By Tova O’Brien
It is no surprise farmers are furious about Labour's election promise.
It would force them into the Emissions Trading Scheme early to fund tax credits for research and development.
Farmers say Labour leader Phil Goff is being mischievous by picking on a minority who are big earners for the economy, but pocket little themselves.
Wendy Clark has owned her small Pukekohe dairy farm for 27 years.
After four seasons of drought and poor dairy payouts, this year is expected boom could come in the nick of time.
“Every now and again we have a good year and we set money aside for the bad years so there are considerably more bad years,” says Ms Clark.
Phil Goff has chosen farmers to foot the $800 million bill to bring back research and development tax credits cut by National.
And that is an election promise.
But Mr Goff is not so sure when asked for details on who will be eligible, or, if foreign owned companies based here can get the tax breaks.
“If you want the detail you'll have to go to the policy researchers,” says Mr Goff. “I'm setting out the broad parameters.”
If Labour were to win on November 26, forcing farmers into the ETS early, Ms Clark says it would not be worth her while to continue farming.
She believes her farm would not be the only one to shut down and farmers say it would leave them with just three options.
“They can go to Australia or Argentina or Chile,” says Ms Clark. “They can milk more cows, which is counter-productive if you're trying to reduce Co2 emissions. Or they can simply give up farming.
But Mr Goff does not “accept that farmers are in such a position that they cannot meet the cost of the ETS, and must be subsidised by you and I as New Zealand taxpayers.”
Farmers have sworn to fight the ETS whether it comes in 2013 under Labour or in 2015 under National. Either way the battle lines have been drawn.
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