Top 10 issues for farmers
Released 12 Sep 2008
Federated Farmers has identified 10 high priority issues farmers need most from government.
With the election date being set for 8 November, now is a great chance to meet with your local MP. Below is a document which outlines some possible topics of discussion.
RMA reform
Improving the Resource Management Act is one of the top priorities for farmers. The key features of any reform should include provisions to:
- Mandate consultation;
- Refine the Department of Conservation's role;
- Streamline process;
- Encourage farm succession;
- Recognise farms as working landscapes;
- Acknowledge stewardship.
Trade liberalisation
Trade liberalisation delivers enormous benefits to farming and the economy. New Zealand must continue to:
- Push agricultural trade liberalisation through the World Trade Organisation;
- Seek bilateral free-trade agreements that include agriculture.
First World infrastructure
New Zealand needs First World infrastructure. This involves:
- Increased investment for the improvement and maintenance of our roading infrastructure - both local roads and state highways;
- Increased investment in electricity infrastructure and a regulatory regime that helps ensure the delivery of secure and reliable electricity supply at affordable prices that allows businesses to stay competitive;
- Increased investment in telecommunications infrastructure and a regulatory regime that promotes competition in telecommunication services.
Lower taxes
Government spending has increased 67% since 2000 and each New Zealander now pays, on average, more than $12,000 per year in tax (compared to $8000 in 2000). This rapid growth in spending has also boosted inflationary pressures, resulting in higher interest rates and pressure on the exchange rate. The Government should:
- Review all existing spending to ensure it is productive and provides good value for money;
- Restrict future increases in spending to population growth plus the Consumer Price Index (CPI);
- Over time, reduce the top rate of personal income tax to 30%, aligning it with the company tax rate;
- Adjust personal income tax thresholds to take account of inflation.
These policies would reduce the tax burden, make government more efficient and make it easier for the Reserve Bank to control inflation without having to resort to tight monetary policy.
More workers on farms
Farmers need more workers to ease labour pressures. This requires:
- Farming and farm work to be promoted as a desirable occupation for New Zealanders;
- More immigration of farm workers;
- Recognition of the importance of specialised agricultural training and education.
Water policy wants
Water is the lifeblood of food production. Central and local government decisions on water allocation and water quality have the potential to severely impact upon both the freedom to farm and farm productivity, particularly in areas that rely on irrigation. Water policies need to:
- Be based on good information and sound science;
- Be simple and cost-effective, both for the regulator and the user;
- Provide secure tenure and clear specifications for water use;
- Provide flexibility to suit local needs and circumstances;
- Provide for water harvesting and storage;
- Recognise that efficient use of water is best determined by water users;
- Accommodate voluntary transfer or exchange of water permits.
Climate change considerations
It is unjustifiable and inappropriate to bind New Zealand to emissions reduction commitments that will result in economic hardship for little, if any, environmental benefit. However, in light of New Zealand's ratification of the Kyoto Protocol, the Government:
- Should revise its preferred policies to better reflect what our key trading partners and competitors are proposing to do;
- Should seek to adopt policies that impose least cost, are the least distorting, and would result in efficient resource use and allocation.
Improved biosecurity
New Zealand must remain vigilant in protecting its borders from unwanted pests and diseases that could severely harm our farming industries and ruin our international reputation. This requires:
- Increased taxpayer funding for biosecurity services, both at the border and behind the border such as regional pest management strategies;
- Stricter controls on the importation of risky goods;
- Involvement of industry in planning and decision-making for surveillance, incursion response, and recovery;
- Those who exacerbate the problem should fund the costs of incursion responses.
Rates reform
Council rates are punitive and unsustainable. Councils' reliance on property value rates must be reduced. The Government should:
- Provide more revenue from petrol taxes and road user charges so local roads are funded according to road use rather than property value;
- Provide 1 cent of the 12.5 cents of GST to councils;
- Remove all rating exemptions on land, including DOC's estate;
- Continue to allow differentials and uniform charges to adjust rates to reflect the level of access to and benefit received from council services.
Rights in property
The protection of private property rights is fundamental for farming. Physical ownership is just one aspect of rights in property, which also includes rights to determine the use of a property, any income from a property, disposing of a property, and the exclusion of others from a property. Federated Farmers supports the passage of a Regulatory Responsibility Bill (currently before Parliament) which contains provisions for:
- Compensation for any takings of rights in property;
- More rigorous disciplines to improve the quality of legislation and regulation and thereby reduce compliance costs.
Note
Federated Farmers of New Zealand is an a-political organisation. It does not support any political party but it does support policies that add value to the business of farming for its members.
