Agri sector to lead economic recovery
OPINION: Over the past month, people up and down the country have been asking me what I think is in store for the Agri sector.
FOR THE most part, New Zealand's growth over the next year has already been set in train, and any stabilisation is the job of the Reserve Bank.
The Government's main role is to keep looking out over the next five years or so and put in place policies that will help the economy become more competitive and productive – through good times and through bad. Again, the European crisis offers some important lessons.
Here in New Zealand we have also lost competitiveness over time, particularly as a result of poor policy decisions in the 2000s. In other words, it has got harder than it would otherwise have been for our exporters to compete in overseas markets. And it has got harder than it would otherwise have been for New Zealand manufacturers to compete with imported goods made offshore.
As a result, the industries and sectors that compete internationally actually went into recession in late 2004 and shrank in size by almost 10% in five years.
That decline in competitiveness began to turn around during the past three years.
The Government's view has always been there is no magic bullet – no one 'big bang' reform that would turn the economy on its head.
What is required is a series of good policy decisions and reforms over an extended time, in 100 different areas, to enhance the competitiveness of New Zealand firms. So we have a busy economic reform agenda, following through things we started last term and on new things we announced during the election.
For example:
We're rolling out ultra-fast broadband and the Rural Broadband Initiative, to lift New Zealand's connectivity.
We're introducing a six-month limit for granting consent to medium-sized projects under the RMA, to reduce costs, uncertainties and delays.
We're negotiating free trade agreements with nine countries in the Trans-Pacific Partnership, including the United States, and separately with a number of other countries including India, Russia and Korea.
I have tasked Bill English and Steven Joyce – the two most senior economic ministers – with driving this economic action plan. I have told them I want to see this action plan regularly updated.
The first update will be in the middle of this year.
Managing director of Woolover Ltd, David Brown, has put a lot of effort into verifying what seems intuitive, that keeping newborn stock's core temperature stable pays dividends by helping them realise their full genetic potential.
Within the next 10 years, New Zealand agriculture will need to manage its largest-ever intergenerational transfer of wealth, conservatively valued at $150 billion in farming assets.
Boutique Waikato cheese producer Meyer Cheese is investing in a new $3.5 million facility, designed to boost capacity and enhance the company's sustainability credentials.
OPINION: The Government's decision to rule out changes to Fringe Benefit Tax (FBT) that would cost every farmer thousands of dollars annually, is sensible.
Compensation assistance for farmers impacted by Mycoplama bovis is being wound up.
Selecting the reverse gear quicker than a lovestruck boyfriend who has met the in-laws for the first time, the Coalition Government has confirmed that the proposal to amend Fringe Benefit Tax (FBT) charged against farm utes has been canned.
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