web analytics

Downgrade aftershocks continue

Written By: - Date published: 8:44 am, October 4th, 2011 - 53 comments
Categories: economy, election 2011, john key - Tags: ,

The credit rating downgrades have been quite a political earthquake, and the aftershocks are going to continue for some time.

If I was to quote from every interesting article this post would be a mile long, so I’m going to force myself to quote from only a couple.  The kind of response that downgrades have caused is exemplified in opinion pieces such as these: Editorial: After Rugby World Cup comes harsh realityGovt faces having to eat words after downgrades.

But for a real in depth understanding of the implications of the downgrades , you simply can’t beat Bernard Hickey*:

What did double-downgrade day really mean?

…Firstly, both Fitch and Standard and Poor’s are worried about New Zealand’s collective foreign debt, including both private (which means bank debt) and public debt. Their unspoken assumption is that these two types of debt could become the same thing over time, if the government ever had to bail out the banks. The ratings agencies have begun lumping the two types of foreign debt together in the wake of the Irish crisis where the government guaranteed the banks debts as soon as they got into trouble.

The ratings agencies have worked out in recent years that private debt pretty quickly becomes public debt whenever banking systems hit trouble because politicians can’t help themselves from bailing out banks. …

Secondly, both [rating agencies] think the government has not done enough yet to transform the economy from being a consuming/borrowing/importing economy into a saving/investing/producing/exporting economy. This has been the government’s big theme since the election. Its big ‘tax switch’ package and its tweaks to rules on rental property were at the centre of this ‘transformation’ policy.  The trouble is it hasn’t worked yet and doesn’t seem to be working for at least a couple of years to come. …

No one should forget also that the government argued in the 2009 and 2011 budgets that its supposedly tough measures were designed to avoid a credit rating downgrade. This is clearly an ‘epic fail’ as the programmers might say.

Isn’t one of those classic definitions of madness doing the same thing over and over and expecting a different result? Govt says NZ credit downgrade won’t affect policies.  So the Nats aren’t going to change their policy, but they have certainly changed their spin. After all the arrogant posturing and dire warnings on the effects of a downgrade, now that it has happened they are back-peddling like crazy – Downgrades unlikely to raise mortgage rates – Key  (and English).

Key’s management of this issue has been appalling, and he’s getting called on it:

John Key’s talkshow farce

It’s hard to recall when John Key looked this bad.

He was this afternoon hosting what he called an ”election-free zone” – a one-hour radio talk show. .. But you have to think he might have reconsidered the wisdom of the stint after Lance Corporal Leon Smith was shot in the head and died in Afghanistan on Wednesday morning.  And when news arrived this morning that, for the first time in 13 years, this country’s credit rating was downgraded by one of the three big ratings agencies, he should have cancelled. …

The situation descended in to utter farce when news broke – literally broadcast during Key’s talk show – that Standard and Poor’s had followed Fitch and knocked our rating down a notch.

”It’s the Prime Minister’s hour and we’re having a lot of fun,” Key continued.

Excuse me, Mr Key, but what’s fun about another Kiwi soldier dead, and a double blow to the economy? …

See also Downgrades hit National where it hurts for similar points.  All in all it’s no wonder that the Nats are starting to get some political inoculation in place right away – National’s lead likely to disappear – English.  Not that they probably need to bother – RWC more important than election for many Kiwis.  Sigh.

Update: English now admits that the downgrade will push interest rates up (and is using it as an excuse for public service cuts) but, rather than the 1-2% predicted in 2009, English now says it would result in a rate increase of just 0.1%. No good explanation of the difference is forthcoming.


* Hickey’s piece also contains the following:

Essentially, the New Zealand government has been running a structural budget deficit of around 3-4 per cent of GDP since around 2005. This was created firstly by Labour, which cut taxes for middle income earners and delivered the middle class welfare of Working For Families and Interest Free Student Loans. National kept those policies in place and expanded the tax cuts to middle and upper income earners, slightly loosening fiscal policy as it went.

I don’t recall any middle income tax cut and I don’t recall any structural budget deficit (we were still paying off debt post 2005).  It’s my understanding that our economic woes spring not from re-distributive policies, but from a speculative housing bubble, which lead to a build up in private debt, and lack of investment in the productive economy.  So someone set me straight – where’s Hickey coming from here?

53 comments on “Downgrade aftershocks continue”

  1. vto 1

    Well it was said before and it will be said again…

    If the ratings agencies have determined that private bank debt is, in their eyes, public government debt because the government will step in and save the banks then best we step in and take not just the debt but, being fair and just about it, the equity as well.

    Can’t just expect to have one without the other. Again.

    Come on folks, wake up to the world of banks and their machinations. The politics will be the politics – you can see it all coming due to its predictability, no matter left or right government. It is the banking system we have that is the problem. It is the most insolvent industry in the entire world. It is also the most highly leveraged. It is the dange zone. Pull your money out – especially from any foreign-owned bank like BNZ, ANZ, Westpac, ASB, HSBC.

    • Deadly_NZ 1.1

      And finance companies don’t forget the huge bail outs there as well and for what to payback investors who knowingly put their money in

  2. Draco T Bastard 2

    No good explanation of the difference is forthcoming.

    Of course not. National and Act have NFI how the economy works so all they ever do is pull numbers out of their arse and then act surprised when they’re wrong.

    I don’t recall any middle income tax cut…

    Neither do I. WfF was introduced because people couldn’t afford to feed their families. It’s got to say something quite bad when a nations middle class is suffering from dire poverty.

    Quoting Bernard Hickey:

    Secondly, both think the government has not done enough yet to transform the economy from being a consuming/borrowing/importing economy into a saving/investing/producing/exporting economy. This has been the government’s big theme since the election. Its big ‘tax switch’ package and its tweaks to rules on rental property were at the centre of this ‘transformation’ policy.

    The trouble is it hasn’t worked yet and doesn’t seem to be working for at least a couple of years to come.

    And it never will work. Tax cuts for the rich don’t fuel economic growth. What they do fuel, and Hickey mentions this, is a lot more consumption and more buying up of property by the already rich.

  3. And to think NZ is doing so bad when the rest of the world is doing so good, must be Keys fault.

    • One Anonymous Bloke 3.1

      Oh too funny. When there’s no evidence one way or another he’s a financial whizkid, who will turn the country around and bring us into line with ‘stralia. Now the evidence is in it isn’t his fault, the dog ate his homework, he left it on the bus, pathetic pathetic pathetic.

      Rating agencies are all about long-term out-look. They looked at the long term outlook for NZ, and saw a double dipping incompetent of a finance minister who looks like being re-elected, and they made their call. Spin it however you like, it’s covered in failure sauce and everyone can see it.

      • Brett Dale 3.1.1

        If all it took was for financial whizkids to turn this thing around, then I think the whole world will be doing better.

        • felix 3.1.1.1

          So he shouldn’t have made that his qualification for being elected then.

          Right Brett?

          And you’d be an idiot to vote for him on that basis too. Right?

    • I heard somewhere (can’t remember where) that 25% of countries have had credit downgrades since the recession began. We’ve therefore joined a minority of countries in terms of downgrades.

      It would be interesting to see a list of those countries that have been downgraded – to see the company we keep. 

  4. Richard 4

    The NZ Dollar is falling in value, and people are going OMG

    However they forget all the warnings that the NZD was overvalued significantly, and was only held up because of foreign investors. However, now that these investors are looking to safer markets for their investments, theyre dumping NZ Currency.

    A NZD value of 0.65 USD is probably to be expected, and will help exporters greatly… however, prices of pretty much everything will go up as Petrol and Diesel will go up. This on top of National’s GST increase ‘which doesn’t really count’, will really count in hurting low and middle income kiwis

    • KJT 4.1

      It would be funny if it was not so serious.

      NACT cannot even meet performance targets from, the totally discredited, “credit rating” agencies.
      Agencies which are on the side of the same economic dogma as NACT.

      This could have been avoided simply by legislating that no private finance companies would be bailed out.

      The New Zealand Government, like, the other failing States, Ireland, UK, Greece and the US etc, has made it obvious that private finance debt is a taxpayer liability.

      Look to Argentina and Iceland to see the benefits of telling the banks to get stuffed. Argentina, one of the worlds fastest growth economies since 2002, when they told the banks to take a bath.

      Noting that most lenders to Governments have taken no notice of States credit rating downgrades recently.
      Government bonds are still considered much safer than private lending.

      One of the reasons for the continuing recession in the USA. The cashed up prefer to lend to the Government instead of industry and development. Government lending at 0% intended as a stimulus is being invested in 3% yeald Government bonds.

      Meanwhile the Media have had almost no coverage of Nationals failure to succeed, even under their own terms. If we had a credit downgrade under Labour it would have been frontline news.

      A rugby players nuts are more important!

  5. Lanthanide 5

    “I don’t recall any middle income tax cut and I don’t recall any structural budget deficit (we were still paying off debt post 2005). It’s my understanding that our economic woes spring not from re-distributive policies, but from a speculative housing bubble, which lead to a build up in private debt, and lack of investment in the productive economy. So someone set me straight – where’s Hickey coming from here?”

    This is just Hickey’s bias against WFF and interest free student loans rearing it’s head, yet again. Basically those two policies were fully implemented after the 2005 election and because he thinks they’re bad policy and should be repealed he’s saying that’s where the structural deficit came from. Frankly I find his position on these policies rather strange. WFF is obviously a tax-cut aimed at the middle classes (which he seems to acknowledge is where tax cuts should go, not to the top). He also repeatedly goes on about our graduates going to Australia for jobs, but I would’ve thought that interest-free SL were a strong motivation for them to stay in the country.

    There were no tax cuts until Oct 2008 which were largely a result of National’s incessant bleating, although I’d suggest that even without National bleating Labour probably still would have done something although perhaps not to the extent they did. My only guess is that again Hickey is interpreting these cuts as “inevitable” and a result of the 2005 election and therefore the structural deficits started then, and not when National took office. This interpretation would seem to fail at the first hurdle though, because Brash was campaigning for big tax cuts in 2005, so he would have actually crystallised a budget deficit much sooner than the one we got 2008-2009. So I can’t really make heads nor tails of his specific mention to tax cuts.

    • KJT 5.1

      I agree with Hickey about working for families. It is effectively a subsidy from employers and their employees who pay decent wages to those who do not.

      WFF allowed employers to avoid long overdue wage rises and remove even more profits offshore.

      Unfortunately Labour was as stuck in the Noe-Liberal paradigm of “privatise the profits, socialise the losses”, as National.

      • Lanthanide 5.1.1

        I agree that it subsidises bad employers. But the fact is, people actually need money to live. I wonder what the social stats would look like, particularly in terms of child poverty, if we did not have WFF?

        Employers don’t seem to have gone out of their way to pay people reasonable wages before WFF was introduced, so I don’t think we would have seen significantly greater remuneration had WFF not been introduced.

        • felix 5.1.1.1

          Yep, no question something was needed.

          I do wonder if it might be more elegant – if we do have to subsidise employers to employ people – to just raise the minimum wage and subsidise employers directly pay it.

          Call it what it is, you know?

          • Lanthanide 5.1.1.1.1

            The biggest share of the WFF pie goes to families who are on more than the minimum wage. So just raising the minimum wage won’t target the same people that WFF does.

            • Draco T Bastard 5.1.1.1.1.1

              /agreed

              Raising the minimum wage won’t actually get rid of poverty. For that we need a Universal Income. Once we admit that people need a minimum just to live and that part of societies job is to ensure that everyone has that minimum then we should be able to eliminate poverty.

  6. Here is the question that should be on anyones lips today and until the election:

    Is John Key profiting from NZ’s foreign debt? The answer is not simple but if the banks collapse and most especially Bank of America John Key loses most of his wealth. the only way he can keep it is if the world borrows more fiat valueless money. That is a huge conflict of interest!

    Penny Bright asked and this is what she got!

    • One Anonymous Bloke 6.1

      No it isn’t. Anyone with skin in the game can make money out of a falling market, just as there’s money to be made in a rising market. He makes money either way.

      • KJT 6.1.1

        Key will be rewarded, whatever the outcome for New Zealand, so long as he delivers our assets to the thieves, as intended.

      • travellerev 6.1.2

        The system of money as debt is collapsing. It’s unsustainable, parasitic and John Key knows it and he still borrows and spends because if he doesn’t he loses all. The loss is inevitable and the collapse of the banking system too. The only sensible way for NZ to move forward is to get rid of the central banking system and to start printing our own money again.

        • Draco T Bastard 6.1.2.1

          It’s not so much the central banking system as the fractional reserve system. Central banking is what we actually need – the money printed directly by the government rather than the private banks.

          • travellerev 6.1.2.1.1

            What I meant was the reserve banking system being a separate and privately owned banking monopoly and parasitic in nature and yes we should start printing our own money again as I said before and get rid of factional banking and the reserve bank system.

  7. Darren 7

    Maybe off topic, but….

    I just heard Bill English on RNZ say that

    Improving performance in the economy will worsen our trade deficit (or something), because the profits will be taken out of the country by foreign owners. He said we needed to get the companies back into NZ ownership.

    While at the same time they are planning to sell NZ owned assets.

    WTF?

    I’m confused. Have I got something wrong here?

    • Blighty 7.1

      no, he has.

    • marsman 7.2

      @ Darren. I heard it too. An admission that foreign ownership of NZ corporations is not good for NZ from the man who wants to hand over our State Assets to foreign corporations?

    • Dv 7.3

      YeaH i heard that too. Also said the buying of Z was o good as it kept the assetts in nz.
      Z was bought by Infratill aAND the superfund.

      I thought i had misheard.

      • mik e 7.3.1

        Dumb idea to buy Z because oil is running out and their will be less customers not unexpected though from from Dipstick!His track record continues to get worse

        • Lanthanide 7.3.1.1

          As the price of oil goes up, the volume sold will decrease. As the volume decreases, they’ll have to get a higher margin on what they sell to make a profit, which will nudge the price up a bit further.

          But if there’s a substantial drop in volume due to very high oil prices, they also won’t need as many staff or stations to meet the reduced demand and so will be able to close some. I guess a small issue might be disposal and cleanup of the sites, but I think the government would kindly intervene (amongst the general turmoil) and give them a pass to not have to do that cleanup work.

          NZ is going to be heavily reliant on petrol for transportation for the next decade, and realistically probably for the next 2 and maybe even 3. No doubt they’ll have tough trading times ahead, but the petrol business has a lot of life left in it yet. And being NZ-owned and operated efficiently (apparently Shell was managing some of their back-office stuff using shared excel spreadsheets) they may be able to pick up significant market share from the other businesses in the sector. They could easily grow profits in a shrinking market.

          • Colonial Viper 7.3.1.1.1

            And being NZ-owned and operated efficiently (apparently Shell was managing some of their back-office stuff using shared excel spreadsheets) they may be able to pick up significant market share from the other businesses in the sector. They could easily grow profits in a shrinking market.

            Petrol retail is at the wrong end of the value chain. No real money to be made here, only scraps. The majors have already taken all the profit, from the well onwards.

            They’ll make more selling a litre of milk to a passing driver than a tankful of petrol.

            As the price of oil goes up, the volume sold will decrease. As the volume decreases, they’ll have to get a higher margin on what they sell to make a profit, which will nudge the price up a bit further.

            And everytime they try and compensate for reduced sales volumes by inching prices up higher, the higher prices will end up destroying even more sales.

            Inflationary collapse.

            NZ is going to be heavily reliant on petrol for transportation for the next decade, and realistically probably for the next 2 and maybe even 3.

            Agree with you on 1 and possibly 2 decades but it won’t make it to 3 decades, as it will be heavily bicycle power by then.

    • mik e 7.4

      wheres QSF and tighty almiighty I would have thought they would be defending dipstick and catastrophe cat man key

    • He most cerytainly did say that: http://www.radionz.co.nz/news/political/87321/govt-refuses-responsibility-for-credit-downgrades

      Which is also why our BoP is so cruddy. The remittance of profits from privatised state assets is bleeding us of profits and pushing us further into deficit.

      A prime example of why asset sales are a short term gain only.

      Eg;

      Sell Asset X for $10 million.

      Result: $10 million flows into the country.

      First year nett profits remitted to overseas investors: $500,000

      2nd year; $1,000,000

      3rd year; $2,000,000

      4th year; $1,000,000

      5th year; $2,000,000

      6th year; $3,000,000

      7th year; $1,000,000

      Amount remitted overseas in seven years; $10,500,000.

      We’ve just lost the initial $10 million gain, and will now start losing money, affecting our Balance of Payments.

      That’s pretty much what English was saying.

      What’s remarkable is that a Tory has finally admitted why State asset or farm sales is not a terribly bright idea.

  8. Fermionic Interference 8

    Rob

    Einsteins definition of stupidity:

    Doing the same thing over and over again
    and expecting a different result.

  9. Dotty 9

    “I don’t recall any middle income tax cut and I don’t recall any structural budget deficit (we were still paying off debt post 2005). It’s my understanding that our economic woes spring not from re-distributive policies, but from a speculative housing bubble, which lead to a build up in private debt, and lack of investment in the productive economy. So someone set me straight – where’s Hickey coming from here?”

    Hickey has written about the structural deficit before, as has Brian Easton (hardly a RWNJ):
    http://www.eastonbh.ac.nz/?p=952
    (Unfortunately his graph is not reproduced on his site – it shows the steady rise of government spending.)

    Between 2005 and 2008 the government committed new spending which flows through into subsequent years – not only without sufficient new income flows to cover it, but a reduction in income due to tax cuts. That’s why it is structural debt, not cyclical or seasonal. It is structured into normal ongoing revenue and expenditure. This expenditure includes Hickey’s “middle class welfare” of WFF extensions and interest free student loans. It also includes the growth in superannuation payments as more people retire (but the retirement age is not increased or entitlements reduced) and increased commitments in health policy.

    Running a cyclical deficit – to help off-set a recession – is very different to a structural deficit, because the latter persist even when the economy recovers and grows.

    This is not to say we shouldn’t have that new spending – but if you do, you have to cover the cost. And the increased spending started under Labour, as did the tax cuts. (From memory there was a tax cut in 2008.) National has exacerbated the situation with tax cuts, without cutting spending by enough to resolve the structural debt issue. (This is entirely separate from the current global financial meltdown or the previous property bubble.)

    I was kinda surprised (but pleased) when WFF changed and I qualified in 2007. Surprised because I’m not poor and can afford to support my family on my income. I think it is the extension of WFF to families like mine that need re- examining, not WFF for those on very low incomes. I have a colleague whose household income is over $200,000 and they get 20 hours free childcare for their 4 year old. This is “middle class welfare” – it contributes to, rather than reduces, inequality.

    • Draco T Bastard 9.1

      (From memory there was a tax cut in 2008.)

      There was but, IIRC, Labour were already talking about cancelling it before the election. They were certainly talking about doing another budget in December to take account of the GFC.

      …without cutting spending by enough to resolve the structural debt issue.

      Structural debt needs to be addressed by increasing income and not by cutting spending.

      I have a colleague whose household income is over $200,000 and they get 20 hours free childcare for their 4 year old. This is “middle class welfare” – it contributes to, rather than reduces, inequality.

      Actually, no it’s not. All childcare should be free no matter how much the parents earn as it’s improves the child’s socialisation. In other words, it’s good for society.

      • Dotty 9.1.1

        They’re both in the fulltime paid work force so the kid goes to daycare no matter who pays.

        Just now it’s free – i.e. paid for by taxpayer – giving them a bit of extra money each week for their hobby of property speculation.

        Far better that money goes where it is needed IMHO. Like my WFF, which I’m happy not to receive (happy to receive it too – thanks taxpayers!)

    • mik e 9.2

      They were tax cuts to middle class families who missed out under the birch english years

    • Afewknowthetruth 9.3

      Dotty

      ‘ It’s my understanding that our economic woes spring not from re-distributive policies, but from a speculative housing bubble, which lead to a build up in private debt, and lack of investment in the productive economy. So someone set me straight’

      You will hear a lot about the symptoms but little about the causes.

      Global oil extraction peaked over 2005-2006 and soon afterwards demand exceeded supply. In 2008 the global economy was still operating at close to full speed and lack of oil supply in combination with speculation pushed oil to $147. That effectively demolished the global economy. The price collapse that accompanied demand destruction allowed for a faux recovery, which has now gone belly up. Most western nations import huge amounts of energy and consumer goods they cannot pay for -NZ included.

      We are moving towards the end of the industrial age and no amount of jigging with interest rates or tax rates, no amount of so-called stimulation will have any effect.

      For the whole story you’ll need to read the book.

  10. Adrian 10

    Darren, yeah that was amazing. What an admission by English. But once I thought about it I realised that this is the way English operates, he’s trying to insulate himself and by undermining Key, setting himself up to take over after they get an arsekicking on Nov26. He’s going to blame Key for the whole asset sales farce and claim he never liked the idea. Remember the Nats are doing a lot deeper polling than anyone else can afford, and they are scared about what the are finding out.

  11. Bored 11

    Dont worry be happy……Jokeys smiley photo ops will overcome the hard light of day, nicely intoned sound clips will reassure us that black is white…

    Fekk if we vote for him its proof we fully deserve the debt slavery he will leave us in, to be robbed blind and left penniless…we look more like fools who pay to be whipped by the dominatrix.

  12. Richard 12

    Wonder how this would work in NZ

    http://www.youtube.com/watch?v=qYtNwmXKIvM&feature=related

    “Campaign video by Richard Curtis and Bill Nighy, about the Robin Hood Tax, a tiny tax on bank transactions that could raise hundreds of billions for public services and to tackle poverty and climate change at home and around the world. Add your own voice to the campaign at http://www.robinhoodtax.org.uk

    • McFlock 12.1

      AKA a financial transaction tax, or as the business roundtable prefer to call it “the sky is falling! the sky is falling!”
        
      Bloody good idea. Currently Alliance policy, I think the Greens, too?
       

  13. Interesting…

    On RADIO NZ today;

    “”With the greatest respect, I’m not responsible for what happens in Europe and the United States, nor technically was I in government when there was the enormous build-up in private sector debt.”

    Instead, Mr Key says an increase in private sector debt when Labour was government has helped contribute to the downgrade.” – http://www.radionz.co.nz/news/political/87321/govt-refuses-responsibility-for-credit-downgrades

    Yet, back in May 2009, he said,

    “If I just look at our debt track and I compare that to the OECD debt track for other countries for 2012/2013 year, we have got a substantially lower debt exposure than most other countries,” – http://www.guide2.co.nz/politics/news/key-says-budget-will-avert-credit-downgrade/11/7730

    Sprung!

Links to post

Recent Comments

Recent Posts

  • Parents will pay more as school budgets frozen
    Parents will pay more for their kids’ education as a result of this year’s Budget after the Government froze operational funding for schools, Labour’s Education spokesperson Chris Hipkins says. “This means schools are effectively going backwards. They will need to… ...
    15 mins ago
  • Sticking Plaster Budget fails the test
    Bill English’s penultimate Budget fails to tackle the structural challenges facing the economy – a housing crisis, rising unemployment, underfunded health and creaking infrastructure, says Labour’s Finance spokesperson Grant Robertson. “This Budget applies a sticking plaster to a compound fracture.… ...
    1 hour ago
  • John Key fails middle New Zealand with no fix for housing crisis, more underfunding of health
    Middle New Zealand has again missed out in this year’s Budget with not a single fix for the housing crisis, and health and education woefully underfunded again, Leader of the Opposition Andrew Little says. “This Budget is just a patchwork… ...
    2 hours ago
  • Labour Bill would back Kiwi jobs
    The Government’s $40 billion of buying power would go towards backing Kiwi businesses and jobs under a Labour Member’s Bill which will be debated by Parliament, Leader of the Opposition Andrew Little says. “My Bill – which was pulled from… ...
    4 hours ago
  • Julie Anne Genter: My Budget 2016 wish is fairness
    When my parents first visited me in Auckland ten years ago, they remarked on how there were no homeless people on the streets. Coming from Los Angeles, they were used to seeing the impacts of horrendous inequality and a lack… ...
    GreensBy Julie Anne Genter
    5 hours ago
  • Steffan Browning: Pesticide reduction and Organic Growth Strategy in Budget 2016
    Pesticide reduction The Budget is an opportunity for the Government to launch a pesticide reduction strategy that multiplies the Environmental Protection Authority’s (EPA) and the Ministry for Primary Industries’ capacity to reassess pesticides and other toxins.  The Agricultural Compounds and… ...
    GreensBy Steffan Browning
    6 hours ago
  • Steffan Browning: Pesticide reduction and Organic Growth Strategy in Budget 2016
    Pesticide reduction The Budget is an opportunity for the Government to launch a pesticide reduction strategy that multiplies the Environmental Protection Authority’s (EPA) and the Ministry for Primary Industries’ capacity to reassess pesticides and other toxins.  The Agricultural Compounds and… ...
    GreensBy Steffan Browning
    6 hours ago
  • Minister won’t fess up on wrong figures
    The Minister of Health was caught out telling porkies in Parliament today when he was asked about the number of people getting access to mental health and addiction services, says Labour’s Health spokesperson Annette King. ...
    1 day ago
  • Budget 2016 and our LGBTQI communities
    LGBTI people make up about a tenth of our population, and our communities face a unique set of needs and challenges. These challenges are caused or exacerbated by discrimination, invisibility and barriers to appropriate support. We have a long way… ...
    GreensBy Jan Logie
    1 day ago
  • Budget 2016 and our LGBTQI communities
    LGBTI people make up about a tenth of our population, and our communities face a unique set of needs and challenges. These challenges are caused or exacerbated by discrimination, invisibility and barriers to appropriate support. We have a long way… ...
    GreensBy Jan Logie
    1 day ago
  • Scrambled announcement policy on the hoof
    Paula Bennett’s scrambled desperate announcement that she will pay homeless people to move to the regions is just the latest evidence of the disarray this Government’s housing policy is in, Leader of the Opposition Andrew Little says. “This is policy… ...
    1 day ago
  • Police Minister admits resolution rates fall short of expectation
    Police Minister Judith Collins has admitted in Parliament current burglary resolution rates are not meeting the expectations of our communities, says Labour’s Police spokesman Stuart Nash “Out of 284 police stations in New Zealand in 2015, 24 stations recorded zero… ...
    1 day ago
  • Mojo Mathers: A better deal for animals in Budget 2016
    Currently we are failing animals in NZ. On the face of it farmed and domestic animals in this country have strong legal protection from abuse, cruelty and neglect. In reality it seems that only the very worst, most extreme cases… ...
    GreensBy Mojo Mathers
    1 day ago
  • Metiria Turei: What we need from Budget 2016
    Every family deserves a warm decent home.  Everyone believes that. This housing crisis is just the latest consequence of a Government who puts the interests of the few wealthy people above the needs of NZ families.  Families are doing it… ...
    GreensBy Metiria Turei
    1 day ago
  • Dairy exports fall of 11%: Budget action on diversification needed
    Dairy exports have fallen 11 per cent compared to this time last year, a fall of almost $1.5b, showing the Government must take clear action on diversifying the economy in tomorrow’s Budget, says Labour’s Trade and Export Growth spokesperson David… ...
    1 day ago
  • Investors driving families out of homes in South and West Auckland
    Investors cashing in on skyrocketing Auckland house prices are driving families out of homes in South and West Auckland and causing homeownership rates in some of our poorest suburbs to plummet, Labour’s Housing spokesperson Phil Twyford says. “New analysis shows… ...
    1 day ago
  • Budget must deliver on paid parental leave
    Budget 2016 must deliver 26 weeks paid parental leave by April 2018 – anything less will be short-changing families, says Labour MP Sue Moroney. “My Bill which is before Parliament this afternoon has majority support and does just that. I… ...
    1 day ago
  • Key’s “brain fart” on tax cuts news to English
    John Key didn’t tell his own Finance Minister he was about to go on radio and announce he wanted $3b of tax cuts, just days after Bill English ruled them out, says Labour’s Finance spokesperson Grant Robertson. “In Parliament today… ...
    2 days ago
  • What I’m looking for in Budget 2016 – A better start for our tamariki
    Ensuring the best start for our tamariki is a priority for me in everything I do. And so in Budget 2016, my first budget as an MP, I looking for the Government to make a real investment in the wellbeing… ...
    GreensBy Marama Davidson
    2 days ago
  • What I’m looking for in Budget 2016 – A better start for our tamariki
    Ensuring the best start for our tamariki is a priority for me in everything I do. And so in Budget 2016, my first budget as an MP, I looking for the Government to make a real investment in the wellbeing… ...
    GreensBy Marama Davidson
    2 days ago
  • Denise Roche: What I’m looking for in Budget 2016 Pt II
    Aotearoa’s new New Zealanders,  come to our country in vulnerable position: – often away from the culture, communities and families they know, sometimes in neighbourhoods without familiar faces and often encountering barriers to employment. With net migration at 50,000+ a… ...
    GreensBy Denise Roche
    2 days ago
  • Equal Pay and Budget 2016
    The last few years we’ve seen equal pay for women flagged as an undefined risk in the budget. This year we should expect to see this, as well as budgeted money to deliver equal pay to caregivers and funding for,… ...
    GreensBy Jan Logie
    2 days ago
  • Equal Pay and Budget 2016
    The last few years we’ve seen equal pay for women flagged as an undefined risk in the budget. This year we should expect to see this, as well as budgeted money to deliver equal pay to caregivers and funding for,… ...
    GreensBy Jan Logie
    2 days ago
  • A great Budget would
    A great Budget would embrace the challenge of our polluted rivers and move the money away from justifying the status quo water rules into cleaning up waterways. A great Budget would take the Ministry for the Environment freshwater budget and… ...
    GreensBy Catherine Delahunty
    2 days ago
  • Budget building materials policy backfires
    On the eve of this year’s Budget official figures show Nick Smith’s Budget 2014 centrepiece to reduce the cost of building materials has backfired, says Labour’s Housing spokesperson Phil Twyford. “Ministry of Business, Innovation and Employment officials have spent the… ...
    2 days ago
  • Smarter, Better, Cleaner, Stronger
    This Thursday Bill English will deliver his eighth Budget. Will it continue the trend of previous National budgets, making tertiary education less affordable, putting only token funds into innovation, and subsidising polluters? Budgets aren’t what they used to be. Once… ...
    GreensBy Gareth Hughes
    2 days ago
  • Govt must come clean on tax cuts in Budget
    National is making a mockery of the Budget process by dangling the promise of tax cuts but failing to include them in the Budget, says Labour’s Finance spokesperson Grant Robertson. “National’s tax cut promises have turned into a farce. One… ...
    3 days ago
  • Grant Robertson Pre-Budget Speech
    Today I want to talk about success. As we know success can come in many different forms, from the fact you all made it here at such an early hour on a Monday, for which I am very grateful, to… ...
    3 days ago
  • Budget must deliver for middle New Zealand
    The Government must ensure next week’s Budget stops the squeeze on middle New Zealand and delivers shared prosperity for all New Zealanders, Leader of the Opposition Andrew Little says. The call follows new research commissioned by Labour that shows working… ...
    4 days ago
  • Our housing emergency – why we have to act
    Marama and Metiria at Homes Not Cars launch On Thursday, Metiria Turei announced the Green Party’s plan to start addressing the emergency housing crisis facing our country. Too many people are without homes right now – homeless. It is the… ...
    GreensBy Marama Davidson
    5 days ago
  • Will funding boost for sexual violence services go to the right places?
    This week the Government announced $46million for sexual violence services. This announcement was a result of decades of work by advocates and everyone who submitted to the Select Committee inquiry into funding for sexual violence services that I initiated with… ...
    GreensBy Jan Logie
    6 days ago
  • Will funding boost for sexual violence services go to the right places?
    This week the Government announced $46million for sexual violence services. This announcement was a result of decades of work by advocates and everyone who submitted to the Select Committee inquiry into funding for sexual violence services that I initiated with… ...
    GreensBy Jan Logie
    6 days ago
  • Denise Roche – What I’m looking for in this year’s Budget
    Two of the things I’ll be looking for in the Budget next week are more funding for refugees and for our arts and culture sector. More funding for refugees I’m a strong supporter of the #DoubleTheQuota campaign and its goals… ...
    GreensBy Denise Roche
    6 days ago
  • Denise Roche – What I’m looking for in this year’s Budget
    Two of the things I’ll be looking for in the Budget next week are more funding for refugees and for our arts and culture sector. More funding for refugees I’m a strong supporter of the #DoubleTheQuota campaign and its goals… ...
    GreensBy Denise Roche
    6 days ago
  • Car rego victims must get a refund
    Motorists who have been overcharged for their car registration should get a refund, says Labour’s Transport spokesperson Sue Moroney.  “Minister Nikki Kaye’s ‘faulty risk’ rating scheme has blown up in her face with over 170 different models of car having… ...
    6 days ago
  • Council statement shows they just don’t get it
    The Auckland Council’s statement today shows they don’t understand the problems created by the urban growth boundary, says Labour’s housing spokesperson Phil Twyford.  “I have been the first to defend the Auckland City Council when Bill English has been blaming… ...
    6 days ago
  • Inspecting electronic devices a potential privacy threat
    Labour is expressing concern for New Zealanders’ privacy rights as the Government signals Customs will have the power to inspect electronic devices coming across the border, says Labour’s Customs Spokesperson Rino Tirikatene. “We agree that customs officers should have the… ...
    6 days ago
  • The Price of Water
    This week I hosted a public meeting at EIT in Hawkes Bay to discuss how we might put a price on the commercial use of water, so that water may be valued and treated more sustainably. I invited a… ...
    GreensBy Catherine Delahunty
    6 days ago
  • Caption It NZ!
    Today I received a petition from the NZ Captioning Working Group urging the government to legislate for accessibility via closed captioning for deaf and hard of hearing New Zealanders. It was timely because today is the fifth Global Accessibility Awareness… ...
    GreensBy Mojo Mathers
    1 week ago
  • Older Kiwis to miss out on electives
    The Government is not doing enough elective surgery to keep up with New Zealand’s ageing population, says Labour’s Health spokesperson Annette King.  “It’s damning that the targeted national intervention rate for cataract and knee and hip surgery is the same… ...
    1 week ago
  • Most principals say their college is underfunded
    The Government must substantially increase funding for secondary schools in next week’s Budget after a new survey found 86 per cent of principals consider their college under-resourced, Labour’s Education spokesperson Chris Hipkins says. “Just 14 per cent of secondary principals… ...
    1 week ago
  • Bill English and Nick Smith on different pages
    The Government’s support for Labour’s policy to remove the Auckland urban growth boundary is good news, but National needs to clarify its position, Labour’s Housing and Auckland Issues spokesperson Phil Twyford says. “The Acting Prime Minister has acknowledged our position… ...
    1 week ago
  • Bill English and Nick Smith on different pages
    The Government’s support for Labour’s policy to remove the Auckland urban growth boundary is good news, but National needs to clarify its position, Labour’s Housing and Auckland Issues spokesperson Phil Twyford says. “The Acting Prime Minister has acknowledged our position… ...
    1 week ago
  • Labour calls for independent inquiry into illegal fish dumping
    The Labour Party is reiterating its call for an independent inquiry into New Zealand’s fishing industry after two reports revealed the Ministry for Primary Industries turned a blind eye to widespread fish dumping in New Zealand waters, says Labour’s Fisheries… ...
    1 week ago
  • Mt Karangahake and Newcrest Mining
    On Wednesday and Sunday of last week the local residents of the Karangahake mountain in the Karangahake gorge of Hauraki/Coromandel peacefully protested against a gold mining drill rig on private land adjacent to the DOC land. The drilling rig was… ...
    GreensBy Catherine Delahunty
    1 week ago
  • Robbing Aucklanders to pay Rio Tinto
    New Zealand’s national electricity grid stretches the length of the country and contains some 11,803 kilometres of high-voltage lines and 178 substations. It wouldn’t make sense for competing power companies to duplicate and build their own expensive electricity transmission system… ...
    GreensBy Gareth Hughes
    1 week ago
  • Government should abolish Auckland urban growth boundary
    The Government should rule out any possibility of an urban growth boundary in Auckland Council’s Unitary Plan if it is serious about fixing the housing crisis, says Labour’s Housing spokesperson Phil Twyford. “Over 25 years the urban growth boundary hasn’t… ...
    1 week ago
  • Kiwis don’t want iPads for Land deals
     It is outrageous that schools are relying on money and iPads from foreign land investors to meet the learning needs of their students, says Labour’s Education spokesperson Chris Hipkins.  “Several OIO land applications by offshore investors have claimed that without… ...
    1 week ago
  • Homelessness – National has failed all of us
    A young South Auckland Māori woman recently tried to get hold of me around midnight. I missed her call. The woman wanted me to know the sharp reality facing too many families looking for a stable place to live. Things… ...
    GreensBy Marama Davidson
    1 week ago
  • Moko case should never have been manslaughter deal
    Confirmation again yesterday that the manslaughter charge in the Moko Rangitoheriri case was a deal done by the Crown Prosecution Service is justifiably the cause of outrage, says Labour’s Children’s spokesperson Jacinda Ardern.“This should never have been a case where… ...
    1 week ago

Public service advertisements by The Standard

Current CO2 level in the atmosphere