Transport Minister Simeon Brown said the changes were about ensuring CAA was financially stable. Photo: New Zealand Agricultural Aviation Association
Agricultural aviators say a proposed increase of its industry levy is a tax on a tax that will disproportionately impact agriculture over other aviation sectors.
New Zealand had just over 100 certified agricultural aviators - who sprayed agri-chemicals or fertiliser, worked for conservation purposes or to manage biosecurity threats, and also supported forestry and horticulture.
Its governing body, the Civil Aviation Authority (CAA) launched consultation on a raft of proposals around changes and increases to fees, levies and charges.
The Crown provided nearly half-a-billion dollars of funding to the CAA since 2020, to cover the loss of revenue from passenger levies during Covid-19 - and the government was aiming to reduce that reliance.
The minister with final say on the proposals, Transport Minister Simeon Brown, said the changes were about ensuring CAA was financially stable.
"The proposed fees, levies and charges currently being consulted on have been set at an amount CAA considers necessary to ensure there will be no funding shortfall once the government subsidy ends on 30 June 2025," he said.
He said due to inflation, changing security standards and other cost pressures, an increase was "unavoidable".
But he added nothing was yet set in stone.
"I am not yet convinced that the proposed fee increases are fully justified and have asked for a review of the evidence to support these changes."
Bruce Peterson, chair of the New Zealand Agricultural Aviation Association, said passenger and emerging aviation technology operators faced fewer fees than their agricultural counterparts - and frustration was mounting.
"[Brown] indicated that there was a $90 million shortfall, which is really concerning how that's going to be collected and he's talked about levies and fees, which are becoming incredibly disproportional how they're spread across the industry, particularly for the ag sector."
Brown confirmed the shortfall would be $88 million from 2025 to 2027.
"Without the funding provided from the higher fees, levies and charges, there would be shortfalls of $41 million in FY2025/26 and $47 million in FY2026/27," Brown said.
Commercial agricultural operators could face an operations safety levy increase of up to 47 percent under the proposed changes.
Peterson said the rural sector was already paying tens of thousands of dollars to comply with the operations safety levy established in 2017 with few actual results.
"It's a tax on a tax and we're not getting anything for it. So an example could be, before these increases, a fixed wing applying line could be paying up to $60 an hour added on to the hourly rate required because of this levy, it's based on tonnes versus a helicopter on spraying that might only pay $4.50 an hour.
"And then you add the 47 percent on top of that, and it's just outrageous. So we're pretty upset about that."
He said the industry was already "really struggling" with the flow-on effects of dropping fertiliser use.
Simeon Brown. Photo: RNZ / REECE BAKER
"Like all the farmers are, we're a service sector to the rural sector, so when things go like they are at the moment it's pretty hard for everybody.
"Fertiliser tonnages are well, well back, which also affects the revenue that the CAA get because they put it on a tonne rate. So that will also see that potentially drive that up further."
He said the CAA as a whole needed to reprioritise its spending - as businesses have been doing across the board.
"Everybody in business is trimming things and trying to make them as efficient as we can and you know, these regulators need to do the same."
Peterson said a fuel levy on the basis of user pays would be a fairer approach.
Other proposed changes include a $2.34 increase to passenger safety levies, a $4.36 increase to the domestic passenger security levy and a $9.42 increase to the international passenger security levy.
Consultation on CAA changes proposed for July 2025 closes on 8 October.
