Damien O’Connor Criticises Budget 2026 as ‘Miserable’ for Rural New Zealand
A miserable budget that didn’t deliver much for anyone.
However, the Red Meat Sector Conference cross-party political debate between Agriculture and Trade Minister Damien O’Connor and National’s trade and agriculture spokesman Todd McClay was a relatively subdued affair – that is, until a potential free trade deal with India popped up.
The Government came under fire for dragging the chain when it comes to laying the groundwork for an FTA with the world’s second most populous country.
The 150 people in the audience – red meat sector leaders, farmers, and service providers – gasped when O’Connor claimed that Meat Industry Association chief executive Sirma Karapeeva had suggested that dairy be excluded from any potential deal with India.
Karapeeva, who was in the audience, shouted that she did not say that, leading to an exchange with O’Connor.
The Minister also raised eyebrows amongst the crowd when he suggested that NZ does not tax enough and we should look at raising taxes.
Debate moderator Tova O’Brien brought the Indian FTA up, asking both men if it was a priority.
McClay claimed it wasn’t a priority for the present Government. He pointed out that Australia had “some sort of deal” where their sheepmeat tariffs to India drop from 30% to zero.
“If you said that that was all you were going to deliver to the NZ sheep sector, imagine how much meat they will sell there next year.”
O’Connor said India was a very challenging market.
He said Australia “had a few more things to put on the table than NZ does”.
“And Sirma said that we should maybe walk away from dairy and even leave it to one side.”
This prompted the fiery reaction from the crowd.
“I don’t think she said that,” someone shouted.
Then Karapeeva chipped in, “I didn’t say that.”
But O’Connor was adamant.
“You backed up Murray Taggart’s statement that maybe it’s time to walk away and not have everything on the table.
“We believe it’s unrealistic.”
Karapeeva says she called for “an adult conversation” on the strategy to deal with an Indian FTA.
O’Connor says he disagreed and they have been open with stakeholders.
“We have to be honest, not promising something that we can’t get.”
O’Connor says he will be heading to India soon to talk about an FTA with authorities.
