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Home / Business / Economy

<i>Owen Hembry:</i> Keep water clean but don't sink our most prized asset

Owen Hembry
By Owen Hembry
Online Business Editor·
25 Nov, 2007 04:00 PM7 mins to read

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Owen Hembry
Opinion by Owen Hembry
Business news editor, NZ Herald
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KEY POINTS:

A verbal scrap broke out last week over the Resource Management Act after Federated Farmers president Charlie Pedersen's opening speech to the organisation's national council.

Pedersen says rules aimed at improving water quality are becoming increasingly draconian and threatening the viability of some farms.

The issue is perhaps
the most serious facing the industry in the next decade, Pedersen says.

"But let me be clear that the problems are already with us and will only get worse unless we force some rethinking at the highest levels of government."

New Zealand has the best water quality of any farming country in the world, he says.

"I think it would be a crying shame to start capping the best farmers in the world trying to get to our environmental goals too quickly," he says. "We want to get to them as well but we still want to be there and viable farmers to do it."

The main issue affecting quality was the flow of nutrients into water, Pedersen says.

"Most nutrients occur naturally but councils are moving to regulate and restrict fertiliser inputs on properties, and in some cases even the number of animals a farm can run."

Increasingly some farmers were having to apply for consents for ordinary farming operations, he says.

The RMA - used to enforce the rules - was an adversarial process open to abuse, where people were guilty until proved innocent, Pedersen says.

The act needs to be more robust and professional, although having locally tailored solutions to problems is the right approach, he says.

When the Government acquires the title of land for needs such as roading then compensation is paid out but using the RMA the title is not acquired and there is no compensation for restrictions placed on the use of land, Pedersen says.

Federated Farmers also published a booklet suggesting six ways the Government could fix the RMA.

* Compensate landowners for restrictions.
* Mandate consultation.
* Refine the advocacy role of DOC.
* Streamline the resource consents process.
* Enable long-term economic viability.

Agriculture Minister Jim Anderton's reply gave Pedersen short shrift.

"The suggestion by Federated Farmers president Charlie Pedersen that farmers should be compensated for being bound by rules on water quality is simply outrageous," Anderton says.

"Farmers, like all industry, must accept responsibility for the effects of their production and sometimes this will mean time and money for farmers, just like other businesses. If the federation wants to address its ailing membership, then it needs to enter the 21st century and show true leadership."

A modern farm is like any other business and taken collectively they are the country's biggest asset.

Farms have all the usual business pressures of improving production efficiency, output and reducing costs but like any other company they also have social responsibilities.

We should not unnecessarily shackle, impede or damage our greatest national wealth-creating asset.

On the other hand, no one should be allowed to illegally damage the environment.

So the questions are what is right and what is legal. The two must go together.

What is right for the long-term future of the land must come first - irrespective of our world ranking.

It's nice but we don't have to be world number one because that is merely a relative measure to everyone else, but we must do what is right for New Zealand.

An acceptable level of pollution - lest we forget we are all polluters - should be defined, agreed and enforced.

Legal limits, set objectively, based on factual analysis and enforced consistently across the country should eliminate confusion or concern about subjective human interpretation.

Pedersen supports the concept of locally tailored solutions for local problems. But could differing regional approaches breed confusion and resentment?

One land, one set of rules and you know where you stand.

Pedersen says not one council has done a cost benefit analysis of taking action to restrict farming.

There is a trade-off so the agreed regulation must be appropriate and provided it is then the price of sticking to it has to be dealt with - either by innovation or, if need be, restriction.

Federated Farmers are concerned that under the RMA, action in some cases is taken without consultation with farmers.

As with all contentious issues buy-in is needed from all sides, but that does not prevent a vigorous debate.

A "them and us" situation where farmers feel vulnerable to perceived unnecessary action and persecution won't work and will simply see the divide rumble on for years and that's not good - for the economy or the environment.

LAMBS DOWN

Lamb production is down 4.9 per cent this year to 32.4 million lambs - a drop of 1.7 million tailed lambs, according to the Meat and Wool New Zealand Region Manager Survey.

Meat and Wool economic services executive director Rob Davison says the drop in the North Island is because of the severe drought on the East Coast during autumn and into winter.

"The ewes were in light condition in this region and so conception rates were down, and this was compounded by the destocking of farms as feed supplies dried up," Davison says. "The South Island ewe lambing was similar to last spring with 124 lambs tailed per 100 ewes."

The number of lambs available for export is estimated to be down 1.4 million on last year at 24.4 million animals, which, based on last year's export returns of $2.3 billion, would be a drop of $130.5 million.

The reduced export number also included the fact that fewer lambs needed to be kept for replacement because of the conversion of beef and sheep farms to dairying.

"At the farm level in the worst drought affected areas it's going to take them quite a while to recover financially," Davison says

Lamb production was expected to be at about 32.3 million animals in 2008/09, while recovery on the East Coast was expected to take two to three years, with extra lambs retained to grow flocks.

"I think the offset to that is coming through the dairy [conversions] so we're going to work hard to hold our production."

However, there was some price improvement in overseas markets and co-product prices looked like starting to lift.

"All we want is the exchange rate to stay sensible for exporters."

SHEAR ENERGY

The nine-hour women's lamb shearing world record is under attack tomorrow from 27-year-old Waikaretu shearer Emily Welch.

The record is held by New Zealander, Jillian Burney, who shore 541 lambs in 1989.

Welch, who has been a professional shearer for six years, is confident of setting a new record - likened to running two consecutive marathons - and has been in training for six months. Dad Philip Woodward said: "What she's been doing is shearing all day then running 10km and then 20 minutes on the rowing machine."

In March, Welch came second in the senior grade at the Masterton Golden Shears and sixth in the New Zealand Champs at Te Kuiti.

NZ GROWN

Last week's column highlighted data on the growing amount of imported food we buy and a push by horticulture New Zealand for better country-of-origin labelling.

The Buy NZ Made campaign - started in 1988 - has launched a label stamped NZ Grown and picturing a kiwi in a triangle.

Director Marcia Dunnett, who wants companies to use the logo on fresh produce, said: "I think the timing's quite good and there seems to be a lot of interest from consumers in being able to identify New Zealand produce."

Producers wanting to use the label need to be a member, which costs between $150 and $5000 based on staff numbers.If and when a major producer gives it a whirl, we will be able to see to see just how much the happy shopper really wants to buy homemade.

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