Dry conditions in Northland and Waikato remain a big concern
Hon Nathan Guy
Minister for Primary Industries
26 March 2014
Dry conditions in Northland and Waikato remain a big concern
Primary Industries Minister Nathan Guy says dry conditions in parts of Waikato and Northland remain a serious concern.
“Local authorities in Northland have announced the western parts of their region are in drought. This reflects the tough few months they’ve had as pasture has browned off.
“Cyclone Lusi has helped green tinges appear in some places, but the rainfall was erratic and insufficient. Western Northland and large parts of the Waikato remain very dry.
“The Ministry for Primary Industries is keeping a close eye on conditions here and elsewhere. I’ve seen for myself how dry things are on two trips to the Waikato in the last two weeks.
“At this stage the conditions don’t meet the criteria for the government to declare a medium scale adverse event. This is because the drought conditions are localised, and we haven't had a formal request to make such a declaration. A range of support is currently available to farmers and most are managing to cope.
“I’ve been talking regularly to the Rural Support Trusts and local farmers who are hoping for rain soon. The advantage for Northland is dry farms respond quickly to rain, because they generally have good soil warmth through the autumn and early winter.
“I’m encouraging farmers to seek professional advice from Rural Support Trusts, DairyNZ and Beef + Lamb NZ who can provide information about managing dry conditions. IRD can also provide tax flexibility on a case by case basis.
“Banks also play a key role when things get tough on farms, and I’m pleased they are encouraging farmers to contact them and discuss their situation if facing difficulties.
“Farmers don’t want handouts, but they want to know the Government understands the situation they are facing.
“Farmers have shown incredible resilience to adverse events before, and we will get through this tough period,” says Mr Guy.
Further information
What is a localised adverse
event?
MPI assesses the scale of adverse events that
impact the primary industries as being Localised, Medium, or
Large scale. Medium and large scale adverse events will
usually trigger additional government assistance, which
recognises that the event is at a scale that is beyond the
capacity of the community to reasonably cope on their
own.
A localised adverse event recognises that there is a climatic or natural disaster event that is occurring in the district and is impacting farmers and other primary producers. However, since it is localised, there will usually be no official government declaration or recovery assistance package announced.
An adverse event declaration is about the impacts of the event, not the event itself (i.e. it is not an official drought declaration, but rather that there is a drought that has reached the point that it is impacting on primary producers).
Who can declare a
localised adverse event?
Announcements around
localised scale adverse events can be made by local
authorities, working together with sector bodies and other
associated parties (such as Rural Support Trusts). There is
no legislation to guide a local adverse event declaration
and no formal process. It is rather an acknowledgement from
local authorities and sector bodies (e.g Beef + Lamb,
DairyNZ) that an adverse event is occurring and impacting a
part of the rural community. This is an opportunity to
provide important information to farmers around options to
manage through and recover from the event, and to direct
them towards assistance.
How is a localised adverse
event declared?
The easiest way to announce a
localised adverse event is through relevant councils, in
conjunction with sector bodies and the local Rural Support
Trust. Together, the situation can be assessed and a formal
statement made that the authorities consider there is a
local adverse event. A joint press release can outline this,
and provide details of how primary producers can access
assistance and further information. The term ‘localised’
is simply government’s assessment against the criteria in
the Primary Sector Recovery Policy. This term does not need
to be officially used by local authorities in making
announcements about the event.
What assistance is
available from Government during a localised adverse
event?
During a localised adverse event the following
assistance measures are available from Government:
Business assistance | ||
Income Equalisation Scheme | Enables, by use of a Commissioner’s discretion, taxpayers to make late deposits and/or early withdrawals from the income equalisation scheme. The exercise of the discretion is event specific. | Inland Revenue Department |
Additional flexible tax provisions | Depending on the circumstances IRD can consider late payment and late filing of tax without penalty and has hardship rules which can help as well | Inland Revenue Department |
Individual and family support | ||
Seasonal Work Assistance | Financial assistance for horticulture workers who are unable to work (and lose income), due to poor weather conditions. Income and asset tests apply. This measure is not available in a biosecurity incursion. | Ministry for Social Development |
Special Needs Grants, Recoverable Assistance Programme | These payments are for one-off essential and immediate needs e.g. food and depend on a person’s individual circumstances. Income and asset tests apply. | Ministry for Social Development |
ENDS