Part I:The Case for Government Intervention in Sustainable Development Extension
1. Introduction to Part I
New Zealand has a history of supporting farming development through a variety of public interventions including extension schemes. The way these were focused and operated, meant that there was a belief that the bulk of the benefits were accruing to the private individuals yet the funding was from direct government sources. The off-site benefits of these schemes, particularly the environmental effects were largely unquantified, but were nevertheless, presumed to be an important justification for spending public money.
While over recent years most of these programmes have been curtailed or devolved to local and regional authorities, it does not necessarily follow that government should not be involved in providing funds for environmental improvements. However, it does mean that any proposal put to government must be tightly focused on the basis for the proposed intervention. MAF have commissioned Landcare with the assistance of the NZIER to explore the arguments associated with government funding and involvement in the area of environmental sustainability associated with farming. Essentially the NZIER ask why any government (local, regional, and national) should invest in sustainable development extension (and under what criteria) and Landcare detail how government (local, regional, and national) should go about the intervention process (the operational process).
1.1 This report
This report covers the why (or economic) component of the project. It uses a top down approach within a broad regulatory policy framework, and explores the levers which government has to match outcomes with objectives.
In particular, the following are covered:
- What an "ideal" regulatory policy framework should look like;
- How a modified economic framework can demonstrate the way environmental objectives could be achieved and function, detailing the significant interactions (including role of social capital) required to meet objectives;
- What is ‘different’ about the business of farming (in general), farming in New Zealand, and how this interacts with environmental policy development;
- How this analysis impacts on government decisions to fund or not to fund environmentally sustainable projects;
- What criteria are necessary before any intervention occurs.
Contact for Enquiries
Rural Affairs Coordinator
Sector Performance Policy
MAF Policy
Ministry of Agriculture and Forestry
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0675
Fax: +64 4 4 894 0745
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