Sean wrote:
The WET rebate is a rebate, not a deduction. So it is paid back to wineries or wine producers and in the case of New Zealand ones they must declare it as income in New Zealand for tax purposes.
http://www.ird.govt.nz/industry-guideli ... s-wet.html
Rebate is a deduction. They pay WET and can claim some of it back. How is that subsidized by Australians in any way? As I said, you can look at money not collected as subsidized but Australians do not pay NZ wineries..NZ wineries do not NET money from this. Rather than having paid say, 1million in WET, they only pay 500k. This is the same rebate every other Australian winery gets. The fact that NZ is a foreign country is irrelevant because of the trade agreement between the two countries...
Sean wrote:I suppose you could say it is better for us wine consumers because we are getting more choice and more competition for our wine dollars. But that isn’t what happens when foreign goods flood the market in this country. What happens instead is that the big retailers use the cheap imports to increase sales or market share (or both) and after a while the local product is squeezed out because they can’t compete or refuse to deal with the big retailers anymore or are just dropped anyway.
You do get more choice and more competition. If local products can not compete, they shouldn't be. Australians get ripped a new one because the industries are overprotected. It stifles competition. That is the big complaint with everything in Australia..the lack of competition keeps prices high. How is it the California or France compete with global competition? Cheaper imports, etc?
From a pure economics point of view, it is a good thing. What would happen is local companies that can not compete because they need too much money for the quality of their product, those would go out of business. Eventually those assets get picked up by other companies and the cost basis for the assets are different. Their products improve (greater source material) and their costs are lower. If they still can compete, there really isn't a point in having that industry is there? Why force your local people to drink wine people don't want at higher prices (which is the only way they don't compete) just for the sake of having that industry? It wouldn't get to that but the point is, competition is good, it will drive the right economic model. It will drive quality. It will drive better prices and CHOICES for the Australian consumer.
Sean wrote:I thought you did describe all Australian pinot as shiraz-like. In an earlier post you stated - It is funny that you describe your preferred Pinot that was a "shiraz drinkers" Pinot because that is how I describe Australian Pinot Noir. A Pinot Noir made like a Shiraz...
I know myself that posting stuff on this forum does not always come out the way you meant, so I understand it is simply a generalization and not a statement of fact. It is even ironic that when you said that you were replying to rens, who had described the types of pinots he liked as a shiraz drinkers pinot and then nominated two NZ pinots he liked - Amisfield and the Waipara. So it is easy to see we come here with not only different perspectives, but different preferences anyway and it is all good and hopefully you see it that way too.
Yes, that was my post. In subsequent posts I made just I said "a lot of" so as not to represent all. Apologies if that didn't come out right..I found it ironic as well, maybe that is why you said NZ Pinot used to be Shiraz like..and he said the same thing..that older Amisfields were like that..
Of course we all have different preferences...If people like a much bigger style of Pinot, that is perfectly fine...There are some really good examples of big Pinots in Australia...At the same time, we can clearly say the Australian style of Pinot is a lot bigger, a lot more full bodied. Even the lighter styles are relatively big.