly managed Waste Minimisation Fund, and the local councils that get a revenue boost. No wonder they’re supporting it.”
 
Earlier this year the Tax Working Group pointed out that increasing the rubbish tax will cause a spike in illegal dumping. Even the Green Party should agree that it’s better for old mattresses to end up in the tip than dumped on the road or riverside.”

Waste to energy systems would be a much better idea than another tax, especially as this one is starting at the wrong end of the problem – hitting the people who have to get rid of rubbish rather than those who create waste in the first place.

Take bananas as a small example – they grown in bunches with their own protective covering. Why do supermarkets find it necessary to put them in plastic bags? It’s the businesses that put them in bags who cause the problem, not the people who buy the fruit and are left with the unwanted bags.


Carbon Zero still sabotaging farming

October 22, 2019

The Zero Carbon Bill has returned from the Select Committee without science-based changes:

Controversial biological methane targets in the Government’s much-touted Zero Carbon Bill remain unchanged, despite strong lobbying from both environmentalists and farmers.

After months of scrutiny from MPs from both sides of the political aisle, the environmental select committee today released its much-anticipated report on the Zero Carbon Bill.

It shows the legislation’s original commitment to reducing biological methane – greenhouse emission from cows and sheep – by between 24-47 per cent below 2017 levels by 2050, remains in place.

This is despite intense lobbying for the targets to be fixed, not at a range, at either 24 or 47 per cent. . .

National is not happy. Its environmental spokesman Scott Simpson said not nearly enough of the bill had changed. . . .

Simpson said the 24-47 range not changing created uncertainty for industry players.

“It is too high given the current level of technology available to farmers to make meaningful reductions to biological methane.”

He said currently, the only way farmers can reduce this type of biological methane is by reducing their stock count. . .

Reducing stock numbers would come a high financial and social cost for at best no environmental gain and at worse a loss as our less efficient competitors increase production to fill the gap.

It also goes against the Paris Accord which stipulates climate change mitigation shouldn’t come at the expense of food production.

The Government unveiled the Zero Carbon Bill in May this year with much fanfare; Prime Minister Jacinda Ardern said it was a “landmark” piece of legislation.

“New Zealanders have demanded it – and today we delivered it.”

Do those who have demanded it understand the consequences and the cost of undermining food security in this way?

Do they understand they are demanding significant cuts in export income with all the hardship that will follow that?

Do they understand they are demanding steep increases in the price of food?

All the government is delivering is a flawed Bill that will take us on a pathway to misery.

 


Rural round-up

July 31, 2019

Levies are killing farming – Annette Scott:

Levies are killing farming as changes to the Biosecurity Act and Nait set to be another nail in the coffin, Federated Farmers dairy chairman Chris Lewis says.

The Government is fixing the Biosecurity Act and the National Animal Identification and Tracing (Nait) Act to ensure they meet future needs, Agriculture and Biosecurity Minister Damien O’Connor said.

Implementing the programme for Mycoplasma bovis exposed the clunkiness of the outdated Biosecurity Act and lessons must be learned from the M bovis experience to formulate a law that’s more flexible and appropriate. . . .

Organic finds whisky farmers – Neal Wallace:

The Styx Valley is in a remote southern corner of the Maniototo basin in Central Otago where the seasons can be harsh. But that isn’t stopping John and Susan Elliot from running an innovative whisky distillery alongside their farm. Neal Wallace visits Lammermoor Station.

The story of Andrew Elliot discovering a copper whisky still on his Central Otago station early last century is family folk lore that resonates with John and Susan Elliot.

It is a link to the latter part of the 1800s when the Otago hills, rivers and valleys were crawling with gold prospectors, swaggers and opportunists. . . .

Guy’s pragmatism appreciated by Federated Farmers:

Farmers regarded Nathan Guy as a pragmatic and knowledgeable Minister for Primary Industries.    

The MP for Otaki, who among other roles served two years as Associate Minister of Primary Industries and four as Minister in the John Key-led government, has announced he will not seek re-election in 2020.

“His door was always open, and he was always level-headed and considered in his dealings with people,” Federated Farmers president Katie Milne said. 

“He had his finger firmly on the rural pulse and I always appreciated that you could have free and frank discussions with him, including occasionally by phone when he was out helping weigh and drench calves.  He has real empathy for the sector and for the wellbeing of rural communities.” . .

IrrigationNZ thanks Nathan Guy for his work in parliament congratulates Tood Muller:

IrrigationNZ wishes to thank Hon Nathan Guy for his contribution to the primary sector as he announces his retirement from 15 years in Parliament with a departure from politics next year.

Following news of Nathan’s decision, the National Party today announced that Todd Muller, Member of Parliament for the Bay of Plenty, will be picking up the Agriculture, Biosecurity and Food Safety portfolios from Hon Nathan Guy. IrrigationNZ would like to congratulate Todd on this new role. IrrigationNZ also notes that Hon Scott Simpson, Member of Parliament for Coromandel, who leads the Environment portfolio for National, will take on Climate Change from Todd, which IrrigationNZ recognises as a sensible and good fit. . .

Grasslands brings science and practice together:

Linking science and technology with grassroots farming and production has been the key to the success of the Grassland Society.

The Grassland Society of Southern Australia has come a long way in the 60 years since a small group of farmers banded together in 1959 to help producers get the best out of their land.

Celebrating its 60th anniversary, the Society assists farmers across three states to create better soils and pastures. . . .

Agricultural aviation celebrates 70th anniversary:

“In September 1949, a group of aerial work operators got together to form the NZ Aerial Work Operators Association ‘to advance the techniques of aerial work’ in the country,” said the New Zealand Agricultural Aviation Association (NZAAA) Chairman, Tony Michelle.

“We celebrate the achievements of those early companies and pilots at an agricultural aviation show at Ardmore Airport on Sunday 4 August, from 12 midday to 4pm. Many examples of aircraft that have worked in agricultural aviation will be on display. It also gives people a chance to mingle with many of the older pilots from those early days, as well as those safely flying our skies today. . .

Mercurey NZ Young Winemaker of the Year 2019 kicks off this week

Now in its fifth year the first of the regional finals will be held this week as the countdown begins to find the Tonnellerie de Mercurey NZ Young Winemaker of the Year 2019.

This year there will be three regional finals and the winner from each will go through to represent their region in the National Final.

The North Island regional competition will be held on Thursday 1st August at EIT in Hawke’s Bay and is open to all emerging young winemakers in the North Island. . .

Brexit: Michael Gove admits farmers may never recover from no-deal – Paris Gourtsoyanis:

A no-deal Brexit would seriously harm the UK’s farmers, Michael Gove has admitted.

The Environment Secretary told the National Farmer’s Union (NFU) conference that there was “no absolute guarantee” that British farmers could export any of their produce to the EU in a no-deal scenario, and would face punishing tariffs even if they could.

Mr Gove also dismissed speculation that the UK Government could slash tariffs on food imports after Brexit, an idea hinted at by International Trade Secretary Liam Fox. . .


Nathan Guy to retire

July 30, 2019

Former National Minister of Primary Industries, Nathan Guy will retire from politics at next year’s election.

Mr Guy became an MP in 2005 and a Minister in 2009. He has held the Otaki seat since 2008 and will have served 15 years in Parliament by next year’s General Election.

“I have been extremely fortunate during my time in Parliament and am proud of the work I have done in my Otaki electorate as well as for New Zealand as a whole,” Mr Guy says.

“My number one priority has been to support the people of Kāpiti and Horowhenua, and it’s been a pleasure to have helped thousands of constituents with their wide-ranging issues. I’ve also enjoyed the interactions had with locals at weekend markets, special events, in the streets or on the side-line.

Mr Guy says highlights include winning the Otaki seat and being a Minister for nearly nine years.

He won the seat from Labour’s Darren Hughes.

“During this time I’ve worked with six Mayors, seen huge growth and development in the electorate and had wonderful staff supporting me at my offices in Paraparaumu and Levin.

He served as Minister of Primary Industries, Internal Affairs, Immigration, Veterans’ Affairs, Civil Defence and Racing in the John Key and Bill English-led National Governments, and has also been Associate Minister of Transport, Associate Primary Industries, Associate Justice, and Associate Economic Development.

“As Primary Industries Minister I am proud of my work leading the Government’s response to a blackmail 1080 threat to infant formula, that kept overseas markets open and ended in a successful prosecution

“I have, and will continue to be a strong supporter of rural communities, especially as Minister through adverse events like the dairy downturn, prolonged North Canterbury drought, earthquakes and floods. I advocated hard for water storage projects and helped secure funding for a variety of projects including Central Plains stages one and two.”

Mr Guy believes National can win the 2020 General Election because of the talented, hard-working group of MPs who are focussed on delivering policies that will make a difference to New Zealanders.

He has made the announcement now to give National time to select a new candidate that will continue to work hard to represent the people of Otaki.

“My family has been amazing in their support over the years, and it will be a big change especially for my children who have only ever known their dad as an MP.

“I’m excited about what the future may hold and want to thank the people of Horowhenua and Kāpiti for their support. I will always advocate for the region I’m so proud to call home.”

I have always found Nathan very approachable and there is no doubting his commitment to and advocacy for the primary sector.

The announcement says he’s retiring from politics, that’s not the same as retiring.

He is a farmer and will have plenty of other opportunities should he choose to pursue them.

National leader Simon Bridges has announced a minor reshuffle in the wake of Nathan’s announcement.

Nathan has been a champion for rural New Zealand. As a farmer and a businessman, he understood more than most what the sector needed and he delivered for them.

“Today I am announcing that his portfolios of Agriculture, Biosecurity and Food Safety will be picked up by Todd Muller. He will also keep his Forestry portfolio. Todd is a hardworking and high performing MP who is deserving of a promotion. I have no doubt that Todd will hold this Government to account on behalf of rural New Zealand.

“The Climate Change portfolio will be picked up by Scott Simpson, which will tie in well with his work as our Environment spokesperson. Scott is passionate about the environment and leads our Bluegreens team. Scott will continue our pragmatic approach to climate and environmental issues.

“The Workplace Relations and Safety portfolio will go to Todd McClay, which will fit well with his work as our Economic Development spokesperson. With business confidence already at record lows, New Zealand businesses cannot afford this Government’s radical industrial law reforms.

“National is the strongest team in New Zealand politics. Today’s reshuffle shows that we are brimming with talent and have the best people to hold this shambolic Government to account.”

All three are well-suited to these portfolios.


Rural round-up

April 6, 2019

FARMSTRONG: Putting people first comes first

A thriving Canterbury dairy farmer puts as much thought into looking after his staff as he does stock and pasture. 

Duncan Rutherford manages an operation with 14 staff, 2300 cows and some sheep and beef on a 3300-hectare property. 

He and his family are still dealing with the aftermath of the 2016 Kaikoura earthquake. 

“It was a reasonable challenge all right. A couple of houses got fairly damaged and one is still being repaired.  . . 

Exporters’ Brexit concerns grow – Peter Burke:

New Zealand primary produce exporters’ concerns continue rising about the confusion in the British parliament over Brexit.

NZ’s agricultural trade envoy Mike Petersen says given the possibility of a no-deal, exporters are making contingency plans for such an event.

But they also still hope a deal will be agreed so they won’t have to trigger plans for a no-deal. The whole thing is a terrible mess, Petersen told Rural News last week. . . 

Young farming couple applauded for farm sustainability – Angie Skerret:

A farming couple applauded for their commitment to farming sustainability have a simple message for other farmers – make a plan and make a start.

Simon and Trudy Hales, of Kereru Farms, are one of eleven regional winners of the Ballance Farm Environment Awards – taking out the Horizons regional award.

The Hales are the fourth generation to farm the land, and have worked hard to make positive changes on their 970ha sheep and beef farm near Weber. . .

A2 Milk says lift in dairy prices may impact in FY2020 – Rebecca Howard:

 (BusinessDesk) – A2 Milk Company said recent increases in dairy pricing will have an impact on gross margin percentages in the 2020 financial year but it doesn’t anticipate any significant impact this year.

Dairy product prices rose for the ninth straight time in the overnight Global Dairy Trade auction. The GDT price index added 0.8 percent from the previous auction two weeks ago and average prices are now up 28 percent since the auction on Nov 20.

“We do not anticipate any significant impact to gross margin percentage during FY19 as a result of recent increases in dairy pricing as reflected in Global Dairy Trade Indices. . . 

Dairy industry tells EU ‘hard cheese’ – Nigel Stirling:

The dairy industry is digging its heels in over the European Union’s attempts to seize dozens of cheese names for the exclusive use of its own producers.

The EU has long sought to use its free-trade agreements to extend its system of Geographical Indications (GIs) and its trade talks with NZ have been no exception.

As part of the talks the European Commission has given NZ negotiators a list of 179 food names and hundreds more wine and spirit names linked to European places it says should be given legal protection over and above that provided by this country’s own system of GIs protecting names of wines and spirits introduced several years ago. . . 

Scott and Laura Simpson’s focus on data collection pays off in Inverell drought – Lucy Kinbacher:

SOME of the toughest decisions are made during unfavourable seasons but for Inverell’s Scott and Laura Simpson their efforts during the good times are making their management easier. 

The couple are into their fifth year of ownership of the 1700 hectare property Glennon, which was previously run by Mr Simpson’s parents. 

At the time they had a herd of Brangus content types so the pair moved to incorporate more Angus genetics and breed more moderate females.  . . 


Tyranny by minority

January 25, 2019

The Government’s ‘fair pay’ agenda is anything but fair:

The recommendations of Iain Lees-Galloway’s Fair Pay Agreement Working Group show the Government’s industrial relations agenda amounts to compulsory unionism by stealth, National’s Workplace Relations and Safety spokesperson Scott Simpson says.

“Businesses and workers should be frightened. The recommendations from the working group are as radical as we originally feared – backward, one-size-fits-all and rigid.

“Just 10 per cent of an industry would be able to trigger mandatory nationwide employment negotiations. Business owners would lose control over an important part of running their enterprise. Workers would be forced into line with the union movement.

That is tyranny by a very small majority.

One of the most worrying aspects is the lack of opt-out provisions for businesses. That means both small and large businesses across New Zealand will be coerced into more restrictive, costly employment agreements. That is a step towards compulsory unionism.

“The Government needs to quickly dismiss these radical recommendations and give certainty to businesses and workers that they will not be coerced into these restored national awards. They hurt our economy in the 1970s and they will hurt it now. . .

These measures would take New Zealand back to the bad old days where unions ruled and both business and productivity suffered.

These are regressive and dangerous policies which reward the union donors to the Labour Party at the cost of everyone else.

But there’s no corruption in New Zealand, is there?

 


Higher min wage = higher prices + fewer jobs

December 20, 2018

The minimum wage will go up to $17.70 next April, the highest relative to the average wage in any country in the developed world.

On the surface it’s good news for workers.

Below the surface there are risks to jobs and the very real prospect of increased taxes and prices eroding any benefit of higher wages.

Wellington Chamber of Commerce chief executive John Milford points out, it needs to be at least matched by an increase in productivity.

“Research shows that any minimum wage increase has a cascading effect on workers paid above the minimum wage too. This particularly hits SMEs who are unable to pass on or manage their costs easily.

“We urge the Government to accelerate productivity-enhancing policies such as investing in strategically important transport networks, freeing up labour supplies to desperate primary industry employers, and raising the quality of tertiary education graduates.

“MBIE’s minimum wage review estimates the employment restraint impact from today’s announcement at 8,000. But Kiwis have already started to see an impact from the significant minimum wage hikes foreshadowed.

“The past four quarters added 6,000 new jobs per month on average, a marked slowdown from the preceding two years when over 10,000 new jobs were added per month on average, despite the currently hot labour market. . . 

Milford also points out that without tax reform much of any increase will be clawed back in tax.

The Employers and Manufacturers Association also points to problems if wage increases aren’t matched by increased productivity.

 The EMA’s Chief Executive Kim Campbell says, “When you take into account the current rate of $16.50 (up from $15.75 per hour) that came in on April 1 this year, you are looking at a 27 per cent increase in the minimum wage over a four-year period.

“That change was 4.8 per cent (75 cents), to be followed a year later by another 7.3 per cent ($1.20) increase on April 1, 2019. New Zealand already has the highest minimum wage in the OECD relative to the average wage.

“These are significant costs for business to swallow, particularly for those in the small-to-medium [SME] sector or for those large employers with significant numbers of young and entry level staff on the minimum wage.  

And who pays?

Mr Campbell said it was uncertain what impact such a large increase might have on the hiring intentions of employers but he expected such a large wage increase to be passed on in charges to customers and consumers.

“We do know that large increases in minimum wage structures in Canada and the United States led to large increases in unemployment numbers, but we are in an already very tight labour market in New Zealand where employers simply cannot find the staff they need.

“I think we are more likely to see increases in costs to consumers as a result, as many employers are already working to very skinny margins.

“Minimum wage increases also tend to flow through an organisation as other, higher-paid employees want to retain their pay relativity levels and seek adjustments to their own wage rates.

“That puts additional payroll pressure on employers who may also opt out of offering additional benefits to new employees to maintain differentials with existing staff.”

Mr Campbell says the main concern is that while additional costs and conditions were being heaped on employers through multiple changes in employment legislation, there was no focus on measures to boost productivity.

“There is no research anywhere in the world that shows simply boosting wages (and therefore costs) leads to an increase in productivity,” Mr Campbell says.

It doesn’t increase productivity and it can and does have other perverse outcomes.

When wages for resthome carers was increased the difference between their wages and that of registered nurses led to some nurses opting to work as carers rather than nurses.

The added responsibility and stress that came with the nurse’s role simply wasn’t enough to justify the smaller difference in pay.

Arbitary increases in wages also leads to employers seeking ways to do more with fewer staff.

A friend who is in horticulture increases mechanisation every time changes to wages and conditions make it more expensive and difficult to employ people.

Nationals employment spokesman Scott Simpson says:

“You simply can’t just legislate your way to prosperity – if you could you’d simply make the minimum wage $50. But artificially inflating wages is no substitute for an economic plan. . .”

The plan that’s needed for increased productivity to sustain higher wages must include tax reform – at the very least a change in tax brackets to reflect inflation.

It must also include other policies which encourage businesses to take the risks and make the investments necessary the for growth which safeguards existing jobs and provides opportunities for new ones.

 


%d bloggers like this: