Auckland Council burning money
Roger Partridge writes:
Auckland Council has settled on an innovative approach to combating climate change: spend around $36 million a year on reducing New Zealand's carbon footprint without reducing net emissions by a gram.
As The Centrist revealed this week , the Council's food scrap collection scheme – rolled out across 470,000 homes, whether anyone asked for it or not – achieves gross emissions reductions at the bargain price of $1,440 per tonne.
That is 28 times the price of a carbon credit on New Zealand's Emissions Trading Scheme.
Fiscal insanity. It achieves nothing, for a huge cost.
First, Council ships Australian-made bins and Chinese liners to Auckland. Then, each week, it collects partially used scraps from the 35% of households that bother, loads them onto trucks, and sends them 200km south to Reporoa. Nothing says 'climate policy implementation' quite like a weekly 200km journey by road to Reporoa.
Yet, even if the scheme reduces landfill methane, it doesn't lower New Zealand's net emissions. Under the ETS, those savings just free up carbon credits for someone else to use. The ETS cap – not Council policy – sets our national net emissions.
Meanwhile, the bins are made in Australia and the liners manufactured in China – leaving a hefty global emissions trail from production to delivery. The result? A $36 million scheme that might actually increase global emissions. But at least it feels green.
This is why you can't believe Councils when they say there is no alternative to rates increases. They try and convince us it all goes on core infrastructure, but it is not the case.
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Otago Daily Times
5 hours ago
- Otago Daily Times
Luxon plays down Cook Islands funding pause
Prime Minister Christopher Luxon has down-played a pause of nearly $20 million in funding to the Cook Islands during his second day of his trip to China. Luxon spoke to media in Shanghai hours after it became public that New Zealand paused $18.2 million in development assistance to the island nation after its government signed a Comprehensive Strategic Partnership agreement with China earlier this year. The Cook Islands operates in free association with New Zealand, and while it governs its own affairs, a 2001 Joint Centenary Declaration signed between the two nations requires them to consult each other on defence and security. Speaking to reporters on Thursday morning Foreign Affairs minister Winston Peters said the Cook Islands had failed to give satisfactory answers to New Zealand's questions about the agreement. However Luxon said the dispute lies squarely with the Cook Island government - not China. He said the Cook Islands has obligations to disclose partnership agreements with New Zealand, irrespective of who they're signed with. "Part of our constitutional arrangements as a realm country and free association is that we actually have responsibility for matters around defence and security, and as a result, what we've said from the beginning of the year, we were unhappy and dissatisfied with the fact that the Cook Islands government wasn't open and transparent about its international agreements." Luxon is currently in China on his first official visit and is due to meet with President Xi Jinping shortly. Asked if he expected the topic to be raised in his meeting with the Chinese President, Luxon said the issue was between New Zealand and the Cook Islands. "The Cook Islands people [have] made a massive contribution to New Zealand. They are New Zealand citizens, there's not a Cook Islands citizenship... they get the huge benefit of being part of New Zealand and being citizens of New Zealand with respect to accessing our public services. The Foreign Affairs minister informed the Cook Islands government of the funding pause decision in early June. However, it only became public on Thursday after media reports in the Cook Islands. "We're really proud of them, our issue is not with Cook Islanders, our issue is with the Cook Islands government and Prime Minister Brown not being sufficiently transparent enough," Luxon said. Luxon tore through a blitz of promotional events on his first day in Shanghai, spruiking New Zealand's wares before the serious diplomacy began. When visiting "New Zealand Central" - an event facility run by NZ Trade & Enterprise - the PM announced a new government certification scheme clearing the way for Kiwi-made cosmetics to be sold on Chinese shelves.
Newsroom
7 hours ago
- Newsroom
Primary sector firmly on China agenda despite education and tourism focus
Despite China's economic slowdown, primary producers are holding onto value by offering premium products that appeal to a Chinese middle class focused on health and wellness. Prime Minister Christopher Luxon has touched down in Shanghai as China's booming economic growth is slowing. China is New Zealand's largest trading partner and took $21.5 billion of New Zealand exports in the year to March. Two-way trade totalled $39.1b during that same period. Luxon says there's still a lot of economic opportunity in the market. But some have described New Zealand as reaching 'peak China' and should look elsewhere amid a softening Chinese market, while others continue to warn of overexposure in some areas of primary exports. Ahead of this trip, which kicks off with two business-focused days in Shanghai, followed by the politics and foreign diplomacy in Beijing, Luxon told Newsroom his main objective was to help boost the lagging tourism and education markets. Though China is New Zealand's largest source of international tourists and third-largest tourism market, those numbers were still lagging behind pre-Covid levels. If Luxon were able to help New Zealand get 'share of mind' in those areas and help remove any policy barriers, then it'd be a success. Among the 28-strong business delegation were a strong contingent of tertiary education leaders, including Victoria University of Wellington and Te Pūkenga, as well as Tourism NZ, Māori Tourism and other organisations with tourism wings, such as Ngāi Tahu Holdings. And though the three-day programme would no doubt include visits to universities and tourism-focused events, the primary sector would also be a core part of the Prime Minister's agenda for the week with dairy, meat and produce-focused events. According to the latest MPI annual report, food and fibre sector exports were expected to increase 12 percent to $59.9b for the year to June 30, and a further 2 percent in the coming financial year. 'Food and fibre sector export revenue is performing well despite geopolitical turbulence, shifting trade policies, and elevated uncertainty,' MPI said, 'While some industries remain more vulnerable to external pressures, others are well-positioned to withstand volatility, ensuring overall sector stability.' Among those primary producer categories, dairy exports were expected to hit a record high and horticulture revenue was forecast to grow 19 percent, reaching $8.5b. This growth was primarily driven by the kiwifruit industry, with exports expected to reach $3.9b, after a record 2024 crop and forecasts for an even larger crop in 2025. Among those traveling to China with the Prime Minister is global kiwifruit marketing company Zespri. Zespri – the umbrella brand selling New Zealand kiwifruit around the world – has been exporting to China for 26 years, and in earnest for the last two decades. The last 10 years has seen a rapid rise, thanks in large part to the expansion of China's middle class. Now, Zespri is selling about 22 percent of its kiwifruit into China, accounting for 27 percent of the brand's global value. Chair Nathan Flowerday told Newsroom that although Zespri was a global brand, China was an important market. But that didn't mean there weren't challenges facing primary producers as they faced the country's economic slowdown. The primary sector food and fibre exports accounted for $17.9b of New Zealand's goods shipped to China, but a slowdown in economic growth meant prices were softening and middle-class consumers were needing to be more selective with how they spent their money. Beyond the slowing economic growth, the Chinese Government had also proven it was not above using economic coercion to hit back at countries making diplomatic statements or actions it didn't like. Though Australia had been hit hard by this in the past, New Zealand had only suffered isolated suspected cases of shots across the bow, including limited shipments of goods sitting at China's ports and a government safety notice to tourists travelling to New Zealand. Both came in the wake of the Huawei saga during the Jacinda Ardern administration, and in both instances the government denied they were in retaliation for New Zealand's refusal of Huawei 5G infrastructure. But the possibility China could pull that lever in the future underscored an added need for the export sector to diversify away from China, as well as maintaining a strong diplomatic and leader-to-leader relationship. In 2016 Zespri was caught up in a short-lived diplomatic spat over an investigation into the dumping of Chinese steel. Media reported that Zespri's China representative was warned by Chinese officials that New Zealand could face economic retaliation if New Zealand went ahead with the investigation. Trade Minister Todd McClay was trade minister then too, and apologised to the Prime Minister for not being better briefed about China's threat of trade retaliation. Flowerday said Zespri was well insulated against these possibilities. In regard to the potential for a diplomatic blowback, he said it was up to the Government to make its decisions. But Zespri's focus was on building strong relationships within China. 'China is no different to any other market that we treat with transparency and respect … to make sure that we've got really clear, open communication channels with our partners in the market. I mean, that's the best that we can do.' In terms of the wider story of a softening Chinese market, Zespri – like other food producers – was looking to offer a high-end, niche product that played to consumers' focus on health and wellness. 'We spend a lot of time and money to educate … our Chinese consumers of just the health benefits that Zespri kiwifruit provides to them.' So, although fruit prices in China had softened, Zespri products had managed to hold their value. Everyone wanted to live a healthy life, Flowerday said. 'They are choosing that over and above something else that they could choose in the supermarket, which they know is not quite as healthy for them.' The fact the brand was synonymous with New Zealand, which was a trusted producer of safe, high-quality food, also helped. NZ Inc would be looking to leverage that niche, high-quality, well-trusted brand while in China this week, using announcements and events in Shanghai to market innovations in the primary sector. Last week, during Fieldays, the Government announced a grass-fed certification scheme in a bid to take on global competitors. Though previous standards applied, the new certification sought to clarify how many days a year and what percentage of an organisation's stock needed to be freely grazing on grass to achieve certification. Then, that certification could be used as a point of difference – and quality – when competing with overseas producers that primarily grain-fed their animals indoors. 'This is about more than a label—it's a commercial tool to push into premium segments and stay ahead of competitors. We're relentlessly focused on improving the value of our exports and backing farmers,' McClay said. So far, Fonterra and Westland Milk Products had gained certification among the dairy sector. Both businesses – and a2 milk along with the likes of Silver Fern Farms, and industry bodies representing the red meat and deer sectors – joined Luxon on this week's trip to China. 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Earlier this year, a counterfeiter of the Zespri kiwifruit labels was sentenced to jail for more than three years for their part in the brand fraud scheme. Flowerday said it was monitoring the growing of the G3 kiwifruit in China, because there was a risk some of this fruit could make its way into Zespri's distribution channel. There could be an opportunity in the future to partner with local growers, he said, but they'd first have to ensure the fruit was up to Zespri's safety and quality standards. The brand employs about 100 people in-country, which allows them to keep their finger on the pulse, properly understand systems and ensure connections are forged with the right people. Building relationships on the ground was key to success in any market, Flowerday said, but especially in China. 'It's all about respect.' And showing up. Last year, during his first 12 months as chair, Flowerday travelled to China four times. In the last decade, he's been there more than a dozen times. Though trips like this were an opportunity for well-established and new businesses to get a better feel for the local market, travelling together as a group on the Air Force Boeing-757 also allowed New Zealand businesses to connect and learn from each other – what's working, what's not, what trends are being established. It also allowed them coveted photo opportunities at deal signings and announcements with the Prime Minister. 'Being part of the New Zealand team, going up there, it's always just a great privilege,' Flowerday said.
1News
7 hours ago
- 1News
Luxon heads to Beijing as Cooks aid pause news breaks
Prime Minister Christopher Luxon has wrapped up his Shanghai visit, and said $871 million of commercial agreements were signed today between New Zealand businesses and their Chinese counterparts. He is now headed for Beijing, where he is set to meet with China's president Xi Jinping, and other leaders from the country. Earlier today, it was announced New Zealand has paused nearly $20 million in development assistance to the Cook Islands over its recent dealings with China. Trade delegation bound Beijing for a meeting with President Xi Jinping and Premier Li Qiang (Source: 1News) But before departing Shanghai, the Prime Minister said New Zealand's trade relationship with China is "one of our most important" with two way trade "exceeding NZ$39 billion" in the year ending March 2025, which accounts for "more than 20%" of New Zealand's total goods and services exports. ADVERTISEMENT Watch more on the timing of the Cook Islands support pause on TVNZ+ He said the agreements signed today is "a clear sign of strength and momentum in our trade relationship". (Source: Prime Minister's Office) "We also announced we would be making it easier for Chinese nationals to transit via New Zealand by removing the need to get a transit visa, instead being able to get a New Zealanders Electronic Travel Authority (NZeTA), significantly cutting costs and time for visitors." 'This resulted in one of the major announcements in Shanghai, that China Eastern Airlines was launching twice weekly flights to South America via Auckland.' In Shanghai, Luxon was joined by New Zealand business leaders across the food and beverage, health and wellbeing, education and tourism sectors, along with Ministers Louise Upston and Mark Mitchell. 1News Pacific correspondent Barbara Dreaver unpacks the withdrawal of aid funding due to dealings with China. (Source: 1News) ADVERTISEMENT During the Shanghai trip, Luxon participated in a livestream event with Upston, which he said was watched by over 10 million people, to promote New Zealand travel offerings. He also visited Fudan University, one of China's most prestigious academic institutions, to "promote New Zealand as a destination for world-class research, study, and partnership". Luxon then met with Shanghai Party Secretary Chen Jining to discuss Shanghai as a gateway for a high proportion of New Zealand goods, services and people-to-people flows, and other bilateral issues. Luxon's trip to China has come amid global uncertainty, amid the escalating conflict between Iran and Israel. After his meetings in Beijing, the Prime Minister will then go to Europe to undertake bilateral visits in Brussels and the Hague, and take part in the NATO summit.
