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Home / Hawkes Bay Today

Farm-level levy system proposal not equitable, says Tararua District Council

Leanne Warr
By Leanne Warr
Editor - Bush Telegraph·Hawkes Bay Today·
17 Nov, 2022 05:02 PM3 mins to read

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Tararua District Council say the area risks being covered in exotic forestry if the proposed levy system goes ahead. Photo / NZME

Tararua District Council say the area risks being covered in exotic forestry if the proposed levy system goes ahead. Photo / NZME

Local farmers and the Tararua District Council say the proposed farm-level levy system will have a “significant impact” on the district.

Submissions on the proposal were due today.

Sharon Wards can see the potential impact long-term. Photo / Leanne Warr
Sharon Wards can see the potential impact long-term. Photo / Leanne Warr

Councillor and farmer Sharon Wards said she and her husband Simon had never put in a submission before, but she was seeing the potential impact long-term.

She said she could see two potential scenarios for the Tararua district by 2030.

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One of those would see Alliance (a food processing plant) closing down, shops shutting and the loss of rural schools.

“I painted a picture of what Tararua [district] could look like in 2030, and then I gave another scenario. If they adjusted some of the things that I’ve suggested they adjust – completely different district.”

Wards said in the proposed pricing model, the levy on primary production was meant to go back into the industry in areas such as research and development.

“There is a focus on primary production. When you actually look into it, it will make no change to the impact of emissions.

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“They’re trying to have primary production incentivise themselves to get that level down.”

Wards said the proposal talked about different targets and measures to be put into place, but it was all about more monitoring, more compliance, and it was all placed on farmers.

“Nowhere have I read that [they’re] doing the same to gas, coal, all those other industries.”

Tararua District Council were also making a submission on the proposal, saying farming sequestration was not being given due recognition or consideration.

Tararua District Council was also making a submission to the proposed farm-level levy system.
Tararua District Council was also making a submission to the proposed farm-level levy system.

The council’s draft submission said while eligible forestry could enter the Emissions Trading Scheme, that didn’t include other on-farm causes of sequestration such as erosion and riparian plantings, shelter belts and future measurable sequestration from grass and soil.

“Importantly, the proposal assumes the eligible exotic and native forestry will enter the ETS when there is no obligation to do so.”

The submission said the modelling in the consultation document showed a negative impact on sheep production which would negatively and disproportionately affect the Tararua district.

The district relies heavily on sheep farming as the main contributor to the district’s GDP.

“Additionally, the unconstrained forestry growth and the dominance of Class 6 and 7 LUC (Land Use Capability) land will ultimately lead to the loss of employment, rural communities and a serious negative impact on our small towns of Dannevirke, Eketāhuna, Pahiatua and Woodville.”

The council’s submission also stated the proposed system was not equitable, as the proposed pricing model showed a potential 20 per cent reduction in sheep production.

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“This will greatly impact the Tararua district due to our soil type make-up, rainfall profile and physical size.

“Sheep farming has been the cornerstone of the Tararua district’s GDP and has been shown to be the most profitable and efficient protein production system on most of our land area.”

The district was already being targeted for forestry, and the proposal on agricultural emissions would result in significant land use change - from protein production to forestry.

“With no current ability for councils to control forestry land use change, the Tararua district risks becoming covered in exotic forestry due to a combination of poor future sheep production profitability and unconstrained land use on forestry,” the submission said.

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