Priorities for Key and English

Prime Minister, the Hon John Key MP`, is due to make a “state of the nation” speech tomorrow setting out what his Government will seek to achieve over the next 12 months.

“This is a critical year and what the Government does or does not do will have an impact. The Government needs to take charge of the New Zealand agenda for the future and we have some suggestions for both Mr Key and Mr English,” says Don Nicolson, President of Federated Farmers.

“Firstly, every household knows that if you are going to spend borrowed money, then you have to earn money to pay any loan back. The focus should be on earning more and being very careful about how you spend it. Many people are making suggestions about how to reduce Government spending. Now is the time to focus hard on this. Current proposals to double public debt over four years isn’t sustainable and Government spending simply has to be cut.

“To increase our earnings we need Government to invest in things that make a difference over the long haul, particularly for the export sector.

“At the jobs summit last year, we pushed water storage as being a key driver for exports, job generation and a means to meet climate variation while building resilience. If it gets a bit hotter, it’s good to have some stored water.

“Water storage should be a high priority for this Government. The Ministry of Agriculture and Forestry estimated that the previous large drought cost the economy over $2.8 billion. Smarter water management and storage would provide increased productivity and productive capacity generating billions of dollars. It is a recipe for economic success.

“We know from the reality of the Opuha Dam and other schemes that environmental as well as recreational values are enhanced. Not to mention enhancing local economies and community spirit. Every 1000 hectares of land irrigated creates 30 jobs and injects $7.7 million into local economies. $500 million for water storage would be a very good start from the Government.

“Rural broadband is also critical. If the Government wants the primary sector to increase exports and tourism for that matter, then it needs to front up with more than the $48 million it has so far committed for rural broadband rollout. While a new proposed levy means at least $300 million will be available, this needs to be $500 million, if 25 percent of the population is to have equity with the other 75 percent who are getting $1.5 billion. Federated Farmers does not want a digital divide.

“With research and development, we support the Government’s renovation of the science and research sector. We encourage the Government to do what it can to get more bangs for buck while encouraging more young people into our science sector.

“Federated Farmers also supports our mineral and aquaculture sectors in being given the opportunity to harvest our extensive mineral reserves and our aquacultural potential.

“The Federation has policies on numerous other issues that we would like the Government to implement, as outlined in our manifesto, which was sent to all political parties prior to the last election. That said some progress on the things above would be a very good start,” Mr Nicolson concluded.