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Crisis, what crisis?

Written By: - Date published: 9:50 am, October 19th, 2012 - 92 comments
Categories: jobs - Tags:

A great piece by Byran Gould yesterday on National’s refusal to acknowledge the jobs crisis in manufacturing, even as the ANZ says unemployment is on its way up to 7%. National is really on the wrong side of public perception and the wrong side of history here. They look like ostriches trying to deny the problem, while the Left is presenting the solutions.

I want to reproduce the Gould article, it’s so good, but here’s some snippets:

In January 1979, the British Prime Minister, Jim Callaghan, returned from a Summit meeting in the Caribbean to a Britain suffering the serious industrial unrest that became known as the “winter of discontent”.

Interviewed at Heathrow airport, Mr Callaghan’s relaxed attitude to talk of chaos was translated by The Sun the following morning into a headline reporting the Prime Minister as saying “Crisis? What Crisis?”

The electorate’s reaction led directly to Mrs Thatcher’s election victory later that year.

John Key, returning from Hollywood this week, was equally dismissive of talk of a crisis in manufacturing.

Our Prime Minister was in some ways even more insouciant than Mr Callaghan; faced with Statistics New Zealand figures showing 40,000 manufacturing jobs lost in the last four years, he airily asserted that our expert official statisticians were simply wrong.

….

Ministers dare not say so publicly, but they use economists’ jargon to explain why unemployment remains high. Labour costs are “sticky” – that is, they have not fallen in order to clear the market, as the theory says should happen. Their conclusion is that the market must be helped by “unsticking” labour costs to force them down.

It may be hard to credit that our government wants to bring wages down, yet that is what they have set out to do.

How else to explain why workers’ rights have been significantly weakened, so that workers can be taken on, and then thrown back on the scrap heap without any redress?

Why else are young workers to be paid less than the minimum wage, if not to remove the floor placed under wage levels?

Why was a modest rise in the minimum wage voted down while top salaries zoom upwards?

Why have benefits been removed and reduced so that even solo mums with young children are forced back into the labour market, whether or not there are jobs?

Why is covert support lent to big employers such as Oceania or Talleys as they cut the real wages paid to already low-paid employees?

These measures are explicable only if the intention is to force the lowest wages lower, so that downward pressure will increase on wages across the board.

….

A lower exchange rate would at least give us a fair way of reducing our costs across the board, and provide a platform from which we could begin to grow the economy again.

The government, though, would rather see the whole burden of reducing our costs in international terms borne by working people. Little wonder that the share of national income accounted for by wages has fallen.

Oh, and have you seen this from the Greens? What crisis, indeed.

92 comments on “Crisis, what crisis?”

  1. Lanthanide 1

    Nice stats on the Greens card, but it’s not immediately clear from the layout/formatting that those are negative signs. They could just be dashes to join the number to the item.

    I’m not sure there’s a lot of options to fix this, but something like:
    40,000 jobs lost
    12.4% lower
    9.0% lower
    10.0% lower
    6.1% lower
    17.2% lower

    Could work.

    • Lanthanide 1.1

      Actually thinking about it more, all they have to do is right-align all the numbers and keep the negative sign in the same place, like this:


      - 40,000
      -  12.4%
      -   9.0%
      -  10.0%
      -   6.1%
      -  17.2%

      • Chris 1.1.1

        I agree with you that it’s not immediately obvious but think right aligning the numbers would make it even less obvious.

        I think the best way would be too right align the numbers and the dashes – for me it having the – all in one line which makes it seem like they are dashes rather than minus signs.

        • Lanthanide 1.1.1.1

          Yes, although that looks kinda messy.

          • ropata 1.1.1.1.1

            ↓↓↓ down arrows instead of dashes.

            • Chris 1.1.1.1.1.1

              That is definitely the easiest way

              • Rob

                Oh thats great, I feel really relieved in our manufacturing business here in Sth Akl that we have collectively solved the formatting issue. Good work team, now lest all sit down and have a celebratory flat white and congratulate ourselves.

                A question – where is the great left solutions to our manufacturing crisis. All I have seen is repeated ‘experts’ telling me we have an issue. I sort of get that from our finance team and the bank.

                And if I hear again that the secret is in a lower $ you guys have got rocks in your heads. There are many local manufacturing businesses that need a reasonable doller to purchase items for conversion. Any decrease in the doller will blow us apart like many other medium sized fabrication businesses in NZ.

                So for us 120 odd souls in this business I have seen sweet ‘F’ all of any sense come out of anybody. Also if Winston Peters, David Shearer and the green dude are being promoted as manufacturing experts , we really are in serious shit.

                • Colonial Viper

                  And if I hear again that the secret is in a lower $ you guys have got rocks in your heads. There are many local manufacturing businesses that need a reasonable doller to purchase items for conversion. Any decrease in the doller will blow us apart like many other medium sized fabrication businesses in NZ.

                  Hey dude answer is simple, even for somebody like you to figure out

                  USE MORE NEW ZEALAND SUPPLIERS

                • Lanthanide

                  “Any decrease in the doller will blow us apart like many other medium sized fabrication businesses in NZ.”

                  Wow, really? You’re operating in a country where the currency has historically averaged around 60c US, and now that it’s 80c, if it goes any lower your company will go out of business?

                  That’s rather strange.

                  • Rob

                    Its not strange and I am not trying to confrontational but the reality is that most manufacturers have now resized and hedged as much as they can and are still finding it hard to reach a break even. You balance a business on the current climate, where it was two years ago is history and has no relevence. The doller might be higher which is an advanatge but revenues are less so you have to balance on current. If revenues stay the same and the doller decreases the that is a tough scenario. Thats not strange , it is reality.

                    CV you must have a hightened picture or a very outdated one on what is actually produced in NZ now. You will probably come back and say – what an opportunity and it probably is if they can get close to unit costs as they will have the ship time and lower inventory cost advantage, however who is brave enough now to enter into manufacturing converted raw materials in a lowering sales cycle?

                    The fact is many businesses rely on off shore supply, when the doller decreases the cost increase and business stop generating a profit.

                    • Clashman

                      Why would your revenue stay the same if the value of the dollar decreased?

                    • Rob

                      Um, because the market size has been at a stable low level now for the last 12 months. Its an extrapolation assumption of the current sales revenue forward as a forecast.

                    • Rob

                      But it could go down further, or consumers might start buying something, who knows , thats the future, ill leave it up to you experts to decide on what may or may not happen.

                    • Colonial Viper

                      CV you must have a hightened picture or a very outdated one on what is actually produced in NZ now. You will probably come back and say – what an opportunity and it probably is if they can get close to unit costs as they will have the ship time and lower inventory cost advantage, however who is brave enough now to enter into manufacturing converted raw materials in a lowering sales cycle?

                      All it would take is access to cheap development credit. Come on man, have some initiative.

    • karol 1.2

      It’s immediately clear to me, and I usually find graphs/graphics communicate less immediately to me than the printed word.  I usually need to ponder on graphs.
       
      That 1979 winter of discontent was the beginning of the end of immediate hopes for a fair and equal world.  It’s been all downhill since then. 
       
      I was living in South London at the time.  I remember all the strikes and resistance to Thatcher’s government – the black rubbish bags piling up on Clapham Common; the train strikes and motorbiking across London on my motorbike during snow storms, and the pain of my hands thawing when I arrived at my destination and warmed up. Etched in my very bones.
       
      Still waiting for some real signs of hope for a change for the better.  We just go from one crisis to another, it seems.

      • Te Reo Putake 1.2.1

        That was a weird election result, totally distorted by the FPP system. Over half the votes went to Labour and the Liberals, yet the Tories ended up with a massive majority, helped by the Sun newspaper advocating that their working class readers abandon Labour.

        You may like this site, Karol:

        http://www.isthatcherdeadyet.co.uk/

      • Lanthanide 1.2.2

        “It’s immediately clear to me, and I usually find graphs/graphics communicate less immediately to me than the printed word.

        Probably because you already know the stats and can quickly realise that all of these figures are negative.

        Someone who had no idea about these figures before (and just believed Key’s spin that job numbers are slightly up) may be confused about what it’s saying.

    • lprent 1.3

      I think that the visual problem is that there is a space between the minus sign and the number on the Greens chart. It is unusual but pretty obvious.

      But I’m so used to dealing with different number notations like the accountants ($10.00) to some of the European accounting notation ($10,00) etc etc that they all look the same to me.

      And don’t get me started on the different date and time notations. Clearly the idiots reign in that region.

  2. Gosman 2

    Weirdly The Greens, NZ First, and now perhaps Labour are all wanting to drive Labour costs down as well to help our Export sector.

    • Te Reo Putake 2.1

      Cite?

    • lprent 2.2

      I’m rather puzzled as well. I’m sure there is a Cameron style of fantasy logic in there somewhere….

      • Gosman 2.2.1

        http://www.economist.com/blogs/freeexchange/2012/07/devaluation

        Please note the following section.

        “A big currency depreciation instantly hits consumer purchasing power and reduces wages.”

        Do you dispute this?

        • Jackal 2.2.1.1

          Gosman, if you haven’t noticed already, people aren’t purchasing much these days. This is mainly due to a lack of spare money. By not protecting our export sector, National is ensuring that many people will have even less spare money to spend. That means New Zealands internal economy does not perform, which causes unemployment.

          So there’s depreciation in purchasing power either way. You can protect our export industries or you can ensure people can more easily afford imported goods. Increasing the cost of imported goods will not necessarily drive down wages, because wages in the affected sectors we’re talking about are governed by policy, not the free market.

          • Gosman 2.2.1.1.1

            “Increasing the cost of imported goods will not necessarily drive down wages, because wages in the affected sectors we’re talking about are governed by policy, not the free market.”

            What sectors are you meaning and what evidence do you have for the view about wages?

        • Te Reo Putake 2.2.1.2

          Yes. And I dispute that this is what is being proposed. Strawman?

          • Gosman 2.2.1.2.1

            You dispute The Greens, .NZ First, and possibly Labour are calling for a devaluation of the .NZ dollar? Hmmm…. on what basis are you making that claim?

        • McFlock 2.2.1.3

          Wow – how to take shit out of context. Following line:”Purchases of foreign goods quickly fall because prices of foreign goods quickly soar. The pace of adjustment will depend on how quickly domestic industries pivot toward import replacement and exporting. ” (my bold)
                    
          So a devaluation means more jobs for domestic workers, both in exports and in providing previously-imported commodities to domestic industry. Trool.

          • Gosman 2.2.1.3.1

            Possibly, but what is not in dispute is the immediate impact of the devaluation.

            By the way, in the past you have stated opposition to devaluation. Have you changed your tune?

            • McFlock 2.2.1.3.1.1

               Possibly, but what is not in dispute is the immediate impact of the devaluation.

              Certainly, devaluations amid crisis can contribute to and are very often associated with significant economic contractions. ”
              “can contribute to” … “very often associated with”.
              Hardly a categorical imperitive that a devaluation will lead to economic collapse. 

              By the way, in the past you have stated opposition to devaluation. Have you changed your tune?

              dox plox. I seem to recall arguing in favour of devaluation, but I could be wrong.

              • Gosman

                Nobody is really arguing that devaluation will lead to economic collapse. It may very well be a valid, (if slightly wrong headed), approach to take. Countries like Greece and Italy used to follow such a path prior to their entry in to the euro for example.

                I’m pretty confident you made statements in the past trying to argue the major negative impacts of devaluation on the economy.

                Let me attempt to refresh your memory. It was regarding the rather dubious attempts to link John Key to an ‘attack’ on the NZ dollar back when he was a currency dealer.

                I pointed pointed out that even if it was accurate, (unlikely given the lack of any hard evidence), it could be argued that it actually benefitted the NZ economy as it made our Exports more competitive.

                Your irrational dislike of anything other than your ideologically biased view of the world meant you tried to argue how it was actually incredibly harmful to the NZ economy due to increased costs or something. I could try and find the links to the discussion if you like.

                • McFlock

                  vaguely recall something about that. Would still like the dox plox, given your love of misinterpreting a single line you take out of context.
                     
                  So to use an analogy, you’re saying that because I said something was wrong with anorexia, my recent comments in favour of obese people trying to work towards a BMI in the mid 20s are inconsistent or hypocritical? To which I respond: you’re a moron.

                  • Gosman

                    http://thestandard.org.nz/the-reverse-midas-touch-the-gap-with-australia/comment-page-1/#comment-464383

                    Just for you McFlap I have found your comments.

                    I especially like this one

                    “I’m sure they loved it for three minutes, until their imported materials went through the roof”

                    Care to retract your previous thoughts on the subject?

                    • McFlock

                      Not really.
                                   
                      But thanks for showing how history repeats itself. The post today is about the pain the high dollar value is causing. Similar to (but different mechanism to) the situation in the 80s.
                               
                      What happened in the 80s was a sudden massive devaluation (figure1) from the over-valuation (the bit where Key made a mint). This fucked exporters too, because substitution to domestic materials takes time for the domestic producers to increase output.
                             
                      You really ought to look at economic systems as complex, yea even “dinnamic” environments, rather than just a catechism of Freidmanite doctrine.  

                    • Gosman

                      Are you trying to state that the policy to try and effect a devaluation of the NZ Dollar by 15 % that Russell Norman has come out with will be some sort of gradual approach? Where is your evidence that he has stated that the devaluation will be done slowly?

                      I do love how people like you think governments can manage market movements in a slow and controlled manner. It is so more delicious watching when it all goes horribly wrong.

                    • McFlock

                      [edit] wtf? did make a comment so dumb that even YOU realised it was too stupid to exist, so you deleted it?

                      as to the Green policy, you might want to look at the Green poster in the actual fucking post you’re commenting on: “The Government needs to manage the dollar down now instead of leaving all New Zealanders waiting for the shock of a sudden slump”. So yeah, that 15% off will be more gradual than the do-nothing alternative.
                             
                      And the market will “accept” it in the same way it’s “accepted” an artificially high NZD. 
                                
                      And I love how you seem to think that the economy hasn’t already gone horribly wrong. NZ kids with third world illnesses, massive sustained unemployment, and a dollar value that’s as big a cancer on the economy as 20% inflation. Oh yeah, everything’s lovely, we mustn’t mess with success.
                                      

                    • Gosman

                      I haven’t deleted anything. Just edited my comment to better reflect my views.

                      If you think you can manage the exchange rate I would like to introduce you to the Ghost of Robert Muldoon. You two have a lot in common to talk about.

                      You do realise that if the market actually thought the Government was going to be successful at managing the exchange rate down by 15% it would basically move them pretty damn quick and wouldn’t wait until the Government decided to act on it.

                      The NZ economy is doing far better than most other Western nations and is in far better position.

                    • McFlock

                      lol
                             
                      So according to Gas the Greens’ currency management efforts will be a sudden shock and completely ineffectual at the same time.

                    • McFlock

                      hmmm. I wonder if comments disappear from refresh while they’re being edited? That might be it – I posted a reply and my two comments were suddenly consecutive.

                    • Gosman

                      I never stated they would be ineffectual. In fact I suspect they will have an effect. Most likely not the one the Greens are wanting.

                      I do have a couple of questions for you.

                      Imagine a scenarion where The Greens policy of devaluing the currency by 15% is about to be implemented.

                      If you were an exporter who had a rather large foreign currency amount that needed to be repatriated to NZ what would you do?

                      If you were holding a large amount of NZ dollars and needed to send them offshore at some stage, what would you do?

                    • McFlock

                      Again, that’s a replay of the 1980s: announce before the election that you’ll float the dollar because it’s horrendously overvalued, then act all surprised when you go straight from float to currency crisis (courtesy, in his own small part, to dunnokeyo).
                         
                      The Greens might be filthy hippies with a tendency to wave flags instead of work towards actual change, but they’re not as stupid as Douglas and other tories.
                           
                      It’s a bit like how the OCR is tweaked – often no change really needs to happen because the market pre-empts the signalled tweak. Now, if the Greens somehow managed an overnight 15% cut in value, that might well be a bad thing (i.e. change faster than producers can adapt) and your scenario comes into play. But we don’t know how the Greens plan to decrease the value of the dollar, or over what timeframe. Nor does the market. A 15% speculative gain in two weeks is a good income by anyone’s standards, and would lead to a 1980s-style collapse. A 15% return over 3, even four years? Not so much. People will do other things with their cash. Still good, but not a boom-bust scenario. As it is, the Greens getting into govt might devalue the dollar by a percent simply on the basis of the flagged policy, so they get a start on their task before they do anything.

                    • Gosman

                      You really don’t understand how the market works McFap.

                      Announcing a 15 % devaluation over time would be both virtually impossible to achieve and also encourage speculative attacks on the dollar.

                      Speculators would be looking to force the government’s hand to bring forward the devaluation to certain levels. People who held spare NZ dollars would be looking to get their momey out of the country as soon as possible before the Government let the currency fall. People who held foreign currency they were keeping offshore would hold off bringing them back until they could get the better rate.

                      Ever wonder why most countries with floating exchange rates don’t follow the policy you advocate? You could possible avoid the worse effects of this if you slapped capital controls on, but they come with their own costs.

                    • Colonial Viper

                      Announcing a 15 % devaluation over time would be both virtually impossible to achieve and also encourage speculative attacks on the dollar.

                      Speculators would be looking to force the government’s hand to bring forward the devaluation to certain levels.

                      You are right. Any country looking to strongly manage its currency value would simply use capital controls to prevent the outcomes you are talking about.

                      For instance, requiring all NZD conversions to be performed in NZ, and only by approved banks, and only using accounts associated with NZ citizens.

                      Also, applying a 0.25% tax to every non-trade based NZD currency conversion.

                      And no country would ever pre-announce it was reducing the value of its dollar. All you do is to run an undisclosed peg of the value of your currency against a weighted basket of currencies of your major trading partners.

                      People who held spare NZ dollars would be looking to get their momey out of the country as soon as possible before the Government let the currency fall.

                      Exit tax.

                    • McFlock

                      Speculators would be looking to force the government’s hand to bring forward the devaluation to certain levels. People who held spare NZ dollars would be looking to get their momey out of the country as soon as possible before the Government let the currency fall. People who held foreign currency they were keeping offshore would hold off bringing them back until they could get the better rate.

                      So if I read you correctly, if the government signals devaluing the dollar, the market will devalue the dollar even more? Well then, if the dollar devalues then the government needn’t do a thing.
                            
                      Oh, and for someone who reckons he knows how markets work I’m surprised you don’t know that trading in NZD has no relevance to whether the dollars are in the country or offshore. One of the ten most traded currencies on the planet, mate: most of it in gambling halls dunnokeyo would be familiar with.
                             
                      Here’s a question for you Gos: if the government can’t manage people’s purchasing choices in a market, why has the Reserve Bank inflation target been met consistently since the RBA was passed?
                         
                       

                    • Gosman

                      Not necessarily more, just faster than what the government would want and with much greater volatility in the price. Businesses tend to like stability rather than lots of stability.

                      CV surprisingly has hit the nail on the head with his solutions, which will likely all be necessary if you wanted to control the exchange rate. It would likely lead to a massive rise in interest rates in the country but that might encourage savings at some stage. Of course it will make it difficult for businesses to get capital and therefore less economic output but a small price to pay I suppose for economic ‘sovereignty’.

                    • McFlock

                      So there are mechanisms by which the government can affect the exchange rate, but these might have adverse effects on other measures.
                         
                      A bit like how concentrating solely on inflation can have an adverse impact on unemployment.
                         
                      Fuck me, Gos, you’ve discovered that “managing an economy” is not about getting one gauge to read an idealised nominal value, but about finding the best mix for a number of different indicators. And the exchange rate is one of those indicators that can be managed. 
                           
                      You must be a professional waste of space. The thought that you’re a sincere but imbecilic amateur is just too damning an indictment on the NZ education system…

                    • Gosman

                      Ooops. Too much stability. That sentence should have read ‘rather than lots of volatility;.

                    • Gosman

                      The trouble for you McFlog is that my views are orthodox whereas yours are currently fringe. Even Labour and the Greens don’t advocate re-establishing Capital controls on anywhere near the levels necessary to properly manage the currency. hence any policy will be subject to manipulation by those dreaded speculators you hate so much.

                    • McFlock

                      The trouble for you McFlog is that my views are orthodox whereas yours are currently fringe. Even Labour and the Greens don’t advocate re-establishing Capital controls.

                      “Orthodox” – you mean “out of date”.
                        
                      So now you fall back on the “everyone else is jumping off the cliff” argument. Colour me unimpressed. And, of course, the Greens are advocating managing the exchange rate in some way, and if capital controls are the only way of doing it…

                    • Gosman

                      But they aren’t talking about slapping currency controls on. All they have mentioned is discouraging short term capital movements with some regulations and/or taxes (AFAIK).

                      If they were talking about introducing heavy capital controls then they would be being more honest. Of course businesses would turn against them with a vengence but at least we would have a proper debate on the subject. I doubt the Greens will be that courageous though.

                    • Colonial Viper

                      Of course it will make it difficult for businesses to get capital

                      *Shrug*

                      That’s what a re-tasked KiwiBank would be for.

                      And it’s bloody impossible for SMEs to get access to development capital now, so nothing will really change right?

                    • McFlock

                      Gos,
                           
                      If someone says that they’ll control X;

                      and the only way so far to control X is to use Y;

                      [barring some other control mechanism which your stunning economic genius has failed to identify ]

                      Would you  be surprised if the person who promised to control X used Y, even if they hadn’t explicitly said (i.e. in a manner that even you could understand) that they would use Y?

                    • Gosman

                      Well no. The Greens are pretending they can manage the exchange rate just by a mix of pumpinjg liquidity into the market and a small amount of regulation and controls of capital. As discussed that will likely be ineffective. They should be truthful and state they wish to move to full on capital controls. It would be a boon for Wellington so I’d love it personally.

                    • McFlock

                      Given that you’re an “all or nothing” kind of guy who’s only just discovered that the economy is a balancing act between different indicators rather than a single ideal reading on one gauge, I think I’ll ignore your opinion on whether the Greens’ policies are too subtle to affect the market.

                  • Gosman

                    With that comment I am tempted to suggest you being employed as an advisor to Bill English to counter the proposed policy of The Greens, NZ First, and possibly Labour.

                • Enough is Enough

                  evidence please Gosman.

                  Me thinks you tell Key like Porkies in a ttempt to prove a point

    • Labour costs? …. Gosman they want the the exchange rate to drop, not wages.

      You’re starting to sound like DunnoKeyo M8!

      U should not have drunk his blood @ that party moron ! ….
      Didn’t someone tell you witchcraft is evil ?

      • Gosman 2.3.1

        Like I suspected, most leftists don’t really understand economics much at all.

        You probably think wages are rising if people get a pay rise of 15 % when inflation is running at 20 % as well.

        • Jackal 2.3.1.1

          Gosman describes the situation since National gained power.

        • PlanetOrphan 2.3.1.2

          Trying too put words in mouths is a sign of Idiocy M8!

          I don’t talk economics, much more qualified people around too do that (Cheers Jackal)

          I’m not “Left”, I’m civilised

        • Dv 2.3.1.3

          inflation is running at 20 %

          The last time that was happening it was ……………………………..

          THE NATS

          • Gosman 2.3.1.3.1

            Ahhhh…. not quite. I think you will find it was Labour in the 1980’s.

            [lprent: Ridiculous. It peaked under Muldoon after the dual oil shocks in the 70's and Nationals incompetent economic management. It dropped massively under Labour in the 80's. National followed mostly Labour's policies (as they appear to be incapable of structural innovation) and it dropped to the current level.

            Please google... It literally took seconds to find the reserve bank education page on inflation.
            http://www.rbnz.govt.nz/monpol/about/0053316.html
            ]

            • Jackal 2.3.1.3.1.1

              Actually inflation was pretty high from 1975 to 1990. Robert Muldoon’s economics dominated the third National government which held power between 1975 to 1984. It took the Fourth Labour governments major social and economic reforms between 1984 and 1990 before inflation started to decrease.

            • Gosman 2.3.1.3.1.2

              It never reached 20 % under National or Labour, so we are both wrong. It did reach a peak of over 18% under Labour, (not National), though so my point still stands.

              I am not disputing that Labour brought it down. It was a key result of the Reserve Bank Act of the late 1980’s. An Act that Labour has now decided to change fundamentally.

              • One Tāne Huna

                Weasel. noun. Gosman with a tail.

                The Reserve Bank Act was brought in precisely (or at least in a large part) because of inflation pressures, which are nothing like the problem they once were. Labour seeks to widen the scope of the Reserve Bank’s powers, not remove inflation targets.

                Even I know that.

                • Gosman

                  They are not a problem because the primary focus of the Reseve bank of NZ is to keep inflation low. You change the policy it is highly probable that inflation will increase. Of course you might prefer to live in a fantasy land where the Reserve Bank can keep inflation low at the same time as trying to meet multiple other targets. I do have one question for you though. Why did NZ, (and eventually other countries), decide to keep Reserve Bank targets so focused on one measure?

                  • One Tāne Huna

                    Your assumptions are showing – namely that there are the same level of inflationary pressures on the economy now as then.

                    PS: I recall the policy was also to increase the acceptable inflation range. So, yes, superficially you are correct.

                    • Gosman

                      What inflationary pressure was on the NZ economy back then that doesn’t exist now?

                    • Te Reo Putake

                      Gossie, Muldoon’s wage and price freeze artificially held down inflation. The release of that built up pressure triggered a massive rise in inflation, as I recall.

                • Dv

                  The reserve bank act was brought in in 1989, well after the inflation peak of 16% in 1980.

                  The inflation rate in 1989 was just over 2%.
                  The inflation targets have been met reasonably well since then.

                  BUT it seem to be a fallacy the act reduced inflation because of the timing.

                  So what really caused the drop in the inflation in the eighties?
                  Was it the wage price freeze or .. what??

                  (I am using the LPent graph)

                  • Dv

                    Woulld let me edit.

                    TRP
                    Muldoon’s wage and price freeze artificially held down inflation. The release of that built up pressure triggered a massive rise in inflation, as I recall.

                    That was my thoughts too, BUT the LPent graph doesn’t seem to support that??

              • Enough is Enough

                You mean the first Act government. Don’t associate Labour with that Rogering which was the Douglas Neo Lib revoultion

                • Gosman

                  Was there any current members of the Labour party caucus involved in this party that you are now trying to disassociate yourself from?

                  Do you think the original Reserve Bank act was wrong, and do you know if any members of the current Labour party caucus agree with this view if you do?

                  • Enough is Enough

                    Whether the Reserve Bank Act was right or wrong is irrelevant in respect of todays problems. Throw away your cassette tapes, cut off your mullet and move out of the 80’s. Concentrate on the unique challeges we face today.

                    The Reserve Bank Act was introduced at a time when inflaion was in double digits. Look at Prentices’s graph to what the economic issue in the 80’s was.

                    25 years later Douglas, the world and our economy have all moved on. So should you.

                    We have a problem and we are debating what can be do to fix that problem. You are saying an Act that was introduced 25 years ago must be entrenched and stay the same forever amen.

                    We are saying lets look at that Act to see whether it can be beefed up, stripped out, reconditioned, or tinkered with in order to deal with the problems the economy faces today.

                    • Gosman

                      I remember opposition to the Reserve Bank Act back in the 1980’s and early 1990’s from the same sort of groups that want it changed now for the same sorts of reasons. Their logic was faulty back then just as it is now.

                      I had a argument with the former chief economist of BERL (Kel Sanderson) who tried to argue that NZ had a imported inflation rate of 4% so to try and reach a target of 2% meant that we would be shrinking the economy by 2% a year. Funnily enough BERL’s chief economist is still living in cloud cookoo land.

                    • Enough is Enough

                      Small steps now Gosman

                      It is clear to blind freddy that the economy is having a bit of tantrum at the moment and not really providing for most Kiwi’s.

                      You are standing there with fingers in your ears saying there is nothing that can be done. The Reserve Bank Act will fix it all. It is sacred and cannot be touched.

                      Why can’t it be touched?

                      What if things get worse?

                      At what point will you say, ok we better look at how we can deal with TODAY’s problems.

                      Stop fucking worrrying looking at the 80’s and explain why this Act is not fixing the problems exporters are facing?.

                    • Gosman

                      I never stated it couldn’t be touched. I’m stating if you change the focus you are dreaming to think you can achieve multiple, (and possibly contradictory), targets like you hope.

                      If you are comfortable with a higher rate of inflation then be truthful and just come out and state it. Nothing wrong with a bit of inflation, at least in the short term. Of course it tends to hurt the poor in the long term but, heck, by the time that happens the Government will have changed and they don’t have to worry about it anymore.

                    • Dv

                      What about Singapore?
                      It uses a mix doesn’t it?

                    • Gosman

                      The Singapore Central Bank is quite different to other models around the world. It’s primary focus is the managing of the money supply via the foreign exchange mechanism not interest rates. I suspect it can do this due to a huge amounts of reserves of currency it holds. NZ does not have this luxury.

                    • Colonial Viper

                      Apparently fucking Gosman is a fucking economic genius. In his own neoliberal theoretical fantasy world that is.

                      The ergodic principle doesn’t hold mate, which means you’re wasting your time.

                      I suspect it can do this due to a huge amounts of reserves of currency it holds. NZ does not have this luxury.

                      And why don’t we? Because we have been following Right Wing bullshit for 3 decades now.

  3. captain hook 3

    Of course the original rb act was wrong.
    roger douglas was wrong.
    and gosman you are just plain wrongheaded.

  4. captain hook 4

    the strange thing is that all these tory party toadies can argue and quibble all day about irrelevancies from the past but they cannot provide jobs in the right here and now.
    thy are supposed to be the party of business but they never create employment.
    are they all liars?

  5. TV3 headline ‘Exodus under national reaches 170.000′
    Nearly 54.000 people left for Aussie in the year to september.
    Wasn’t 170.000 the figure given for national’s ‘job creation ?
    Our unemployment stats would have been off the measure
    had these people stayed,as it is the figure is going to reach
    7% in 6months.
    There is a crisis everywhere you turn in nz.

  6. Draco T Bastard 6

    And in all of the commentary no one seems to have remembered that John Key did, as a matter of fact, say that he wanted wages to drop.

    • Gosman 6.1

      Just like The Greens, NZ First, and presumably Labour then.

      We might have a bi-partisan policy after all.

      • Colonial Viper 6.1.1

        You should give John Key some credit for once.

      • Draco T Bastard 6.1.2

        John Key said he wanted wages to drop while the exchange rate was climbing and the economy was booming.

        • Gosman 6.1.2.1

          So dropping wages is okay if the economy is not booming?

          • Galeandra 6.1.2.1.1

            Gosling, ask yourself why you get to ask all the questions and demand that everybody else does the fact-finding.
            The inflexible orthodoxy of your views is exactly modelled on the sort of comments made by Nat MPs on the graveyard shift, ie in the house just before tea- at- the- pub time, when there is such a vast acreage of empty seats on the whiz-bang-very-blue- super- economic managers side of the house. One hopes you can at least speak a little better than those unfortunates amongst their collection of provincial pig farmers and soap wholesalers.

          • captain hook 6.1.2.1.2

            whats your opinion?
            why dont you speak for yourself?

          • Draco T Bastard 6.1.2.1.3

            Thing is, John Key wants wages to drop – period. Labour, the Greens and pretty much everyone else on the left want wages to increase and they see one way of doing this through increasing demand for NZ goods by lowering the exchange rate. Yes, it comes with an instant effective decrease in wages but, over time, that will be reversed by the increase in demand.

            NACT seem to be upset by lowering the exchange rate as the price of BMWs will go up. They really aren’t concerned with what happens to the people who can’t afford BMWs if the exchange rate doesn’t drop (ie, wages will continue to fall, poverty will increase and crime and other negative statistics will increase with it) because they think that their profits will be going up at the same time due to declining wages.

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  • The Māori Party can’t have it both ways over labour laws
    The Māori Party has to fess up over its voting record on the Employment Relations Amendment Bill, says Labour’s Māori Caucus.  “It’s simply not good enough to oppose the bill at the same time  as they helped speed up its progress through...
    Labour | 29-10
  • Equal pay and the aged care sector
    Today the High Court upheld the historic ruling by the Employment Court that our Equal Pay Act could be used to consider work of equal value cases; the government has been telling the UN and ILO that it could for...
    Greens | 29-10
  • Court case perfect opportunity for Government to improve gender pay gap
    If the Government wants to halt New Zealand’s slump in international rankings on the gender pay gap it should act on the court finding that women deserve equal wages, Labour’s Women’s Affairs spokesperson Sue Moroney says. “The World Economic Forum’s...
    Labour | 28-10
  • All Auckland transport options should be considered
    All options for meeting Auckland's transport needs should be considered, including reprioritising the transport budget away from wasteful spending on motorways, the Green Party said today.Auckland mayor Len Brown is today releasing a transport report by the Independent Advisory Board,...
    Greens | 28-10
  • Another report highlights Govt failure on child poverty
    An international report measuring the impact of the Global Financial Crisis (GFC) on child poverty rates, showing children in New Zealand have done worse than children in other countries, is further proof the Government needs to urgently take additional steps...
    Greens | 28-10
  • Address and Reply Debate Part 55: Inequality and Disability
    I rise on behalf of the Green Party to talk about inequality and disability.The recent census showed that nearly one in four New Zealanders lives with a disability—up from one in five in the previous census. These figures include some...
    Greens | 28-10
  • Address and Reply Debate Part 55: Inequality and Disability
    I rise on behalf of the Green Party to talk about inequality and disability.The recent census showed that nearly one in four New Zealanders lives with a disability—up from one in five in the previous census. These figures include some...
    Greens | 28-10
  • Child poverty: No more wake-up calls
    A new report which shows the National Government has made no inroads whatsoever into child poverty should do more than just set alarm bells ringing, Labour’s Acting Deputy Leader Annette King says. “UNICEF’s  latest Innocenti Report Card highlights the fact...
    Labour | 28-10
  • Eugenie Sage speaks in the 2014 Address in Reply Debate
    I congratulate you, Assistant Speaker Mallard, as Assistant Speaker and look forward to your knowledge, your fairness, and your light touch in being a referee of proceedings in this House. I congratulate also the other Assistant Speaker, Lindsay Tisch; the...
    Greens | 28-10
  • James Shaw’s Maiden Speech
    Tena Koe, Mr Speaker. I would like to take this opportunity to speak a little of the past, the present and the future. The privilege to serve in this Parliament was given to me by all those who gave their...
    Greens | 28-10
  • Govt airs real views on public broadcasting
    An admission by the Government that it is happy to experiment with Pacific and Maori audiences shows just how weak its vision for public broadcasting in New Zealand is, Labour’s Broadcasting spokesperson Kris Faafoi says. “National today admitted it doesn’t...
    Labour | 28-10
  • Does Judith Collins have a get out of jail card?
    Former justice minister Judith Collins appears to have been gifted a get out of jail free card based on the Prime Minister’s answers in Parliament today, Labour’s Acting Deputy Leader Annette King says. “Judith Collins claimed in an Official Information...
    Labour | 28-10
  • Solid Energy decision delay sensible
    Today’s announcement by the Board of Solid Energy that it will delay making a final decision on re-entering the Pike River mine is a sensible move, Labour’s MP for  West Coast-Tasman Damien O’Connor says. “It has been clear for some...
    Labour | 28-10
  • New York Green Bank off to a $1B start
    New York Governor Andrew Cuomo announced late last week the New York Green Bank’s first NZD$1 billion tranche of green energy investments. The projects, which are difficult for the private sector to finance, are now possible by New York Green...
    Greens | 28-10
  • The Final Fifth: The Last Great Task for Progressive New Zealand.
    MOST OF NEW ZEALAND’S social problems are concentrated among those living at the margins of what is otherwise a relatively wealthy society. Recently released international data on child poverty has exposed an acutely stressed social strata encompassing roughly 20 percent...
    The Daily Blog | 31-10
  • Myth Busting Rape Boasters
    In just one week a case that galvanised a nation into discussing rape culture is now being reframed as mischievous teen hi-jinx. One year ago the Roast Busters case came to the attention of the media and the public. This...
    The Daily Blog | 31-10
  • Workers rights weakened by new laws – fightback needed
    The government’s changes to the employment laws are designed to weaken workers bargaining power – at both the individual and collective level.   30-day rule The old law required an employer with a collective agreement in place to employ new...
    The Daily Blog | 31-10
  • GUEST BLOG: Simon Buckingham – Where are Labour Candidates on disability?
    For the few people who know me (hello Mum), I am proudly New Zealand’s first Autistic Spectrum Lawyer, as well as being the very bottom Candidate on the Labour Party List. (64 out of 64). Being honoured like this is...
    The Daily Blog | 31-10
  • GUEST BLOG: Blockade the Budget
    The ‘Independent’ Police Conduct Authority’s report into the policing of student protests in 2012 is a whitewash The report released by the Independent Police Conduct Authority into the policing of student protests in 2012 is a whitewash riddled with inaccuracies....
    The Daily Blog | 30-10
  • When National claim new anti worker laws provide ‘flexibility’ they mea...
    And so it comes to pass. The first law National ram through as part of their victory march are new anti worker laws they pretend will generate ‘flexibility’. The new law denigrate the unions ability to protect workers and provide...
    The Daily Blog | 30-10
  • City Transport: A Taxing Matter
    This week the prospect of paying tolls on Auckland motorways became a hot topic. (See Mathew Dearnaley:Motorway tolling could hit some hard, NZ Herald, 30 Oct 2014.) As we might expect, the kneejerk response has been quite negative. But, as with...
    The Daily Blog | 30-10
  • Open Letter to Amy Adams: Please Reopen The Review Into Sexual Violence Cou...
    Ms Amy Adams, Justice and Courts Minister, Right now in this country it seems that although rape is illegal, it is not being prevented by the agents who uphold the law. It almost feels like rape is only illegal on paper,...
    The Daily Blog | 30-10
  • MEDIA WATCH: Does ‘No-Surprises’ Also Apply To TVNZ News?
    When you stand back and look at NZ media outlets, most of them have at least one or two people who attempt to hold the government to account: John Campbell on TV3, Guyon Espiner and others at Radio NZ, David...
    The Daily Blog | 30-10
  • Things That Make You Go Hmmmmmmm
    Every so often in politics, a public figure comes out with something so absurd and so outlandish … that it really does just make you go “Hmmmmmmmmmm”. We’re accustomed to this from certain quarters – by mid point through the...
    The Daily Blog | 30-10
  • Poverty & inequality don’t need protest marches – they need a riot:...
    The global level of inequality continues to skyrocket… Number of billionaires doubled since financial crisis The number of billionaires has doubled since the start of the financial crisis, according to a major new report from anti-poverty campaigners. According to Oxfam,...
    The Daily Blog | 30-10
  • If Key knows who Rawshark is…
    I’m sorry, what? John Key ‘given Rawshark’s name’The Prime Minister believes he knows who hacked Whale Oil blogger Cameron Slater’s computer and produced the source material for Nicky Hager’s Dirty Politics, according to a new edition of a recently published...
    The Daily Blog | 30-10
  • Child Poverty stats in NZ
    Child Poverty stats in NZ...
    The Daily Blog | 30-10
  • Crimes Act + Police Investigation = WTF
    Just to frame the farce that is the Roastbuster’s investigation and conclusion – here are the parts of the Crime Act http://www.legislation.govt.nz/act/public/1961/0043/latest/whole.html#DLM329057  the Roastbusters are proven to have violated – that the police (and some suspects!) themselves acknowledge occurred: Crimes...
    The Daily Blog | 29-10
  • Publishing Journalists’ Home Addresses Is A Tactic Of The Right, Not The ...
    I think I’m starting to get rather annoyed with the conduct of some pro-MANA people over this ongoing Parliamentary Services crew complement issue. Yes, we get that there are legitimate issues to be raised with how some political reporters in...
    The Daily Blog | 29-10
  • Aucklanders caught between a tarseal-addicted government and a weak mayor
    Len Brown’s proposal for motorway tolls to reduce congestion and provide funding for better public transport is a weak response to a critical issue. The $12 billion dollar shortfall on transport funding he talks about is mainly for projected new...
    The Daily Blog | 29-10
  • A Very Weird Story: Deconstructing Darren Aronofsky’s Noah.
    NOAH is a curious movie. Conceived as a biblical epic, it’s target audience was originally the millions of Americans who regard the Bible as God’s inerrant word. With the sin-filled works of Hollywood forbidden to these true-believers, Christian movie-makers have developed...
    The Daily Blog | 29-10
  • You Can Get Away With Rape In New Zealand
    Jessie Hume with last years petition against rape     The police have sent a strong message today.  In fact they’ve been sending a strong message for a while; a message that our government supports. “You can literally get away...
    The Daily Blog | 29-10
  • Roast Buster case – no charges. In the immortal words of NWA…
    Roast Busters case: No prosecutions Police are to make an announcement this afternoon on Operation Clover, the investigation into the “Roast Busters” allegations. The Herald understands the victim has been told that the alleged offenders will not be prosecuted due...
    The Daily Blog | 29-10
  • Key’s flag change distraction to cost $26million!
    No. Way. Bid to change NZ flag to cost millions The cost of holding two referendums and consulting on a change of flag has been estimated to be just under $26 million. Look. We all appreciate that the sleepy hobbits...
    The Daily Blog | 29-10
  • Why NZ Herald’s Labour Party crocodile tears are so audacious
    The front page the NZ Herald would use if they thought they could get away with it No one can take the recent columns by NZ Herald seriously… John Armstrong: Shadow lingers on National John Roughan: Labour’s leadership vote matters...
    The Daily Blog | 28-10
  • The beginning of the end of Cameron Slater?
    Slater postings on man bizarre, court told A businessman has changed his appearance and had to install extra security at his home after Whale Oil blogger Cameron Slater posted his business and personal documents online, he says. Mr Slater has...
    The Daily Blog | 28-10
  • We are a milk power republic and Fonterra our unelected senate
    Wow. Just wow… Deputy mayor says he’ll be sacked South Taranaki deputy mayor Alex Ballantyne says he expects to be sacked because he has spoken out about the impact gasses coming from dumped Fonterra dairy products have had on his...
    The Daily Blog | 28-10
  • MEDIA WATCH: “…But *actually* this is about ethics in political-game jo...
    Yesterday, a piece of mine on the recent revelations about Hone Harawira employing several gentlemen either accused or convicted of sex offences was published on The Daily Blog. Predictably, given the fierce loyalty which Hone inspires in his party faithful and...
    The Daily Blog | 28-10
  • Privilege cheque
    There was no race problem in my childhood. Living in central Wellington I was well-insulated from what was going on not so far away. This was the 60s and 70s, where the teachers enjoyed free love in the staff room...
    The Daily Blog | 28-10
  • A brief word on Key’s claim that it will be raining carnage
    Isis will ‘rain carnage on the world’ – John Key Left unchecked Isis would “rain carnage on the world”, Prime Minister John Key says, but he has yet to make a decision on whether New Zealand troops will join a...
    The Daily Blog | 28-10
  • Meanwhile…
    ...
    The Daily Blog | 27-10
  • How does Andrew Little win Labour Leadership and unify the caucus?
    Audrey Young’s excellent column on how the Caucus vote  is shaping up shows how Andrew Little becomes the next leader of the Labour Party. She identifies the factions as the following… Andrew Little 6: Andrew Little, David Cunliffe, Iain Lees Galloway,...
    The Daily Blog | 27-10
  • GUEST BLOG: Joe Trinder – Right of response to Curwen
    You have asked that Hone Harawira deserves to explain what happened, how would he explain when his next door neighbour is an alleged sex offender. What explanation can Hone offer he wasn’t involved, Hone had no idea this offending was...
    The Daily Blog | 27-10
  • MEDIA WATCH: That Hella-Weird Feeling When You Defend Tova O’Brien
    Oh dear. Yesterday morning I blogged that Hone deserved a chance to explain what exactly had happened as applies his office’s Parliamentary Services crew complement – and, importantly, that we deserve to be able to judge him on the strength of...
    The Daily Blog | 27-10
  • Canadian Green MP warns against harsh anti-terror measures
    Canada’s Green Party has provided a welcome counterpoint to Prime Minister Harper’s call for tougher anti-terrorism laws in the wake of a soldier outside the Canadian Parliament. On October 22, while she was still locked in her parliamentary office, Green...
    The Daily Blog | 27-10
  • When is an asset sale not an asset sale? When it robs from the poor and ste...
    National have turned state housing on its head. At no time during the 2014 election did the Key Government even hint that they were going to privatise 30% of the Housing NZ stock of state homes. Not once. Key even...
    The Daily Blog | 27-10
  • Housing; broken promises, families in cars, and ideological idiocy (Part To...
    . . Continued from: Housing; broken promises, families in cars, and ideological idiocy (Part Rua) . Bill English comes clean on National’s intentions for HNZ privatisation . On 14 October, in a report on The Daily Blog, I wrote, In...
    The Daily Blog | 27-10
  • The Questions Have Been Asked – They Deserve An Answer
    A few days ago, allegations that had been percolating for some time about Hone Harawira employing three either accused or convicted sex offenders on his Parliamentary pay-roll came to light. (one imprisoned before working for MANA; one who found himself convicted and...
    The Daily Blog | 26-10
  • I have seen one future, and it is bleak
    . . Back in  March 2012, I wrote this story regarding a march to support striking workers at Ports of Auckland. It appears there was some prescience about some of my observations at the time… . | | 18 March...
    The Daily Blog | 26-10
  • US air strike war Key wants us in has killed a civilian a day so far
      The US air strike war that John Key wants us to join has killed a civilian a day so far. From the Washington Post... The United States launched its first airstrikes on militants in Syria on Sept. 23, and has continued...
    The Daily Blog | 26-10
  • The instant Jihad syndrome
    My favourite new term is ‘self-radicalised’ – it suggests the reasons for terrorism are totally divorced from the actions of the West. This need to suddenly ramp up terror laws because of lone wolf, self-radicalised Jihadists seems convenient and counter-productive....
    The Daily Blog | 25-10
  • We have nothing to fear from Ebola but fear itself
    I suspect most Americans perceive Ebola like this   I can’t work out if the fear being spread within the media about Ebola is deliberate or just ignorance. Yes Ebola is a terrible plague that kills a large percentage of...
    The Daily Blog | 25-10
  • GUEST BLOG: Anjum Rahman – “Meritocracy? I wish.”
    I’d like to start by linking to a post I had published at another site in support of Nanaia Mahuta for the Labour Party leadership election.  She has a reasonable chance, given that she already has the endorsement of Te...
    The Daily Blog | 25-10
  • Chocolate milk shortage and creepy Santa? Let’s talk about real news
    Child poverty is still a scarily serious problem in this country and house prices are soaring through the roof to the point where it is simply impossible for the average New Zealander to buy a home. There is also little...
    The Daily Blog | 25-10
  • It’s time to celebrate Kiwi schools and teachers
    Some would have you believe that New Zealand’s schools are in a state of collapse, that your children are not being educated well and that things are going to hell in a hand basket.  That there is no innovation, no...
    The Daily Blog | 25-10
  • Ideological Blitzkrieg – Privatization of state housing, more charter sch...
    Pundits in pundit land will tell you that this Government is boring, that Key is the great pragmatist and that it is his ability to create elegant solutions that keeps him the firm favourite in many Kiwi eyes. This ability...
    The Daily Blog | 24-10
  • Hegemony rules but resistance is fertile
    The Prime Minister is a puppet. Not just our current Prime Minister, but given the forces of multinational globalisation, the role of any head of state, is less as independent actor, and more as a puppet of international trends and...
    The Daily Blog | 24-10
  • An open Letter to Sir Bob Jones: demanding a ‘liveable wage’ is not “...
    How out of touch with reality is Sir Bob Jones? You know, that white dude who invested in privatised SOEs after the selling off of our assets in the eighties and made a ludicrous and disgusting amount of money and is...
    The Daily Blog | 24-10
  • My insecurity about the Security Council
    As I write this (on 24 October) it is international UN Day. Of course, you all knew that already, right? Well, the day celebrates the entry into force of the UN Charter in 1945. With the ratification of this founding...
    The Daily Blog | 24-10
  • GUEST BLOG: Catherine Delahunty – Back in That House
    Parliament opened this week and I still find it a very odd place. Most of the people are reasonably courteous and friendly, but the rituals are archaic and the rules around issues like the swearing in oath are oppressive and...
    The Daily Blog | 23-10
  • Marae Investigates No More
    TVNZ yesterday announced the closure of their Māori and Pacific programmes department. That means they’ve chosen to stop making Fresh, Tagata Pasifika, Waka Huia and Marae Investigates to let independent producers get their hands on these lucrative contracts. This is...
    The Daily Blog | 23-10
  • BLOGWATCH: An Un-Civil War in Labour, eh?
    Earlier today, my attention was directed to an entry that’s just recently appeared on the Slightly Left of Centre blog. It purports to contain the ‘inside word’ from a highly placed NZF source – which is funny, because I’m pretty sure...
    The Daily Blog | 23-10
  • Santanomics 101
    Santanomics could mean a number of things. It could be the study and practice of giving. Or it could mean the study and practice of rampant end-of-year commercialism. However, for me today it is the economics of erectingAuckland’s giant Santa...
    The Daily Blog | 23-10
  • SkyCity boss misleads public over workers lost shifts
    SkyCity CEO Nigel Morrison has defended the employment practices at his company in an “Opinion” piece entitled “Human Capital key to corporate success” in the NZ Herald on Thursday. A number of his claims are misleading, contain only partial truths...
    The Daily Blog | 23-10
  • Roast Busters: Turn Indignation into Action
    People raged about the Roast Buster case. The indignation was justified – it was horrible. “Where were their parents!?” Fair question. I am sure the Roast Busters’ parents and the victims’ parents all wish they had been more proactive in...
    Scoop politics | 31-10
  • Stats NZ only have themselves to blame for postponement
    The Public Service Association (PSA) says Statistics NZ only have themselves to blame for the indefinite postponement of the release of the Food Price Index: November 2014....
    Scoop politics | 31-10
  • NZ Diversity Survey – benchmarking workplace diversity
    AUT University’s New Zealand Work Research Institute (NZWRI) has released a report on diversity in New Zealand workplaces....
    Scoop politics | 31-10
  • Māori Language (Te Reo Māori) Bill
    Tutehounuku Korako, Chair of the Māori Affairs Committee, is inviting further public submissions on this bill. The closing date for submissions is Friday, 5 December 2014....
    Scoop politics | 31-10
  • ERA amendments a mixed bag
    The Employment Relations Amendment Act has the potential to put vulnerable workers in a more precarious position, says Equal Opportunities Commissioner, Dr Jackie Blue. However, the commissioner says the right for all to request flexible work hours is...
    Scoop politics | 31-10
  • Sensible Sentencing calls for appeal of judicial activivism
    The Sensible Sentencing Trust is appalled that Justice Jill Mallon has today refused to apply the Life without Parole (LWOP) provisions of the Three Strikes law as enacted by Parliament....
    Scoop politics | 31-10
  • Global Rally against ISIS – for Kobanê – for Humanity, Nov 1
    The New Zealand Kurdish Community will march in solidarity with Kurdistan as part of the “GLOBAL RALLY AGAINST ISIS – FOR KOBANÊ – FOR HUMANITY” on 1 November 2014, 2pm....
    Scoop politics | 31-10
  • Does ‘No-Surprises’ Also Apply To TVNZ News?
    When you stand back and look at NZ media outlets, most of them have at least one or two people who attempt to hold the government to account: John Campbell on TV3, Guyon Espiner and others at Radio NZ, David...
    Scoop politics | 31-10
  • Safer roads are better for everyone
    Recent pedestrian versus vehicle incidents highlight the real issues being addressed by delegates as the 2Walk and Cycle conference concludes....
    Scoop politics | 31-10
  • Law change creates more flexible labour market
    The Employment Relations Amendment Act, passed yesterday, will bring new flexibility to the labour market and will reduce the ability of unions to organise and to recruit....
    Scoop politics | 30-10
  • Bumper ANZ profits mean no excuse for insecure hours
    A big rise in profits at New Zealand's largest bank needs to be reflected in a better pay offer and more security around hours of work, the bank workers’ union said today....
    Scoop politics | 30-10
  • Count down to lowered alcohol limit
    With just a month to go until a new lower alcohol limit for adult drivers comes into effect, Police and road safety agencies are reminding drivers of the impending change....
    Scoop politics | 30-10
  • WorkSafe Supports Forestry Review Findings
    WorkSafe NZ says the Independent Forestry Safety Review has clearly identified the problems facing an industry in which ten workers were killed last year. “The Review’s analysis matches our own view and leaves no doubt about the need for comprehensive,...
    Scoop politics | 30-10
  • CTU welcomes forestry review recommendations
    The CTU is welcoming the today's release of the independent forestry safety review panel findings. "These recommendations must be implemented to ensure that everything possible is done to make forestry safer." CTU President, Helen Kelly said....
    Scoop politics | 30-10
  • Activists will confront animal abusers
    Today animal rights activists will confront a group of wealth advisers who want to build the biggest egg factory-farm in New Zealand....
    Scoop politics | 30-10
  • Turia: Women’s Refuge Conference 2014
    This is a milestone moment in my life. This will be my last official address as Co-leader of the Maori Party. On Saturday night at our Hui-a-Tau, I will be standing down from that role and enabling a new co-leader,...
    Scoop politics | 30-10
  • Rodeo Code of Welfare ‘Sick Joke’
    Animal advocacy organisation SAFE says the revised Code of Welfare for Rodeos just released is nothing but a sick joke. “Rodeo animals are goaded, tormented and forced to endure needless suffering and gross mistreatment, all for the sake of so-called...
    Scoop politics | 30-10
  • Conservative Party applauds binding referenda on flag
    The Conservative Party are congratulating the Government on the decision to hold two binding referendums to decide the fate of New Zealand’s flag – and believes it will pave the way for binding referenda to form part of New Zealand...
    Scoop politics | 30-10
  • Walk the Talk – Opposing violence against women
    Soroptimist International of Auckland have organised a walk on 22 November from Silo Park at the Wynyard Quarter through the Viaduct and back to Silo Park, to show their opposition to violence against women. This event hopes to raise awareness...
    Scoop politics | 30-10
  • Recommendations on the Design of Pecuniary Penalties
    The Law Commission has reviewed the use of pecuniary penalties as a regulatory tool. Pecuniary penalties are financial penalties that policymakers are increasingly opting to use in place of criminal sanctions in order to punish and deter misconduct in...
    Scoop politics | 30-10
  • Every worker will be affected by employment law changes
    Every worker will feel the effects of the government’s new employment laws and should join a union if they want to maintain and increase their wages and conditions, says New Zealand’s largest private sector union, the EPMU....
    Scoop politics | 30-10
  • Shameful attack on all workers
    The Government has passed the Employment Relations Amendment Act slashing the rights of all Kiwi workers. “These changes are shameful. New Zealand now has some of the worst employment protections in the OECD. It is embarrassing that a country which...
    Scoop politics | 30-10
  • Unnecessary law changes more to do with ideology
    The government’s employment law changes are simply ideological and are at odds with its approach in the related areas of health and safety and immigration law, FIRST Union said tonight....
    Scoop politics | 30-10
  • CTU Runanga calls on iwi leaders
    Maori workers are calling on iwi leaders to speak out against the employment law changes expected to go through today. “Iwi leaders have previously spoken out when workers in Aotearoa have been under attack, we believe they should do so...
    Scoop politics | 30-10
  • Educating children not the best solution to alcohol harm
    Alcohol Healthwatch says we need to look beyond educating children and young people to address deeply embedded attitudes and behaviours concerning alcohol....
    Scoop politics | 30-10
  • New code of welfare for rodeos released
    New standards to strengthen the animal welfare requirements for rodeos have been issued today by the Minister for Primary Industries, Nathan Guy....
    Scoop politics | 30-10
  • IPCA report riddle with inaccuracies, say students
    A report by the Independent Police Conduct Authority into the policing of student protests in 2012 is riddled with inaccuracies, say students who laid the original complaint with the IPCA....
    Scoop politics | 30-10
  • CT v The Queen – indecency convictions quashed
    This summary is provided to assist in the understanding of the Court’s judgment. It does not comprise part of the reasons for that judgment. The full judgment with reasons is the only authoritative document. The full text of the judgment...
    Scoop politics | 30-10
  • Rameka v The Queen – murder convictions quashed
    This summary is provided to assist in the understanding of the Court’s judgment. It does not comprise part of the reasons for that judgment. The full judgment with reasons is the only authoritative document. The full text of the judgment...
    Scoop politics | 30-10
  • Auckland Council Out of Control
    Responding to the NZ Herald article that some Auckland households will face a rates rise of up to 9.6 per cent next year, Taxpayers’ Union Executive Director Jordan Williams says: “Len Brown’s pledge to cap rates rises at 2.5 per...
    Scoop politics | 30-10
  • Stats NZ staff escalate action with ‘no more meetings’ rule
    Statistics NZ staff have voted to escalate their ongoing industrial action in an effort to get Stats NZ back to the bargaining table with a reasonable offer. The staff, who are members of the Public Service Association (PSA), have been...
    Scoop politics | 29-10
  • Rape Crisis calls for changes to criminal justice system
    Wellington Rape Crisis has added its voice to the public outcry following the announcement that there will be no charges in the teen rape gang case. Butterworth says the decision not to lay charges will not have been a surprise...
    Scoop politics | 29-10
  • Police action justified in Blockade the Budget demonstration
    Police actions in dealing with a demonstration in Central Auckland known as Blockade the Budget on 1 June 2012 were justified and appropriate, an Independent Police Conduct Authority report released today found....
    Scoop politics | 29-10
  • NZDF Joins with Australia to Commemorate WWI Centenary
    A contingent of New Zealand Defence Force (NZDF) personnel will join their Australian counterparts at Australia’s first major commemoration of the First World War centenary in Albany, Western Australia this weekend....
    Scoop politics | 29-10
  • Reserve Bank should reduce interest rate
    “The Reserve Bank should be reducing its policy interest rate, the OCR”, says CTU Economist Bill Rosenberg in response to the Bank’s announcement today that it is not increasing it....
    Scoop politics | 29-10
  • 2015 Stout Fellow will write about Māori & Criminal Justice
    Kim Workman, founder and advocate for the Robson Hanan Trust, which administers the Rethinking Crime and Punishment and Justspeak initiatives, has been awarded the 2015 John David Stout Fellowship at Victoria University....
    Scoop politics | 29-10
  • What John Key thought about ‘dirty politics’
    On September 20, John Key swept to victory to become one of New Zealand’s most successful and popular Prime Ministers. Rocked by scandal, the 2014 election campaign was one of the most brutal – and riveting – in recent history....
    Scoop politics | 29-10
  • Trade Deal Threatens Farmers and Food Businesses
    The secret Trans Pacific Partnership negotiations are a direct threat to food businesses and farmers, and a moratorium on the release of GE crops must be enshrined in law before the TPP is signed....
    Scoop politics | 29-10
  • CTU announces election of new Secretary
    The contested election for the position of CTU Secretary has been won by Sam Huggard. Sam officially takes office on Monday 1 December 2014. Sam has worked in the union movement and brings a wealth of experience and a commitment...
    Scoop politics | 29-10
  • Kim Workman awarded 2015 J.D. Stout Fellowship
    The Victoria University of Wellington 2015 J.D. Stout Fellowship, funded by the Stout Trust, has been awarded to justice reform advocate Kim Workman. Mr Workman (Ngati Kahungungu ki Wairarapa, Rangitaane) is well known for his work on criminal justice,...
    Scoop politics | 29-10
  • TPPA causing concern
    Concern over the secretive Trans-Pacific Partnership Agreement (TPPA) negotiations is being expressed in two public meetings over the next week; one at a presentation on 5th November by former councillor Robin Gwynn to the Napier City Council, the...
    Scoop politics | 29-10
  • Kiwis rally to demand justice for ‘Roast Buster’ survivors
    Over 1,500 kiwis have rallied to demand justice after the announcement of the NZ Police decision not to lay charges in the ‘Roast Busters’ saga....
    Scoop politics | 29-10
  • New employment law will hurt the most vulnerable NZers
    The Public Service Association (PSA) says changes to the Employment Relations Act, expected to be passed in Parliament tonight, will hurt vulnerable workers and their families more than anyone....
    Scoop politics | 29-10
  • Consultation to close on proposed place names
    The New Zealand Geographic Board (NZGB) Ngā Pou Taunaha o Aotearoa today advised that only one month remains before public consultation closes for 18 name proposals for geographic features and places around Te Ika ā Māui (the North Island)....
    Scoop politics | 29-10
  • Operation Clover – Statement from Police Commissioner
    I have taken a close interest in this investigation and I am confident police have conducted a thorough and professional enquiry in what has been a challenging and complex case. The Operation Clover team has ensured that victims have been...
    Scoop politics | 29-10
  • Better policy would have protected children from recession
    Child Poverty Action Group says an international report released by UNICEF today shows good policy can protect and improve child well-being, even during a recession....
    Scoop politics | 29-10
  • Outcome of Operation Clover investigation
    Police have completed a multi-agency investigation, Operation Clover, into the activities of a group calling themselves “The Roast Busters”. The 12 month enquiry focused on incidents involving allegations of sexual offending against a number of girls...
    Scoop politics | 29-10
  • False birth registration brings home detention
    A Whangarei woman who attempted to register the birth of a fictitious child to claim a sole parent benefit was sentenced to six months home detention in the Whangarei District Court today....
    Scoop politics | 29-10
  • Family of Robert Ellis demand a proper investigation
    The family of a New Zealander killed in Indonesia are growing increasingly concerned at the lack of information they’ve received, and the handling of the investigation into his murder....
    Scoop politics | 29-10
  • Minister of Health must account for aged care workers’ pay
    The New Zealand Federation of Business and Professional Women (BPW NZ) congratulates rest-home worker Kristine Bartlett on her landmark claim for equal pay from her employer and successfully pursuing this to the Court of Appeal....
    Scoop politics | 29-10
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