More change – general election ahead

We are expecting more government consultations and announcements in the countdown to Christmas, given it is a general election year in 2023.

It is traditional – in the second year of a New Zealand government’s three-year term – to complete reform and change so that in the third year, the focus is on winning the election.

In the past few weeks, we have seen the Government announce the National Policy Statement for Highly Productive Land as well as the Recognised Seasonal Employer (RSE) cap for 2022-2023.  These are both positive outcomes for commercial fruit and vegetable growing in New Zealand, and are the result of considerable advocacy, in the case of highly productive land, over nearly a decade.

Late last Friday, the Ministry for the Environment and Ministry for Primary Industries moved forward with Freshwater Farm Plans. They announced that the process of drafting the regulations to put the plans in place ‘is underway and will be followed by an exposure draft and targeted consultation’. They also said that Freshwater Farm Plans ‘are expected to start coming into effect from 2023, with full implementation across all regions expected to take several years’.

In the discussions and consultation to date, HortNZ has emphasised its view that existing industry Good Agricultural Practise (GAP) assurance programmes need to be recognised as pathways to meeting new Freshwater Farm Plan requirements, for the system to be successful. We believe that this approach would ensure that new requirements are met in the most efficient and effective way for growers and regulators. In addition, whatever is put in place around Freshwater Farm Plans must consider the realities of vegetable growing in New Zealand. In particular, the use of leased land, and the rotation of crops to safeguard the quality of the soil and protect against pests and diseases.

The Government is expected to respond to He Waka Eke Noa’s recommendations by mid-October. To recap, He Waka Eke Noa – the primary sector climate action partnership* – recommended to the Government that the Government ‘introduce a farm-level split-gas levy on agricultural emissions with built-in incentives to reduce emissions and sequester carbon’. Following the Government’s response, a further round of consultation will begin.

The last set of Government-mandated changes I want to touch on is in the area of employment. The Ministry for Business, Innovation and Employment (MBIE) website says, ‘the Fair Pay Agreement system is expected to commence one month after the Bill has passed, anticipated to be in December 2022’.

HortNZ did not and does not support Fair Pay Agreements. We said in our submission to the Government in May 2022 that the proposal was complex and difficult for workers, employers and the Government, and that it would have a negative impact on prosperity, productivity, and New Zealand’s economy and international competitiveness. We also said that growers could not be expected to continue to absorb increased costs.

And then there is the Income Insurance Scheme, which again we did not support. We said in our submission that the proposed scheme would undermine the development of a sustainable economy because it would benefit the least productive sectors most but provide the least protection to the most vulnerable employees.

Deloitte says, ‘Indications are that the scheme could take effect from 2023, which is an ambitious timetable considering the fundamental changes to employment relations that are proposed’.

That said, indications are that during the term of this majority Government, both the Income Insurance Scheme and Fair Pay Agreements will come into force. While HortNZ did not and does not support either of these further requirements on employers, we will work with Government officials to try and ensure advice to growers is as timely and as clear as possible.

But in tandem, as we head into an election year, HortNZ will be releasing a manifesto that spells out what the commercial fruit and vegetable growing sector needs to be sustainable and prosperous, once again.

The underlying key message will be that New Zealand needs a successful and sustainable horticulture sector, if the country wants healthy people and a thriving economy.

*The partnership comprises representatives from Apiculture NZ, Beef + Lamb New Zealand, DairyNZ, DCANZ, Deer Industry NZ, Federation of Māori Authorities, Federated Farmers of New Zealand, Foundation for Arable Research, HortNZ, Irrigation NZ, Meat Industry Association, Ministry for Primary Industries and Ministry for the Environment