'Fair share' being asked of farmers

David Parker
David Parker
Farmers are being asked to pay their fair share for agricultural emissions - "nothing more, nothing less", Labour's economic development spokesman, David Parker, says.

Labour's announcement of the creation of a 12.5% tax credit for additional research and development, paid for by charging the farming sector for agricultural greenhouse gas emissions, has raised the ire of the farming community.

Beef and Lamb NZ chairman Mike Petersen warned yesterday that including livestock emissions in the Emissions Trading Scheme (ETS) would be "economic suicide" for New Zealand and could spell the end of the sheep and beef sector in the country.

Federated Farmers national president Don Nicolson told NZPA that Labour would emasculate farmers by forcing them into the ETS two years early and the economic impact would be catastrophic. He accused Labour of plotting to discredit farmers.

Under the policy, farmers would be charged for about 10% of their agricultural emissions from July 1, 2013.

Yesterday, Mr Parker said all Labour was asking farmers was to pay their "fair share". Other sectors of the economy should not have to carry all the agricultural emissions.

The bigger point was that New Zealand needed to broaden its export base and, to do that, research and development had to be encouraged in all sectors of the economy.

Virtually every country in the OECD had a research and development tax credit, except New Zealand, and, because of that, the country had fewer exports, fewer jobs and lower wages, he said.

The suggestion by Prime Minister John Key that bringing agriculture into the ETS two years earlier would drive up the price of milk was "just not true". Milk prices were set by international markets.

 

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