Tuesday, July 19, 2011
Ho-Hum Rupert Murdoch
The fuss over Murdoch's papers is a bit ho-hum really. To titillate the public with ever more jucy tabloid headlines in an intensely competetive environment, the newspapers are too often forced to either pay for or steal salacious content. Phone tapping, cash payments, and cosy relationships with the pollies, sadly are simply the tools of trade and I bet News Corporation isn't alone We are witnessing the endgame for newsprint. The real news is available for free on the Internet.
Thursday, July 14, 2011
Labour's dumb Capital Gains Tax Policy
A big thumbs down to Goff's CGT. Taxing capital without a comprehensive review of our whole tax system is both dumb and dangerous. Even more dumb is to begin your election campaign by promising more tax.
It couldn't be a worse time than the present to talk about taxing assets, especially property. Since the global financial crisis, NZ home and farm values have been treading water, kept alive mainly by the grace of the Australian banks in controlling the rate of morgagee sales and Mr Ben Benanke's money machine keeping global interest rates artificially low. We've been collectively kicking the can down the road seeking time for rising incomes or inflation to restore some semblance of balance. So far the strategy has worked but it is highly at risk should unemployment or interest rates rise.
Along comes goofey Goff and his mates who think they can fix the original property bubble by a new tax long after the horse has bolted. They'll fix it alright! The tax will likely destroy market confidence and unleash a wave of deflation of house and farm values. Look at what is happening in the USA and then consider how inflated the ratio of income to house values is in NZ. What would a 30 - 50% drop in values do to our economy. Those most affected will be the labour supporters themselves, and the battlers, as they struggle with their underwater mortgages.
I'm not against comprehensive tax reform but Labour's policy is a very dangerous attempt to harness the green eyed monster of the left.
It couldn't be a worse time than the present to talk about taxing assets, especially property. Since the global financial crisis, NZ home and farm values have been treading water, kept alive mainly by the grace of the Australian banks in controlling the rate of morgagee sales and Mr Ben Benanke's money machine keeping global interest rates artificially low. We've been collectively kicking the can down the road seeking time for rising incomes or inflation to restore some semblance of balance. So far the strategy has worked but it is highly at risk should unemployment or interest rates rise.
Along comes goofey Goff and his mates who think they can fix the original property bubble by a new tax long after the horse has bolted. They'll fix it alright! The tax will likely destroy market confidence and unleash a wave of deflation of house and farm values. Look at what is happening in the USA and then consider how inflated the ratio of income to house values is in NZ. What would a 30 - 50% drop in values do to our economy. Those most affected will be the labour supporters themselves, and the battlers, as they struggle with their underwater mortgages.
I'm not against comprehensive tax reform but Labour's policy is a very dangerous attempt to harness the green eyed monster of the left.
Tuesday, July 5, 2011
Its time for New Zealand's frontier-forestry to grow up.
New Zealand needs more trees, whether native or exotic, because forests benefits the environment in so many ways. Most important is their ability to reduce flood flows and soil erosion on our steep unstable hill country. There are many striking examples that aptly show how effective forests can be reducing the extent of landslides when compared to pasture on the same topography.
The problem is that the way we harvest our exotic forests destroys these protective functions. Despite the existence of an "Environmental Code of 'Best' Practice" too great an area of steep forests end up as a trashed landscape littered with slash, log ends and bare soil. Radiata pine takes 30 years to mature. Therefore roughly 1/30th of the NZ's area of radiata plantation (nearly 60,000 hectares) is clear-cut every year. The landscape remains stark and vulnerable for at least five years until a new forest is established. Any high rainfall storms on hill country can cause more erosion in logged forests than pasture because so much soil and debris is exposed.
In the past year China's demand for timber has reinvigorated forestry, not before time, as the previous years of dismal returns nearly crippled the industry. Unfortunately, the renaissance has coincided with a period of exceptional storms. The inevitable result has been landslides of forest debris flooding rivers and silting local estuaries. The damage is all too visible around Nelson and the Coromandel hill country.
Surely it's time the forestry industry lifted its game. The logging of whole hillsides in one swoop is frontier forestry. Our forest owners could show a little more sophistication on sensitive landscapes by better applying their own code of practice. Additional techniques such as using smaller felling areas, and even maintaining a continuous forest cover, are standard practice overseas but are implemented here by only a few enthusiasts. They may cost a little more but the environmental gains would be enormous. Better the industry takes the initiative itself than wait for local Councils to force more inflexible rules.
The problem is that the way we harvest our exotic forests destroys these protective functions. Despite the existence of an "Environmental Code of 'Best' Practice" too great an area of steep forests end up as a trashed landscape littered with slash, log ends and bare soil. Radiata pine takes 30 years to mature. Therefore roughly 1/30th of the NZ's area of radiata plantation (nearly 60,000 hectares) is clear-cut every year. The landscape remains stark and vulnerable for at least five years until a new forest is established. Any high rainfall storms on hill country can cause more erosion in logged forests than pasture because so much soil and debris is exposed.
In the past year China's demand for timber has reinvigorated forestry, not before time, as the previous years of dismal returns nearly crippled the industry. Unfortunately, the renaissance has coincided with a period of exceptional storms. The inevitable result has been landslides of forest debris flooding rivers and silting local estuaries. The damage is all too visible around Nelson and the Coromandel hill country.
Surely it's time the forestry industry lifted its game. The logging of whole hillsides in one swoop is frontier forestry. Our forest owners could show a little more sophistication on sensitive landscapes by better applying their own code of practice. Additional techniques such as using smaller felling areas, and even maintaining a continuous forest cover, are standard practice overseas but are implemented here by only a few enthusiasts. They may cost a little more but the environmental gains would be enormous. Better the industry takes the initiative itself than wait for local Councils to force more inflexible rules.
Thursday, June 23, 2011
Restructuring the Public Service
Before the Labour Party came to power in 1984, a job gained in the public service became a career for life unless you committed some henious crime. Richard Prebble, Roger Douglas and Phil Goff destroyed that security for ever. Whole departments, such as the NZ Forest Service, were disbanded. The way the staff were treated, especially those who lost out, was abysmal. The legacy was a cohort of embittered former forestry people, many of whom still struggle with modern life.
Another round of wholesale job losses occurred when the Labour Party came to power in 1999. Helen Clark was determined to end native forest logging on the West Coast. The forestry staff and contractors made redundant were treated as pariahs in an ugly political fight. The irony is that in both instances the Labour Party, the supposed "workers advocate", acted so callously towards their own.
Now we are about to see another wave of job losses as John Key's National Government takes it's turn to trim the public service. As New Zealand struggles to cope with the Global Financial Crisis, a reduced public sector is inevitable. Let's hope the Tories show more compassion than the Socialists. Workers who loose their jobs deserve the decency to be told how much their service is appreciated even though that work will not continue. Then help them to establish new careers elsewhere within or outside the public sector.
Another round of wholesale job losses occurred when the Labour Party came to power in 1999. Helen Clark was determined to end native forest logging on the West Coast. The forestry staff and contractors made redundant were treated as pariahs in an ugly political fight. The irony is that in both instances the Labour Party, the supposed "workers advocate", acted so callously towards their own.
Now we are about to see another wave of job losses as John Key's National Government takes it's turn to trim the public service. As New Zealand struggles to cope with the Global Financial Crisis, a reduced public sector is inevitable. Let's hope the Tories show more compassion than the Socialists. Workers who loose their jobs deserve the decency to be told how much their service is appreciated even though that work will not continue. Then help them to establish new careers elsewhere within or outside the public sector.
Friday, May 27, 2011
Carbon Tax or ETS
Why on earth did NZ follow the Europeans and choose a ETS rather than a simple Carbon Tax option. The logic escapes me.
In my former industry, forestry, the scheme is a continuing disaster. First, thousands of hectares were clear-cut to beat the legislation. Now the ETS distorts sensible market and land-use decisions and, worst of all, creates complex compliance issues - fodder for a growing army of carbon measurers, consultants, auditors and bureaucrats. Soon there will be auditors to audit the auditors!
Believe me whenever government intervenes in forestry the market reacts in quite the opposite way to what the government intends. They get it wrong every time. Think Helen Clark's campaign to stop logging private native forests. In three years she caused a logging bonanza as landowners raced to beat her draconian legislation. By the time the Governor-general signed her law there were few intact forests left.
What was wrong with a simple tax on all energy carbon emissions? For petrol and diesel, combine all the other fuel taxes (excluding GST) into one super "carbon" tax. The revenue can then be apportioned to roads, ACC, research, etc, and the surplus skimmed off to support better energy alternatives plus lower personal and/or company tax. The latter gives the government the means to change behaviours while compensating the cost to consumers.
Forget livestock burp and fart taxes - absolute political stupidity that no other nation will copy. Farmers have enough market forces already. And finally take away the idiotic carbon sequestration payments to foresters before we loose more land to manuka, gorse and planting designed to create derelict exotic forests.
In my former industry, forestry, the scheme is a continuing disaster. First, thousands of hectares were clear-cut to beat the legislation. Now the ETS distorts sensible market and land-use decisions and, worst of all, creates complex compliance issues - fodder for a growing army of carbon measurers, consultants, auditors and bureaucrats. Soon there will be auditors to audit the auditors!
Believe me whenever government intervenes in forestry the market reacts in quite the opposite way to what the government intends. They get it wrong every time. Think Helen Clark's campaign to stop logging private native forests. In three years she caused a logging bonanza as landowners raced to beat her draconian legislation. By the time the Governor-general signed her law there were few intact forests left.
What was wrong with a simple tax on all energy carbon emissions? For petrol and diesel, combine all the other fuel taxes (excluding GST) into one super "carbon" tax. The revenue can then be apportioned to roads, ACC, research, etc, and the surplus skimmed off to support better energy alternatives plus lower personal and/or company tax. The latter gives the government the means to change behaviours while compensating the cost to consumers.
Forget livestock burp and fart taxes - absolute political stupidity that no other nation will copy. Farmers have enough market forces already. And finally take away the idiotic carbon sequestration payments to foresters before we loose more land to manuka, gorse and planting designed to create derelict exotic forests.
Tuesday, May 17, 2011
Freedom Campers
New laws proposed to control freedom camping are welcome but how will they be enforced away from the big towns?
By my own estimate Okarito hosts over 30,000 visitors a year. Their welfare and enjoyment are important to us as they provide a living for several small businesses. The community itself operates a small DOC campground and all funds generated fund community work like providing toilets and potable water for visitors. They also fund projects like restoring Donovan's Store, the oldest wooden building on the West Coast.
Over 99% of visitors treat our environment with respect, use the toilets provided and we hope enjoy their stay. As always, it is the ferals that cause all the aggro. They are often SKIMS, "single kiwi males", in old vans who hide in the carparks late in the evening.
Asking someone to move on is not a pleasant experience neither for the local nor the offending visitor. Who wants an argument with strangers just before bed - a poor nights sleep is almost guaranteed. But how else will the new law be enforced? Our local policeman is 30km and Council is 120km north at Hokitika. Perhaps I'm missing some innovative proposal in the legislation that will solve our problems
By my own estimate Okarito hosts over 30,000 visitors a year. Their welfare and enjoyment are important to us as they provide a living for several small businesses. The community itself operates a small DOC campground and all funds generated fund community work like providing toilets and potable water for visitors. They also fund projects like restoring Donovan's Store, the oldest wooden building on the West Coast.
Over 99% of visitors treat our environment with respect, use the toilets provided and we hope enjoy their stay. As always, it is the ferals that cause all the aggro. They are often SKIMS, "single kiwi males", in old vans who hide in the carparks late in the evening.
Asking someone to move on is not a pleasant experience neither for the local nor the offending visitor. Who wants an argument with strangers just before bed - a poor nights sleep is almost guaranteed. But how else will the new law be enforced? Our local policeman is 30km and Council is 120km north at Hokitika. Perhaps I'm missing some innovative proposal in the legislation that will solve our problems
Saturday, May 14, 2011
Ducks aren't dumb.
Two pair of paradise ducks live in Okarito village. They are the originals or descendants of birds found as abandoned ducklings and lovingly reared by some of our "earth-mother" residents. All four are unnamed but still important sentries in the village.
Our ducks recognize faces, I'm sure, because they virtually ignore me as I potter about our garden on my daily chores. The old hen looks at me "oh him again" and carries on grazing. But strangers that pass are watched closely. If the strangers show interest then the "honk, honking" begins as the ducks show their suspicion and displeasure. Unsupervised young boys are especially a risk.
There are many other hazards. While the local canines are benign visiting mutts don't show the same respect but so far the ducks have survived. Then there are the cars, trucks, and camper vans that visit daily, some at speeds that threaten not only the ducks. One visiting boy racer in an act of defiance deliberately flattened five ducklings. A week later he flattened himself in a high-speed crash - UTU.
The four ducks tolerate each other except for the mating season when the peace is shattered by violent battles over territory. Eventually, after many fearsome feather pulling fights a truce is achieved along a boundary established around the main road intersection. Each pair nest high in rimu trees with the hen duck sitting, leaving the drake to wander aimlessly about waiting for the hen to make brief feeding visits.
Not all the ducklings survive despite our best efforts of care. Usually between two and six reach maturity. They are then shooed away by their parents and we never see them again.
Our ducks recognize faces, I'm sure, because they virtually ignore me as I potter about our garden on my daily chores. The old hen looks at me "oh him again" and carries on grazing. But strangers that pass are watched closely. If the strangers show interest then the "honk, honking" begins as the ducks show their suspicion and displeasure. Unsupervised young boys are especially a risk.
There are many other hazards. While the local canines are benign visiting mutts don't show the same respect but so far the ducks have survived. Then there are the cars, trucks, and camper vans that visit daily, some at speeds that threaten not only the ducks. One visiting boy racer in an act of defiance deliberately flattened five ducklings. A week later he flattened himself in a high-speed crash - UTU.
The four ducks tolerate each other except for the mating season when the peace is shattered by violent battles over territory. Eventually, after many fearsome feather pulling fights a truce is achieved along a boundary established around the main road intersection. Each pair nest high in rimu trees with the hen duck sitting, leaving the drake to wander aimlessly about waiting for the hen to make brief feeding visits.
Not all the ducklings survive despite our best efforts of care. Usually between two and six reach maturity. They are then shooed away by their parents and we never see them again.
Subscribe to:
Posts (Atom)