Damien O’Connor Criticises Budget 2026 as ‘Miserable’ for Rural New Zealand
A miserable budget that didn’t deliver much for anyone.
While the Government will pour more money into recovery efforts, O’Connor wants banks and insurance companies to play their part in helping farmers recover. He told Rural News that banks and insurance companies must chip in and support the businesses they partner with.
“It’s time for them to step up alongside government, central and local, and the community that has been doing their bit. We all have to chip in here," he says.
The Government last week announced $25 million to kick-start recovery efforts for farmers, growers and rural communities significantly affected by Cyclone Gabrielle. This funding is part of the $50 million support package and applications started rolling in from last week.
The funding will go towards grants for farmers and growers for urgent work, including fencing, and clearing silt to save trees and vines.
O’Connor says their focus will be on the hardest hit areas, such as Hawke’s Bay, where key primary sector infrastructure, along with crops, vines and pastures were knocked out by the cyclone, not to mention the loss of stock and essential feed faced by farmers.
“It’s vital we help rural businesses recover so we can keep our regional economies ticking and exports flowing.”
The support provides grants to growers of $2,000/ha up to a maximum of $40,000 to remove silt from trees and vines, business operations where they support the clean-up, and minimise tree and vine losses.
O’Connor says the horticulture sector was hit hard by the cyclone, particularly in Hawke’s Bay. The funding will also help to preserve vital trees and vines for future production.
“Pastoral and arable farmers will receive grants of up to $10,000 to help recovery efforts. Farmers know their farms best, and this grant will help them to direct the money where it will help most, which could include repairs to stock-water infrastructure and fencing.”
B+LNZ chief executive Sam McIvor welcomed the Government’s assistance but says farmers must be able to easily access this funding.
“The Government funding must get to farmers quickly and effectively, particularly in those isolated areas, and we will be working to make this process as seamless as possible. MPI has been supportive of this,” he says.
“The cyclone has had a catastrophic effect on some farmers and their livelihoods, but rural communities are showing strength and unity.”
ACT agriculture spokesperson Mark Cameron also welcomed the Government assistance but warns that red tape and bureaucracy could hinder recovery.
“No amount of government funding will help farmers and growers recover from Cyclone Gabrielle if the Government doesn’t cut the red tape and bureaucracy that makes it so difficult to get anything done,” says Cameron.
