increase font size
HortNZ chair Barry O'Neil believes pragmatic leadership is needed by the Government to get the ball rolling.
The role of the banks is a critical component in the overall recovery plan for Hawke's Bay, according to the HortNZ chair Barry O'Neil.
His comments come as frustration builds in the province with orchardists and commercial growers at their wits end, not knowing if and how they can get their business up and running.
O'Neil believes some pragmatic leadership is needed by the Government to get the ball rolling.
He admits it's hard for the banks because some of the land in question is likely to be mortgaged but is now worthless.
That would make it hard for the bank to take on more debt on a property.
O'Neil says this, coupled with inflation and high interest rates, adds to the complexity of the issue.
He says the reality is that it will take at least six years - probably longer - to re-establish an orchard. O'Neil believes to do this will require some form of government intervention.
"The Government has traditionally done that with the Provincial Growth Fund where is looked at a sector and industry and invested in interest free loans to support industry to expand and develop new approaches," he told Hort News.
"A discussion along these lines with the Government will enable banks to maybe come in and offer support," O'Neil adds. "But on their own, that would be very difficult."
The problems in Hawke's Bay came to a head recently when an open letter was sent to the Government by most of the produce groups - such as NZKGI, apples and pears, summerfruit, citrus, asparagus, strawberry, processed vegetables, onions, persimmon, feijoa and HortNZ. The letter said, while the Government responded swiftly to the immediate crisis, there was now an urgent need for recovery funding, re-establishment and rebuild. The sector has called on the Government to make decisions on this as soon as possible and also to accelerate the infrastructure repair.
O'Neil says the problems in Hawke's Bay dealing with silt are mind boggling. "There are concerns [that] some of the silt is contaminated," he told Hort News.
"It needs to be moved quickly but growers are telling me they can't get approval from the authorities to do this, which is frustrating their ability to move on."
The recent East Coast Farming Expo, held over two days at Wairoa, offered an insight into the current state of agriculture on the east of the North Island, at a time when the locals are remembering the second anniversary of Cyclone Gabrielle.
Horticulture New Zealand has welcomed the Hawke’s Bay Regional Council’s decision to advance plans for a new water storage facility on the Heretaunga Plains.
Many companies are financially mortally wounded by the effects of Cyclone Gabrielle and may have to sell up because of their high debt levels.
Dean Smith has been in the role of CEO of Summerfruit NZ for about four months, having succeeded Kate Hellstrom at the end of September.
Just on two years ago Cyclone Gabrielle wreaked havoc in Hawke's Bay causing massive damage to NZ's largest apple growing region.
Federated Farmers supports a review of the current genetic technology legislation but insists that a farmer’s right to either choose or reject it must be protected.
New Zealand’s top business leaders are urging the US Administration to review “unjustified and discriminatory tariffs” imposed on Kiwi exporters.
New tariffs imposed by President Donald Trump signal an uncertain future, but New Zealand farmers know how to adapt to changing conditions, says Auriga Martin, chief executive of Farm Focus.
A global trade war beckons, which is bad news for a small open economy like New Zealand, warns Mark Smith ASB senior economist.
Carterton's Awakare Farm has long stood as a place where family, tradition and innovation intersect.
Fonterra says the US continues to be an important market for New Zealand dairy and the co-op.
OPINION: At last, a serious effort to better connect farmers and scientists.
OPINION: If you believe Maori Party president John Tamihere’s claim that “nothing dodgy” occurred at Manurewa Marae during the last…
