Federated Farmers felt empowered this week appearing before the Finance and Expenditure Select Committee. John Key’s agenda-setting address for the opening of Parliament nailed some of the national farm lobby group’s main planks. Key was most explicit about water storage and irrigation in Canterbury, vowing to “remove regulatory roadblocks” this year. His language suggests the Govt won’t even wait for existing bodies to complete their work on water storage reform. Removing the roadblocks will be in addition to work being carried out by the National Infrastructure Unit and the Land and Water Forum.

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Key also ruled out a land tax, taking the air out of a contentious proposal from the Tax Working Group the Feds estimated could cost farmers $525m, or a 0.5% tax on an agricultural taxable land base of $105bn. After Key had swept the ‘bad’ stuff off the table, there was little left for the lobby group to complain about in the looming tax reforms. Feds President Don Nicolson even told the Committee farmers could live with GST rising to 15% and wouldn’t grumble if the Govt acts on taxing investment property. Rounding out the good vibrations, key reiterated his intention to streamline resource law and make research & development a priority.

Nicolson was able to focus on his other hobbyhorse when fronting up to the Committee’s Budget Policy Statement hearings – bloated Govt and the wide array of levies and charges imposed by local and central Govt. He also signaled farmers are in step with the minerals industry, saying increased minerals extraction will “jump-start” the economy.

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