Wednesday, 28 August 2019 07:55

More compliance costs coming

Written by  David Anderson
Agriculture Minister Damien O’Connor. Agriculture Minister Damien O’Connor.

Farmers already under the pump in trying to meet the requirements of the Government’s impending Zero Carbon Bill legislation will soon be hit soon by even more compliance costs.

With new freshwater standards to be announced in the next few weeks, Agriculture Minister Damien O’Connor told TVNZ’s Q&A programme that he expects farmers’ costs in meeting new freshwater rules will be about “1-2%.”

O’Connor conceded that even more costs are not something farmers want, yet he expects them to “absorb” them.

While the minister claimed the Government opposes laying even more compliance costs on businesses, he said “some extra costs are essential” and “improved water quality across the country is wanted and necessary”.

Meanwhile, in the interview O’Connor also put the boot into Fonterra’s former board and management for the dairy co-op’s current woes.

“Crazy decisions made over the years are now coming home to roost,” he told Q&A.

But he says the “new” board and management is now being upfront and honest with farmers in its writedowns of the value of the co-op’s investments.

O’Connor was quick to point the finger at Fonterra’s “old” management and governance, saying it was “a good thing” former chief executive Theo Spierings is now gone. He also labelled Spierings’ $4.7 million exit payment as “ridiculous”.

“That is something the old board would have to answer for,” he said.

On the upcoming Dairy Industry Restructuring Act (DIRA) revision, O’Connor said the bill coming before Parliament is “about right”. He claims it will provide Fonterra a bit more protection.

“It means Fonterra [won’t] have to pick up all new milk supply and imposes new environmental and animal welfare requirements on farmers.”

But the minister says he has an open mind about making changes arising from the work of the parliamentary select committee.

More like this

All eyes on NZ milk supply

All eyes are on milk production in New Zealand and its impact on global dairy prices in the coming months.

"Our" business?

OPINION: One particular bone the Hound has been gnawing on for years now is how the chattering classes want it both ways when it comes to the success of NZ's dairy industry.

Farmers' call

OPINION: Fonterra's $4.22 billion consumer business sale to Lactalis is ruffling a few feathers outside the dairy industry.

Wasted energy

OPINION: Finance Minister Nicola Willis could have saved her staff and MBIE time and effort over ‘buttergate’ recently by not playing politics with butter prices in the first place.

Featured

NZ household food waste falls again

Kiwis are wasting less of their food than they were two years ago, and this has been enough to push New Zealand’s total household food waste bill lower, the 2025 Rabobank KiwiHarvest Food Waste survey has found.

Editorial: No joking matter

OPINION: Sir Lockwood Smith has clearly and succinctly defined what academic freedom is all about, the boundaries around it and the responsibility that goes with this privilege.

DairyNZ plantain trials cut nitrate leaching by 26%

DairyNZ says its plantain programme continues to deliver promising results, with new data confirming that modest levels of plantain in pastures reduce nitrogen leaching, offering farmers a practical, science-backed tool to meet environmental goals.

National

Machinery & Products

Tech might take time

Agritech Unleashed – a one-day event held recently at Mystery Creek, near Hamilton – focused on technology as an ‘enabler’…

John Deere acquires GUSS Automation

John Deere has announced the full acquisition of GUSS Automation, LLC, a globally recognised leader in supervised high-value crop autonomy,…

Fencing excellence celebrated

The Fencing Contractors Association of New Zealand (FCANZ) celebrated the best of the best at the 2025 Fencing Industry Awards,…

» Latest Print Issues Online

The Hound

A step too far

OPINION: For years, the ironically named Dr Mike Joy has used his position at Victoria University to wage an activist-style…

Save us from SAFE

OPINION: A mate of yours truly has had an absolute gutsful of the activist group SAFE.

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter