Corporate welfare? The Luxon government has yet to put a cork in it – and the wine industry has become a beneficiary
Eradicating corporate welfare was the rationale applied by the PM when he set about delivering National’s campaign promise to end the Government Decarbonising Industry Fund (GIDI).
Before the election, Christopher Luxon said he would use the Emissions Trading Scheme to give companies an incentive to install clean energy without taxpayer grants. He criticised Labour for handing out grants to “in many cases profitable” companies.
Under National, the main tool for cutting planet-heating gases would be carbon pricing, rather than subsidising companies.
But that does not mean Luxon disapproves of corporate welfare that – all going well – will benefit profitable companies.
Today Agriculture Minister Todd McClay announced the Government is co-investing $5.6 million over seven years in partnership with New Zealand Winegrowers Incorporated and several vineyards “to drive profitability through innovative canopy management systems”.
McClay warbled about backing a new world-leading programme set to boost vineyard productivity and inject an additional $295 million into New Zealand’s economy by 2045.
He was talking of something called “The Next Generation Viticulture programme” which – he said – would transform traditional vineyard systems, increasing profitability by $22,060 per hectare by 2045 without compromising wine quality.
So why must the businesses that will gain those benefits call for the government to pitch in with $5.6 million?
Late in July, Associate Regional Development Minister Mark Patterson was doing the announcing.
He opened an experimental vineyard in Blenheim which – he said – would help “futureproof” the wine sector.
The covered vineyard, based at the New Zealand Wine Centre, enables controlled environmental conditions.
The research would help ensure New Zealand’s wine sector was prepared for challenges such as changing weather patterns, Patterson said.
Plant & Food Research would operate the Experimental Future Vineyard and work closely with the Marlborough Research Centre and the wider wine industry.
The vineyard was funded with $900,000 from a $3.79m loan from Kānoa – Regional Economic Development & Investment Unit to the Marlborough Research Centre.
Fair to say, the wine industry isn’t the only one to benefit from the latest bundle of Beehive announcements (but it’s the only one being given financial assistance). The others include –
But that does not mean Luxon disapproves of corporate welfare that – all going well – will benefit profitable companies.
Today Agriculture Minister Todd McClay announced the Government is co-investing $5.6 million over seven years in partnership with New Zealand Winegrowers Incorporated and several vineyards “to drive profitability through innovative canopy management systems”.
McClay warbled about backing a new world-leading programme set to boost vineyard productivity and inject an additional $295 million into New Zealand’s economy by 2045.
He was talking of something called “The Next Generation Viticulture programme” which – he said – would transform traditional vineyard systems, increasing profitability by $22,060 per hectare by 2045 without compromising wine quality.
So why must the businesses that will gain those benefits call for the government to pitch in with $5.6 million?
Late in July, Associate Regional Development Minister Mark Patterson was doing the announcing.
He opened an experimental vineyard in Blenheim which – he said – would help “futureproof” the wine sector.
The covered vineyard, based at the New Zealand Wine Centre, enables controlled environmental conditions.
The research would help ensure New Zealand’s wine sector was prepared for challenges such as changing weather patterns, Patterson said.
Plant & Food Research would operate the Experimental Future Vineyard and work closely with the Marlborough Research Centre and the wider wine industry.
The vineyard was funded with $900,000 from a $3.79m loan from Kānoa – Regional Economic Development & Investment Unit to the Marlborough Research Centre.
Fair to say, the wine industry isn’t the only one to benefit from the latest bundle of Beehive announcements (but it’s the only one being given financial assistance). The others include –
The fishing industry
Catch limits for several fisheries will be increased as part of Fisheries New Zealand’s biannual sustainability review, which considers catch limits and management settings across New Zealand’s fisheries.
Scientific evidence and information about our snapper stocks tells us these fisheries are thriving and abundant, Oceans and Fisheries Minister Shane Jones says.
“More of the fish can be sustainably harvested, which is why recreational allowances and commercial catch limits for some snapper stocks will be increased.”
Other changes include increases in the recreational and commercial take in the Kaikōura pāua fishery, but also an increase in the minimum size.
A recent assessment of the Challenger Plateau orange roughy stock has suggested current harvest is no longer sustainable so the commercial catch limit has been cut.
Commercial catch limits and allowances for the Southland blue cod stock have also been reduced.
Catch limits for several fisheries will be increased as part of Fisheries New Zealand’s biannual sustainability review, which considers catch limits and management settings across New Zealand’s fisheries.
Scientific evidence and information about our snapper stocks tells us these fisheries are thriving and abundant, Oceans and Fisheries Minister Shane Jones says.
“More of the fish can be sustainably harvested, which is why recreational allowances and commercial catch limits for some snapper stocks will be increased.”
Other changes include increases in the recreational and commercial take in the Kaikōura pāua fishery, but also an increase in the minimum size.
A recent assessment of the Challenger Plateau orange roughy stock has suggested current harvest is no longer sustainable so the commercial catch limit has been cut.
Commercial catch limits and allowances for the Southland blue cod stock have also been reduced.
The building industry
The Government is investigating options for a major reform of the building consent system to improve efficiency and consistency across New Zealand.
Building and Construction Minister Chris Penk says there are 67 building consent authorities around the country, each with different practices and approaches.
NZ has a single building code that is supposed to apply consistently to all building work nationally. But there are many instances of builders submitting the exact same plans to different BCAs and finding considerable additional costs and delays result from differing interpretations of the building code.
Responding to a recent survey of Master Builders Association members, 80 per cent reported having to deal with multiple BCAs, and 66 per cent experienced delays.
The aim is to establish a more consistent and streamlined model, with options including:
- Voluntary consolidation – allowing councils to group together to deliver building control functions. There are already a number of councils who are pooling some resources but barriers exist to full integration. This approach focuses on removing these barriers.
- Regional BCAs – establishing a smaller number of relatively large regional BCAs to replace the current 66 district and city council BCAs. This approach focuses on improving consistency and forming entities with the critical mass to drive economies of scale.
- Single point of contact – setting up a single point of contact for builders to submit plans to. Building inspection may be contracted out to existing BCAs or private consenting providers, creating competition and encouraging specialisation.
Latest from the Beehive
30 September 2024
The Government is backing a new world-leading programme set to boost vineyard productivity and inject an additional $295 million into New Zealand’s economy by 2045.
Over 90 per cent of submissions have expressed broad support for a New Zealand minerals strategy, indicating a strong appetite for a considered, enduring approach to minerals development.
29 September 2024
Catch limits for several fisheries will be increased following a review that shows stocks of those species are healthy and abundant.
The Government is investigating options for a major reform of the building consent system to improve efficiency and consistency across New Zealand.
The Government has announced that an initial cost-benefit analysis of establishing a third medical school based at the University of Waikato has been completed and has been found to provide confidence for the project to progress to the next stage.
The Government’s new speed limit rule has today been signed to reverse Labour’s blanket speed limit reductions and enable Kiwis to get to where they want to go quickly and safely.
Climate Change Minister Simon Watts is travelling to Fiji on Monday to attend a Ministerial Meeting (Talanoa) with Pacific Island Countries, Australia, and New Zealand.
27 September 2024
The Government is accepting the majority of human rights recommendations received at the fourth Universal Period Review in Geneva, Justice Minister Paul Goldsmith says.
The Government is continuing to move at pace on the Northland Expressway, with significant geotechnical investigations now underway for phase one from Warkworth to Te Hana.
Point of Order is a blog focused on politics and the economy run by veteran newspaper reporters Bob Edlin and Ian Templeton
No comments:
Post a Comment
Thanks for engaging in the debate!
Because this is a public forum, we will only publish comments that are respectful and do NOT contain links to other sites. We appreciate your cooperation.