Meat industry baulks at collecting gas fee

By LIAM DANN

The meat industry will oppose any attempts to collect a greenhouse gas fee from farmers using the Commodity Levy Act, says Meat New Zealand chairman Jeff Grant.

The possibility was raised by the Government early in discussions about Kyoto but it was rejected at the time, Grant said.

SheepCo and Meat New Zealand yesterday released their respective revised proposals for the referendum on the future of red meat and wool levies.

The two organisations plan to merge later this year if the move is approved by a farmer referendum.

Farmers will be levied to raise funds for the new organisation. Farmers have said they want more money spent on research and development and trade access issues.

Of Meat New Zealand's total proposed budget of $26.6 million, research and development would represent the largest single investment at $10.1 million.

The wool levy proposal now recommends a total levy of $11.8 million, down $500,000 from the original draft proposal.

That decision reflected the fact that farmers wanted a stronger emphasis on improving productivity at the farm gate, said SheepCo chairman Mike Petersen.

While it might technically be convenient, politically there was no chance farmers would pass the proposals if they included a greenhouse gas levy, Grant said.

Farmers will still have a chance to comment on both proposals. About 40 meetings will be held between now and the start of voting on July 31.