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All hail RBNZ independence! – Armstrong

Written By: - Date published: 10:32 am, October 5th, 2013 - 94 comments
Categories: capitalism, exports, housing, monetary policy - Tags:

Old man Armstrong’s out on the Herald’s front lawn this morning, shaking his fist and telling those bloody kids in Labour to stop questioning whether the Reserve Bank is doing the right thing. They should sit quietly and accept whatever the Bank decides to do. This is called ‘consensus’, apparently. Problem is, Armstrong provides no justification for complete RB independence.

His entire argument is: it’s been that way for 20 years so it must continue to be that way forever, regardless of whether it works or not. He says:

“With Labour also committed to making the Reserve Bank take heed of exchange rate fluctuations, Cunliffe has to avoid leaving the impression that Labour’s answer to every economic problem is to fiddle with the Reserve Bank’s mandate – and thereby neutering the institution in the process”

John, you’ve failed to make any argument as to why the Reserve Bank shouldn’t be neutered. Why should we all bow-down to the Reserve Bank like it’s some neoliberal god? Why is complete independence – a concept that’s only two decades old – sacrosanct?

Let’s face it, the Bank is a disaster. The two decades of the modern Reserve Bank have seen a string of housing bubbles, diving high-value exports due to a high dollar, high unemployment and low wage growth, and rising international debt. Not only failed to fix these problems, it’s made them worse.

It’s prime tool is the OCR. Even working perfectly, the OCR works by punishing every mortgage holder and business in the country with higher interest rates when inflation goes up, whether or not the punished sector is at fault.

But, in reality, the OCR has the most impact on the economy via the exchange rate – ie. when housing gets out of control, the RB raises the OCR, which forces interest rates up, which attracts hot money from overseas boosting the exchange rate and strangling our exporters. Ironically, this just brings in more cheap credit from overseas to fund the housing bubble. For a decade now, we have had some of the highest interest rates in the developed world leading to a near-permanently over-valued dollar, and it’s killing the economy without fixing the housing bubble.

When the Bank, finally, tried to add a new tool, LVRs, it stuffed up by punishing first home buyers the most. Sensible tweaks, like excluding first home buyers (easily done as it’s already done for the Kiwisaver deposit subsidy) and limiting LVRs to problem housing markets were ignored in favour of blanket punishment.

So, what has the Bank done to earn a free-pass from every government to do whatever the hell it likes? As far as I can see, all its done in its 20 years of independence is kill our exporting industry, help us rack up massive foreign debt, and failed to tackle successive housing bubbles.

But no, Armstrong says that Labour should just keep quiet. “some kind of consensus between the two main parties would be of considerable assistance to the Reserve Bank if they stopped questioning its efforts to cool a dangerously overheated property market as it sees fit”. His argument would be a lot stronger if he wasn’t arguing for a failed institution to be allowed to continue to make mistakes in peace.

94 comments on “All hail RBNZ independence! – Armstrong”

  1. ianmac 1

    Didn’t Winston get into trouble a decade or so ago for advocating Reserve Bank Reform?

  2. Bill 2

    That ‘independence’ is merely an extension of international financial institutions into national political spheres. There is and has been nothing ‘independent’ about any of these reserve banks that governments relinquished control over through the 80s and whenever.

    And there’s been no accountability either. Which is great for the international and anti-democratic institutions who’s prescriptions ‘independent’ reserve banks follow.

  3. Colonial Viper 3

    Armstrong is WAAAY out of his depth. Globally, “reserve bank independence” has ushered in a period of massive financial system instability, asset price bubbles, and global financialisation. It has not been a good period for 80% of NZers.

    Further, we should note that direct market intervention, something that central banks never anticipated doing as part of their role, is now and every day occurrence in Japan, USA, China, UK, Eurozone.

    Add to that the fact that our Reserve Bank is a proponent of macro-economic theories which are highly flawed and largely based on the neo-lib assumptions of market equilibrium and market efficiency, and Armstrong proves that he is two or three decades out of date.

    And stop talking to your Reserve Bank contacts, John. They are as out of date as you are.

    • Rogue Trooper 3.1

      where President Xi Jinping and the Beijing government goes, investment flows.
      (maybe we could start our own newspaper and clear a few trees).

    • Saarbo 3.2

      +1

      “But, in reality, the OCR has the most impact on the economy via the exchange rate – ie. when housing gets out of control, the RB raises the OCR, which forces interest rates up, which attracts hot money from overseas boosting the exchange rate and strangling our exporters. Ironically, this just brings in more cheap credit from overseas to fund the housing bubble. ”

      This quote from “Eddies” article is spot on the mark, but I guess Armstrong has never worked for an export company which has had to close down plants and make people redundant because export volume has disappeared due to the exchange rate. I worked for a business in the early 2000′s that was exporting manufactured product to China and Taiwan. This same manufacturing business is now struggling to compete against cheap $US denominated imports in its own domestic market.

  4. tc 4

    Oh dear, grandad has a rant about the good old days. Reserve bank govenors are appointed by political parties arent they and treasury is full of nat contractors with a former analyst as our finance minister.

    Go back to your quill and pen some more archaic thinking grandad, we expect no less.

    • I should point out that until very recently, Treasury was actually run by a Labour supporter, so it’s not really about what party affiliations the staff have, it’s about the neoliberal, pro-Trade Anarchy (as opposed to fair trade) culture that Treasury has.

      We shouldn’t be opposed to sound budget advice, but it should use more realistic assumptions and not have a practical rather than ideological culture. Treasury should be about evidence and results, not about economic dogma.

      • Finbar 4.1.1

        Matthew,its about value and what you value your being.They say, that if you have a home that you wish to own,in the main centers,where the jobs are, you have to be scratching 80 thousand to service your 30 year debt,on a 400 thousand debt,and after your service, would make your ownership and its service, to afford one of those flash boats in the harbour for your house value.They say that if this unregulated cat gets his way,your mortgage for your 400,000. debt will increase by $340 per week with a eight per cent loan rate.But hey,capitals rules always profits no matter the damage.

        • Rogue Trooper 4.1.1.1

          if interest rates rise to the 8% forecast by the end of 2015, a mortgage on a ‘typical’ 400+K initial home is likely to rise $400 / month; some will go to the wall.

          • Colonial Viper 4.1.1.1.1

            many will go to the wall, including the negatively geared types.

            And it’s not going to go to 8% that is BS. ZIRP is here to stay. If the retail banks want to push mortgage rates up to 8%, the Government will intervene through Kiwibank and re-finance it all back to 6.75%. And still make a killing for the tax payer.

      • Draco T Bastard 4.1.2

        We shouldn’t be opposed to sound budget advice,

        Which you can’t possibly get from Treasury because of their adherence to the neo-liberal paradigm.

  5. rhinocrates 5

    Armstrong would be out of his depth in a puddle.

    • ghostwhowalksnz 5.1

      The crazy part of Armstrongs claims is the RBNZ Act , allows such policy fiddles!

      “The Reserve Bank Act requires that price stability be defined in a specific and public contract, negotiated between the government and the Reserve Bank. This is called the Policy Targets Agreement (PTA). The current PTA, signed in September 2012,….”

      I think every new government gets its own PTA, and its revised as a matter of course every few years

      http://www.rbnz.govt.nz/monetary_policy/policy_targets_agreement/

      So its fair to say the RBNZ is independent only in the sense of meeting the government of the days targets

  6. greywarbler 6

    The Reserve Bank is independent – of what or whom? When it was first touted it was the general idea that politicians were the most powerful and likely to interfere with personal agendas in the proper controlling of the economy on behalf of an enterprising economy run to high standards of business nous and regulation. So far so good. When inflation controls using high interest rates in the 1980′s took house interest to 18 % it was horrific. The Reserve Bank instructed to keep inflation to near zero, also had disastrous effects. Now interest rates are set at a reasonable rate but RB is trying to use inflationary controls on interest rates for housing which is I think, not included in the Consumer Price Index calculations. And it will upset the healthy earning part of our economy, encouraging higher foreign speculation from those drawing on low-rate USA capital to place it in NZ currency and get the easy middleman profit.

    This unwillingness to control housing inflation, and to look squarely at the cause is part of inadequate aspects of systems in our economy. making easy profits because of the high capital rise (up 7% since August in Auckland I heard someone say this week on radionz),

    Now we know that politicians are happy to give up their power and control levers, for payments or ‘free’ gifts that seem satisfactory to them. The Reserve Bank operates to a recipe provided for cooking for mass catering for hundreds of millions, and we end up with a lot of wasted resource that does not reach the home table.

    Someone mentioned that the new chap after Alan Bollard would be more conservative than him. Apparently that means that he and his team spend all their time in a bunker deep under the capital where they can get clear communication lines to their core source of thought. And they hardly have to go up into the real world at all. Probably they are planning to build underground tunnels that financial workers can walk along as the oil-rich companies in I think Houston, Texas have done. They are air-conditioned so everyone can be really cool when the heat is on at the surface.

    A British speaker on radionz this morning Dame Margaret Drabble expressed bewilderment and anxiety about how the financial forces seem to be uncontrollable there, no viable action can be taken to restrain and govern them, and their housing is rising unaffordably too. When all the housing will be out of ordinary people’s reach, there will be little activity in business as larger amounts of income go on housing and basics, and so the pirates trading in the other necessities for life, food and water will cause the prices to go sky-high, and the mega corporates will fight
    over the spoils and make share raids on each other.

  7. Saarbo 7

    What are Armstrong’s credentials to make these claims? and how do they compare to David Cunliffe and David Parker’s credentials. (I guess what I’m trying to say is, what the f$%# does half arsed right wing NZ herald political commentator know about these things? Way out of his depth)

    • Draco T Bastard 7.1

      what the f$%# does half arsed right wing NZ herald political commentator know about these things?

      Just the slogans. He sure as hell doesn’t know anything about economics. Not that that’s surprising I suppose, neither do the economists.

    • Finbar 7.2

      Capital and its market value Saarbo,with its uncontroled usury.

  8. muzza 8

    Leaving aside Armstrong is simply an agent mouthpiece, seeking to cover up the deeds of his master primary financial tools BIS/FED/BoA/BoJ/RBNZ/BoI et al, it is likely that Armstrong has no idea about the global financial markets, and it is possible he is no longer writing his own articles, at all!

    Was there any mention of the Office Of Debt Management, which is the key interlink, unelected and unrestrained!

    Quite something that Kiwis are happy to parrot that “interest rates are sooo low”, yet still the highest in the western world, so there is little that joe kiwi will resist, nor bend over for!

    BTW – Interest rates and FX rates have been divorced for quite some period of time, so while it is true there is a correlation in local impacts by way of changes to the OCR, the NZD is manipulated independently to the OCR for a myriad of reasons!

    Top ten most traded currency for how long now, versus what ranking of global sized economy!

    Edit: Armstong calling for an end to the Red/Blue sham, with plea of a “grand coalition”, is about the only honest reference be had made of late!

    • Rogue Trooper 8.1

      Impressive, or Very Impressive?

      • Draco T Bastard 8.1.1

        The scary thing is that it’s actually true.

        • Rogue Trooper 8.1.1.1

          the picture went with a documentary on the bank’s production of money, yet I lost it’s location.

          • Draco T Bastard 8.1.1.1.1

            There’s a few such documentaries around now. Here’s a good page.

            The fact that the private banks create money ex nihilo is slowly becoming common knowledge. Once it does become common knowledge then we’ll have that revolution that Henry Ford predicted.

            • Colonial Viper 8.1.1.1.1.1

              To help people get their heads around the idea, thinking of banks creating bank deposits (instead of “creating money”) can be easier.

              Let’s say you take out a mortgage for $250,000 from Westpac. You now owe Westpac $250,000 (i.e. a promise to pay them $250,000 back plus fees plus interest etc.)

              Westpac electronically increments the value of your savings account upwards by $250,000.

              The Westpac balance sheet stays completely balanced: on the liabilities side is the extra $250K deposit they have generated for you. On the asset side is your promise to pay back the $250K debt you owe the bank.

            • Tamati 8.1.1.1.1.2

              The fractional reserve system is no big secret. Every economics 101 student has be taught it for the last 50 years!

              • Draco T Bastard

                Yep and it’s wrong.

                • Tamati

                  It’s a misconception that banks “create” money though. Most depositors know that the money they invest in a bank in lent out by the bank not stored in a Gringotts style vault under the ground. It’s not created, it’s just recognized in two places at once.

                  • Colonial Viper

                    Totally incorrect if you are talking about the major banks, and it fails to take into account the creation of the international central banking system.

                    In other words, banks no longer rely on depositors for funds day to day, especially when they have the Federal Reserve system.

                    Your comment is only correct for “savings and loans” or “building society” type institutions.

                    • Tamati

                      RBNZ requires all commercial banks to hold a certain amount of domestic deposits as a proportion of their balance sheet. Thus, if global credit markets shut down, our banks would still stay open. They do however bridge the savings/lending gap through international credit markets.

                    • Colonial Viper

                      You’re talking about the CFR (Core Funding Ratio). It’s a completely different concept to the idea of “reserves” as used in the outdated “fractional reserve banking” approach.

                      The fact that you have mixed this up suggests that your understanding of central banking regulation is not complete.

                    • Phil

                      CV,

                      Your comment is only correct for “savings and loans” or “building society” type institutions.

                      That’s incorrect.

                      The process, accounting treatment, and balance sheet outcome by which S&L’s, Building Societies, and Credit Unions, generate loans is exactly the same as the example you give above for Westpac. The outcome for “money” is fundamentally no different.

                      While it’s true to say that private banks ‘create’ money, it ignores that publicly owned banks, mututals, credit unions, and finance companies all engage in the same activity.

                    • Colonial Viper

                      While it’s true to say that private banks ‘create’ money, it ignores that publicly owned banks, mututals, credit unions, and finance companies all engage in the same activity.

                      Can you please provide a technical or textbook reference, author, or academic which/who describes the equivalence between bank activities in credit (or deposit) creation and say what a finance company or credit union does.

                      I don’t believe it to be the case at all and would like to know where you got the idea from.

                      My view is that finance companies eg. Hanover Finance, can only lend a dollar out to someone if they already have that dollar on hand to loan out i.e. no additional monies or deposit is created.

                    • Phil

                      Hi CV,

                      Can you please provide a technical or textbook reference, author, or academic which/who describes the equivalence between bank activities in credit (or deposit) creation and say what a finance company or credit union does.

                      Without wanting to be glib about it, the answer to that question is: any Accounting 101 textbook you choose to pick up.

                      It’s technically incorrect to say that banks ‘create money’. What they do, when making a loan to you or I, is record a series of accounting entires today that represent future commitments to repay a financial transaction. By international standards and convention (see the IMF’s Monetary and Financial Statistics Manual 2000) we choose to call those bank liabilities ‘money’ because of the connections those transactions have to other macro-economic variables like inflation, GDP, and the balance of payments.

                      To give you an example, lets say you started up a credit union with some of your own capital, and term deposits you got from the public. Your opening balance sheet might look like this:

                      Assets:
                      Cash $200

                      Liabilities:

                    • Phil

                      Gah – did my completed comment end up somewhere retrievable?

                      Sorry.

                    • Phil

                      Ok, lets try this again…

                      To give you an example, lets say you started up a credit union with some of your own capital and term deposits you got from the public. Your opening balance sheet might look like this:

                      Assets:
                      Cash $200

                      Liabilities:
                      Capital invested by owners $100
                      Term deposits from Public $100

                      In this example, your monetary liabilities (that is: funds that a depositor is able to withdraw to purchase a good or service) is $100. We’ll leave the RBNZ’s physical cash liability out of this, for simplicity.

                      Then you go and make a loan to a person who want to buy a house. You lend them $100, which they deposit into a transaction account with you while they’re awaiting house sale/settlement. Now your balance sheet is:

                      Assets:
                      Cash $200
                      Loans to borrowers $100

                      Liabilities:
                      Capital invested by owners $100
                      Term deposits from Public $100
                      Transaction deposit $100

                      Your monetary liabilities have doubled. There is now $200 that could be withdrawn and used for the purchase of goods and services. Total money supply, because of your lending, is now $200.

                      Next day, the borrower settles on the house purchase. They withdraw the cash and hand it over to the seller, who deposits the cash in a different bank.

                      Your balance sheet is now:
                      Assets:
                      Cash $100
                      Loans to borrowers $100

                      Liabilities:
                      Capital invested by owners $100
                      Term deposits from Public $100

                      BUT there is another financial institution that received the cash from the seller. Their balance sheet has an extra $100 in cash and $100 in deposit liabilities. Total money in this economy is STILL $200.

                      It doesn’t matter if the lending institution is a private bank, or a credit union, or a public bank, or a finance company. The accounting process which records the initiation of a loan creates liabilities and assets. The liabilities are identified as money solely because we have the ability to engage a third party in a transaction with them.

                    • Colonial Viper

                      Nah, but that’s not what happens in real life.

                      No one withdraws in cash the funds they receive from taking out a mortgage, in order to deposit those funds in the vendor’s bank account.

                      So using your example:

                      Let’s say the mortgagee needs a $500 loan (not a $100 loan) in order to buy the house they want. But the savings and loan style/credit union type institution has only $200 cash on hand. How does the institution manage that situation?

                      And let’s say that the mortgagee wants those funds, once they have been placed in their bank account, transferred over to the vendor’s account at a different institution in order to complete the sale and purchase of the house. And as I said, without walking the cash over to the other bank. How does the institution manage that situation?

                      It’s technically incorrect to say that banks ‘create money’.

                      Hey I’m quite happy to have a detailed discussion with you as to what counts as “money” and the hierarchy of what civilians usually consider as “money”, but that’s a whole different discussion.

                      Without wanting to be glib about it, the answer to that question is: any Accounting 101 textbook you choose to pick up.

                      What you’ve described are balance sheet operations. Yes that is accountancy 101.

                      What is not in accountancy 101 are the systems which enable deposit accounts accessible to the financial transaction and settlement system to be incremented or decremented in value. Neither you or I can start up a finance company or building society which has that system, even though you and I can start up an excel spreadsheet to show numbers moving around on a balance sheet.

                      So a bank creating deposits is not simply a balance sheet operation, although it has balance sheet implications.

                    • Phil

                      Nah, but that’s not what happens in real life.

                      No one withdraws in cash the funds they receive from taking out a mortgage, in order to deposit those funds in the vendor’s bank account.

                      A blog comment thread is not a particularly efficient way to get into a lot of detail about banking, so the example I described (using cash) was deliberately as simple as I could make it and still try to get the point across.

                      You could replace ‘cash’ in those examples with: electronic deposit with another bank; government bond; or any number of other “liquid assets” that might be held by a bank or credit union. The process would still hold true.

                      Additionally, the second balance sheet I wrote down isn’t usually visible to you or I as a borrower. In practice the bank would provide the borrower with a commitment to lend, and then transact straight from #1 to #3 instantaneously when the sale was settled. For the non-bankers that might have been reading that post, #2 helps to explain the logic of getting between those two balance sheets and how money gets created.

                      Let’s say the mortgagee needs a $500 loan (not a $100 loan) in order to buy the house they want. But the savings and loan style/credit union type institution has only $200 cash on hand. How does the institution manage that situation?

                      There are a few things that could happen, but firstly the CU or bank would acknowledge that it doesn’t have the funds available to make the loan and remain solvent – this is also connected to the (incorrect) temporal comment you made somewhere else in this thread.

                      But if the CU or bank really thinks that you’re a good customer and wants to lend you $500, then it has to do (again, simplified examples) one of two things:
                      1) get more term deposits from the public
                      2) issue a wholesale financial market instrument (e.g. a bond) that another bank or investor is willing to buy

                      In either case, the value of the banks liabilities increase (recognising the deposit or bond has to eventually be paid back) and assets increase (becuase they’ve received cash or some other kind of liquid asset) which they are then able to give you access to to make your purchase.

                      And let’s say that the mortgagee wants those funds, once they have been placed in their bank account, transferred over to the vendor’s account at a different institution in order to complete the sale and purchase of the house. And as I said, without walking the cash over to the other bank. How does the institution manage that situation?

                      In practice, all of these transactions happen via electronic payment systems. For example, you and I might make dozens of EFTPOS transactions during a day, which will inevitably be between our own bank account and accounts held by retailers with different banks. The banks (both for their own account and as an agent for other financial institutions that you have accounts with) keep track of all these different payments going back and forward, then settle the net amount with each other at the end of the day. They have funds available on hand (actually it’s a deposit with the RBNZ) that are debited and credited for this purpose.

                    • Phil

                      What is not in accountancy 101 are the systems which enable deposit accounts accessible to the financial transaction and settlement system to be incremented or decremented in value. Neither you or I can start up a finance company or building society which has that system, even though you and I can start up an excel spreadsheet to show numbers moving around on a balance sheet.

                      So a bank creating deposits is not simply a balance sheet operation, although it has balance sheet implications.

                      Do I, personally, have the technical skills to create bank or credit union systems and infrastructure?
                      No.

                      Could I register with the companies office and start a credit union or building society?
                      Yes.

                      Could I engage with the New Zealand Association of Credit Unions, who provide technical assistance to credit unions all around the country, and leverage off their skills and experience to support my start-up CU?
                      Yes.

                      Could I then take deposits from the public, lend to borrowers (managing the consequent credit and liquidity risks prudently) and in doing so create liabilities that would be recognised as money?
                      Absolutely.

                  • Draco T Bastard

                    No, the misconception is that banks loan out money that is deposited. If they did that then you wouldn’t be able to get the money back out after you deposited it because it would’ve been loaned out.

                    It’s not created, it’s just recognized in two places at once.

                    No, it’s created – go read the page I linked to above.

              • Paul

                Not sure Armstrong has a clue about economics.
                He should watch this film.
                Money as Debt.
                http://www.youtube.com/watch?v=jqvKjsIxT_8

              • Colonial Viper

                The fractional reserve system is no big secret. Every economics 101 student has be taught it for the last 50 years!

                The fractional reserve system has not been used in most parts of the world for up to a 100 years now. Hong Kong is one of the few countries which still uses it. You need to update yourself.

                • Tamati

                  It has been on this planet for the last few decades. What planet are you on?

                  • Draco T Bastard

                    The Fractional Reserve system is what is taught – it’s not how it works.

                    • Colonial Viper

                      DTB: correct. Fractional reserve banking theory is just one of many parts of business school education which is dead out of date.

                      Tamati as you are so confident: please name 5 countries which still use fractional reserve banking (as opposed to central reserve banking with flexible reserve limits).

                    • ghostwhowalksnz

                      Exactly.

                      Westpac first has to borrow the money from someone else, its depositors, overseas etc before it lends to you.

                    • Colonial Viper

                      Westpac first has to borrow the money from someone else, its depositors, overseas etc before it lends to you.

                      No, that is temporally inaccurate.

                      Westpac lends the money first and then looks for where to get it from later. In other words: the bank creates the deposit first, then looks for the reserves it needs afterwards.

                    • Tamati

                      Banks are constantly lending money and taking deposits. They don’t match an individual depositor with and individual lender. That’s why we have banks, to act as an intermediary between lenders and borrowers.

                      The banks simply maintain an appropriate reserve ratio by adjusting the amount they lend/receive.

                    • Colonial Viper

                      Just stop it mate. You are up to 100 years out of date. Listen the fuck up please.

                    • Draco T Bastard

                      Read the third paragraph.

                      I’ve already read it and I’ve done the university thing. Thankfully, I wasn’t so stupid as to continue to believe the myth.

                      How about you update yourself by reading all the information on this page and the accompanying pages and videos?

                    • Tamati

                      Clearly I hit a raw nerve! Calm down dear, it’s not like the banks are adding fluoride to our water or anything like that. Perhaps it’s the Auckland water that’s getting to my brain?

                    • Colonial Viper

                      Dr Steve Keen explains aspects of it for you Tamati, if you are interested.

                      http://www.businessspectator.com.au/article/2012/10/22/commodities/myth-money-multiplier?OpenDocument=&emcontent_spectators=

                      Clearly I hit a raw nerve! Calm down dear,

                      Take some responsibility and stop parroting out of date theories, and now also acting like a condescending prick.

                    • Read the talk page, Tamati. A few ill-informed users are keeping dumb statements like the one you quoted on that arcticle by edit-trolling it, wheras it doesn’t really accurately reflect economic theory from either the Right or the Left.

                    • Tamati

                      No I don’t have half a day to read all that.

                      Steve Keen, is a pretty radical economist. Hardly inline with mainstream thinking. Perhaps he’s right and the business schools are all wrong, and the fluoride action network is right and the Dental schools are wrong.

                      Regardless, Labour won’t change that RBNZ, all they’ll do is make them consider unemployment when setting the OCR.

                    • Colonial Viper

                      No I don’t have half a day to read all that.

                      Steve Keen, is a pretty radical economist. Hardly inline with mainstream thinking. Perhaps he’s right and the business schools are all wrong

                      1) Thanks for proving you have no real interest in what actually happens in the banking system. BTW I went through the article in about 20 minutes.

                      2) Steve Keen is a heterodox economist doing ground breaking quantitative, empirical and simulation work with research partners all over the world.

                      3) Yes, the business schools are all wrong, most of them teach their undergrads vats of toxic laced Kool-Aid. That’s what we’ve been trying to tell you.

                      “Mainstream thinking” in macro is completely falsifiable Tamati and has led the global financial system to the brink. Time for you to get up to date instead of spreading your masters’ lies.

                  • Draco T Bastard

                    Hardly inline with mainstream thinking.

                    Mainstream economic thinking happens to be the problem but even mainstream economists are starting to realise that the present teaching of the fractional reserve system is bunk. I tried to find the Bank of England economist that said so but couldn’t. I believe it may be on the positivemoney.org.uk site. Then there’s the IMF economist recommending that we go to a full reserve currency and drop the bank money as it’s the bank money that’s causing the exponential debt increases.

                    BTW, the only raw nerve that seems to have been hit is yours – you’re the one that dropped to ad hominem attacks.

                    • Colonial Viper

                      BTW, the only raw nerve that seems to have been hit is yours – you’re the one that dropped to ad hominem attacks.

                      well, so did I :twisted:

                    • Tamati

                      Well I’m certainly glad I bumped into you two vanguards here and now. We’ll see what happens. I highly doubt DC the messiah will change a thing when he gets his hands on the Treasury benches. It’s smart politics though.

                    • Colonial Viper

                      Appreciate all your efforts to spread disinformation on the banking and financial systems, Tamati.

                    • Tamati

                      The feeling is mutual.

                  • For those of you confused by Tamati’s misinformation here are three video’s you might want to watch to inform yourself about the Reserve bank system and the creation of money out of thin air which we have to repay with our hard slog and interest on top:

                    Money as debt 1
                    the Money Masters
                    And the Creature of Jekyll Island

                    • ghostwhowalksnz

                      A quick look at Westpacs financial accounts shows , not up to date.
                      (1) Assets , mostly are loans they have made to others , $77 Billion

                      (2) Liabilities, mostly money they have borrowed from others $72 billion

                      Not much fractional banking going on there, as they have to have $5 bill of their own money in the kitty

                    • Colonial Viper

                      What about their off-balance sheet assets and liabilities, GWWNZ? Which we have seen revealed through the GFC are often larger than all the on-balance sheet items put together?

                      Also, what assurance do you have that those assets and liabilities that we can see are all accurately marked to market?

                      And one last point – you do know that a bank creating a new deposit through a loan automatically creates a balancing entry on the balance sheet? The new deposit is entered as a liability whereas the loan is entered as an equivalent asset.

                      Just because you see assets and liabilities as almost equal doesn’t mean that they are anything more than created book keeping entries.

  9. bad12 9

    Yes when the Reserve Bank Governor or that dribbling fool from the Herald John Armstrong can explain in a few logical sentences why someone in Invercargill should be made unemployed because Auckland house prices are over-inflated i may even find the time to listen,

    Until such time i can only spare my spittle for such economic Neanderthals who foisted on this country Legislation that looks from here to be simply a ‘protection racket’ for the shareholding class,

    The equation is this, Neo-liberal policies of laissez fairre claiming the market as the final arbiter created in the city of Auckland a gross shortage of housing by allowing open slather immigration and not providing an iota of planning for accommodating such an inflow, leaving this instead to ‘the market’, which of course FAILED under such an influx,

    Finally, after the profiteers have fed mightily on such a clusterf**k, the Reserve Bank Governor threatens the employment of 1000′s, not to mention the living standards of the rest of New Zealand with His current threat to raise interest rates across the country penalizing those who have in no way added to the cause of this mess,

    If interest rates must be raised to cool the over-inflated Auckland housing market then the Governor of the Reserve Bank should raise the interest rates for houses in the City of Auckland,

    If the Governor of the Reserve Bank claims He cannot raise only the interest rates on houses in Auckland leaving the rest of the economy alone by NOT raising interest rates on anything else, anywhere else, i suggest the Governor of the Reserve Bank should be removed in favor of someone that can…

    • greywarbler 9.1

      There are precedents for fashioning policies just for Auckland City so the RB could do so too. We are always hearing about Auckland being the power house of the country and needs this or that. While Gisborne is a big food raising area and doesn’t need this or that.

      So right, tailor policies to assist powerhouse areas to function well using economic theory which will be known already, and strengthen functioning areas to increase their commercial activity to be mini powerhouses. RB – my unofficial consultants fee – $1,000.00 pay to
      anti-TPPA fund raising site. (For top of my mind unresearched data, which is the sort of stuff most of government policy is based on.)

      • bad12 9.1.1

        My view is it is the economics of ‘the chimps’, Auckland house price over-inflation IF such over-inflation is to be the target of interest rates rises should be separated from the rest of the economic picture and such rates applies solely to that City,

        Christchurch right at the point of the first major earthquake should have also been separated from the overall economic picture and been declared a special economic zone for the purposes of the rebuild,

        There is no real economic growth involved in rebuilding that city it is simply replacing growth that was destroyed, and parts of the rest of the economy should not be punished through any perceived but false inflation from that rebuild,

        We need far smarter economics and economists, what would the rate of inflation be if Auckland house prices and the Christchurch rebuild were factors addressed outside of the current means of primitive bean counting,

        i would suggest that rate of inflation would be something akin to .02%-.07% and if the Reserve Bank Governor is suggesting that we all get kicked in the nuts with interest rate hikes over the whole economy because of the Auckland and Christchurch factors when any logical person viewing such would simply say to address both those cities outside of national inflation figures, then i suggest we find a new Reserve Bank Governor…

      • xtasy 9.1.2

        greywarbler

        “We are always hearing about Auckland being the power house of the country and needs this or that. While Gisborne is a big food raising area and doesn’t need this or that.”

        In my honest opinion, this talk about Auckland being the “power house” is a lot of self serving, arrogant garbage that mayor Len Brown and other senior Auckland politicians, business and other stakeholders love to go on about. And I say this as a person who has lived here over two decades.

        What does the Auckland “economy” actually consist of, and what does it “produce”? A look at various sources reveals some interesting information, which exposes that most is more or less “services” that are provided by some Aucklanders to others (businesses, public providers and invidivuals). The Port of Auckland is not so much an export port, it is primarily and IMPORT port, for goods MADE elsewhere.

        Manufacturing here is only taking place in some places, and we know how Fisher and Paykel and others have partly closed factories and moved off-shore. There is a lot of transport happening, but most is private motor cars and trucks, the latter transporting goods that were made elsewhere, from Auckland or to Auckland. There is an inland “port” in South Auckland that services mainly goods transported here from Tauranga and Whangarei (much for on-transportation).

        Naturally there is the international and domestic airport, and there are hotels and backpackers accommodating tourists. There are a few headquarters of major businesses and banks, there are courts, administrations and not much else.

        A BIG part of the economy is the inflated inner Auckland housing market. Now is that the kind of “economic activity” this country needs? Most this inflated talk about the Auckland economy only serves the large Auckland middle class to feel important, as it is all about their buying and selling of homes, their “investment” in homes, selling homes and “services” to new migrants, their importing foreign goods, their housing foreign students as boarders, their education investment, their personal jobs, their consumerist shopping from retailers, and their driving around in cars half the days, to get from A to B to C.

        That is the f**king “Auckland Economy”, at least the bulk of it in my eyes, not much else. So the provinces have good reasons to be furious at times, as true economic activity should look a bit better than what we have here!

        http://en.wikipedia.org/wiki/Auckland_City

        http://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/plansstrategies/theaucklandplan/economicdevelopmentstrategy/Documents/economicquarterly2013april.pdf

        http://livenews.co.nz/2013/07/16/aucklands-housing-market-boosting-wider-economy/

  10. Draco T Bastard 10

    The thing is that high interest rates don’t stop speculation in the housing market. In fact, with all the hot money poring in, it actually feeds it.

    Stop banks from creating money, get rid of the OCR and also stop RBNZ being the lender of last resort (only the government would have access to money created by the RBNZ, specifically, the RBNZ would be charged with creating the money the government needs to spend into the economy) and we’d go a long way to making our economy rational.

    • bad12 10.1

      Unfortunately your prescription would require the politicians to also be rational all the time, a prospect i fear that has as much chance as the proverbial snow flake in hell…

      • Draco T Bastard 10.1.1

        Throw in referenda and the sustainable rate of use of the countries resources and the required rationality of the MPs decreases.

    • Herodotus 10.2

      DTB hot money on its own does not feed the housing market – crap controls feed the market. Place some brakes e.g. Eliminating interest as tax deductible, state housing sub contracting out to private land lords.
      http://www.hnzc.co.nz/about-us/our-publications/factsheets/guaranteed-rent-through-home-leasing/guaranteed-rent-through-home-leasing.pdf
      And allowing capital gains to go untaxed when there is no basis for rentals to stand up as a viable trading business. The only reason rentals work IS the capital gains.
      Regulate so that owner occupies have an advantage over private land lords, and that state housing is the 1st alternative as a landlord and that there are sufficient housing stock.

      • Draco T Bastard 10.2.1

        hot money on its own does not feed the housing market

        Didn’t say it was but I believe it to be the main driver.

        The only reason rentals work IS the capital gains.

        Oh, I think you’ll find that people with 10+ houses the capital gains is just icing on the top.

        Eliminating interest as tax deductible

        I’m trying to eliminate interest altogether.

      • Saarbo 10.2.2

        +1000

      • Colonial Viper 10.2.3

        Herod, I do believe that you are on the right track.

        We need the business of being a landlord (as opposed to being a property speculator who rents out houses in-between flipping them) to be sustainable and attractive, providing fair net returns of 4% to 5% to the investor.

        And the NZ Govt should be a major player in that rental provider market, as well as facilitating the financing and the house price controls which will make it possible.

  11. BrucetheMoose 11

    I stopped reading the Herald regularly a while back due to their rightest slanted garbage and consistently biased views. Not only that, they hardly ever posted my comments. Especially after I said that National was really a club for closet fascists. They’re no fun.

  12. xtasy 12

    “For a decade now, we have had some of the highest interest rates in the developed world leading to a near-permanently over-valued dollar, and it’s killing the economy without fixing the housing bubble.”

    Interest rates in New Zealand have been much higher than in most OECD countries for as long as I can remember, and it goes back at least until the 1990s and also 1980s!

    New Zealand is considered a higher risk lender on the international lending market, given its small size and traditional over-dependence on foreign funds for investment. It seems a bit absurd, as on the other hand New Zealand always gets considered to be one of the most politically and socially “stable” countries. But it is size that matters, and the traditional reliance on capital inflow, which goes back to the early settler’s days, under direct British Crown rule here, has continued.

    What is the greatest problem for New Zealand is the high indebtedness due to private lending for financing real estate purchases. As most of this lending is done by Australian owned banks, a lot of interest and due dividends flow into their coffers, and the pockets of their shareholders. Also do foreign investors here earn their dividends on investment in enterprises that sell goods and services.

    The currency fluctuations, and the often overrated NZ currency is a major issue, and for instance Japanese mums and dads have a habit of investing their currency in NZ dollars, given high earning potential, all propped up by high interest rates.

    All this is little productive, as it disadvantages investment and economical feasibility of local manufacturers, producers in general, and therefore exports. Like with real estate Kiwis also love to import many consumer products, and the high dollar enables the to do this.

    So what we have is continued growth in bulk exports of easily produced mass primary products that appeal to Chinese and a few other consumers, to pay for imports of higher quality value added goods made there. This makes for a primitive, commodity dominated economy, with many flaws.

    Armstrong is in semi retirement from my view, and his articles reflect his somewhat redundant views, shaped by an age that was dominated by neo-liberal dogma and practice. Winston Peters and David Cunliffe are right, the Reserve Bank Act needs amending, so Armstrong is best advised to seek other daytime activities to avoid further embarrassments prior to full retirement.

    • Anne 12.1

      Armstrong is in semi retirement from my view, and his articles reflect his somewhat redundant views, shaped by an age that was dominated by neo-liberal dogma and practice.

      Add to that a debilitating disease that not only cripples the body, it must eventually have a detrimental effect on the mind as well. I give him full credit for persevering through all the tribulations of his condition for as long as he can. He still has something to offer, but some of his analysis work is outdated and falls short of what it once used to be.

      • xtasy 12.1.1

        “Add to that a debilitating disease that not only cripples the body, it must eventually have a detrimental effect on the mind as well.”

        I accept that, Anne, and while some know this, many readers would not, and without possibly being aware of his slowly weakening capacity, I feel concerned that John Armstrong may unintentionally expose himself to harsh criticism and ridicule.

        Hence there will be the time where he will be well advised to perhaps pursue his writing skills in a different forum at a different pace and level of exposure.

        • Anne 12.1.1.1

          Agree 100% xtasy. I know someone with the same condition and it really is deeply sad to see this once bright and active person reduced to a shell of his former self.

  13. Liberal Realist 13

    Armstrong is just another tool with his ideology firmly stuck in the Chicago school cesspit (Somewhere on Planet Key perhaps?).

    “So, what has the Bank done to earn a free-pass from every government to do whatever the hell it likes? As far as I can see, all its done in its 20 years of independence is kill our exporting industry, help us rack up massive foreign debt, and failed to tackle successive housing bubbles.”

    Eddie, you’ve hit the nail on the head. +10 Since independence 20 years ago almost every move the bank has made, has been to the detriment of ordinary New Zealanders. Of course those that have made enormous amounts of cash via property speculation and the boom / bust cycle want BAU and Armstrong is one of their mouthpieces.

    Labours CTG will certainly help address the imbalance but the issue of a single blunt tool – OCR still needs to be addressed. Why can’t the OCR be pegged against a trade-weighted basket of currencies while wielding more targeted tools to address problem areas of the economy?

    Furthermore retail banks need to have their profit regulated, perhaps by a maximum lending rate above the OCR? Of course in a market economy they have to make a profit but it doesn’t need to be obscene as we’re seeing today.

    The building materials duopoly also needs to be addressed. Material costs for a build a much higher than they should be simply due to lack of competition. QE also needs to be an available tool – I’ve yet to hear a valid argument against..

    As for LVRs, stupid stupid move. Shut out first home buyers leaving more property stock available for those who can stump up a 20% deposit.. As Eddie suggests, it wouldn’t have been hard to apply LVRs to problem markets only. The Government changed Housing NZ’s Welcome Home Loan and Deposit Subsidy easily enough.

  14. Colonial Viper 14

    QE also needs to be an available tool – I’ve yet to hear a valid argument against.

    QE refers to a very specific technique where the Fed buys investment bank assets (often impaired/toxic assets) with newly created money. In doing so, the Fed massively expands its balance sheet on the assets side.

    The problem is that the newly created money is not getting from the Wall St institutions, to Main Street. In the lingo, the “transmission mechanisms” for the money are broken.

    If NZ wanted to create new money in a way to help the economy that ordinary people experience, it wouldn’t use QE, the Government would instead spend that money into circulation buying goods and services from NZ businesses and NZ workers. This is more like what Roosevelt did with the WPA to help end the Great Depression. Hiring 8M or more people into new jobs all over the country. (A massive investment for a country with a population of only 100M at the time).

    *I wrote this reply to an individual who posted quite a good comment, but who seems to have deleted it or had it put into moderation.

    • bad12 14.1

      Yes the American version of expanding the money supply does seem overly complicated, here’s one example of the State producing monies and then adding labour and goods to produce an asset which is of the same value as the monies produced,

      Produce into existence X amount of monies and build with such monies X amount of State houses…

    • Liberal Realist 14.2

      CV, my comment did hit moderation – in fact I thought it had been lost but checking today my comment has been published.

      I’m familiar with QE the US Fed has been engaging in – I should have further clarified in my comment, I wouldn’t suggest NZ engage in a free for all into a stock market black hole as with the US experience.

      As you suggest (QE doesn’t necessarily need to be the mechanism) newly created money should be used to purchase infrastructure / earth quake recovery bonds such as the GP suggestion 12 months ago (not sure if it’s policy?). The CHCH rebuild could be fast tracked with a such a bond purchase and Auckland’s public transport woes could also be addressed.

      [lprent: We tend to be somewhat lackadaisical on the weekends on moderation but that gets cleared every few hours. But releasing comments that went into spam is always slower. Firstly because the anti-system is over 99% accurate and secondly because it is so accurate, I usually only look at it a few times per day. There is no apparent reason for that comment to be auto-spammed apart from style. It does read a wee bit like someone wanting to sell financial services :) ]

      • Draco T Bastard 14.2.1

        newly created money should be used to purchase infrastructure / earth quake recovery bonds

        No need, just spend the money into the economy. Adding bonds to the process just adds complication and unneeded interest.

  15. vto 15

    All hail the great god of capital!

    Imagine if it disappeared?

    No capital. What would we all do. Armstrong is incapable of imagining such a place, common as it has been ….

  16. vto 16

    The war of capital.

    Played out in New Zealand via the reserve bank.

    Played out in the US via the government shutdown.

    Capital is pulling its weight.

    Best we push back. Fuck them. Capital is an apparition. Fuck the capital!

  17. Ad 17

    2 quick provocations.

    1. If Cunliffe wants to break the neoliberal consensus and gain control over our currency and hence our export prices received, then kill the Reserve Bank dead and pull its functions back to Treasury. Interest rate changes made by Cabinet only.

    2. Shift all govt banking business to Kiwibank. This could make Kiwibank offer lower mortgage rates than any of the Aussie banks. And stronger, safer deposits.

    We need a banking system returned to direct accountability by the political order, and designed to strengthen New Zealand’s interests.

  18. tricldrown 18

    The reserve bank act is nothing more than allowing money speculators to continueously plunder our economy taking tax free capital gains for doing nothing more than pushing our dollars value up to artificial highs for their gain while the productive sector is damaged .
    Then because we are not making enough from exports NZers have borrowed massive amounts of debt to buy cheap imports.
    We have lived beyond our means ever since this legislation has been in place.
    A Capital gains tax on profits from money speculation would be a start.
    The housing bubble needs to be dealt to.
    Printing money at the same level as the major trading blocks do and using that printed money to build enough houses to deal to the property bubble.
    This would keep our dollar and interest rates down.

  19. Sable 19

    I’ve met a least one Reserve bank fool and they are just that. Armed with economics masters and PHD degrees (might as well have a degree in fortune telling) they have absolute faith in neo liberal twaddle trotted out by the Chicago school mob and as time has shown their faith is sorely misplaced. Yet do they consider other alternatives, hell no!

    The clown I spoke to was rabid in his support of this economic fairy tale and ranted on for ages when challenged. He certainly had a good knowledge of the global economy and an answer for everything BUT there was little practical basis for his belief in neo liberalism or any real indication he had the ability to credibly influence or change anything. Really just a nerd in a government think tank, big brain but beyond that nothing of substance….

    Not at all surprised by this reaction, no one wants others to find out they are, in fact, clueless…

  20. Rogue Trooper 20

    National Governments minor adjustment responses to housing supply issue:
    -Welcome Home Loans; 15000 over next three years
    -KiwiSaver changes; 20000 to access deposit assistance
    -Auckland Accord; 39000 new homes (5000 consents by Christmas intended) immediately bringing 300 homes at 335-400+K on-stream-Nick Smith.
    appears to be mainly about money supply rather than housing supply.

    Tinkering “mostly at the margins”- Colin James.

    “Easy credit” from overseas QE and financial markets IS washing up here.
    (house prices may face a fall on the back of US stalemate and bank credit changes.).

    “Exempt first-home buyers from new LVR’s”- Phil Twyford

    and an interesting suggestion for discussion from a realty spokesman-
    Have the government underwrite deposit shortfall / balance on new homes constructed for first-home buyers.

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    DimPost | 31-08
  • Brownlee’s contempt for the OIA
    Minister’s office has delayed responding to my OIA request about possible cronyism involving up to $284 million of taxpayer's funds until after the election. This is a disgrace. As readers may recall, Gerry Brownlee recently announced the winners of $284...
    Polity | 31-08
  • Capture: The Colour Of Spring
    Here she comes Silent in her sound Here she comes Fresh upon the groundCome, gentle spring Come at winter's end Gone is the pallow From a promise that's nature's giftWaiting for the colour of spring* In as much as we...
    Public Address | 31-08
  • My own take on Dirty Politics
    Now that Judith Collins is gone, what now? First, of course, the search for answers carries on. What did John Key or Wayne Eagleson know about the dirty tricks campaign in their midst? Which other Ministers might be rotting the...
    Polity | 31-08
  • What is the CFN? Transport Debate Summary
    At the 2014 Election Transport Debate organised by the Campaign for Better Transport I was charged with summarising our Congestion Free Network as an introduction to the candidate’s speeches. Here is that short speech: What is the CFN? The CFN is...
    Transport Blog | 31-08
  • Gordon Campbell on John Key’s ‘blame it on Judith’ strategy
    Right now, Prime Minister John Key seems intent on limiting the scope of any inquiry into his government’s dealings with Cameron Slater. The declared aim is to make that inquiry solely about Judith Collins’ behavior with respect to the Serious...
    Gordon Campbell | 31-08
  • On eve of major conference, UN chief spurs green investment
    Press Release – UN News 31 August 2014 Encouraging partnerships between the private sector and small developing island nations, Secretary-General Ban Ki-moon on Sunday urged corporate leaders to invest in renewable energy and make historic strides in sustainability.SAMOA: On eve...
    Its our future | 31-08
  • The Greens Are Deep In Dirty Politics
    I have a confession, as a Green candidate I too have been involved in some dirty politics and it has been filthier than many would expect.I had someone contact me recently because of his concern about poor service from an...
    Local Bodies | 31-08
  • Pop-up Tea Shop
    Rose and vanilla tea, complete with cosy, and accompanied by old-fashioned carrot cake, Pop-up Tea Shop, August 31 2014This post is part of the 100 Days ProjectDay 52Some enterprising people ran a pop up tea shop in the Grey Lynn...
    Notes from the edge | 31-08
  • Collins gets a cheer
    This post is part of the 100 Days Project Day 51I was in my hairdresser's making an appointment today and the owner was on reception, so we got to shooting the sh*t a little, as you do.  Things turned political and...
    Notes from the edge | 31-08
  • MANA Movement Leadership stands strong behind Internet MANA relationship
    “There is now, and always will be, a range of views about many issues within our movement and members are free to express them, but Georgina’s views on Kim Dotcom are not shared by the MANA Movement leadership or the vast majority...
    Mana | 01-09
  • Rebuilding the New Zealand Defence Force
    A Labour Government will make it a priority to rebuild the capacity of the Defence Force to carry out the tasks expected of it, says Labour’s Defence Spokesperson Phil Goff. Releasing Labour’s Defence Policy today he said the NZDF has...
    Labour | 01-09
  • Speech to Canterbury Chamber of Commerce
    Today I'm going to talk about our policy package to upgrade and grow our economy and how we turn that growth into a foundation for a decent and fair society. But first I want to address the issue of our...
    Labour | 01-09
  • Commission of Inquiry must have bipartisan support
    The Labour Party is drafting terms of reference for a Commission of Inquiry, Labour’s Shadow Attorney-General David Parker says. “It is abundantly clear there is a need for an independent Commission of Inquiry, chaired by a High Court Judge, into...
    Labour | 01-09
  • Rapid Transit to unclog Christchurch
    Labour will build a 21st century Rapid Transit system for Christchurch, says Labour Leader David Cunliffe. “The long delayed recovery of Christchurch hinges on a modern commuter system for the city. “We will invest $100 million in a modern rail plan...
    Labour | 31-08
  • Labour’s commitment to public broadcasting
    A Labour Government will set up a working group to re-establish a public service television station as part of our commitment to ensuring New Zealand has high quality free-to-air local content. “We will set up a working group to report...
    Labour | 31-08
  • A new deal for the conservation estate
    The health of our economy depends on New Zealand preserving and restoring our land, air, water and indigenous wildlife, says Labour’s Conservation spokesperson Ruth Dyson. Announcing Labours Conservation policy, she said that there will be a comprehensive plan to restore...
    Labour | 31-08
  • Labour’s plan to end homelessness
    Labour has a comprehensive approach to end homelessness starting with the provision of emergency housing for 1000 people each year and putting an end to slum conditions in boarding houses, Labour Leader David Cunliffe says. “Labour believes that homelessness is not...
    Labour | 30-08
  • Labour: A smarter approach to justice
    A Labour Government will improve the justice system to ensure it achieves real public safety, provides equal access to justice and protects human rights, Labour’s Justice spokesperson Andrew Little says. “Our approach is about tackling the root causes of crime, recognising...
    Labour | 29-08
  • Labour to foster Kiwi love of sport and the great outdoors
    A Labour Government will promote physical activity, back our top athletes and help foster Kiwis’ love of the great outdoors by upgrading tramping and camping facilities. Trevor Mallard today released Labour’s sports and recreation policy which will bring back a...
    Labour | 29-08
  • Pacific languages recognised under Labour
    Labour will act to recognise the five main Pacific languages in New Zealand including through the education system, said Pacific Affairs spokesperson Su’a William Sio. Announcing Labour’s Pacific Island policy he said that there must be a strong commitment to...
    Labour | 29-08
  • No healthy economy without a healthy environment
    Labour recognises that we cannot have a healthy economy without a healthy environment, says Environment spokesperson Moana Mackey announcing Labour’s environment policy. “New Zealand’s economy has been built on the back of the enormous environmental wealth we collectively enjoy as...
    Labour | 28-08
  • Better protection, fairer deal for Kiwi consumers
    Tackling excessive prices, ensuring consumers have enough information to make ethical choices and giving the Commerce Commission more teeth are highlights of Labour’s Consumer Rights policy. “The rising cost of living is a concern for thousands of Kiwi families. A...
    Labour | 28-08
  • Media Advisory – MANA Movement Candidate for Waiariki Annette Sykes, Waia...
    Media are advised that this coming weekend, the MANA Movement Candidate for Waiariki, Annette Sykes, will be on the Internet MANA Road Trip within the electorate of Waiariki. Speakers confirmed are Annette Sykes, Hone Harawira, John Minto, Laila Harre and Kim...
    Mana | 27-08
  • Internet MANA – Waiariki Road Trip: 29, 30, 31 Aug 2014
    The Internet MANA Road Trip hits Waiariki this weekend. It would be great if all MANA members in Waiariki could especially attend the public meetings and show their support for our Waiariki candidate Annette Sykes. Confirmed speakers Hone Harawira (except Taupo), Annette...
    Mana | 27-08
  • First home buyers $200 a week better off with Labour
    A couple earning around $75,000 a year would be $200 a week better off buying a two bedroom terraced Labour KiwiBuild home instead of an equivalent new build under National’s housing policy, says Labour Leader David Cunliffe.  “National’s policy to...
    Labour | 26-08
  • Another Day – Another big power profit
    The latest profit announcement from Genesis Energy shows that the power company was sold for a song to the detriment of the country’s power consumers, says Labour’s Energy spokesperson David Shearer. “A net profit of $ 49.2 million follows hard...
    Labour | 26-08
  • Labour embraces the rainbow
    Labour will work hard to ensure all New Zealanders enjoy the freedom to grow up and live their lives in dignity and security. Labour’s Rainbow policy, released tonight in Wellington, focuses on International Relations, Human Rights and Education....
    Labour | 26-08
  • National gets fast and loose with the facts
    In their desperation to make it look as though they are doing something about the housing crisis, National is playing fast and loose with the facts, says Labour’s housing spokesperson Phil Twyford....
    Labour | 26-08
  • Labour will drop power prices for Kiwi families
    New Zealanders will get cheaper power prices under NZ Power, says Labour Leader David Cunliffe. “The electricity market is clearly broken. With falling demand for electricity, prices should be going down. Instead prices are going up and companies are extracting...
    Labour | 26-08
  • Labour: Promoting sustainable tourism
    Ensuring New Zealand’s clean, green status continues to be an international tourism benchmark and reviewing MBIE’s oversight of the tourism sector will be on the radar under a Labour Government. Releasing Labour’s Tourism policy today, spokesperson Darien Fenton said tourism...
    Labour | 26-08
  • Skills shortage a result of National’s complacency
    The fact that there is still a severe shortage of skilled tradespeople, despite a growth in the number of apprentices, is a result of National’s failure to plan and develop the workforce, Grant Robertson, Labour Employment, Skills and TrainingSpokesperson says."The...
    Labour | 26-08
  • How much tax does John Key pay compared to a minimum wage worker?? – Mint...
    MANA Movement Economic Justice spokesperson John Minto is calling for a radical overhaul of New Zealand’s taxation system with calculations showing that a minimum wage worker pays a ten times higher tax rate than the Prime Minister. o Minimum wage...
    Mana | 25-08
  • Labour’s culture of science and innovation
    Labour will create a culture of science and innovation in New Zealand that will be the envy of the world, says Labour’s Innovation, Research and Development spokesperson Megan Woods. “Labour believes that good science lies at the heart of a...
    Labour | 25-08
  • Improving life for our new New Zealanders
    New Zealand’s international standing as a community that encourages and fosters all cultures will be bolstered under a Labour Government with an upgrade of the present Office of Ethnic Affairs to a Ministry. Releasing Labour’s Ethnic Affairs policy, spokesperson Phil...
    Labour | 25-08
  • South Auckland housing crisis
    National’s HomeStart package is nothing more than a political stunt designed to beguile South Auckland voters, said Labour’s Pacific Affairs spokesperson Su’a William Sio. “Few working Pasifika and Maori workers in South Auckland will be able to buy their own...
    Labour | 25-08
  • Home buyer subsidy discredited in Oz
    Treasury advised against National’s policy of ramping up home buyer subsidies after it was discredited in Australia because it pushed house prices even higher, Labour’s Housing spokesperson Phil Twyford says. “Documents released under the OIA (attached) show Treasury advised the...
    Labour | 25-08
  • Nursing hours explain turnover and high-stress culture
    A staff survey supports concerns nursing staff at Dunedin Hospital are under increasing pressure and that the emergency department is in a critical state, says Labour’s Associate Health Spokesperson David Clark.  “An ED nursing survey at Dunedin found that 80...
    Labour | 24-08
  • Underhand tactics prove case for axing donations
    Revelations that schools are using underhand tactics to coerce donations from cash-strapped parents further highlights the need for Labour's plan to increase funding so they aren't dependent on contributions from parents, Labour's Education spokesperson Chris Hipkins says. “By law New...
    Labour | 24-08
  • National applies band-aid to housing crisis
    The Government’s flagship housing announcement is a band-aid approach that will push up prices rather than solve the housing crisis, says Labour Leader David Cunliffe. “House sales to first home buyers have collapsed as a direct result of the Government’s...
    Labour | 24-08
  • Climate change focus on the now for the future
    A Labour Governmentwill put in place a comprehensive climate change strategy focusing on bothmitigation and adaptation, establish an independent Climate Commission andimplement carbon budgeting, says Labour Climate Change spokesperson MoanaMackey."This is about future-proofing our economy. Making the transition to alow-carbon...
    Labour | 24-08
  • Labour’s 21st century transport pledge
    The next Labour-led Government will create a 21st century transport system for New Zealand that promotes the most efficient and sustainable combination of transport options, says Labour’s Transport spokesperson Phil Twyford. “Labour will rebalance the Government's transport spending away from...
    Labour | 23-08
  • Housing under National: the facts
    1.       House prices in Auckland Council valuations indicate Auckland house prices have gone up by one-third over the last three years. (Auckland Council) The average Auckland house price has gone up by nearly $225,000 since 2008, up over $75,000 in...
    Labour | 23-08
  • Labour irons out low income tax issue
    The increasing casualisation of work has led to many New Zealand families being disadvantaged through the tax they pay, Labour Leader David Cunliffe says. "Many low paid workers are having to work two or three jobs to make ends meet...
    Labour | 22-08
  • Cornered Government comes out swinging
    The National Government is so desperate to keep its dead-in-the-water expert teachers policy alive, it has refused to rule out forcing schools to participate through legislation, Labour’s Education spokesperson Chris Hipkins says. “John Key today attacked the Educational Institute for...
    Labour | 22-08
  • Pacific people continue to go backwards under National
    A report from Victoria University highlights the fact that Pacific people are continuing to go backwards under a National Government, said Labour’s Pacific Affairs spokesperson Su’a William Sio.  “The report shows the largest inequality increases were in smoking, obesity, tertiary...
    Labour | 22-08
  • Wellington transport plan needs to keep moving
    The failure of the Transport Agency to properly look at alternatives to the Basin Reserve flyover is not a good reason for further delays to improving transport in Wellington, Labour MPs Grant Robertson and Annette King say. “The Board of...
    Labour | 22-08
  • Labour’s focus on inequality, kids and better job prospects
    Tackling child poverty and removing barriers to people working part time to enhance their prospects of moving into a fulltime job are highlights of Labour’s Social Development policy. Releasing the policy today, spokesperson Sue Moroney said while part-time work was...
    Labour | 21-08
  • Political staff should give answers under oath
    The Inspector General of Security and Intelligence should use her full statutory powers to question witnesses under oath about the leak of SIS information, says Labour MP Phil Goff. “Leakage of confidential information from the SIS for political purposes is...
    Labour | 21-08
  • High dollar, hands-off Govt sends workers to dole queue
    The loss of up to 100 jobs at Croxley stationery in Auckland is devastating news for their families and the local Avondale community, Labour’s Employment, Skills and Training spokesperson Grant Robertson says. “The company’s inability to compete in international markets...
    Labour | 21-08
  • National’s flagship education policy dead in the water
    National’s plan to create executive principals and expert teachers is effectively dead in the water with news that 93 percent of primary teachers have no confidence in the scheme, Labour’s Education spokesperson Chris Hipkins says. “The fact that teachers are...
    Labour | 21-08
  • Dunedin will be a knowledge and innovation centre under Labour
    Dunedin will become a knowledge and innovation centre under a Labour Government that will back local businesses, support technology initiatives and fund dynamic regional projects, Labour Leader David Cunliffe says. “Nowhere has the National Government’s short-sightedness been more apparently than...
    Labour | 21-08
  • Inquiry into SIS disclosures the right decision
    Labour MP Phil Goff says the Inspector-General of Intelligence and Security has done the right thing by launching an inquiry into the disclosure of SIS documents about a meeting between himself and the agency’s former director-general. “This inquiry is necessary...
    Labour | 20-08
  • Labour – supporting and valuing carers and the cared for
    Placing real value on our elderly and the people who care for them will be a priority for a Labour Government, Labour Leader David Cunliffe says. Releasing Labour’s Senior Citizens policy today David Cunliffe promised that a Labour Government would...
    Labour | 20-08
  • By Hoki! It’s Labour’s fisheries policy
    A Labour Government will protect the iconic Kiwi tradition of fishing by improving access to the coast, protecting the rights of recreational fishers and reviewing snapper restrictions, Labour’s Fisheries spokesperson Damien O’Connor says. “Catching a fish from the rocks, beach...
    Labour | 20-08
  • Mighty River – Mighty Profits – Mighty hard to swallow
    Mighty River Power’s profit increase of 84 per cent is simply outrageous, says Labour’s Energy spokesperson David Shearer. “Demand for electricity is flat or declining yet the company has made enormous profits. It is the latest power company to celebrate...
    Labour | 19-08
  • Collins’ actions were wrong, not unwise
    John Key’s moral compass remains off-kilter as he cannot bring himself to declare Judith Collins’ actions outright wrong, not simply ‘unwise’, said Labour MP Grant Robertson. “Under pressure John Key is finally shifting his stance but his failure to condemn...
    Labour | 19-08
  • Public servants behaving with more integrity than their masters
    The State Services Commission's new report on the integrity of our state services reflects the yawning gap between the behaviour of public servants and that of their political masters, Labour's State Services spokesperson Maryan Street says. “This report, which surveyed...
    Labour | 19-08
  • Phil Twyford Speech to NZCID
    "Labour's plan to build more and build better: how new approaches to housing, transport and urban development will deliver cities that work" Phil Twyford, Labour Party spokesperson on housing, transport, Auckland issues, and cities.  ...
    Labour | 19-08
  • Labour commits to independent Foreign Affairs and Trade
    “Labour is committed to New Zealand’s Foreign Affairs and Trade policy being independent and proactive, Labour’s Foreign Affairs spokesperson David Shearer says. “We are a small but respected country. Our voice and actions count in international affairs. Labour will take a...
    Labour | 19-08
  • Coalition for Better Broadcasting – Auckland Broadcasting Debate 2014
    Coalition for Better Broadcasting – Auckland Broadcasting Debate 2014...
    The Daily Blog | 01-09
  • Petition for Governor General of New Zealand to Investigate all the allegat...
      Now we see the inquiry will be a whitewash, that is secret, won’t be consulted with the Opposition, will have limited scope and will ignore Nicky Hager’s book, we must demand the Governor General step in and demand an...
    The Daily Blog | 01-09
  • Ashburton, 1 September 2014
    I NEVER WENT BACK to Aramoana after the killing. I had been a frequent visitor to the tiny seaside village back in the late 1970s and throughout the 80s. Its tall cliffs and broad beaches providing a colourful backdrop to...
    The Daily Blog | 01-09
  • Checkmate in 1 move – how could Slater have known what was in OIA request...
    And now we get down to the final few moves before checkmate. If the following investigation is right, how could Slater and Collins have known what was in the Secret Intelligence Service Official Information Act request that hadn’t been released...
    The Daily Blog | 01-09
  • The Edge Posts Naked Photos Of Jennifer Lawrence Without Consent
    Today the Edge website – owned by Media Works – published fully naked photographs of Jennifer Lawrence without her consent. It is not OK to publish naked media of any woman without her consent, full stop. It is absolutely disgusting...
    The Daily Blog | 01-09
  • Bomber, Laila and Maggie – a highlight from Auckland Broadcasting Debate ...
    Bomber, Laila and Maggie – a highlight from Auckland Broadcasting Debate 2014...
    The Daily Blog | 01-09
  • Jeremy Wells’ Mike Hosking rant on Radio Hauraki: Today, how good was I i...
    Jeremy Wells’ Mike Hosking on Radio Hauraki...
    The Daily Blog | 31-08
  • Maggie Barry slags Laila Harre & blogger, audience erupt
    The Coalition for Better Broadcasting held their public meeting in Auckland last night and it became a fiery shouting match when Maggie Barry decided to slag Laila Harre and me off. 250 people packed into the Pioneer Hall off High...
    The Daily Blog | 31-08
  • It has to be a full independent public inquiry and Key MUST front
      You know things are bad when images like this start appearing in the media.  It isn’t a ‘left wing conspiracy’ to point out the over whelming evidence of what is clearly a right wing conspiracy! If it looks like a conspiracy, sounds like a conspiracy...
    The Daily Blog | 31-08
  • Political Party social media stats – National playing Dirty Politics on s...
    Interesting data from friend of the blog, Marty Stewart, on social media likes and it shows an interesting question that post Dirty Politics should probably get asked…   …it’s interesting that Key has so many personal followers.  One wonders if...
    The Daily Blog | 31-08
  • The depth of the National rot and the compliance of our news media
    I’m so tired. Aren’t you? I don’t want to read the news anymore. It’s awful and I feel ashamed of it. We live in a country that people all over the world would give an arm, a leg; their life...
    The Daily Blog | 31-08
  • Conservative Party candidate links smacking ban with suicide, sexually tran...
    If Chemtrails, faked moon landings and climate change denial weren’t enough, welcome to your new Minister for Spanking,  Edward Saafi... The anti-smacking law is to blame for youth suicide, youth prostitution and even sexually-transmitted infections, a leading Conservative party candidate...
    The Daily Blog | 31-08
  • A brief word on the canonisation of Matthew Hooton
    Before we all start the canonisation of Matthew Hooton, let’s consider some home truths here shall we? While the Wellington Ruminator Blog, the blog who was previously mates with Judith Collins, now seems to have a crush on Matthew Hooton… …I...
    The Daily Blog | 31-08
  • A brief word on undercover cops in bars
    Dunedin police booze operation labelled ‘creepy’ Undercover police officers drank in Dunedin bars as part of an operation targeting liquor licensing offences. While police said the inaugural operation was a success — with most bars found compliant — the Hospitality...
    The Daily Blog | 31-08
  • Judith Collins press conference
    Judith Collins press conference...
    The Daily Blog | 31-08
  • GUEST BLOG: Angry Lawyer – Collins, Odgers, Williams and legal ethics
    We deserve better lawyers than Judith Collins Three of the worst offenders exposed in Dirty Politics are lawyers: Judith Collins, Cathy Odgers, and Jordan Williams. What Nicky Hager exposed them doing would be out of line for anyone, but from...
    The Daily Blog | 31-08
  • GUEST BLOG: Pat O’Dea – Necessary Defence
    Increasingly climate change is becoming the main fracture line between political parties. Where political parties stand on climate change defines political parties and movements like no other issue. The Mana Movement like the Maori Party it sprang from, came out...
    The Daily Blog | 31-08
  • Why it is all over for John Key
    Image: Melanie D I’ve been confident that National will lose this election and that our focus should be on what a progressive Government needs to establish as its agenda in the first 100 days. Past that point, the establishment pushes back...
    The Daily Blog | 31-08
  • A brief word to everyone who voted National in 2011
    I received this interesting email from a National Party supporter today… …let me say this to anyone who voted National last election – you should be ashamed by what has been revealed and what your vote ended up enabling but...
    The Daily Blog | 31-08
  • EXCLUSIVE: Déjà Vu All Over Again: John Ansell confirms his participation...
      THE MAN BEHIND the Iwi-Kiwi billboards that very nearly won the 2005 election for Don Brash and the National Party has confirmed his involvement in businessman John Third’s and former Act MP Owen Jennings’ campaign to drive down the...
    The Daily Blog | 31-08
  • Public Broadcasting Auckland debate 6.30pm tonight now with Colin Craig &am...
    The Coalition for Better Broadcasting debate on public broadcasting happens tonight at 6.30pm in Auckland at the Pioneer Women’s Hall, High Street, Auckland City.  In the light of Dirty Politics and the manipulation of the media, public broadcasting is more important for...
    The Daily Blog | 30-08
  • Winners & Losers in Collins sacking plus what’s the latest on Slater...
      Make no mistake, there was no way this was a resignation, it’s a face saving way out for Collins, she was sacked.  My understanding is that National internal polls are haemorrhaging and that the powers that be within National...
    The Daily Blog | 30-08
  • Third party propaganda attacks incoming Labour-led government
    . . Further to a report by Daily Blogger, Chris Trotter, on receiving information regarding planned attack-billboards, the following billboard is highly visible to traffic on the southbound lane of the Wellington motorway, just prior to the Murphy St turn-off....
    The Daily Blog | 30-08
  • Labour wins the Internet
    I’m sure I’m not the only one who tried to vote online for the leaders debate and couldn’t because the website was down. The next option was the txt vote, 75c a pop of course. So I’m not surprised that...
    The Daily Blog | 30-08
  • GUEST BLOG: Anjum Rahman – Rotherham and the need to challenge willful bl...
    I haven’t been following the events in Rotterham too closely.  I’ve read about the basic issues and the culture of silence that stopped action been taken even after complaints were made.  That culture of silence is incredibly familiar, and described...
    The Daily Blog | 30-08
  • Review: Hairspray
      Oh Hairspray! What fun! Somehow I managed to miss the movie when it came out, I had no idea really what it was about though I felt it had a vague relation to High School Musical. In retrospect, that...
    The Daily Blog | 30-08
  • Mounting global pressure against Timor-Leste’s ‘death sentence’ media...
    East Timor’s José Belo … courageous fight against ‘unconstitutional’ media law.Image: © Ted McDonnell 2014 CAFÉ PACIFIC and the Pacific Media Centre Online posted challenges to the controversial ‘press law’ nine months ago when it emerged how dangerous this draft...
    The Daily Blog | 30-08
  • GUEST BLOG: Curwen Rolinson – Spies, Lies and When Campaigns Are Fried
    Like most of the rest of the nation’s political classes, I was eagerly affixed to TV One from 12:30 on Saturday afternoon to witness the downfall of Judith Collins.Whenever we witness the crumbling of a titan of the political landscape...
    The Daily Blog | 30-08
  • BREAKING: Whaleoil crushes Crusher
    Judith ends up shooting herself A new email has been released suggesting that Collins was attempting to undermine the head of Serious Fraud Office with the help of far right hate speech merchant Cameron Slater. Unbelievable!   She has been forced...
    The Daily Blog | 30-08
  • BREAKING: Rumours Judith Collins gone at lunchtime
    Brook Sabin first of the mark with rumours Judith Collins is about to resign – PM announcing a statement at 12.30pm… …Paddy follows… …Vance confirms..   …if Collins is gone by lunchtime, it will be because the PM understands the...
    The Daily Blog | 29-08
  • BREAKING: UPDATE on DIRT ALERT!
    Thanks to the information passed to Chris Trotter by “Idiot/Savant” from No Right Turn it is now possible to identify at least some of the persons involved in this latest example of attack politics. What follows is Chris’s response to Idiot/Savant’s timely assistance: Well done...
    The Daily Blog | 29-08
  • Comparing burning puppets, hip hop lyrics and drunk student chants to black...
    Watching the mainstream media try and obscure Cunliffe’s surprise win in the leaders debate  is a reminder the Press Gallery is in depressed shock. The current spin line from the Wellington bubble media in the wake of Dirty Politics is that...
    The Daily Blog | 29-08
  • Why has it all gone quiet on Charter Schools?
    They’re one of ACT’s flagship policies and the National Party have been gung ho in supporting them. So how come we’re not hearing Hekia Parata, Jamie Whyte, Catherine Isaac, et al singing from the rafters about what a resounding success charter...
    The Daily Blog | 29-08
  • Moment of Truth – September 15th – Auckland Town Hall
    Moment of Truth – September 15th – Auckland Town Hall...
    The Daily Blog | 29-08
  • EXCLUSIVE: Dirt Alert! Are the Greens and Labour about to become the target...
    WE’VE SEEN IT ALL BEFORE. In 2005 pamphlets began appearing all over New Zealand attacking Labour and the Greens. For a couple of days both the parties targeted and the news media were flummoxed. Who was behind such an obviously...
    The Daily Blog | 29-08
  • The Donghua Liu Affair: the Press Council’s decision
    . . 1. Prologue . The Donghua Liu Affair hit  the headlines on 18 June, with allegations that David Cunliffe wrote a letter in 2003,  on  behalf of  business migrant, Donghua Liu. Four days later, on Sunday 22 June, the...
    The Daily Blog | 29-08
  • The difference between Cunliffe & Key in the debate
    It was with much interest that I watched the leaders debate on Thursday night.  I watched with an open mind, always happy to have my opinion changed.  Maybe John Key is all the wonderful things that many say about him,...
    The Daily Blog | 29-08
  • GUEST BLOG: Denis Tegg – When Did We Agree To Our Data Being Shared with ...
    New shocking evidence has emerged from Edward Snowden’s trove of documents about a program called ICREACH under which data collected by the GCSB is shared with 23 US spy agencies. Under new sharing agreements which appear to have commenced immediately after...
    The Daily Blog | 28-08
  • Why Internet MANA are the best political friends the Greens could ever get
    Metiria at last nights #GreenRoomNZ: standing on the shoulders and camera cases of giants  NZers, regardless of political spectrum or apathy level, have a wonderful beach cricket egalitarianism about us. If we can objectively conclude a winner, then that person...
    The Daily Blog | 28-08
  • Sick of the Sleaze? Protest against National’s dirty politics THIS SATURD...
    Sick of the Sleaze? Protest now dammit! Three weeks before the election, action is being taken across the country voicing a rejection of the National Government’s track record and direction. Rallies are being held in Auckland, Wellington, Christchurch and Dunedin...
    The Daily Blog | 28-08
  • GUEST BLOG: Sir Edmund Thomas – Address at Nicky Hager public meeting
    I regard it as privilege to chair this public meeting. I have long had the greatest admiration for Nicky Hager’s work, and nothing I have read or heard in the media over the past week or so has caused me...
    The Daily Blog | 28-08
  • Labour and New Zealand Superannuation
    The kerfuffle in the wake of Nicky Hager’s Dirty Politics has had a detrimental impact on our discussion of economic policies. Signs are that the main beneficiaries of the dirty politics revelations will be Winston Peters and Colin Craig; certainly National suffered...
    The Daily Blog | 28-08
  • Coalition for Better Broadcasting – Mike Hosking and the Leader’s Debat...
    A few weeks ago I blogged that Mike Hosking was a terrible choice as moderator for the TV One Party Leader’s Debate, because he is so embarrassingly biased in favour of John Key. So I watched the show with curiosity,...
    The Daily Blog | 28-08
  • Democracy and Cancer: A critical analysis of Dirty Politics
    Twenty years ago, England’s renowned television playwright Denis Potter died of pancreatic cancer.  Readers may recall his two masterpieces ‘Pennies from Heaven’ and ‘The Singing Detective’.  During a final television interview with Melvyn Bragg, Potter declared that he had named...
    The Daily Blog | 28-08
  • Cunliffe beats Key in First Leaders debate
    I watched the First Leaders debate at the Green Party #GreenRoomNZ, they were very kind to include me and the atmosphere was great. The debate was a resounding victory to Cunliffe. He won Round 1, Round 2, Round 3 and...
    The Daily Blog | 28-08
  • LIVE STREAM: The Green Room Leader’s Debate from 6:30pm
    The Green Room will be hosted by media commentator Russel Brown, and will feature Green Co-leaders Metiria Turei and Russel Norman responding to the debate live, along with comment from thought leaders and commentators. ‘The Green Room’ 6pm – 8.30pm...
    The Daily Blog | 28-08
  • How many taxpayer funded staff does John Key need to prepare for a Leaders ...
    John Key is currently at the Auckland Stamford Plaza with 40 staff, 4 undercover police cars and an entire floor booked out in preparation for tonights Leader’s debate. Isn’t 40 staff including coms, flown up to Auckland for a debate...
    The Daily Blog | 28-08
  • A brief word on National Party Rodney MP, Mark Mitchell
    MP considers legal action against Nicky HagerThe National MP says he is considering taking a defamation case after the September 20 election.“Someone needs to be held accountable,” he said. Oh really champ? Brothers and sisters, there is a long way...
    The Daily Blog | 28-08
  • Greens advertise on Whaleoil – but not on The Daily Blog?
    PaknSave have shown ethical compass and blocked adverts on Whaleoil, yet the Greens are advertising on Whaleoil, and not The Daily Blog? I would imagine there are far more potential Green voters on The Daily Blog then ever are on...
    The Daily Blog | 28-08
  • It’s about the stupid economy stupid
    In focus group meetings, the sleepy hobbits of NZ by a staggering amount all believe that National are better economic stewards of the country than Labour, that’s why, instead of answering questions about blackmailing MPs, trawling brothels for dirt on...
    The Daily Blog | 28-08
  • Personal Statement by Matthew Hooton
    Personal Statement by Matthew Hooton 1 September 2014 For Immediate Release “This morning I made comments on Radio New Zealand’s Nine to Noon programme about an attempt by staff in the Prime Minister’s Office to interfere in the appointment...
    Scoop politics | 01-09
  • The Worm turns down for John Key
    John Key struggled to coax The Worm above the line in Thursday’s Leaders Debate, according to Roy Morgan’s Reactor, the original Worm. John Key struggled to coax The Worm above the line in Thursday’s Leaders Debate, according to Roy Morgan’s...
    Scoop politics | 01-09
  • The Edge Posts Naked Photos Without Consent
    The Edge website, owned by Media Works have published fully naked photographs of Jennifer Lawrence without her consent....
    Scoop politics | 01-09
  • Statement from the Governor-General on Ashburton Shootings
    The Governor-General, Lt Gen The Rt Hon Sir Jerry Mateparae, has expressed his deep shock following the shooting of three people in Ashburton today....
    Scoop politics | 01-09
  • Update on IGIS inquiry into release of NZSIS information
    In recognition of the public interest, the Inspector-General of Intelligence and Security, Cheryl Gwyn, took the unusual step of providing an update during the course of an inquiry and confirmed today that she would be summoning a number of individuals...
    Scoop politics | 01-09
  • An Open Government Plan developed in secrecy
    The State Services Commission sent NZ’s Open Government Action Plan to the international Open Government Partnership (OGP) Secretariat on 31 July. The countries involved in the OGP since its inception - from the UK and US to Indonesia and Brazil...
    Scoop politics | 01-09
  • KiwiRail; another year older and deeper in debt
    That is a lot of money and there are lessons that need to be learnt before we pour in another $1 billion....
    Scoop politics | 01-09
  • Fonterra China Deal Demands Safe Supply Chain
    The future success of Fonterra’s deal to sell infant formula in China [1] requires all milk it uses be safe and for Fonterra to secure its supply chain from contamination by GE DNA and pesticide residues. There is now significant...
    Scoop politics | 01-09
  • HRC praises Auckland mum for speaking out
    Race Relations Commissioner Dame Susan Devoy has praised an Auckland mother of four who went public after humiliating treatment by staff at The Warehouse....
    Scoop politics | 01-09
  • Southern DHB refers disputed issue to Serious Fraud Office
    Following advice from forensic investigation firm Beattie Varley Limited, Southern District Health Board has referred the expenditure at the centre of its long running dispute with South Link Health to the Serious Fraud Office. The parties have been...
    Scoop politics | 01-09
  • The Letter 1 September 2014
    Last night’s TVNZ Colmar Brunton poll puts the left and right 60 MPs each. United and the Maori Party say they will go with the side that gets to 61 MPs. ACT just needs just 1.3% or 28 thousand Party...
    Scoop politics | 01-09
  • Shopping Giveaway Harmless Fun For Kids
    Family First NZ is rubbishing claims by critics including Gareth Morgan that the New World ‘Little Shop’ promotion is harmful for kids, and says that kids should be allowed to be kids. “Children love acting like their parents and pretending...
    Scoop politics | 01-09
  • Red Cross launches employment service for former refugees
    New Zealand Red Cross is encouraging employers to give refugees a fresh startwith the launch of Pathways to Employment, a nationwide work assistance service....
    Scoop politics | 01-09
  • EDS welcomes Labour’s Conservation Policy
    The Environmental Defence Society has welcomed Labour’s Conservation Policy including the key objective of halting the current pattern of indigenous biodiversity decline within ten years....
    Scoop politics | 01-09
  • Poverty is falling and income inequality is not rising
    “A Roy Morgan poll shows that the issue people are most concerned about is income inequality. This just goes to show how the persistent repetition of a lie bewilders the public. Income inequality is not in fact rising. And the...
    Scoop politics | 01-09
  • Rotary NZ responding to Fiji water and sanitation issues
    Clean water and sanitation are vital to health. In Fiji Rotary New Zealand have been targeting 22 communities that are experiencing severe hardship mainly because they don’t have access to clean water for their drinking, cleaning and cooking needs....
    Scoop politics | 01-09
  • Work & Income shooting a Tragedy
    Kay Brereton speaking on behalf of the National Beneficiary Advocacy Consultancy group says; “Two people shot and another wounded, this is a tragedy and our deepest sympathy goes out to the family and whanau of the victims, as well as...
    Scoop politics | 01-09
  • 1080 Poison Deer Repellent not Effective – Farmers
    Four deer have been found dead within a farmer's bush block, after an aerial 1080 poison drop applied with deer repellent. The drop was part of a 30,000 hectare drop across the Northern Pureora Forest Park....
    Scoop politics | 01-09
  • Employment Charter will strengthen migrants’ rights
    Establishing an Employment Charter for construction companies is a critical step to strengthening the rights of migrant workers that are fast becoming the face of the Christchurch rebuild, according to an alliance of union groups. The charter has...
    Scoop politics | 01-09
  • Global March For Elephants and Rhino
    It’s a trans-national business that funds terrorist organisations, fuels conflict in Africa, and poses environmental, development and security challenges. The illegal wildlife trade is also a lucrative business, generating an estimated USD$20 billion...
    Scoop politics | 01-09
  • New series of videos aimed at disengaged youth
    From the people who brought you 'NZ Idle' (NZ's favourite web series about an artist on the dole) comes a new series about election time: Choice Lolz....
    Scoop politics | 01-09
  • Picket Of Leaders Christchurch Debate
    KEEP OUR ASSETS PICKET OF LEADERS CHRISTCHURCH DEBATE TUESDAY SEPTEMBER 2nd, 6 p.m. ST MARGARETS COLLEGE, SHREWSBURY STREET, MERIVALE...
    Scoop politics | 01-09
  • Vega Auriga should be detained in NZ until problems fixed
    Maritime Union of New Zealand National Secretary Joe Fleetwood says that the ship Vega Auriga should be detained in a New Zealand port until it is deemed seaworthy and crew issues have been fixed....
    Scoop politics | 01-09
  • Minor Parties Added to Election ‘Bribe-O-Meter’
    The Taxpayers’ Union have added the Green, ACT, United Future and Conservative Parties to the ‘ Bribe-O-Meter ’ hosted at taxpayers.org.nz . Excluding ACT and New Zealand First, the total election ‘bribes’ - that is new spending not already...
    Scoop politics | 31-08
  • Fiery Broadcasting Debate in Auckland
    Over 250 people turned out for the Auckland Broadcasting and Media Debate in Auckland City last night to hear politicians give their solutions to NZ’s media and broadcasting woes....
    Scoop politics | 31-08
  • Independent Epsom Candidate: Adam Holland
    Today I am very proud to have been nominated to run as an independent candidate by the people of Epsom in order to work hard for the people of Epsom, Mount Eden, Newmarket and Remuera....
    Scoop politics | 31-08
  • Voters favour parties with factory farming policies
    A Horizon Research poll shows that 64.7% of adults are more likely to vote for a political party with a policy against factory farming....
    Scoop politics | 31-08
  • Collins And Dirty Politics Drive The #nzpol Wordcloud
    After Judith Collins' resignation as Minister from Cabinet on Saturday, the data insight organisation Qrious collected all tweets that used the hashtag #nzpol and for approximately the 24 hours since the announcement to produced this wordcloud....
    Scoop politics | 31-08
  • Bill English: allegations against Judith Collins are serious
    Deputy Prime Minister Bill English told TV1’s Q+A programme that the allegations against Judith Collins are serious and that’s why an inquiry is needed....
    Scoop politics | 31-08
  • Culture Change Required
    "There are serious issues raised in an Employment Relations Authority judgement released this week. The culture within the Whangarei District Council (WDC) organisation must change. The culture of any organisation is defined by its leadership starting...
    Scoop politics | 31-08
  • Reducing Reoffending Statistic Challenged
    In Rethinking’s latest blog, http://blog.rethinking.org.nz/2014/08/th-bps-reducing-crime-and-reoffending.html it closely examines the current claim that reoffending in New Zealand has reduced by 12.5% since June 2011, and reveals how that figure has been achieved. It argues...
    Scoop politics | 31-08
  • University economics team studying workers’ comparing wages
    A University of Canterbury economics research team is looking at fairness of the job assignments and whether workers are sensitive to the wages of their co-workers....
    Scoop politics | 31-08
  • Statement by State Services Commissioner
    30 August 2014 "The State Services Commission was contacted by the Prime Minister's Office over the last 24 hours on this issue." “Any activity that undermines, or has the potential to undermine, the trust and confidence in the public service...
    Scoop politics | 31-08
  • Christchurch Council Circus … Continued
    In 2010 the UK Daily Mail investigated the antics of a major bureaucratically bloated London Local Authority and reported with THE GREAT INERTIA SECTOR ....
    Scoop politics | 30-08
  • The Nation Housing Debate
    Patrick It's the great Kiwi dream, but is owning the roof over your head now just a pipe dream for many Kiwis? Homeownership is at the lowest level in half a century. National's answer is to double subsidies to first-home...
    Scoop politics | 30-08
  • Time to Shine Light on Shadowy Spies
    Internet MANA has promised to set up a Royal Commission of Inquiry into New Zealand’s intelligence agencies, with a view to transferring oversight of spying operations to a new, independent authority....
    Scoop politics | 30-08
  • New Zealand’s biggest problems are Economic Issues
    New Zealand’s biggest problems are Economic Issues (41%) while the World’s most important problems are War & Terrorism (35%) just three weeks before NZ Election...
    Scoop politics | 29-08
  • NZ 2014 Leaders Index – week ending 29 August
    Below is iSentia’s first weekly Leaders’ Index, showing the relative amount of coverage of nine Party Leaders in the lead up to the National Election across news media and social media. We will produce these reports for the next three...
    Scoop politics | 29-08
  • Judgment in Paki v Attorney General
    Tamaiti Cairns said that today’s Supreme Court decision is complicated, but, in essence opens the door for Maori people to go forward with their essential claims to water. Further work is required and Pouakani Trust will continue to pursue its...
    Scoop politics | 29-08
  • Supreme Court Decision on Maori Water Rights
    “ … the Supreme Court refused to give Pouakani people what they asked for, but may have given them something much, much better instead. The Appellants had argued that the Crown’s ownership of the River was as a fiduciary for...
    Scoop politics | 29-08
  • Leaders Dinner with Campbell Live, Dessert with RadioLIVE
    John Campbell is hosting Colin Craig, Winston Peters, Laila Harre, Metiria Turei, Peter Dunne, Jamie Whyte and Te Ururoa Flavell LIVE from Auckland’s Grand Harbour Restaurant on Wednesday 3 September at 7pm....
    Scoop politics | 29-08
  • Credit unions in the political spotlight
    Dirty politics was put aside last night as senior politicians outlined their universal support for growing the cooperatively owned credit union and mutual building society sector in New Zealand....
    Scoop politics | 29-08
  • Maryan Street on issues of importance to older people
    Liam Butler interviews Hon Maryan Street MP on issues of importance to older New Zealanders...
    Scoop politics | 29-08
  • John Hanita Paki and others v The Attorney-General
    JOHN HANITA PAKI, TORIWAI ROTARANGI, TAUHOPA TE WANO HEPI, MATIU MAMAE PITIROI AND GEORGE MONGAMONGA RAWHITI v THE ATTORNEY-GENERAL OF NEW ZEALAND FOR AND ON BEHALF OF THE CROWN (“THE CROWN”) (SC 7/2010)...
    Scoop politics | 29-08
  • Last Nights Leaders Debate Drives The #nzpol Wordcloud
    Following last nights leaders debate on TV One between John Key and David Cunliffe, the data insight organisation Qrious collected all tweets that used the hashtag #nzpol from approximately the last 24 hours to produce this wordcloud....
    Scoop politics | 29-08
  • Campaign suggests reason behind suicide gender statistics
    An online campaign about meaning and belonging has revealed an interesting connection with the difference in suicide rates between men and women....
    Scoop politics | 29-08
  • Act Policy Vindicated by Sensible Sentencing Data
    ACT Leader Dr Jamie Whyte says the Sensible Sentencing Trust's just released analysis of 3 Strikes legislation "proves ACT was right to promote the policy and that it has made New Zealand a much safer country. The figures show beyond...
    Scoop politics | 29-08
  • “Robin Hood tax and other clever ways to help our kids”
    It’s time to talk about tax. Not just income tax but other kinds of tax too....
    Scoop politics | 29-08
  • Cannabis Laws Breach Treaty – ALCP
    Cannabis prohibition is neo-colonial oppression resulting in the disproportionate imprisonment of Maori, the Aotearoa Legalise Cannabis Party says....
    Scoop politics | 29-08
  • 2014 Variation Broadcasting Allocation Decision Released
    The Electoral Commission has released a variation decision on the amount of time and money allocated to political parties for the broadcasting of election programmes for the 2014 General Election....
    Scoop politics | 29-08
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