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

Gordon Campbell: On The Wage Hike For MPs (and Paul Robeson)

Hard to tell what is more infuriating. Is it the 5.3% increase on the already bloated salaries of MPs, or their pantomime of outrage at being gifted with such a wonderful back-dated bonanza?

As usual, Prime Minister John Key has busily tried to distance himself from the political fallout, even though he happens to be the main beneficiary of the Remuneration Authority’s generosity. Finance Minister Bill English says with a straight face that it would actually be very hard to give the money back...

Even if it were true, it would actually be very easy for English and any other guilty colleagues, to give the extra money away. There are any number of food banks or homeless shelters who would be able to put the money to good use. More>>

 

PARLIAMENT TODAY:

No Designers Or Visual Artists: Flag Panel Members Announced

The Government has appointed 12 New Zealanders as members of the Flag Consideration Panel which will engage with the public about a possible new New Zealand flag, Deputy Prime Minister Bill English says. More>>

ALSO:

Labour MP Stands Down From Portfolio: Comment From Carmel Sepuloni

The first I knew of my mother’s charges was when I was called by a reporter yesterday. I spoke to Andrew and we agreed there is a conflict of interest at the present time which means I will temporarily stand aside from the Social Development portfolio. It’s the right thing to do… . More>>

ALSO:

Gordon Campbell: On Whether NZ Troops Are The Least Of Islamic State’s Problems

Given that it has been politically packaged and sold as a training mission, the Iraq deployment announced yesterday by Prime Minister John Key seemed to be mysteriously short of actual trainers... The other wing of the argument is whether a troop deployment is (a) the only effective way and (b) the appropriate time to combat Islamic State. More>>

ALSO:

143 Troops, Possible SAS Deployment, Legalities Unsorted: PM’s Statement On ISIL

Mr Speaker, today I am announcing to the House the Government’s decisions about our contribution to the fight against the Islamic State of Iraq and the Levant, or ISIL... More>>

ALSO:

Liu Saga: PM's Dinner With Controversial Donor

John Key must front up to New Zealand and say what he discussed with Donghua Liu when the disgraced businessman paid $25,000 for the Prime Minister to come to dinner at his Remuera home, the Green Party said today. More>>

ALSO:

Roads: National MP 'Concerned' At Overseas Driver Crashes

Waitaki MP and Parliamentary Private Secretary for Tourism Jacqui Dean said she was concerned at the number of fatal crashes involving overseas licence holders and she really felt that the time had come for more to be done. More>>

ALSO:

Parliament Today: Parole Bill Passes

A bill reducing parole hearings deemed to be unnecessary has passed. The third reading of the Parole Amendment Bill was completed by 104 to 16 with the Greens and Maori Party opposed. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news