Poor pay less and more

29/06/2018

Transport Minister Phil Twyford says the poor will pay less fuel tax than wealthier people.

He’s right in dollar terms but if he’s worried about the impact that’s not what matters, it’s the proportion of income that counts:

“Transport Minister Phil Twyford is either very brave or very stupid in arguing that fuel taxes are easiest on the poor,” says Taxpayers’ Union spokesman Louis Houlbrooke.
 
“He is doggedly focusing on the dollar impact of the fuel tax, and ignoring the cost as a proportion of total income.”
 
“It’s no surprise that rich people buy more fuel – they buy more of everything. But people on low incomes spend a far larger proportion of their income on fuel, meaning a tax hike will have a far bigger effect on their real quality of life.”
 
“It only takes five minutes to graph Twyford’s figures and see the real impact of fuel tax.”

“The verdict is clear: fuel taxes whack the poorest almost four times as hard as they whack the richest.”
 
“It’s stunning to see such selective ignorance from a centre-left Minister who is meant to understand issues of fairness and equality. Isn’t this stuff Labour Party 101?”

As David Farrar points out, the poor consume less of almost everything (except tobacco) but spend a higher proportion of their income on it

The cost of the fuel tax will be greater for higher income people but the poor will pay more of what they earn on it:

Now let’s look at the average incomes for each decile

  • Decile 1 – under $23,900
  • Decile 5 – $64,400 to $80,199
  • Decile 10 – over $188,900

So the extra fuel tax as a percentage of income is:

  • Decile 1: 0.52%
  • Decile 5: 0.27%
  • Decile 10: 0.14%

Let’s not forget it’s not just the direct cost that will hit the poorest hardest.

Every service and all goods with a transport component (and can you think of anything that doesn’t have one?) will be impacted by the tax and that will, sooner or later, lead to price increases, inflationary pressure and interest rate rises.

The Ardern/Peters/Shaw/Davidson coalition government, all parties in which purport to represent and work for the poor, is adding to the cost of living and making life harder for them.

And adding to that is yesterday’s announcement we’ll all be paying an extra 10.5 cents a litre over the next two years in excise tax.

P.S.

Michael Redell writes on regressivity, petrol taxes, and ministerial PR at Croaking Cassandra.

Thomas Lumley examines the issue at Stats Chat.

Sam Warburton tweets on it here.

 


Rural round-up

20/06/2017

Eating quality combats imitations – Annette Scott:

Grow them fast and kill them young is the recipe for the best eating quality in red meat.

And with the threat from synthetic and plant-based meats a good eating experience was critical to underpin New Zealand’s grass-fed, ethically produced red meat story, AbacusBio consultant Jason Archer said.

Older animals had more connective tissue in their muscles, which made their meat tougher, so fast-finishing made for more tenderness, Archer told farmers at a Beef + Lamb NZ beef-focused field day. . .

Synlait revises 2016 / 2017 forecast milk price to reflect current market:

Synlait Milk (NZX: SML; ASX: SM1) is forecasting a total milk price of $6.29 kgMS for the 2016 / 2017 season, consisting of a forecast base milk price of $6.15 kgMS and $0.14 of premium payments.

An average premium payment of $0.14 kgMS will go to Synlait’s Canterbury milk suppliers creating value behind the farm gate with seasonal and Special Milk progammes such as a2 Milk™, Grass Fed™ and Lead With Pride™. . . 

Impressed by carpet launch – Sally Rae:

Trevor Peters admits he was a bit sceptical before he headed to New York for the launch of Carrfields Primary Wool’s Just Shorn range of wool carpets and rugs.

But once there, the Otago farmer was ”pretty impressed”.

A group of farmers attended the launch last month, along with New Zealand Trade Commissioner-Consul General Beatrice Faumuina.

Mr Peters and his family operate Peters Genetics, a large-scale farming operation in Otago, running about 32,000 ewes.

All action at Holstein-Friesian conference – Sally Rae:

Holstein-Friesian breeders from throughout New Zealand will converge on Central Otago this week.

The New Zealand Holstein-Friesian (HFNZ) Association is holding its conference in Cromwell, organised by the Otago branch of the organisation.

Holstein-Friesian cattle make up more than 45% of the national dairy herd and HFNZ has more than 750 members nationally, Otago branch chairwoman Judith Ray said.

The conference theme was High Octane: Gold, Wine and Speed, with various activities organised around that, and it was ”action-packed”.

Planning began about 18 months ago and organisers wanted to ”showcase” what the region had to offer, Mrs Ray said. . . 

More irrigation work approved – Annette Scott:

The $195 million Hunter Downs Water project has received the all clear to implement its proposed irrigation scheme in South Canterbury.

Environment Minister Nick Smith has granted Hunter Downs Water requiring authority status to develop and operate the Hunter Downs irrigation scheme, effectively giving it the green light to go.

The milestone decision gave it the authority to apply to the Timaru and Waimate District Councils and Environment Canterbury for the necessary designations to implement the scheme. . . 

Fieldays showcases the tech changing farming:

A technology tsunami is set to change the way New Zealand agricultural producers do business according to ANZ’s Rural Economist Con Williams.

At Fieldays this week to talk about his latest Agri Focus research into the digital tsunami hitting the primary industries, Mr Williams said the number of apps and innovations designed to help improve agricultural businesses has exploded in recent years.

“A technology tsunami is upon the primary sectors. From meeting consumer demands around how food is produced to adapting to changing regulatory requirements, technology is poised to play a much bigger role in farm management,” Mr Williams said. . . 

Strong interest in on-farm bull sale at Rangiwahia – Jemma Brakebush:

As the bull sale season picks up around the country, the first on-farm bull sale in more than a decade was held in the small farming community of Rangiwahia, this week.

Murray and Fiona Curtis set up Riverlee Stud four years ago and held their first sale on Wednesday, to allow sheep and beef farmers to buy the bulls direct through them. , , 

What’s brown and sticky? – Thomas Lumley:

Q: What’s brown and sticky?

A: A stick!

Q: What do you call a cow on a trampoline?

A: A milk shake!

Q: Where does chocolate milk come from?

A: Brown cows!

There’s a popular news story around claiming that 7% of Americans think chocolate milk comes from brown cows.

It’s not true. . . 

Wilderness Home in Fiordland National Park For Sale:

An idyllic waterfront holiday home in New Zealand’s Fiordland National Park, the ultimate wilderness playground, has been placed on the market for sale.

The property is one of only 25 privately-owned sections located within the majestic Fiordland National Park.

The traditional Kiwi bach is located in an area called Jamestown, which was founded in the 1870s on the shores of Lake McKerrow near the bottom of the South Island’s West Coast. . . 


Political story of the day

17/06/2014

The round-up of political stories while Politics Daily is taking a break seemed  like a good idea but it was taking too much time.

Instead, I’ll feature a political story of the day and welcome you to add others.

My pick won’t necessarily be the most important one, it can, as today’s does, raise a point no-one else does.

The story on this morning’s Herald-DigiPoll survey said Internet Mana would have two seats.

Over at Stats Chat Thomas Lumley reminds us of the margins of error:

. . . That’s probably 9 respondents. A 95% interval around the support for Internet–Mana goes from 0.6% to 2.4%, so we can’t really tell much about the expected number of seats. . .

 

A small change in a small number can appear to be far more significant than it is.


Rural round-up

18/02/2014

Dairy farms set to beat compliance deadline – Tony Benny:

DairyNZ hopes to have all dairy farmers in the Amuri Basin signed up to its Sustainable Milk Plans by the end of the year, meaning they will comply with new Environment Canterbury environmental regulations well before the 2017 deadline.

The plans are based on a voluntary scheme in the Waikato, tweaked to comply with requirements of the Hurunui Waiau River Regional Plan, which came into force in December, under the Canterbury Water Management Strategy.

“The ultimate goal is this will tick all the boxes so at the moment, as I understand it, it does meet all the requirements of Schedule 2 of the Hurunui plan and Schedule 7 of the Land and Water Regional Plan which are both the farm environment plan schedules,” said DairyNZ catchment manager Canterbury Tony Fransen. . . .

For cows daughters mean more milk – Chris Cash:

The amount of milk a cow produces is affected by the sex of her fetus, a new study reports.

Cows that gave birth to a daughter produced considerably more milk than those that had sons. And back-to-back daughters led to a bonanza of milk from their mothers — over two 305-day lactation periods, nearly 1,000 pounds more milk than from cows that had given birth to sons, an increase of 3 percent.

The study, described in the journal PLoS ONE, could have implications for dairy farmers and for new discoveries about human breast milk. . .

NZ vs Aus – who wins at the farmgate? – Freshagenda:

As the current season has unfolded and payouts have heated up over the ditch, many farmers here  are asking the inevitable question – How do Australian farmgate prices compare to New Zealand’s? 
 
To address this question more fully, we really need to look beyond the current season and examine a long term comparison. Freshagenda’s analysis of payments made by Australian manufacturers compared to Fonterra’s over the past 13 years (including a forecast for 2013/14) show that Australian prices have been ahead by around A$0.19 kgMS on average. This is once adjustments have been made for protein – measured as “crude’ in New Zealand and “true” here, and converting NZ prices to Australian dollars. 
 

What the green and black bars on the chart  indicate (in US dollars this time) is that since 2009, Australian farmgate prices have been more resilient when there have been downturns in the international market, while New Zealand’s prices have responded more quickly and fully when commodity prices head upwards. . .

Increasing your slice of the economic pie:

As a commodity producer of primarily agricultural products, New Zealand is not in a favourable position to dictate what goes on in the global marketplace. However, Senior Lecturer in Supply Chain Management, Dr Mark M.J. Wilson , says by looking at the supply chain as a total system, there is the opportunity for businesses to compete through collaboration.

“New Zealand Inc tends to get buried as a supplier within the supply chain,” says Dr Wilson. “For example, our milk products get wrapped up as supply commodities to major confectionery brands that then capture the benefit of their branding to the consumers. So New Zealand gets paid as a commodity player, while the confectionery giant gets the profit from the brand ownership.

“No longer do businesses compete against businesses; rather we need to think about value chains competing against value chains.. .

Two charts about animal use in research – Thomas Lumley:

Prompted by Siouxsie Wiles’s report of talking to an anti-vivisectionist demonstrator, here are two charts from the annual report of the National Animal Ethics Advisory Committee. These are the people who monitor the use of animals in research, testing, and teaching in New Zealand.

The first chart shows what types of animals are used and what happens to them afterwards. . .

 

Triple investment property combines business opportunities with rural lifestyle:

A highly successful multi-purpose hospitality and commercial accommodation business being run as a “hobby” by its current owners has been placed on the market for sale.

The Dairy Flat property north of Auckland combines two business operations with a home on a 4.7 hectare lifestyle section, offering potential new owners the best of both professional and lifestyle worlds.

Located at 48 Young Access in the rural community 25 minutes north of Auckland, the property encompasses a boutique bed and breakfast business with a private residence, a purpose-built glass house function pavilion and a smaller dwelling used as commercial accommodation. . .


Small risks sooner better than big ones later

14/03/2012

Quote of the day:

“It’s better to learn about risk and consequences and controlling your emotion when you are 8 and up a tree, than when you are 18 behind the wheel of a Subaru, getting chased by the cops.”    Professor Grant Schofield.

He was commenting on the Milo State of the Play survey which shows that children have less playtime than their parents and grandparents did.

P.S. Thomas Lumley critiques reports on the survey in Run Along and Play at Stats Chat.


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