Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Agri-business leaders fear loss of trade consensus

Agri-business leaders fear loss of trade consensus, new regulation

By Pattrick Smellie

June 9 (BusinessDesk) - Leaders in the agri-business sector fear the loss of the traditional political consensus favouring free trade agreements if there's a change of government, but are equally fearful that a Labour-Greens coalition will see heavier regulation against environmental harm and will start charging farmers to use water and other "natural capital", says the annual KPMG Agri-Business Agenda publication.

While enthusiastic about Labour's research and development tax breaks, which could help develop new technologies to improve environmental outcomes, farming and food sector leaders fear the lack of visible progress towards environmental goals could see what the report coyly refers to as "a new coalition government" impose new costs and regulation on the industry to force a faster clean-up.

"The need for the primary sector to improve its performance around core sustainability issues, such as water quality and nutrient management, is not disputed," KPMG's global head of agri-business, Ian Proudfoot, writes following a series of "roundtable" meetings and surveys with sector leaders around the country.

"While significant investment has been made to address these issues, the benefits are not immediately apparent. There is a concern that the lack of runs on the scoreboard may result in a new coalition government increasing the regulation on the industry and imposing charging mechanisms for the use of natural capital."

A major concern is the prospect that the "time the industry needs to resolve its challenges may be reduced or completely removed."

Opposition parties' policies to encourage research and development through tax breaks, along with additional funding in areas of urgent need for environmental improvements by the agri-business sector "must be the counter-balance to any tightening in environmental regulation."

On trade policy, the report suggests that agri-business leaders regard the expansion of "high quality" free trade agreements as "higher priority" than in the past, at the same time as Opposition parties appear to be cooling towards them.

"This reflects the benefits that are being derived from the agreements in place, and constraints being experienced when competing in key markets, such as Europe and South Korea, where competitors have preferential market access over our companies."

However, there were indications the history of cross-party cooperation on trade policy "may no longer be guaranteed", especially given the extent of opposition to the proposed Trans-Pacific Partnership Agreement, currently under negotiation but apparently stalling.

The report also suggests the sector has a poor image among urban communities and needs to take a coordinated approach to communicating its importance to the country.

"It needs to tell the story about how it operates, what is is doing to improve, where it requires support, and the contribution it delivers to the economy.

"Without an active programme to communicate this in an open and honest way, the pre-election uncertainty expressed during this year's Roubtables will become the norm for industry leaders," KPMG's Proudfoot says, while noting industry leaders continue to see "minimal benefit in developing an industry umbrella body."


(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news