As global dairy prices plunge, O’Connor steps up with final plan to bring down farm emissions, too
Two burning questions to be asked of ministers – how are they spending (or misspending) our money and how are they further regulating us? – are answered in a batch of press statement from the Beehive over the past 24 hours or so.
The sum mentioned by Agriculture Minister Damien O’Connor made him the biggest of the spenders in the latest announcements.
He reminded us the Government is investing over $300 million over four years through Budget 2022 to get new tools and technology to reduce on-farm emissions to farmers quicker and provide extra on-the-ground support to adapt.
But his statement had a sharp regulatory edge, too. He announced new targets intended to force farmers to reduce their emissions.
His timing could have been better. Earlier in the day farmers learned Fonterra had cut its farmgate milk price forecast for the second time in a fortnight after global dairy prices plunged at the latest auction this week.
Moreover, DairyNZ has revised down its break-even milk price to $7.51 per kilogram of milk solids (/kgMS) from $8.16/kgMS, reflecting adjustments that farmers have already made to reflect sharply lower milk prices.
The industry group also said farmers could expect 12-18 months of reduced income due to the current poor state of the market, following this week’s Global Dairy Trade auction, which resulted in overall prices slumping by 7.4 per cent and whole milk powder falling 10.9 per cent to a near five-year low of US$2548 a tonne.
That’s when the Minister stepped up to the plate…
As RNZ reported it, O’Connor announced the government’s final plan to reduce agricultural emissions today, after a five-year process that involved working with farming leaders.
It will see a system introduced to measure and price emissions at a farm level – with mandatory reporting to begin next year.
The good news? The government is delivering certainty…
O’Connor said the decisions announced today set out a path to give farmers certainty and addresses the ever-strengthening market signals from overseas on climate.
But let’s not forget the uncertainties generated by a general election.
What about the bite on taxpayers?
RNZ noted –
But his statement had a sharp regulatory edge, too. He announced new targets intended to force farmers to reduce their emissions.
His timing could have been better. Earlier in the day farmers learned Fonterra had cut its farmgate milk price forecast for the second time in a fortnight after global dairy prices plunged at the latest auction this week.
Moreover, DairyNZ has revised down its break-even milk price to $7.51 per kilogram of milk solids (/kgMS) from $8.16/kgMS, reflecting adjustments that farmers have already made to reflect sharply lower milk prices.
The industry group also said farmers could expect 12-18 months of reduced income due to the current poor state of the market, following this week’s Global Dairy Trade auction, which resulted in overall prices slumping by 7.4 per cent and whole milk powder falling 10.9 per cent to a near five-year low of US$2548 a tonne.
That’s when the Minister stepped up to the plate…
As RNZ reported it, O’Connor announced the government’s final plan to reduce agricultural emissions today, after a five-year process that involved working with farming leaders.
It will see a system introduced to measure and price emissions at a farm level – with mandatory reporting to begin next year.
The good news? The government is delivering certainty…
O’Connor said the decisions announced today set out a path to give farmers certainty and addresses the ever-strengthening market signals from overseas on climate.
But let’s not forget the uncertainties generated by a general election.
What about the bite on taxpayers?
RNZ noted –
- $300 million over four years through Budget 2022 to go towards new tools and technology to reduce on-farm emissions to farmers quicker and provide on-the-ground support to adapt.
- $54m into the first projects through the Centre for Climate Action on Agricultural Emissions to bring down emissions.
- $15.4m from Budget 2023 to develop a system to enable farmers and their advisers to calculate and report agricultural emissions.
The headline on the Minister’s press statement promised:
The statement highlighted these points –
- Government committed to implementing a system to measure and price agricultural emissions at the farm level
- Confirmation of split-gas approach
- Mandatory reporting of farm-level emissions to start in Quarter 4 of 2024
- Pricing to commence from Quarter 4 of 2025 instead of Quarter 1
- Commitment to set the price at the lowest level possible to meet the reduction goals
- Scientifically validated sequestration to be recognised in the NZ ETS
- Public feedback sought over deferring legislated farm level NZ ETS reporting requirements in the Climate Change Response Act 2002 (CCRA).
He announced the arrival of the fourth and final P-8A Poseidon aircraft at the Royal New Zealand Air Force’s Base Ohakea today.
These aircraft cost a bob or two, but what this one cost wasn’t mentioned in the press statement.
Associate Justice Minister Deborah Russell did mention the amount of money involved when she announced compensation of almost $5 million will be paid to Alan Hall, who spent nearly 18 years in prison as a result of wrongful convictions.
in 1986 Hall was convicted of murdering Arthur Easton and intentionally wounding his son, Brendon Easton. He was sentenced to life imprisonment.
But in June last year the Supreme Court quashed his convictions and directed that verdict of acquittal be entered.
Justice Minister Ginny Anderson, meanwhile, was announcing a government commitment to spend $150 million for the seismic strengthening of three of New Zealand’s busiest courtrooms.
The work will take place at Auckland District Court, Hamilton District Court and Wellington High Court.
“These courthouses are critical to the performance of our justice system,” she said.
But isn’t that true of all courthouses?
The Auckland District Court project is expected to cost around $83 million, while the Hamilton District Court and Wellington High Court work will cost approximately $37 million and $30 million, respectively.
But wait. We haven’t finished with our spending news.
Andrew Little, as Minister of Treaty Negotiations, said Te Whakatōhea had witnessed the passing of the first reading of the Whakatōhea Claims Settlement Bill at Parliament yesterday for their historical Treaty of Waitangi claims.
Whakatōhea, an iwi based in the Bay of Plenty region, has a population of approximately 16,000 members.
The redress package includes
- The reservation of 5,000 hectares of marine space for aquaculture – a first in Treaty settlements to date
- More than $100-million financial, cultural, and commercial redress
- The transfer of 33 sites of cultural significance, bespoke natural resource and conservation arrangements
- Relationship agreements with core Crown agencies
On the regulation front Associate Housing Minister Barbara Edmonds announced the introduction of a regulatory regime for residential property managers.
The Bill requires residential property managers and residential property management organisations to be regulated by the Real Estate Authority. The proposed regime includes:
- establishing licensing, training and education requirements
- requirements to ensure industry practice standards are being met
- providing accountability by establishing an independent, transparent, and effective complaints and disciplinary process.
Latest from the Beehive
18 AUGUST 2023
The Government has delivered the next step to protect renters and property owners by introducing a regulatory regime for residential property managers.
New Zealand’s first-ever national freight and supply chain strategy will improve the productivity and resilience to disruptions of our ports, freight and shipping sectors…
The Chris Hipkins Government has worked with farming leaders to design a final plan to reduce agricultural emissions, Agriculture Minister Damien O’Connor has announced today.
Defence Minister Andrew Little has marked the arrival of the fourth and final P-8A Poseidon aircraft at the Royal New Zealand Air Force’s Base Ohakea today.
The Government will pay Alan Hall just under $5 million in compensation for wrongful conviction and imprisonment, Acting Justice Minister Deborah Russell announced today.
17 AUGUST 2023
Greetings to all who have joined us at the conclusion of the first day of the New Zealand International Education Conference Ki Tua.
The Government has committed $150 million for the seismic strengthening of three of New Zealand’s busiest courtrooms, Justice Minister Ginny Andersen has announced.
I kitea e Te Whakatōhea te pānuitanga tuatahitanga o Te Whakatōhea Claims Settlement Bill i te Pāremata i tēnei rā mō ā rātou kerēme Tiriti o Waitangi nō mai rā anō.
Point of Order is a blog focused on politics and the economy run by veteran newspaper reporters Bob Edlin and Ian Templeton
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