Editorial: Sensible move
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.
"Wool should be our first choice, it is the fibre of the future and this referendum's is the industry's chance to make a difference to its future," says Sandra Faulkner, Federated Farmers Meat & Fibre executive and Wool Levy Group chairperson.
"Sheep is not a one dimensional animal, it is dual purpose but the value of wool is not recognised here or overseas, and as a result we are underselling ourselves in the market. New Zealand is the world's third largest wool producer supplying 45% of the world's carpet wool. With 30 industry bodies in New Zealand, wool is the only primary sector that isn't represented.
"Our industry is worth $700 million, and we need a collective voice to educate, innovate and invest in our industry's future. This conversation isn't new; we've been discussing the need for a Wool Levy since 2009, when it was voted down. But now we are bringing that conversation forward and putting it on the table, with crunch time being this October.
"With 154,000 tonne of wool produced in New Zealand each year, we are looking at a potential $4.6 million, based on 3c/kg levy. This is of course if the 17,000 sheep farmers eligible to vote all agree. What I might add is that with this comes further potential investment from the Government, but we need to put our money where our mouth is before that happens.
"Our industry is in a different place today, what we need is activities based around communication, education and innovation, and this levy is about providing that.
"Voting is the expression of commitment to ourselves and our industry, no matter which box you tick, farmers need to ensure they are informed this October, and use their right to vote," says Faulkner.
