Home' Hastings Mail : July 3rd 2013 Contents 17
HASTINGS MAIL, JULY 3, 2013
Brown Webb Richardson Ltd, 111 Avenue Road East, PO Box 146, Hastings
Ph 06 873 8037 Fx 06 876 5211 Email: email@example.com Web: www.bwr.co.nz
Directors: Stephen Dine, Robyn Laughton, Roger Sinclair, Craig Riddiford, George Speedy, John Springford, Regan Loach
Associates: Mark Coombe
What is an
Is there such a thing as an average year?
There is a saying that on average every year
works out about average. It is likely 2013 will
be the same. A dry summer extended through
April 2013, promises of rain teased farmers
and then finally it came. Luckily, most of
Hawkes Bay got away relatively lightly as the
rain fell with many farmers receiving just more
than enough to replenish the ground and top
up dams before winter takes hold properly.
Unfortunately other parts of the country
received much more rain than was needed
and on the back of a drought, have now had to
deal with flooding.
Inland Revenue recognises the challenges
facing famers and other primary producers
by offering the Income Equalisation Scheme
to defer income and any tax thereon by up to
five years. In times of widespread difficulty,
adverse events may be declared on a regional
basis allowing additional concessions for
farmers using the equalisation scheme. The
drought experienced over the 2012/2013
summer was a case in point with eventually
the whole country declared a drought zone.
Consequently many farmers took advantage
of the Adverse Events scheme to defer income
and tax between the 2012 and 2013 years.
The 2013 and 2014 income years will also
continue to prove challenging for farmers
either recovering from the drought or in the
most unfortunate cases now facing a new
set problems caused by heavy winter rain or
While automatic acceptance into the Adverse
Events scheme closed back in April, farmers
can enter the scheme on a "self-assessed"
basis at any time after suffering the effects of
extreme weather. The concessions are much
the same, providing the ability to defer income
for a year or in some cases two without
committing funds for an extended period.
If you would like know more about how you
can use the equalisation scheme to minimise
the tax effects of extreme weather or farming
events then come and talk to the team at BWR.
Hawke's Bay Rural Lifestyles
Dam 'disaster' for Tukituki
Leading ecologist Mike Joy has
rubbished claims that allowing
more nitrogen in the Tukituki
River will not make it worse.
He has also questioned the
independence of scientists com-
missioned by councils that invest
heavily in irrigation schemes.
In a talk, The truth about
dairy intensification , given to
about 100 people in Waipukurau
last week, the Massey University
scientist spelled out the environ-
mental effects associated with
irrigation and intensification.
Hawke s Bay Regional Council s
proposed $260 million Ruatan-
iwha Water Storage Scheme
would see a large dam built west
of Waipukurau, with irrigation
provided to about 25,000 hectares.
More than $5.5m has been
spent on the project to date, with
ratepayers to put $80m into the
project if it goes ahead.
The scheme and a plan change
for the Tukituki River are the sub-
ject of applications being con-
sidered by a board of inquiry.
The council says the river can
take more nitrogen. High phos-
phorus levels will be controlled,
resulting in less algal growth and
better water quality.
But Dr Joy says this is science
being taken over by politics .
This idea that you let one go way
up and control the other is false.
There s a whole bunch of irri-
gation schemes going on or plan-
ned around the country and the
only way they can make that feas-
ible was to fiddle with the science.
The reality is this will not
stand up to scientific investi-
While some phosphorus can be
controlled by planting river
banks, flooding or big rainfall
events would see large amounts
Then you ve set yourself up for
a real disaster. You ve got nitro-
gen levels really high, down comes
the phosphorus and bang, you ve
got big problems.
Dr Joy told the meeting his uni-
versity position meant he could be
more independent than some
I want you to think about a
freshwater scientist working for a
regional council that s put a whole
lot of money into an irrigation
scheme. Could you be indepen-
Would you have your job still if
you were to say to the boss, This
is a bad idea, it s going to wreck
this stream ?
If you were working for [the
National Institute of Water and
Atmospheric Research] Niwa and
all your work came from these
councils or the Ministry for the
Environment . . .
You ve got to feed the kids and
pay the mortgage. Are you going
to say it s a bad idea?
Hawke s Bay Regional Council s
group manager, resource manage-
ment, Iain Maxwell, rejected Dr
Joy s inference of bias.
Irrespective of who the inves-
tor is and what they are investing
in, scientists are called on every
day to inform debates, Mr Max-
Scientists were usually from
Crown Research Institutes, he
said, and were bound to remain
impartial and give a clear
unbiased scientific opinion.
They do not alter their views to
suit the person paying the bill and
to suggest as much is distasteful
and challenges the science com-
munity s integrity generally.
The regional council would wel-
come Dr Joy reviewing its data or
evidence and putting forward his
own independent, unbiased pro-
fessional opinion, Mr Maxwell
A Niwa spokeswoman said the
organisation stood by the council s
Lamb kill fall
Drought effect: The lamb kill is
likely to be down by a million next
year, ''a lot of lambs'' but not huge
percentage-wise, says Silver Fern
The drought this year is likely to
reduce next year s lamb kill by one
million, says Silver Fern Farms
chief executive Keith Cooper.
More ewe lambs and ewes were
killed this season than normal
because of the drought and next
year farmers would be likely to
hold on to more to rebuild flocks.
There ll be less lamb and
potentially a higher retention rate
as people rebuild their capital
However, a drop of a million
lambs killed would represent only
a 5 per cent reduction, within the
normal year-to-year fluctuation.
When you look at recent years
when we ve had ups and downs,
generally something happens
every year, whether it s a snow-
storm or a drought.
We tend to bounce around
between 18.5 million and 20.5 mil-
lion and my sense is that this year
we re gong to be in the lower end
of that range, perhaps about 19
million lambs, which may be a
million fewer lambs than this
It s a lot of lambs, don t get me
wrong, but to my thinking, a five
per cent plus or minus change in
the lamb availability will give a
lot of . . . stability in the market.
With the kiwi dollar down
against the greenback, it would
have a positive effect.
Currency is very real and it
works both ways, so it s very frus-
trating when you hear people say,
Don t use currency as an excuse .
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