New Zealand and Subsidies ..nb

[mikewilkes]

Check this out. Maybe time Europe thought about this, especially with the now increased size !! /forums/images/icons/crazy.gif


<A target="_blank" HREF=http://news.bbc.co.uk/2/hi/programmes/from_our_own_correspondent/3747430.stm>Subsidies</A>

<hr width=100% size=1>Mike
Now back home with my mistress and SWMBO of course !!!

 

[pragmatist]

Sadly what it doesn't detail is exactly how it improved things. I'd love to know. During the foot & mouth epidemic I spoke to a local farmer ( a chap I went to school with) and heard the usual sad tale - then he went on to tell me how bad prices were. Having listened to The Archers I asked if he'd thought of diversifying - maybe into organic farming. "They're going to cut the subsidies on that soon" he moaned.

I didn't mention that my business gets not a drop of subsidy. "Well programming's easy," he said and returned his Landrover to his farm, worth several million.

It's going to take a bit of work to get them to permit subsidies to be turned off IMHO !

<hr width=100% size=1>a pragmatist is an optimist with a boat in the UK - but serious about not being in the UK !

 

[Ships_Cat]

In the 1980's when the subsidies were removed the action was actually formally supported by farmers groups as they could see that while it might hurt in the short term it was the best way forward. I doubt whether you would find many farmers here in NZ that would support a return to subsidies (although all of us, farmers or not, would never refuse a free gift from the government /forums/images/icons/smile.gif).

The change which benefited the farmers which encouraged them to that view (but applied to everyone, not just farmers) was the almost complete removal of all sales taxes and also of duties on almost all imported goods - so things like cars, machinery, etc as well as everyday things such as electronic goods, clothing (on which a small duty still remains because the current government is too gutless in the face of the unions to continue the planned removal of it), etc all became cheaper.

Farm prices took a tumble and there was a deal of rationalisation. As is typical in such things the good farmers saw it through and diversified out of subsidised sheep, for example (sheep numbers are far lower here now than before - haven't checked recently but something like only 2/3 as many). I don't know what the poor farmers are doing now but hopefully something they are good at, even if that is only doing nothing (but unemployment here is at present only around 4%).

But that happened under a very pragmatic government which just cut all the old economic ways adrift and it is not the sort of thing that will ever happen easily under a government such as the EU which is strongly bureaucratic and protectionist. It also would not happen under our own current government.

John

<hr width=100% size=1>I am the cat but I am only 6.

 

[halcyon]

On local radio the other month they were talking to a estate agent that delt in farms, had sold 50 odd in last year, all to up country buyers, none with a interest in farming. They were all to be coverted to second homes/ country estates, and being taken out of the food chain. It is also common that most children will not become envolved with the family farm ( or fishing boat ) locally, which results in relying almost totally on food imports, limited power, no manufacturing industry, not much future for the pessimist, or what the hell for the optomist.


Brian

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[Gunfleet]

<< a government such as the EU which is strongly bureaucratic and protectionist. >>
I knew we'd agree abt something!

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[Ships_Cat]

Very big /forums/images/icons/smile.gif.

Is always some common ground somewhere.

Regards

John

<hr width=100% size=1>I am the cat but I am only 6.

 

[Deleted User YDKXO]

The main reason townies are buying up farms is to avoid inheritance tax. Also, agricultural land is subject to less planning restrictions so no probs building that stable block and filling it with Posches and grannies
Personally, I dont have a problem with this as I've never understood why farming is the only industry that gets subsidies and handouts. Every other industry has to live in the real commercial world so why not farming. If my business goes belly up, I cant go cap in hand to the govt for a hand out like farmers did during the foot and mouth crisis

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