Working to surplus the best news for farmers in the Budget

22 May 2015
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Working to surplus the best news for farmers in the Budget

Federated Farmers says it’s disappointed there is no Budget surplus this year, but the best news for farmers from the Government is that it is on track for a surplus next year.

Acting President Anders Crofoot says Federated Farmers welcomes a number of measures in the Budget, but the best thing to assist the rural economy is to control government spending enough to create an enduring surplus to enable debt repayment and to keep pressure off inflation, monetary policy and the exchange rate.

“The Government is clearly trying to balance the need to responsibly manage its finances with the pressing and growing demands to do something about housing and child hardship.”

There are other measures in the Budget which Federated Farmers believes will help the rural sector.

“It’s good to see $80m go to the Callahan Institute for R&D growth grants. We just hope that the pastoral industries will get a fair share of that investment,” Crofoot says.

Federated Farmers is also keen to see the fine print of the $25m proposal to support the new privately-led Regional Research Institutions.

“The seafood industry Cawthron model of mixed private and Government funding is interesting. It’s also a step in the right direction to focus the science effort on the local conditions in any particular region, both to get a good fit with the environment, but also to boost local economies which desperately need it .”

Crown Irrigation Investment has been allocated $100m.

“Water storage is our main priority. It brings community and environmental benefits, as well as economic returns for agriculture. In a drought year like this, the need for water storage becomes even more acute.”

Biosecurity has received an extra $27m and there will be a new Passenger Border Clearance Levy which in time will recover all the costs of passenger border clearance.

“It’s always good to see the Government acknowledges the risk to our national economy by an exotic pest or disease arriving in the country through a breakdown in border control. A passenger levy will reflect the threat this means of entry poses.”

Federated Farmers says other positive measures are in grants for owners of Maori land to improve productivity, an increase in tuition funding for agriculture courses at tertiary institutions, and a promise of more funding to extend Ultra-Fast broadband to 80 percent of the population and a boost to funding for rural broadband and to fill mobile blackspots.

“We’ve also noted that there is $32m over four years to pay for more labour inspectors. That is a signal to our farmers that generally they must improve their employment relationships. This will represent hundreds of dollars worth of inspections and enforcement for every New Zealand farmer every year.”

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