National announced more subsidies in farming for capital gains

Written By: - Date published: 2:29 pm, June 13th, 2024 - 19 comments
Categories: climate change, Economy, Environment, ETS, farming, national, Politics, same old national - Tags:

National and their minion parties just announced another massive $400 million R&D subsidy for agricultural greenhouse gases by taxpayers for the low profit industry of pastoral farming. This joins the other large and hidden subsidies levied on tax and rate payers to support rural and state roads capable of sustained heavy agricultural and forestry trucks.

This capital gains welfare will be entirely paid for by the non-farming taxpayers. It was announced at the same time as Simon Watts announced that agricuture would not pay any industry climate change levies for the foreseeable future.

I suspect that most of it is likely to come from diverting funds from levies from other industries paid for the Emissions Trading Scheme. Or from income and profit taxes from other non-farmers and non-agricultural industries. The question has to arise, which is why should the rest of New Zealand pay for the sole benefit of farmers and their agricultural industry?

Farming produces roughly half of the climate change gases for New Zealand, and currently doesn’t pay directly for any emissions of greenhouse gases apart from ETS levies on transport fuels. Farming also don’t pay much tax at all.

Just to give an idea of just how profoundly unprofitable farming is to New Zealand taxpayers, it pays to look at the returns to the taxpayers from farming enterprises.

One of the most interesting sources comes from a OIA response from the Inland Revenue in 2022 about profits and taxes on farming (PDF here). This aggregates GST, PAYE, and tax on Net profits for the farming industry for the year ended 31 Match 2021 and compares to all other sources of the same revenue.

In that year of Covid-19 and lock downs, which had some severe reductions in economic turnover in other parts of the economy, ‘farming’ roughly directly produced a total of 5.69% of GST, 1.95% of PAYE, and 6.01% of income tax on net profits. The total direct income revenue to the state in 2020/1 from farming producers was about $3.5 billion. Most of the production from farming is exported, mainly as food and food products, mostly as unprocessed or minimally processed commodities.

Tax from the farming processing industries would be interesting to look at. However it isn’t likely to be very large compared to the rest of the domestic economy.

It just isn’t a very profitable industry for the country as a whole when you look at tax returns. The total revenue from exports of food in 2020/1 was worth roughly $63 billion based on this stats department press release. Generally a very low rate of operational return for the country as expressed in tax takes.

Have a read of that OIA. Why exactly are we as a nation investing in a subsidy for a industry with such a piss-poor return on investment.. Somehow neither Simon Watts nor any of the current government have addressed that. It is the role of those who are incompetent in business and economics to always talk about revenues rather than real operational profits – but that does appear to be what this government specialises in. Looking hopelessly incompetent in business.

2022-07-27-Farming-sector-contribution-in-GST-income-and-profit-taxes

When you consider the level of capital invested in agricultural land the picture looks far worse.

For an review of rate of return on capital invested in agricultural land, have a look at this one from 2010 entitled “Is New Zealand farm land worth what it will produce?“. Then consider that the effective ROI has reduced in the past 14 years as the cost of agricultural hasn’t been matched with productive increases in profit. I’d be interested in more recent papers if anyone can provide links.

New Zealand is a weird country as most of the capital in the local economy is largely unprofitably farmed for capital gains. This in turn starves the rest of the economy of the capital that is required to make it generate productivity gains and produce high profit innovative industries. Effectively much of the productive and profitable export economy goes to supporting the our most unprofitable and unproductive industries in being owners of property.

The main political party in the current government should really be named the “Capital Gains” party instead of “National”. That appears to be the only part of the ‘nation’ that they actually support. They support capital gains tax free income in both housing, being a landlord, and in farming.

This has resulted in multiple unproductive pyramid schemes in the country that effectively farm untaxed capital gains that benefit few kiwis. Since it is capital largely sourced from overseas owned banks, it mainly enriches investors in those banks.

Presumably their poor business and economic views are also of benefit to the supporters of the government’s political parties and their MPs.

For continued reading of the government’s ‘reasoning’ see Richard Harmon in “The methane waka sinks“. It looks like the reasoning was written in the 1970s. You know – when Muldoon made a subsidy for wool, and we wound up with 63 million sheep (we now have about 25 million sheep).

For alternative productive investments see NZTech covering our second largest export sector, one that is highly profitable and one that mostly pays for its own R&D.

19 comments on “National announced more subsidies in farming for capital gains ”

  1. lprent 1
    13 June 2024 at 3:16 pm

    I'd point out also that as far as I am aware there are NO methane or nitrous oxide reduction pastoral technologies that have a shit show of working…

    If you want to exercise observation of a complete scientific fuckwit – read McClay who Harmon says, said…

    However, farmers are excited by the promise of a host of technologies, including some that require genetic modification (GMO).

    McClay told POLITIK that he is working with Science Minister Judith Collins on proposals to relax some of the regulatory requirements on GMOs in New Zealand.

    and in a more rational statement

    DairyNZ chair, Sir Jim van der Poel, was pleased with yesterday’s announcement but was cautious about becoming overly optimistic about technology.

    …

    “While there are currently no significant technologies to reduce methane emissions from New Zealand pastoral farms, our farmers continue to make strong progress towards measuring on-farm emissions, and we look forward to contributing to the Government’s methane-reduction work. “

    As far as I am aware, there are absolutely no technologies that have shown any significiant usable success over the last 3 decades.

    This includes possible results from genetic engineering. Reducing emissions of fast reactive greenhouse gases of methane or nitrous oxides in New Zealand's pastoral farming industry is hard.

    At present the best immediate prospect is by replacing grass with rape foliage, which isn't going to work on most hill country.

    There may be reductions from breeding animals with low emissions. But that will involve a decades long effort to find suitable breeds and then to replace the entire countries flocks and herds over more decades – for a marginal effect.

    Have a look at https://www.nzagrc.org.nz/domestic/methane-research-programme/

    What has worked is (Harmon again)

    One unexpected consequence of the Zero Carbon Act at the ETS has been the substantial conversion of farmland into forestry.

    Because of that, dairy cow numbers have been declining by around one per cent a year since their 2014 peak of 6.5 million, and sheep and cattle farming, which uses land more suitable for trees, is estimated by the Climate Change Commission to have been reduced by 17 per cent by 2050.

    Thus, agriculture is expected to reach the 2030 target through land use change and will get near the 2050 target the same way.

    This does suggest that continuing to pull unproductive and low return land out of pastoral farming and into trees is the best working approach. This will mean that there is also fewer hectares and herd and flock sizes to upgrade if we ever find decent technologies.

    But really the pastoral farming industry should just pay for their own R&D, because I can't see why I waste any taxes for farmer's R&D to retain their capital investments.

    If the farmers can't pay for their own R&D, then they should go out of business.

    Reply
    • mickysavage 1.1
      13 June 2024 at 8:03 pm

      Genetically modified cows who fart less. What could possibly go wrong?

      Reply
      • lprent 1.1.1
        13 June 2024 at 8:28 pm

        More likely to get GMO gut bacteria – but again – what could possibly go wrong? Or grasses – wcpgw? Or plant crops for feed lots – wcpgw? /sarc

        The point of NZ agriculture, and why it is relatively efficient compared to meat production elsewhere is that it hasn't required extra technological fixes like GMO, feedlots, winter housed, and hasn't had a high rate of disease because it is a isolated island with limited transfers of continental diseases.

        All of these will raise the cost of production because they will all require capital and increased operating costs. And the operational profits of pastoral farming at slim in the first place – which is why there is such a small tax take from farming.

        The most likely scenario is that they could simply breed sheep and cattle that have low levels of emissions or that will grow on feed that doesn't require high levels of nitrate fertilisers that produce nitrous oxide and produces less methane.

        This is a very traditional and well-tested approach that doesn't require or need GMO. Something that McClay is clearly too thick to understand.

        Problem is that they have been talking about that for 30 odd years, and only getting serious about it within the last 5 years. That means that they have probably 20+ years of searching and breeding to do. Which now that National has once again given farmers a free lunch paid for by taxpayers – they simply won't do it without a economic incentive to prioritise it.

        Labour should make a policy that says that within the first 100 days of their next win, they will put farming into the ETS, and that the rate will be retrospective at double – to pay back taxpayers for 20-30 years of unpaid levies and the paid research costs. Or that agricultural products will be levied at the farm gate sale – payable by buyers.

        Reply
    • Ian 1.2
      15 June 2024 at 5:31 pm

      can you tell me again how much filthy ,real money pastoral farming earns for New Zealand.

      Reply
  2. bwaghorn 2
    13 June 2024 at 6:02 pm

    Do producers of products typically pay for their emmisions, or do consumers generally pay them.

    Reply
    • lprent 2.1
      13 June 2024 at 7:45 pm

      Producers. Think about it…

      It would be absolutely pointless to get consumers to pay, they have absolutely no way to reduce the production of emissions.

      The producers then add the cost to their products. If the price reduces profit too much in the market then the producers will shut down production or figure out a way to reduce emissions. It provides a strong incentive for producers and implicitly consumers to reduce emissions.

      The reason that this government is wanting to give a handout of $400 million to farmers is because farmers and their processors have not been paying for research to reduce emissions.

      So over the last 32 years the efficiency of cars in NZ (since the "fart tax" was fought off by farmers) has probably more than effectively doubled in emission terms per km travelled. Whereas the efficiency of farmers per kilo of production hasn't diminished by more than a few percent in terms of emissions. The only reason that their emissions has reduced almost entirely due to a reduction in total area of production. That is almost entirely due to sheep and beef prices.

      The lack of innovation is the real cost of farmer freeloading off taxpayers. What it means is that at some point the farming community will wind up with another crash as happened when the subsidies got removed in 1985 onwards. That will entirely be their own fault because like SMPs, the damn fool farmers got the National party to bankrupt them with freebie subsidies.

      Reply
      • Michael P 2.1.1
        14 June 2024 at 2:11 am

        "…The lack of innovation is the real cost of farmer freeloading off taxpayers…."

        It's pretty hard to innovate for example in an area such as biotech, Gene editing, etc with such a such a restrictive regulatory environment around GE and GMO like we have had in NZ for the last 3 decades.

        As for you describing NZ farmers as "freeloaders" off taxpayers, our farmers receive virtually nothing from taxpayers, especially compared to other developed nations. NZ has nearly the lowest levels of subsidies for food production in the OECD. It's hard to make good profits when competing countries average around 20% (Norway 60%, Japan and Korea over 40%, GB 26%) of producers income being made up of subsidies compared to our tiny 0.8%…

        Also our agriculture sector is one of the most productive (less burdensome on taxpayers) in the world. NZ's support to producers is around 0.2% of GDP

        400 million for R&D mostly into Green tech or into technology to reduce emissions, etc is virtually nothing. (and none of it goes directly into farmer's pockets).

        https://www.oecd-ilibrary.org/sites/7f4542bf-en/1/3/2/index.html?itemId=/content/publication/7f4542bf-en&_csp_=47105d800c61fa618752b9ec6431b53a&itemIGO=oecd&itemContentType=book#figure-d1e8465

        Reply
        • lprent 2.1.1.1
          14 June 2024 at 1:08 pm

          You're an idiot.

          It's pretty hard to innovate for example in an area such as biotech, Gene editing, etc with such a such a restrictive regulatory environment around GE and GMO like we have had in NZ for the last 3 decades.

          We have a restriction about usage on GMO. Not a restriction of innovation in GMO. Sure, companies are regulated in how they can test here or they can do testing offshore.

          However I'd point out that there are absolutely no operational GMO solutions from anywhere in the world and the entire pastoral economies world wide have the same methane problem to one degree of another. No newly engineered foliage for pasture, no engineered bacteria, and no engineered animals.

          Basicially the GM issue with regards to methane and NO2 is just:-

          1. another excuse for farmers to excuse their lack of effort
          2. another excuse for farmers to say that the research is constrained by GMO so they shouldn't pay levies to search for solutions
          3. an excuse by brainless MPs to use as a red-herring
          4. an way for GM companies to try to overturn our GM legislation that is in place in our NZ islands to prevent them using us a a confined test platform for some of their riskier testing.

          Also our agriculture sector is one of the most productive (less burdensome on taxpayers) in the world. NZ's support to producers is around 0.2% of GDP

          Bullshit. Now you're just lying like a good little lobbyist. Presumably you're just looking at the obvious subsidies.

          Lets get the farming community to pay for the building, maintenance and steady upgrades on their extensive roading network. That is almost entirely paid for by urban ratepayers in the towns and cities or from Waka Kotahi rates and land transport recovery from farming (and forestry) is minimal compared to the costs.

          Most of the roading cost is there to handle heavy trucks that daily go on those roads to service farming and forestry (depending on location). If there were no farms or forests, then the actual costs for a code for cars and light trucks would be less than 5% of what they are now. That is a massive subsidy.

          Plus of course taxpayers and other businesses are in fact paying almost the whole of the past, current and increasingly the future levies required by ETS. That is a massive subsidy.

          Now National and their compliant minions are getting the rest of NZ to pay for increased farmers R&D research…

          400 million for R&D mostly into Green tech or into technology to reduce emissions, etc is virtually nothing. (and none of it goes directly into farmer's pockets).

          Of course it does go into farmers pockets. They don't have to pay those costs in the first place like every other business does. Every other industry pretty pays up front for R&D, and then gets tax relief. Farmers pay little towards R&D , including their minimal levels of paid GST, income tax and tax on profits.

          Also our agriculture sector is one of the most productive (less burdensome on taxpayers) in the world. NZ's support to producers is around 0.2% of GDP

          Yeah, you argue like the usual unethical Act supporter. Get everyone poorer to pay for their societal costs while pocketing larger profits and avoiding tax.

          It only works if you are very selective about not mentioning the hidden subsidies that everyone else pays. I also note that you haven’t provided any source for that false assertion. Are you worried about me reading and analysing the sources of your lying.

          Reply
          • lprent 2.1.1.1.1
            14 June 2024 at 1:32 pm

            Oh I forgot the massive hidden subsidy paid for by ratepayers and taxpayers for cleaning up and treating farming contaminated waterways and aquifers.

            All of which has been getting far worse than when I was sampling Waikato bores and getting astonished by the farming pollutants revealed by XRF back in the early 1980s. Then they weren't slathering the paddocks in massive amounts of nitrate fertilisers the way that they do today.

            I try to avoid Waikato water when I am down there. I’m pretty sure that there is hidden medical subsidy to farmers in treating their downstream victims as well.

            Reply
          • Michael P 2.1.1.1.2
            15 June 2024 at 10:55 pm

            Hahahaha… I love it when my expectations are met.. Thanks Princess!

            Even if I was completely incorrect in everything I had stated, sadly I wouldn't have learnt anything and certainly wouldn't have changed my viewpoints because I didn't read anything after the first 3 words of your reply….. Idiot…

            Reply
  3. adam 3
    13 June 2024 at 9:19 pm

    Tech is a joke at the moment, just look at the tech bro's and the stupid shit they spin.

    As for green tech, new mass and practical for agriculture – not seeing it.

    Reply
    • lprent 3.1
      14 June 2024 at 1:23 pm

      Animal feed and biofuel in the US is the only one that I am aware of. Problem is that neither result is actually 'green'.

      The other agricultural improvements have been from selective breeding (eg like the productivity improvement on rice crops), operational changes in farming practices, and most importantly operational changes in distribution and storage.

      The latter is where most of the productivity improvements in farming have come from in the last 30 years. The latter two are heavily computer and comms network driven.

      If anyone disagrees, then please provide links to widespread deployments.

      John Oliver on corn in the US.
      https://www.tiktok.com/@lastweektonighthbo/video/7373338926221741354

      Reply
  4. PsyclingLeft.Always 4
    14 June 2024 at 8:19 am

    Subsidies? What subsidies….

    Special concessions

    In terms of support, there are several unique tax concessions offered to parts of the agricultural sector not extended to other industries. These include special rules for deductibility of housing and capital expenses that aren’t available for other businesses.

    While the sector pays tax on income like everyone else, the amount paid by the dairy sector ($531.7 million in 2019/20—or 0.7 percent of total tax revenue) looks to be substantially less than the costs associated with transfers from the government back to the sector and remediation of environmental damage caused by the sector.

    A briefing paper to the Tax Working Group in 2019 observed that the tax deduction rules for agriculture had not been reviewed in 30 years, revealing a lack of appetite to challenge the industry’s privileged position.

    https://www.wgtn.ac.nz/news/2022/03/whos-paying-for-the-environmental-costs-of-farming

    And I remember a couple of articles from years back that Farmers paid less tax than a couple on a pension. Creative accounting ?Anyone know if that ever changed ?

    Reply
    • lprent 4.1
      14 June 2024 at 1:14 pm

      Mostly it is because they have a massive interest bill for mortgages on land. That is a direct result of not having a capital gains tax.

      The ROI on pastoral land was about 40x in the early 2000s. Most similar farmland offshore at that time was only 10x-15x then. God only knows what the NZ pastoral land ROI is now.

      Most of the profits from interest go directly offshore. Farmers get the residual capital gains when they sell the land – as part of the massive pyramid scheme that all NZ property operates on.

      Reply
    • Michael P 4.2
      15 June 2024 at 11:41 pm

      "And I remember a couple of articles from years back that Farmers paid less tax than a couple on a pension…"

      What do you mean by that? Are you talking about what percentage of their taxable income they are required to pay in income tax?

      Because obviously if a farmer is on wages or a salary then they pay exactly the same rate of income tax as all other PAYE salary and wage earners. I'm not sure if the pension rates are different but would have to assume that if they were then they would differ on the side of the pension attracting a lower rate.

      If they are owning and operating a business then they pay exactly the same rate as every other business, whatever that is these days.

      Or are you talking about the total amount (in dollars) of income tax they pay?

      In which case they pay whatever the figures (assuming everything is legal) end up telling them they have to pay. This amount is determined by the government.

      Farmers, just like everybody else not employed as an MP don't make rules, regulations or laws regarding income tax. So if you think some group is getting an unfair tax advantage over some other group then blame and target the lawmakers, not those who structure their affairs to ensure they are obeying the law. (or their accountants do…)

      If farming is a), such a burden to taxpayers due to receiving so much free money from taxpayers (subsidies) and / or b), is such an easy job to perform, with large profits, then there would be a lot more people taking it up..

      Reply
      • SPC 4.2.1
        16 June 2024 at 8:33 am

        It requires more equity capital to buy a farm than a house.

        Farmers only pay tax when they make an operating profit, not every year. ‘

        Most of the reward is untaxed CG on sale.

        The downside is years talking to bank managers when there is no operating profit and debt at a higher cost than a house mortgage (but lower than other business without a land asset equity capital).

        Reply
  5. SPC 5
    14 June 2024 at 2:06 pm

    1.pasture

    https://germinal.co.nz/climate-change/

    2.effluent pond management

    3.more production from smaller herds

    This from genetics or information from the each cow via automated milking (linked to computer).

    4.herds that produce less methane – genetic type

    5.the vaccine

    https://www.rnz.co.nz/news/country/513979/efforts-to-create-methane-vaccine-bolstered

    Reply
  6. Bruce 6
    15 June 2024 at 1:11 pm

    Its a very simple solution; mandate hemp cultivation.

    Heal the earth, https://rodaleinstitute.org/science/industrial-hemp-trial/

    Prevent erosion, https://www.mda.state.mn.us/sites/default/files/inline-files/MDA%20Annual%20Hemp%20Presentation-AURI.pdf

    I could go on employment, carbon capture, fuel,cloth ……

    And its effect on arthritis is truly amazing.

    Reply
    • Michael P 6.1
      15 June 2024 at 11:17 pm

      Yea.. which makes you wonder why it isn't a more widely grown and used crop, especially seeing as though it is easy to grow in our climate and has huge benefits just from growing it, before you even get around to harvesting, etc.

      Is it because the regulations make it too difficult and / or expensive to grow?

      Or is it because there simply isn't enough demand for the product from industries / sectors which would utilize the harvested crop?

      If it is because of the second question then how much of that limited demand is due to regulations around growing it? In other words, because of the legal shit there are hardly any buyers ready to process the crop into products for sale and there is limited research and development into potential uses

      Reply

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    One occasionally runs into the question of what J.R.R. Tolkien would have thought of George R.R. Martin. For years, I had a go-to online answer: we could use a stand-in. Tolkien’s thoughts on E.R. Eddison – that he appreciated the invented world, but thought the invented names were silly, and ...
    A Phuulish FellowBy strda221
    3 days ago

  • 2024 SkS Weekly Climate Change & Global Warming News Roundup #24
    A listing of 35 news and opinion articles we found interesting and shared on social media during the past week: Sun, June 9, 2024 thru Sat, June 15, 2024. Story of the week A glance at this week's inventory of what experts tell us is extreme weather mayhem juiced by ...
    Skeptical Science
    3 days ago

  • Sunday Morning Chat
    After a busy week it’s a good day to relax. Clear blues skies here in Tamaki Makaurau, very peaceful but for my dogs sleeping heavily. In the absence of a full newsletter I thought I’d send out a brief update and share a couple of posts that popped up in ...
    Nick’s KōreroBy Nick Rockel
    4 days ago

  • The Book of Henry
    Now in the land of Angus beef and the mighty ABsWhere the steaks were juicy and the rivers did run foulIt would often be said,This meal is terrible,andNo, for real this is legit the worst thing I've ever eatenBut this was an thing said only to others at the table,not ...
    More Than A FeildingBy David Slack
    4 days ago

  • Fact Brief – Is ocean acidification from human activities enough to impact marine ecosystems?
    Skeptical Science is partnering with Gigafact to produce fact briefs — bite-sized fact checks of trending claims. This fact brief was written by Sue Bin Park in collaboration with members from the Skeptical Science team. You can submit claims you think need checking via the tipline. Is ocean acidification from human ...
    Skeptical Science
    4 days ago

  • Happiness is a Warm Gun
    She's not a girl who misses muchDo do do do do do, oh yeahShe's well-acquainted with the touch of the velvet handLike a lizard on a window paneI wouldn’t associate ACT with warmth, other than a certain fabled, notoriously hot, destination where surely they’re heading and many would like them ...
    Nick’s KōreroBy Nick Rockel
    5 days ago

  • Still doing a good 20
    Hello! Here comes the Saturday edition of More Than A Feilding, catching you up on the past somewhat interrupted week. Still on the move!Share Read more ...
    More Than A FeildingBy David Slack
    5 days ago

  • Coalition of the Unwilling?
    What does Budget 2024 tell us about the current government? Muddle on?Coalition governments are not new. About 50 percent of the time since the first MMP election, there has been a minority government, usually with allied parties holding ministerial portfolios outside cabinets. For 10 percent of the time there was ...
    PunditBy Brian Easton
    6 days ago

  • Of red flags and warning signs in comments on social media
    Somewhat surprisingly for what is regarded as a network of professionals, climate science misinformation is getting shared on LinkedIn, joining other channels where this is happening. Several of our recent posts published on LinkedIn have attracted the ire of various commenters who apparently are in denial about human-caused climate change. Based ...
    Skeptical Science
    6 days ago

  • All good, still
    1. On what subject is Paul Henry even remotely worth giving the time of day?a. The state of our nationb. The state of the ACT partyc. How to freak out potential buyers of your gin palace by baking the remains of your deceased parent into its fittings2. Now that New ...
    More Than A FeildingBy David Slack
    6 days ago

  • The looting is the point
    Last time National was in power, they looted the state, privatising public assets and signing hugely wasteful public-private partnership (PPP) contracts which saw foreign consortiums provide substandard infrastructure while gouging us for profits. You only have to look at the ongoing fiasco of Transmission Gully to see how it was ...
    No Right TurnBy Idiot/Savant
    6 days ago

  • The Illusion of Power: How Local Government Bureaucrats Overawe Democratically-Elected Councillors..
    The Democratic Façade Of Local Government: Our district and city councillors are democratically elected to govern their communities on one very strict condition – that they never, ever, under any circumstances, attempt to do so.A DISINTEGRATION OF LOYALTIES on the Wellington City Council has left Mayor Tory Whanau without a ...
    Bowalley Road
    6 days ago

  • Lowlights & Bright Spots
    I can feel the lowlights coming over meI can feel the lowlights, from the state I’m inI can see the light now even thought it’s dimA little glow on the horizonAnother week of lowlights from our government, with the odd bright spot and a glow on the horizon. The light ...
    Nick’s KōreroBy Nick Rockel
    6 days ago

  • Weekly Roundup 14-June-2024
    Another week, another roundup of things that caught our eye on our favourite topics of transport, housing and how to make cities a little bit greater. This Week in Greater Auckland On Monday, Connor wrote about Kāinga Ora’s role as an urban development agency Tuesday’s guest post by ...
    Greater AucklandBy Greater Auckland
    6 days ago

  • The Hoon around the week to June 14
    Photo: Lynn Grieveson / The KākāTL;DR: The podcast above of the weekly ‘hoon’ webinar for paying subscribers features co-hosts and talking with:The Kākā’s climate correspondent about the National-ACT-NZ First Government’s moves this week to take farming out of the ETS and encourage more mining and oil and ...
    The KakaBy Bernard Hickey
    6 days ago

  • Climate policy axed in broad daylight, while taxpayer liabilities grow in the dark
    In 2019, Shane Jones addressed the “50 Shades of Green” protest at Parliament: Now he is part of a government giving those farmers a pass on becoming part of the ETS, as well as threatening to lock in offshore oil exploration and mining for decades. Photo: Lynn GrievesonTL;DR: Here’s the ...
    The KakaBy Bernard Hickey
    6 days ago

  • Rage Bait!
    Hi,Today’s newsletter is all about how easy it is to get sucked into “rage bait” online, and how easy it is to get played.But first I wanted to share something that elicited the exact opposite of rage in me — something that made me feel incredibly proud, whilst also making ...
    David FarrierBy David Farrier
    6 days ago

  • Bernard's Dawn Chorus and pick 'n' mix for Friday, June 14
    Seymour said lower speed limits “drained the joy from life as people were forced to follow rules they knew made no sense.” File Photo: Lynn Grieveson / The KākāTL;DR: My six things to note in Aotearoa-NZ’s political economy around housing, climate and poverty on Friday, June 14 were:The National/ACT/NZ First ...
    The KakaBy Bernard Hickey
    6 days ago

  • Friendly but frank talks with China Premier
    It sounded like the best word to describe yesterday’s talks between Chinese Premier Li Qiang and his heavyweight delegation of Ministers and officials and Prime Minister Christopher Luxon and New Zealand Ministers and officials was “frank.” But it was the kind of frankness that friends can indulge in. It ...
    PolitikBy Richard Harman
    6 days ago

  • Skeptical Science New Research for Week #24 2024
    Open access notables Wildfire smoke impacts lake ecosystems, Farruggia et al., Global Change Biology: We introduce the concept of the lake smoke-day, or the number of days any given lake is exposed to smoke in any given fire season, and quantify the total lake smoke-day exposure in North America from 2019 ...
    Skeptical Science
    6 days ago

  • Join us for the weekly Hoon on YouTube Live
    Photo by Mathias Elle on UnsplashIt’s that new day of the week (Thursday rather than Friday) when we have our ‘hoon’ webinar with paying subscribers to The Kākā for an hour at 5 pm.Jump on this link on YouTube Livestream for our chat about the week’s news with special guests:5.00 ...
    The KakaBy Bernard Hickey
    7 days ago

  • Geoffrey Miller: China’s message to New Zealand – don’t put it all at risk
    Don’t put it all at risk. That’s likely to be the take-home message for New Zealand Prime Minister Christopher Luxon in his meetings with Li Qiang, the Chinese Premier. Li’s visit to Wellington this week is the highest-ranking visit by a Chinese official since 2017. The trip down under – ...
    Democracy ProjectBy Geoffrey Miller
    7 days ago

  • The Real Thing
    I know the feelingIt is the real thingThe essence of the soulThe perfect momentThat golden momentI know you feel it tooI know the feelingIt is the real thingYou can't refuse the embraceNo?Sometimes we face the things we most dislike. A phobia or fear that must be confronted so it doesn’t ...
    Nick’s KōreroBy Nick Rockel
    7 days ago

  • Gordon Campbell on how moderates empower the political right
    Struth, what a week. Having made sure the rural sector won’t have to pay any time soon for its pollution, PM Christopher Luxon yesterday chose Fieldays 2024 to launch a parliamentary inquiry into rural banking services, to see how the banks have been treating farmers faced with high interest rates. ...
    Gordon CampbellBy lyndon
    7 days ago

  • Bernard's Dawn Chorus and pick 'n' mix for Thursday, June 13
    In April, 17,656 people left Aotearoa-NZ to live overseas, averaging 588 a day, with just over half of those likely to have gone to Australia. Photo: Photo: Lynn Grieveson / The KākāTL;DR: My six things to note in Aotearoa-NZ’s political economy around housing, climate and poverty on Thursday, June 13 ...
    The KakaBy Bernard Hickey
    7 days ago

  • Our guide to having your say on the draft RLTP 2024
    Auckland’s draft Regional Land Transport Plan (RLTP) 2024 is open for feedback – and you only have until Monday 17 June to submit. Do it! Join the thousands of Aucklanders who are speaking up for wise strategic investment that will dig us out of traffic and give us easy and ...
    Greater AucklandBy Connor Sharp
    7 days ago

  • The China puzzle
    Chinese Premier Li Qiang arrives in Wellington today for a three-day visit to the country. The visit will take place amid uncertainty about the future of the New Zealand-China relationship. Li hosted a formal welcome and then lunch for then-Prime Minister Chris Hipkins in Beijing a year ago. The pair ...
    PolitikBy Richard Harman
    1 week ago

  • Fossil fuels are shredding our democracy
    This is a re-post of an article from the Climate Brink by Andrew Dessler published on June 3, 2024. I have an oped in the New York Times (gift link) about this. For a long time, a common refrain about the energy transition was that renewable energy needed to become ...
    Skeptical Science
    1 week ago

  • Life at 20 kilometres an hour
    We are still in France, getting from A to B.Possibly for only another week, though; Switzerland and Germany are looming now. On we pedal, towards Budapest, at about 20 km per hour.What are are mostly doing is inhaling a country, loving its ways and its food. Rolling, talking, quietly thinking. ...
    More Than A FeildingBy David Slack
    1 week ago

  • Hipkins is still useless
    The big problem with the last Labour government was that they were chickenshits who did nothing with the absolute majority we had given them. They governed as if they were scared of their own shadows, afraid of making decisions lest it upset someone - usually someone who would never have ...
    No Right TurnBy Idiot/Savant
    1 week ago

  • Exercising with the IDF.
    This morning I did something I seldom do, I looked at the Twitter newsfeed. Normally I take the approach of something that I’m not sure is an American urban legend, or genuinely something kids do over there. The infamous bag of dog poo on the front porch, set it on ...
    Nick’s KōreroBy Nick Rockel
    1 week ago

  • Helm Hammerhand Anime: First Pictures and an Old English ‘Hera’
    We have some news on the upcoming War of the Rohirrim anime. It will apparently be two and a half hours in length, with Peter Jackson as Executive Producer, and Helm’s daughter Hera will be the main character. Also, pictures: The bloke in the middle picture is Freca’s ...
    A Phuulish FellowBy strda221
    1 week ago

  • Farmers get free pass on climate AND get subsidies
    The cows will keep burping and farting and climate change will keep accelerating - but farmers can stop worrying about being included in the ETS. Photo: Lynn Grieveson / The KākāTL;DR: My six things to note in Aotearoa-NZ’s political economy around housing, climate and poverty on Wednesday, June 12 were:The ...
    The KakaBy Bernard Hickey
    1 week ago

  • Six ideas to secure Te Huia’s Future
    This is a guest post by our friend Darren Davis. It originally appeared on his excellent blog, Adventures in Transitland, which features “musings about public transport and other cool stuff in Aotearoa/ New Zealand and around the globe.” With Te Huia now having funding secure through to 2026, now is ...
    Greater AucklandBy Darren Davis
    1 week ago

  • The methane waka sinks
    In some ways, there may be less than meets the eye to the Government announcement yesterday that the He Waka Eke Noa proposal for farmers to pay for greenhouse gas emissions has been scrapped. The spectre of farmers still having to pay at some point in the future remains. That, ...
    PolitikBy Richard Harman
    1 week ago

  • At a glance – Does positive feedback necessarily mean runaway warming?
    On February 14, 2023 we announced our Rebuttal Update Project. This included an ask for feedback about the added "At a glance" section in the updated basic rebuttal versions. This weekly blog post series highlights this new section of one of the updated basic rebuttal versions and serves as a ...
    Skeptical Science
    1 week ago

  • Climate Change: Farmers get what they wanted – for now
    Since entering office, National has unravelled practically every climate policy, leaving us with no effective way of reducing emissions or meeting our emissions budgets beyond magical thinking around the ETS. And today they've announced another step: removing agriculture entirely. At present, following the complete failure of he waka eka noa, ...
    No Right TurnBy Idiot/Savant
    1 week ago

  • Presumed Innocent?
    The blue billionaireDistraction no interactionOr movement outside these glazed over eyesThe new great divideFew fight the tide to be glorifiedBut will he be satisfied?Can we accept this without zoom?The elephant in the roomNot much happens in politics on a Monday. Bugger all in fact. Although yesterday Christopher Luxon found he ...
    Nick’s KōreroBy Nick Rockel
    1 week ago

  • Gordon Campbell on our doomed love affair with oil and gas
    What if New Zealand threw a fossil fuel party, and nobody came? On the weekend, Resources Minister Shane Jones sent out the invitations and strung up the balloons, but will anyone really want to invest big time in resuming oil and gas exploration in our corner of the planet? Yes, ...
    WerewolfBy lyndon
    1 week ago

  • Building better housing insights
    This is a guest post by Meredith Dale, senior urban designer and strategist at The Urban Advisory. There’s a saying that goes something like: ‘what you measure is what you value’. An RNZ article last week claimed that Auckland was ‘hurting’ because of a more affordable supply of homes, particularly townhouses ...
    Greater AucklandBy Guest Post
    1 week ago

  • Putin would be proud of them
    A Prime Minister directs his public service to inquire into the actions of the opposition political party which is his harshest critic. Something from Orban's Hungary, or Putin's Russia? No, its happening right here in Aotearoa: Prime Minister Christopher Luxon has announced the Public Service Commission will launch an ...
    No Right TurnBy Idiot/Savant
    1 week ago

  • Resources for debunking common solar and wind myths
    This is a repost from a Yale Climate Connections article by SueEllen Campbell published on June 3, 2024. The articles listed can help you tell fact from fiction when it comes to solar and wind energy. Some statements you hear about solar and wind energy are just plain false. ...
    Skeptical Science
    1 week ago

  • Juggernaut
    Politics were going on all around us yesterday, and we barely noticed, rolling along canal paths, eating baguettes. It wasn’t until my mate got to the headlines last night that we learned there had been a dismayingly strong far right result in the EU elections and Macron had called a ...
    More Than A FeildingBy David Slack
    1 week ago

  • Numbers Game.
    Respect Existence, Or Expect Resistance? There may well have been 50,000 pairs of feet “Marching For Nature” down Auckland’s Queen Street on Saturday afternoon, but the figure that impresses the Coalition Government is the 1,450,000 pairs of Auckland feet that were somewhere else.IN THE ERA OF DRONES and Artificial Intelligence, ...
    Bowalley Road
    1 week ago

  • Media Link: AVFA on post-colonial blowback.
    Selwyn Manning and I discuss varieties of post colonial blowback and the implications its has for the rise of the Global South. Counties discussed include Palestine/Israel, France/New Caledonia, England/India, apartheid/post-apartheid South Africa and post-colonial New Zealand. It is a bit … Continue reading → ...
    KiwipoliticoBy Pablo
    1 week ago

  • Policy by panic
    Back in March, Ombudsman Peter Boshier resigned when he hit the statutory retirement age of 72, leaving the country in the awkward (and legally questionable) position of having him continue as a temporay appointee. It apparently took the entire political system by surprise - as evinced by Labour's dick move ...
    No Right TurnBy Idiot/Savant
    1 week ago

  • PSA: NZ's Richest Company, Zuru, Sucks
    Hi,Today the New Zealand press is breathlessly reporting that the owners of toy company Zuru are officially New Zealand’s wealthiest people: Mat and Nick Mowbray worth an estimated $20 billion between them.While the New Zealand press loses its shit celebrating this Kiwi success story, this is a Webworm reminder that ...
    David FarrierBy David Farrier
    1 week ago

  • Bernard's Dawn Chorus and pick 'n' mix for Monday, June 10
    TL;DR: The six things to note in Aotearoa-NZ’s political economy around housing, climate and poverty in the past day to 8:36 pm on Monday, June 10 were:20,000 protested against the Fast-track approval bill on Saturday in Auckland, but PM Christopher Luxon says ‘sorry, but not sorry’ about the need for ...
    The KakaBy Bernard Hickey
    1 week ago

  • In Defence of Kāinga Ora
    Given the headlines around the recent findings of the ‘independent’ review of Kāinga Ora by Bill English, you might assume this post will be about social housing, Kāinga Ora’s most prominent role. While that is indeed something that requires defending, I want to talk about the other core purpose of ...
    Greater AucklandBy Connor Sharp
    1 week ago

  • Baby You're A Rich Man
    “How does it feel to beOne of the beautiful peopleNow that you know who you areWhat do you want to beAnd have you traveled very far?Far as the eye can see”Yesterday the ACT party faithful were regaled with craven boasts, sneers, and demands for even more at their annual rally.That ...
    Nick’s KōreroBy Nick Rockel
    1 week ago

  • Stopping a future Labour government from shutting down gas exploration
    A defiant Resources Minister Shane Jones has responded to Saturday’s environmental protests by ending Labour’s offshore oil exploration ban and calling for long-term contracts with any successful explorers. The purpose would be to prevent a future Labour Government from reversing any licence the explorers might hold. Jones sees a precedent ...
    PolitikBy Richard Harman
    1 week ago

  • 2024 SkS Weekly Climate Change & Global Warming News Roundup #23
    A listing of 32 news and opinion articles we found interesting and shared on social media during the past week: Sun, June 2, 2024 thru Sat, June 8, 2024. Story of the week Our Story of the Week is Yale Climate Connection's Resources for debunking common solar and wind myths, by ...
    Skeptical Science
    2 weeks ago

  • Prime Minister wraps up visit to Japan
    Prime Minister Christopher Luxon has just finished a successful three-day visit to Japan, where he strengthened political relationships and boosted business links. Mr Luxon’s visit culminated in a bilateral meeting with Japanese Prime Minister Kishida Fumio followed by a state dinner. “It was important for me to meet Prime Minister Kishida in person ...
    BeehiveBy beehive.govt.nz
    8 hours ago

  • Major business deals signed on PM’s Japan trip
    Significant business deals have been closed during the visit of Prime Minister Christopher Luxon to Japan this week, including in the areas of space, renewable energy and investment.  “Commercial deals like this demonstrate that we don’t just export high-quality agricultural products to Japan, but also our world-class technology, expertise, and ...
    BeehiveBy beehive.govt.nz
    16 hours ago

  • Strategic Security speech, Tokyo
    Minasan, konnichiwa, kia ora and good afternoon everyone. Thank you for the invitation to speak to you today and thank you to our friends at the Institute for International Socio-Economic Studies and NEC for making this event possible today.  It gives me great pleasure to be here today, speaking with ...
    BeehiveBy beehive.govt.nz
    16 hours ago

  • National Infrastructure Pipeline worth over $120 billion
    The National Infrastructure Pipeline, which provides a national view of current or planned infrastructure projects, from roads, to water infrastructure, to schools, and more, has climbed above $120 billion, Infrastructure Minister Chris Bishop says. “Our Government is investing a record amount in modern infrastructure that Kiwis can rely on as ...
    BeehiveBy beehive.govt.nz
    18 hours ago

  • Making it easier to build infrastructure
    The Government is modernising the Public Works Act to make it easier to build infrastructure, Minister for Land Information Chris Penk announced today. An independent panel will undertake an eight-week review of the Act and advise on common sense changes to enable large scale public works to be built faster and ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • NZ enhances North Korea sanctions monitoring
    New Zealand will enhance its defence contributions to monitoring violations of sanctions against North Korea, Prime Minister Christopher Luxon announced today.  The enhancement will see the New Zealand Defence Force (NZDF) increase its contributions to North Korea sanctions monitoring, operating out of Japan. “This increase reflects the importance New Zealand ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Speech to Safeguard National Health and Safety Conference
    Good afternoon everyone. It’s great to be with you all today before we wrap up Day One of the annual Safeguard National Health and Safety Conference. Thank you to the organisers and sponsors of this conference, for the chance to talk to you about the upcoming health and safety consultation. ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Ōtaki to north of Levin alliance agreements signed
    Transport Minister Simeon Brown has welcomed an important milestone for the Ōtaki to north of Levin Road of National Significance (RoNS), following the NZ Transport Agency (NZTA) signing interim alliance agreements with two design and construction teams who will develop and ultimately build the new expressway.“The Government’s priority for transport ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Improvements to stopping Digital Child Exploitation
    The Department of Internal Affairs [Department] is making a significant upgrade to their Digital Child Exploitation Filtering System, which blocks access to websites known to host child sexual abuse material, says Minister of Internal Affairs Brooke van Velden.  “The Department will incorporate the up-to-date lists of websites hosting child sexual ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • New vaccine research aims to combat prevalent bovine disease
    A vaccine to prevent an infectious disease that costs New Zealand cattle farmers more than $190 million each year could radically improve the health of our cows and boost on-farm productivity, Associate Agriculture Minister Andrew Hoggard says. The Ministry for Primary Industries is backing a project that aims to develop ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Making it easier to build granny flats
    The Government has today announced that it is making it easier for people to build granny flats, Acting Prime Minister Winston Peters and RMA Reform Minister Chris Bishop say. “Making it easier to build granny flats will make it more affordable for families to live the way that suits them ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • High Court Judge appointed
    Attorney-General Judith Collins today announced the appointment of Auckland King’s Counsel Gregory Peter Blanchard as a High Court Judge. Justice Blanchard attended the University of Auckland from 1991 to 1995, graduating with an LLB (Honours) and Bachelor of Arts (English). He was a solicitor with the firm that is now Dentons ...
    BeehiveBy beehive.govt.nz
    6 days ago

  • Health workforce numbers rise
    Health Minister Dr Shane Reti says new data released today shows encouraging growth in the health workforce, with a continued increase in the numbers of doctors, nurses and midwives joining Health New Zealand. “Frontline healthcare workers are the beating heart of the healthcare system. Increasing and retaining our health workforce ...
    BeehiveBy beehive.govt.nz
    6 days ago

  • Government to overhaul firearms laws
    Associate Justice Minister Nicole McKee has today announced a comprehensive programme to reform New Zealand's outdated and complicated firearms laws. “The Arms Act has been in place for over 40 years. It has been amended several times – in a piecemeal, and sometimes rushed way. This has resulted in outdated ...
    BeehiveBy beehive.govt.nz
    6 days ago

  • Government delivers landmark specialist schools investment
    The coalition Government is delivering record levels of targeted investment in specialist schools so children with additional needs can thrive. As part of Budget 24, $89 million has been ringfenced to redevelop specialist facilities and increase satellite classrooms for students with high needs. This includes: $63 million in depreciation funding ...
    BeehiveBy beehive.govt.nz
    6 days ago

  • Major health and safety consultation begins
    A substantial consultation on work health and safety will begin today with a roadshow across the regions over the coming months, says Workplace Relations and Safety Minister Brooke van Velden.  This the first step to deliver on the commitment to reforming health and safety law and regulations, set out in ...
    BeehiveBy beehive.govt.nz
    6 days ago

  • Growing the potential of New Zealand’s forestry sector in partnership
    Forestry Minister Todd McClay, today announced the start of the Government’s plan to restore certainty and confidence in the forestry and wood processing sector. “This government will drive investment to unlock the industry’s economic potential for growth,” Mr McClay says. “Forestry’s success is critical to rebuilding New Zealand’s economy, boosting ...
    BeehiveBy beehive.govt.nz
    6 days ago

  • Government cancels forestry ETS annual service charges for 2023-24
    Annual service charges in the forestry Emissions Trading Scheme (ETS) will be cancelled for 2023/24, Forestry Minister Todd McClay says. “The sector has told me the costs imposed on forestry owners by the previous government were excessive and unreasonable and I agree,” Mr McClay says. “They have said that there ...
    BeehiveBy beehive.govt.nz
    6 days ago

  • Speech to the LGNZ Infrastructure Symposium
    Introduction Thank you for having me here today and welcome to Wellington, the home of the Hurricanes, the next Super Rugby champions. Infrastructure – the challenge This government has inherited a series of big challenges in infrastructure. I don’t need to tell an audience as smart as this one that ...
    BeehiveBy beehive.govt.nz
    6 days ago

  • Government boosts Agriculture and food trade with China
    Trade and Agriculture Minister Todd McClay and Food Safety Minister Andrew Hoggard welcomed outcomes to boost agricultural and food trade between New Zealand and China. A number of documents were signed today at Government House that will improve the business environment between New Zealand and China, and help reduce barriers, including on infant formula ...
    BeehiveBy beehive.govt.nz
    7 days ago

  • NZ and China launch Services Trade Negotiations
    Trade Minister Todd McClay, and China’s Commerce Minister Wang Wentao, today announced the official launch of Negotiations on Services Trade between the two countries.  “The Government is focused on opening doors for services exporters to grow the New Zealand’s economy,” Mr McClay says.  As part of the 2022 New Zealand-China Free Trade Agreement Upgrade ...
    BeehiveBy beehive.govt.nz
    7 days ago

  • Prime Minister Luxon meets with Premier Li
    Prime Minister Christopher Luxon met with Chinese Premier Li Qiang at Government House in Wellington today.  “I was pleased to welcome Premier Li to Wellington for his first official visit, which marks 10 years since New Zealand and China established a Comprehensive Strategic Partnership,” Mr Luxon says. “The Premier and ...
    BeehiveBy beehive.govt.nz
    7 days ago

  • Government and business tackling gender pay gap
    The coalition Government is taking action to reduce the gender pay gap in New Zealand through the development of a voluntary calculation tool. “Gender pay gaps have impacted women for decades, which is why we need to continue to drive change in New Zealand,” Acting Minister for Women Louise Upston ...
    BeehiveBy beehive.govt.nz
    7 days ago

  • Funding Boost for Rural Support Trusts
    The coalition Government is boosting funding for Rural Support Trusts to provide more help to farmers and growers under pressure, Rural Communities Minister Mark Patterson announced today. “A strong and thriving agricultural sector is crucial to the New Zealand economy and one of the ways to support it is to ...
    BeehiveBy beehive.govt.nz
    7 days ago

  • Latest data shows size of public service decreasing
    Spending on contractors and consultants continues to fall and the size of the Public Service workforce has started to decrease after years of growth, according to the latest data released today by the Public Service Commission. Workforce data for the quarter from 31 December 23 to 31 March 24 shows ...
    BeehiveBy beehive.govt.nz
    7 days ago

  • Speech to the Law Association
    Thank you to the Law Association for inviting me to speak this morning. As a former president under its previous name — the Auckland District Law Society — I take particular satisfaction in seeing this organisation, and its members, in such good heart. As Attorney-General, I am grateful for these ...
    BeehiveBy beehive.govt.nz
    7 days ago

  • 25 years on, NZ reaffirms enduring friendship with Timor Leste
    New Zealand is committed to working closely with Timor-Leste to support its prosperity and resilience, Foreign Minister Winston Peters says.   “This year is the 25th anniversary of New Zealand sending peacekeepers to Timor-Leste, who contributed to the country’s stabilisation and ultimately its independence,” Mr Peters says.    “A quarter ...
    BeehiveBy beehive.govt.nz
    7 days ago

  • Inquiry requested into rural banking
    Promoting robust competition in the banking sector is vital to rebuilding the economy, Finance Minister Nicola Willis says.  “New Zealanders deserve a banking sector that is as competitive as possible. Banking services play an important role in our communities and in the economy. Kiwis rely on access to lending when ...
    BeehiveBy beehive.govt.nz
    7 days ago

  • Ministry for Regulation targets red tape to keep farmers and growers competitive
    Regulation Minister David Seymour, Environment Minister Penny Simmonds, and Food Safety Minister Andrew Hoggard have today announced a regulatory sector review on the approval process for new agricultural and horticultural products.    “Red tape stops farmers and growers from getting access to products that have been approved by other OECD countries. ...
    BeehiveBy beehive.govt.nz
    7 days ago

  • Government to reverse blanket speed limit reductions
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