Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


Parker’s irrigation tax proposition will cripple farmers

Parker’s irrigation tax proposition will cripple farmers and lead to food price increases


Irrigation New Zealand (INZ) is not convinced that Labour has fully considered the implications of a tax, or resource rent, for irrigation. Particularly how this would be practically implemented.

Many water takes involve combinations of irrigation, hydropower and domestic supply such as the Opuha dam or the Rangitata Diversion Race – how will these complex takes be split apart to allow for irrigation related resource rents?

More importantly it is not equitable to do so given that private energy companies, Trustpower for example, and commercial business connected to domestic water supply systems also prosper from the use of water. A resource rent will mean increased cost for domestic water supply and electricity alongside food price increases – such a tax would therefore impact upon low income earners the most.

Additionally, this increased cost to the farmer will impact production and importantly prevent farmer investment in improved environmental management to meet the water quality limits now in place in a number of regions. Ultimately it will see the demise of the traditional New Zealand family farm.

Despite Mr Parker’s statement that irrigation is funded by subsidies, this is not the case. The Crown Irrigation Investment Fund is an investment company receiving market returns - for example the recent $6.5million loan to Central Plains Water. New Zealand does however need to consider the benefits of subsidising modern irrigation scheme development, it would allow increased farmer investment in improved environmental management enabling them meet new standards more quickly.

Mr Parker’s comments that irrigation is a wealth transfer that only benefits rich land owners is disingenuous. Irrigation is well proven to benefit everyone – multiple independent socio-economic studies both in New Zealand and overseas demonstrate this. Because of the consensus view In New Zealand that our waterways are important and integral, all proposed irrigation schemes in New Zealand incorporate sustainability and environmental improvements.

Irrigation schemes provide infrastructure that allows opportunity for communities to grow. The reality is irrigation underpins thousands of jobs and entire communities in New Zealand, whilst also ensuring we have affordable food available on our tables. Blenheim, Ashburton, Timaru and Oamaru are all examples of this.

Sustainable solutions and environmental safeguards – many driven and agreed on by the 62-member Land and Water Forum - have begun in earnest: with compulsory water metering, stock exclusion from waterways and water quality limit setting. As a result in excess of $2billion ($5,000 per hectare) has and continues to be spent on converting flood and older spray irrigation systems to modern centre pivot irrigators.

These measures already in place will help ‘clean up’ dirty rivers and lakes over a generation; increases in intensity of land are already being controlled through nutrient allocation limits imposed on irrigators; and improvements to farm practice are already underway to offset environmental burdens caused by intensive farming.

INZ agrees with Mr Parker that New Zealanders can have their ‘cake and eat it’ - good water quality and a vibrant farming economy is achievable with a better defined environmental management framework for irrigators to operate within. Reducing uncertainty is key as it allows for investment. The future is about developing policy that enables irrigators to invest in the latest technology to improve water use efficiency and decrease their impacts on water quality.

Fairly funded and properly regulated irrigation is needed to achieve the next level of prosperity and sustainability in New Zealand. Visit www.smartirrigation.co.nz for more information on what irrigators are up to.

Ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

2040 Target And Lower Standards: “Swimmable” Rivers Five Times More Likely To Make You Sick

Forest & Bird has condemned the government’s new water quality standards, warning New Zealanders that they lock in current levels of water pollution and allow for a 5-fold increase in the chance of getting sick from swimming in a river.

“Despite an explicit assurance from Minister Smith that the new water standards would provide for human and ecosystem health, he has failed to deliver on either of these things,” says Forest & Bird CEO Kevin Hague. More>>

 
 

Mayor: 750 New Social And Affordable Homes For Wellington

The next stage of Wellington’s Housing Upgrade Programme will see at least 750 new units of social and affordable housing built over the next decade, Mayor Justin Lester has announced. More>>

ALSO:

22/2: Christchurch Quake Memorial Unveiled

A city, a region, a nation and an international community impacted by the Canterbury Earthquakes will come together to mark the sixth anniversary of the deadly quake and dedicate Oi Manawa Canterbury Earthquake National Memorial. More>>

ALSO:


November Quakes:

Gordon Campbell: On The Mana-Maori Party Deal

If the self-interest involved wasn’t so blatant, the electorate deal between the Maori Party and Hone Harawira would be kind of poignant. It’s a bit like seeing the remaining members of Guns’n’Roses or the Eagles back on the road touring the nostalgia circuit… playing all the old hits of Maori unity and kaupapa Maori politics. More>>

ALSO:

Private Provision: First Social Bond To Focus On Mental Health

New Zealand’s first social bond will help around 1700 people with mental illness into work, Finance Minister Steven Joyce and Social Investment Minister Amy Adams say. More>>

ALSO:

Immigration: Short Reprieve For Nine Indian Students

A temporary hold on deportations of nine Indian students is a step in the right direction but the Government urgently needs to implement safeguards to stop further injustices to more international students, the Green Party says. More>>

EARLIER:


Megaupload Case: High Court Rules Dotcom, Co-Accused Eligible For Extradion

Internet entrepreneur Kim Dotcom and his three co-accused are eligible for extradition to the United States, New Zealand's High Court ruled... Justice Murray Gilbert upheld a decision by the District Court that there were grounds for Dotcom, Mathias Ortmann, Bram van der Kolk and Finn Batato to be extradited. More>>

ALSO:

PREVIOUSLY:

Port Hills Fire: Midday Update, Monday 20 February

• 9 homes destroyed
• 2 homes with partial damage. Damage includes things like cracked windows, heat damage.
• 3 properties with damage to other external structures e.g sheds or outbuildings More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news