Isra-Mart srl : ETS proposal a 'non starter'

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Federated Farmers Marlborough president Gary Barnett is in no doubt it's an election year in New Zealand.

Last week, Labour revenue spokesman Stuart Nash released figures showing the average dairy farmer paid less tax in 2009 than a couple on the pension and questioned whether the sector was paying its way.

That was rejected by farmers who said the figures were taken out of context and reflected a bad year for profits.

This week, Labour leader Phil Goff announced that, if elected, the party would bring agriculture into the Emissions Trading Scheme (ETS) in 2013 – two years earlier than planned under the National Government.

The move would fund Labour's proposed $800 million research and development tax credit, Mr Goff said.

Mr Barnett said he wasn't surprised by the announcement.

"We all know this political stuff is going to get rolled out up to the election."

The proposal was a "non starter", he said.

"Personally, I believe in the carbon cycle. The grass takes in the carbon dioxide via photosynthesis and the animals eat the grass. It's in balance. I can't see why livestock are included as emitters in the ETS."

Waihopai Valley farmer and district councillor Geoff Evans said the proposal was "absolutely appalling".

"This business last week [saying] farmers aren't paying their share of tax, and now they've decided they want to shorten the ETS time.

"My view is [Labour] have done this in the 80s, they attacked farming and won an election out of it. It seems they're adopting similar tactics.

"There's a great deal of anger [about it] in the farming community."