The Militant (logo)  
   Vol. 67/No. 33           September 29, 2003  
 
 
New Zealand farmers fight new tax
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BY ANNALUCIA VERMUNT
WELLINGTON, New Zealand—Some 500 farmers from throughout New Zealand marched on parliament September 4 to protest the government’s plan to introduce a NZ$8.4 million research levy, a tax to reduce on-farm livestock methane emissions (US$1 = NZ$1.70).

A series of marches, rallies, and public meetings have been held throughout the country as Federated Farmers—an association whose membership is open to all farmers but is dominated by and campaigns for the interests of capitalist farmers—collected 64,000 signatures on a petition opposing the government levy. In presenting the petition, Tom Lambie, president of Federated Farmers, said that farmers “pay NZ$77 million a year in voluntary levies, much of which funds a wide range of research from which all New Zealand benefits.”

The tax, which has been the object of widespread derision, has become popularly known as the flatulence tax. It has sparked determined opposition especially because it comes at a time when farmers, especially working farmers, are squeezed by rising costs and declining income from sales of meat and dairy products.

In Southland nearly 1,500 people turned out for a rally August 23. “If the government believes the agricultural greenhouse gas emissions research is in the public interest then the government should pay,” said Don Nicolson, Southland Federated Farmers president, at that action.

The new levy means farmers will pay about NZ$0.09 a year for each mature sheep and NZ$0.54 a year for each beef or dairy animal. The tax will cost each farmer approximately NZ$300 per year on average.

Dairy farmer Malcolm Bailey said about 350 joined a protest in the rural town of Feilding. Explaining why he joined the protest against the new tax, Bailey said the imposition of a new tax “breaks a promise the government made. In principle farmers have a lot of tax credits.” He was referring to credits farmers get for planting trees that provide a carbon sink for greenhouse gas emissions.

Charlie Bannister, a retired farm contractor from the Wairarapa, reported that 50-60 people with 100 vehicles showed up at the Masterton protest. He said farmers are already spending NZ$60 million on research, there is no need for the government to levy the additional NZ$8 Million.

Beef farmer Chris Wall estimated that in the 2002/2003 season farmers paid an average of NZ$21 in levies and charges for each head of cattle slaughtered. The numerous charges faced by farmers include meat inspection levies, herd testing, local body charges for water and effluent, and accident compensation and vehicle registration fees.

Capitalist politicians have been using the Kyoto treaty to justify the imposition of the new tax. The Kyoto Protocol was cobbled together in Kyoto, Japan, in 1997 at an 11-day conference of representatives from 150 countries. From the first day to the last, the meeting featured contending imperialist powers promoting their national interests at the expense of their rivals and on the backs of working people, especially those in the semicolonial world. This treaty has been touted by its supporters as a means of limiting emissions of carbon dioxide and other greenhouse gases alleged to result in “global warming.” The agreement would in theory require 39 industrialized countries to reduce their collective emissions of these gases to at least 5 percent below 1990 levels by sometime between 2008 and 2012.

The New Zealand government ratified the protocol in December 2002.

Member of Parliament Peter Hodgson defended the levy in the August 21 New Zealand Herald by pointing to this treaty. “The Kyoto protocol puts a price on greenhouse gas emissions to encourage cuts and make non-polluting energy sources more competitive,” he said.

Pointing to this accord as a means for gaining a competitive advantage through lowering greenhouse gas emissions, Hodgson stated, “The government will take responsibility for ensuring New Zealand meets its Kyoto target regardless of the level of emissions from farming.

“If agriculture had to pay the full cost of its emissions, the bill would be up to NZ$925 million a year from 2008.”

Denis Hocking of the Farm Forestry Association, however, estimates that 200,000 hectares of trees planted on farms since 1990 have already ensured that pastoral farming net emissions will be below the required level when the Kyoto Protocol comes into force.

The government’s proposed levy comes at a time when dairy and beef farmers are facing a drop in income. Westpac economists point out dairy payouts, which averaged NZ$3.94 per kilo of milk solids between 1996 and 2002, are expected to be about NZ$3.60 in this year—an 8.6 percent drop. Beef prices paid to producers have fallen from an average of NZ$2.76 in the same six-year period to an expected NZ$2.55 this year—a 7.6 percent decline.

Ruth Green contributed to this article.  
 
 
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