Expansionary austerity – fail

Written By: - Date published: 9:00 am, April 21st, 2011 - 32 comments
Categories: economy, Keynes, monetary policy, national - Tags: ,

Expansionary austerity is the idea that cutbacks in government spending can stimulate economic growth. Sounds weird doesn’t it, but here’s the theory as argued by Britain’s current Chancellor of the Exchequer:

Osborne insists that Britain will enjoy what he calls “expansionary austerity”, because the knowledge that the government is getting to grips with the public finances will engender confidence and encourage private spending to replace the cuts in public spending.

This theory relies on a tighter fiscal policy (tax increases and spending cuts) allowing monetary policy (interest rates and the exchange rate) to remain loose. Cheap borrowing costs lead to higher investment, while the low pound stimulates exports. This, in turn, leads to a rebalancing of the economy.

The trouble with this theory is that it’s bollocks. Paul Krugman sums up:

The Stubborn Myth of Expansionary Contraction

Mike Konczal, a fellow at the Roosevelt Institute, has been writing lately in his economics blog, Rortybomb, about American conservatives’ continuing insistence that slashing government spending is actually expansionary, as embodied in a recent report from Republicans on the Joint Economic Committee.

As he says, it’s a remarkable thing: the empirical case for expansionary austerity has collapsed on examination, but the doctrine lives on regardless.

One thing Mike fails to note is that another recent paper on deficit reduction from the American Enterprise Institute, which is cited by that J.E.C. study in a way that might make you think that it supports the case for expansionary austerity, actually never provides any evidence to that effect; … It’s notable that the J.E.C. report also blithely cites Canada and Sweden in the 1990s as demonstrations of its case, even though both have in fact been extensively debunked. …

I have to say, it’s remarkable how quickly expansionary austerity has gone from interesting speculation to zombie idea, repeatedly killed by evidence but still shambling toward us, trying to eat our brains.

So the empirical evidence (see Konczal’s work here) doesn’t support the theory. But in Britain the Tories charged ahead with it anyway, slashing spending left right and centre. How’s that working out for them?

Is Osborne fit to run the economy – or to ruin it?

George Osborne is expecting ‘expansionary austerity’ to save the UK economy – which means things are going to get a whole lot worse for ordinary households

… This government has now been in power for almost a year and here’s a check list of their achievements so far. Unemployment, going down a year ago, is now going up. Real incomes fell last year for the first time since 1981 and are on course to fall again this year. Consumer confidence has slumped to levels seen in the depths of the recession. High street retailers are sending out profit warnings. And, to cap it all, the government has been forced to revise up its forecasts for the budget deficit.

… The empirical case against expansionary austerity is that it doesn’t seem to be working in Britain (or in any of the struggling eurozone countries), whereas good old fashioned fiscal expansion does seem to be doing the trick in the US.

Despite two years when bank rate has been pegged at 0.5%, there is a marked reluctance to borrow. Mortgage demand is running at half the levels seen in the 10 years leading up to the financial crisis, and lending to businesses is not picking up.

… Where is the evidence of expansionary austerity? Not in the balance of payments figures, which are getting worse not better. Not in the high street, where consumers would need to see their incomes rise by 6% to compensate for the price increases and tax rises of the past year. And not in the business community, where investment fell in the final three months of last year.

Not so good in practice then. Keynes gets the last laugh.

Right, pop quiz time. Can anyone think of another government, not a million miles from here, that is pinning its hopes on expansionary austerity? Another government that is ignoring the theoretical counter arguments and all the empirical evidence? Another government that is run by Tory fools and getting the same results as the same policies in England? Another government that is seeing its economy flatline, growth stalled, unemployment rising, costs spiralling out of control? Anyone? Anyone?

Makes you wonder doesn’t it. Just how stupid would we be to give these failed policies another term…

32 comments on “Expansionary austerity – fail ”

  • Comments are now closed

  1. mikesh 1
    21 April 2011 at 9:17 am

    “Expansionary austerity” sounds like Orwellian newspeak.

  2. Peter 2
    21 April 2011 at 9:34 am

    Key is on record of justifying his policies in terms of the so called “crowding out” effect which implies less Government  making room for more Private Sector growth. This, I would suggest, is his economic plan despite the critics saying he has not got one. This appears to be his version of “expansionary austerity”.
    So it’s simple really, cut Government spending and such issues as employment will eventually address themselves as the Private sector takes up the slack. Don’t expect the ship to turn around quickly but it will happen, trust me!
    This is what wikipedia has to say about crowding out;
    “However, this crowding-out effect might be moderated by the fact that government spending sometimes expands the market for private-sector products through the multiplier and thus stimulates – or “crowds in” – fixed investment (via the “accelerator effect“). This accelerator effect is most important when business suffers from unused industrial capacity, i.e., during a serious recession or a depression.”
     
    I’m a layman so it would be interesting to read other perspectives from the wise.

    • Rex Widerstrom 2.1
      21 April 2011 at 1:07 pm

      Key is on record of justifying his policies in terms of the so called “crowding out” effect which implies less Government making room for more Private Sector growth.

      Good grief. Has some finance “journalist” asked him what is the specific sectors in which he believes government is supposedly “crowding out” the private sector, and what is his evidence for this?!

      In theory this can happen, but given the reforms since the 1980s I would think NZ is the last country in the entire world where this could be said to be occurring.

      • Colonial Viper 2.1.1
        21 April 2011 at 1:11 pm

        However, it may be too much to ask that our financial and economics “journalists” ask good questions of our leaders and demand real answers.
         
        The simple point is that the Government provides a lot of demand and a lot of sales orders for private business, and when Government stops spending, private businesses hurt and fail.

      • Peter 2.1.2
        21 April 2011 at 3:29 pm

        He said it, almost as a slip of the tongue, on Q&A a few weeks back. As far as I am aware it is his only reference to the philosophy behind cuts.

      • KJT 2.1.3
        21 April 2011 at 8:12 pm

        Yeah right.
        Doctors. Teachers, building regulators, power suppliers, state infrastructure, Police crowd out the private sector.

        No State has ever had an efficient and prosperous private sector without a fully functional State.

        The private sector alone results in Anarchy and poverty. Somalia.

        The highly regulated, and taxed, mixed economies of Western Europe have been the most successful States in History.

        The USA, Ireland, UK, NZ and other states that have followed the “free market’ Neo-Liberal Freidmanite dogma of meanness, globalisation of capital and theft from citizenry are fast heading for failure.

  3. Carol 3
    21 April 2011 at 9:41 am

    I’m not sure my point is relevant to this issue, but it seems so to me.  These right wing, neoliberal policies seem to me to be a justification for cutting back on the public sector, privatising all activities, whether useful to society or not, and delivering them to the international corporate elite and thereby expanding their profits.
     
    I don’t know a lot about economics, but ever since I first read some introduction to economic theory, I’ve never understood the logic of differentiating between “tradeable’ and non-tradeable” enterprises.  I hear the same arguments being repeated by politicicans like Bill English today.  So tradeable refers to anything that can be traded internationally, and non-tradeable to economic/financial actitivites that can’t be traded internationally.  But this just seems to me to be a cover for cutting back on the public sector.
     
    And I’ve never understood how having all countries trading stuff with each other, including stuff countries can produce for themselves, somehow magically makes us all more wealthy.  eg, why are we buying oranges from California, when we produce them ourselves & vice versa?

    • Draco T Bastard 3.1
      21 April 2011 at 12:16 pm

      And I’ve never understood how having all countries trading stuff with each other, including stuff countries can produce for themselves, somehow magically makes us all more wealthy.

      That load of bollocks comes from the idea of specialisation. A single person can’t learn everything and so it’s better if individuals specialise. Unfortunately, the stupid idiots (otherwise known as economists) have expanded the idea to include entire societies.

      • Carol 3.1.1
        21 April 2011 at 5:21 pm

        Thanks.  So I was correct to be suspicious.  This information was presented in a very introductory textbook, as though it was gospel. You’d think more economists would also have seen the problems with the concept.

        • Colonial Viper 3.1.1.1
          21 April 2011 at 5:32 pm

          Young economists got granted their PhDs extending worthless economic theory by impressing those established older PhD economists who had come up with the original worthless economic theory in the first place.
           
          It became an entire circular game. Not corrupt, but clearly pandering.

        • Draco T Bastard 3.1.1.2
          21 April 2011 at 5:32 pm

          This information was presented in a very introductory textbook, as though it was gospel.

          That’s because it’s treated as gospel by nearly every economist in the world. I’ve got university level textbooks, written by Ben Bernanke in fact, that treats it the exact same way.

          You’d think more economists would also have seen the problems with the concept.

          You’d think so but, then, we’re dealing with a field that started with a few assumptions a couple of centuries ago and those assumptions haven’t been changed in all that time despite the fact that documented reality has proven those assumptions wrong.

  4. Colonial Viper 4
    21 April 2011 at 9:45 am

    Well its time for the Left to reframe this as “Same old shit, different spin”
     
    People know this is a bunk, they have lived through cycles and cycles of this before.
     
    Tell them that China and Singapore are laughing at the west bleeding itself out economically (while they themselves invest billions back into their people and infrastructure), as if we are still in the 18th century of medicine with leeches and blood letting.
     
    Cameron/Osbourne, Key/English are the economic quack doctors of the western world.

  5. ASA 5
    21 April 2011 at 9:46 am

    Going by the repeated opinion poll results, it appears that NZers may indeed be that collectively stupid, unless something significant changes in the next 7 months. The bigger question would be to enquire why the NZ media isn’t producing economic analyses similar to the Guardian article. Wouldn’t be hard – just some some substitutions needed e.g. English for Osborne, New Zealand for Britain, National for Conservatives and so on. This would mean the article could just about be used as is, for the situation here is frighteningly similar. Then again, who do our media owe their loyalties to?

    • Bored 5.1
      21 April 2011 at 10:05 am

      ASA. I am not sure that NZers may indeed be that collectively stupid, it is more likely the old mushroom syndrome i.e kept in the dark and fed bullshit. By the very same media and corporate smokescreen you question the ownership of.

      My hope is that we as a society have a Damascene moment of clarity, the events that are likely to bring this on are “peak bloody everything”. This will be the moment when we realise that what we have aspired to, what we have believed to be true has been an edifice of contrived bullshit. In between times we will aspire, and as a consequence be robbed blind by those who have.

    • Peter 5.2
      21 April 2011 at 10:09 am

      True,  there is plenty of stuff out there (http://www.bryangould.net/id150.html) but the more I get into this the more I realise that our main newspaper is by and large running agendas ( a bit like FOX News). Far easier to divert attention with Polls, Stop Signs and helicopter discussions …… maybe SST will do something.
      As always the vast majority of voters are not interested, so it gets back to packaging alternatives that they will act upon. Winston, as we know, is good at it. National as always effectively justify the status quo with Fear Uncertainty and Doubt. Labour? Greens?
       

  6. JJ 6
    21 April 2011 at 10:00 am

    Yeah man, that trickle down effect, just flies in the face of human nature. But then again so does the idea of socialist utopia, we all know what a hell on earth those ideas created.
    What to do though? Seems to me the country (the whole world) is freaking broke. I guess somebody has all the money though!

    • Colonial Viper 6.1
      21 April 2011 at 10:50 am

      A socialist utopia is exactly what we should aim for JJ.
       
      And we know how to do it.
       
      Take a share of the money and assets from those who are most wealthy and use it to provide common services, support and facilities that everyone in the society can use.
       
      Then empower ordinary people to become decision makers and participants in the every day running of their workplaces, their communities, their cities.
       
      Pretty fraking easy really.

      But then again so does the idea of socialist utopia, we all know what a hell on earth those ideas created.

      What, as opposed to the tens of thousands of people dying in the richest country in the world every year because they can’t access healthcare? And the hundreds of thousands more who go broke and suffer family breakups because they can’t afford medical bills?

      What do you call that?

  7. Ben Clark 7
    21 April 2011 at 10:46 am

    Another great post r0b.
     
    Nail on head? Hit perfectly.

  8. Afewknowthetruth 8
    21 April 2011 at 11:00 am

    It’s all very simple. So simple most people refuse to see it and prefer to tie themselves up in knots of economic theory completely detached from reality. Economics, as practised in the modern world, has no validity whatsoever. It’s all bunk. Economics assumes cheap and readily available resources will appear as if by magic whenever needed. Economics never mentions the huge costs of global pollution. The real world is not like that. Sure, in the past there were cheap resources that could be readily obtained and the Earth did manage to recover from most of the crap we threw at it. But that game is now over, especially the cheap energy game.   

    One year ago Brent oil was around $80. Today it’s over $120.

    That 50% increase in the cost of the prime driver of the economy has led to a global economic squeeze. No amount of jigging with interest rates, tax rates or anything else will alter the fact that the global system is slowly imploding due to competition for declining resources.  

    By the way, just to get the big picture, a decade ago oil was around $20 a barrel. It’s now  6 times that.

    As global oil extraction falls further down Hubbert’s curve we will see ever faster contraction of most sectors of the economies of most nations. The price of oil will continue to rise and money will continue to devalue. At some stage in the fairly near future the entire system will go kaput……probably around 2015 the way things are panning out at the moment.

    The success of China is merely a facade. It is pulling in international dollars simply because the Yuan is so grossly undevalued and workers get such low wages by international standards.  China is dependent on ever increasing imports of energy and resources to maintian its bubble economy, and will fall just like the rest eventually.

    We should also note that most of the money in the system doesn’t exist and has been conjured out of thin air via loans. It’s all a Ponzi scheme. The value of money continues to fall. Gold has gone from below $750 five years ago to over $1500 now. China has been buying up gold of course, whereas the saboteurs who operate western governments have been selling it.

    The ultimate aim of the secretive elites who really running the show seems to be to create a feudal society in the west, a society in which proles are reduced to existence at the peasant level while a gang of elites lords it over them. John Key is just practising at the moment.

    What I find fascinating is tenacity with which people hang on to redundant paradigms and just keep churning out garbage analysis based on fantasies. There seems to be some kind of consensus amongst mainstream commentators that if we ignore the elephants in the room they won’t damage the furniture or knock the walls down.  

    • uke 8.1
      21 April 2011 at 2:01 pm

      What I find fascinating is tenacity with which people hang on to redundant paradigms and just keep churning out garbage analysis based on fantasies. There seems to be some kind of consensus amongst mainstream commentators that if we ignore the elephants in the room they won’t damage the furniture or knock the walls down.

      Possibly it’s because the idea of Growth and Progress are in effect reality principles wired into the Western mindset. They have an unshakeable existential and spiritual solidity. People cannot conceive of an economy without the goal of Growth, any more than they can conceive of Time running backwards.

  9. Uroskin 9
    21 April 2011 at 11:00 am

    “Trickle down economics” is PC speak for the rich pissing on the poor.

  10. PeteG 10
    21 April 2011 at 11:04 am

    This post takes a narrow view.
    Is there no such thing as wasteful or too much government spending? Why shouldn’t the major expansion of the public sevice and public spending under the last Labour government be scutinised for value for money?
     
    It’s just possible that the aim is to cut unecessary costs when there isn’t much money available.
     
    The “expand when the economy is good, expand when the economy is bad” approach is flawed. When should government spending increase – good times or bad?

    • Draco T Bastard 10.1
      21 April 2011 at 3:33 pm

      The economy cannot expand beyond the limits of the environment and government spending is, in a democracy such as ours, the spending of the people. Government is not divorced from its society – no matter how much you RWNJs want to portray it as such.

  11. Afewknowthetruth 11
    21 April 2011 at 11:43 am

    ‘Makes you wonder doesn’t it. Just how stupid would we be to give these failed policies another term…’

    Very true. The problem is, Labour is locked into the same kind of dysfucntional economic garbage as National, all of it predicated on economic growth that cannot occur and predicated on ignoring the environmental catastrophe that is gathering pace.   

    And Ben, when are you going to recognise that we are at ‘peak everything’ (as Bored has again pointed out) and start formulating policies that are appropriate to the times we live in? At the moment you seem to be avoiding reality like the plague! Or is your ‘plan’ to quietly drive NZ off the cliff slightly more slowly than National is currently doing?

    We are still waiting for answers.

    We’ve been wating for answers for many weeks.

    You can only keep hiding for so long.

    The truth is going to get you in the end.

    • Draco T Bastard 11.1
      21 April 2011 at 3:37 pm

      The problem is, Labour is locked into the same kind of dysfucntional economic garbage as National, all of it predicated on economic growth that cannot occur and predicated on ignoring the environmental catastrophe that is gathering pace.

      Exactly. A rational economy would look to minimising use of natural resources. The capitalist free-market economy works by using those resources up as fast as possible so as to maximise profits which results in everybody having nothing at all.
       
      The capitalist free-market is completely irrational but that shouldn’t be a surprise – it was, after all, designed by psychopaths (the capitalists).

  12. Peter 12
    21 April 2011 at 12:17 pm

    I don’t believe this post is a discussion about value for money, it’s actually about the best way forward, and the potential pitfalls of Key’s economic assumptions. Playing the private and public sectors off against each other does not do it for me, although it is clearly a vote catcher.
    The real question is how should both sectors work together because neither is going away? After all right now the Government is spending an awful lot of money on RWC. You could be cynical enough to believe they are using civil servants to help their election prospects, or more positively to boost the prospects of private sector exporters. Why is it that we don’t hear gratitude from the private sector for the support and business opportunities offered by the public sector?
    If you take Natonal’s narrative to the extreme you would easily believe that we would all be far better-off if the balance was something like Public (bad) 10% and Private (good) 90% of GDP. I’m sure there are people reading this who could provide you with international evidence that more Government would be an improvement. Besides if that’s where we are heading why haven’t the private sector provided the extra jobs required, plenty of people are waiting.
    But ,if you want to turn the discussion to so called efficiency! Why shouldn’t the private sector also be scrutinised for value for money? For example AMI insurance policies, shonky property development, collapsing finance companies, the  social cost of alcohol abuse unpaid for by “big beer”, the economic and social cost of high unemployment, the overseas sell-off of badly run NZ owned companies, virtual monopolies such as SKY, media company bailouts, the South Canterbury bailout, and if you like using airforce helicopters to dash-off to PR photo-opportunities.
    Without Nationals  convenient use of the public sector where would they and the private sector be right now?

    • Colonial Viper 12.1
      21 April 2011 at 1:13 pm

      Well let’s remember first principles here: the structure and running of the economy should primarily be for the good of the society.
       
      Not the other way around.

    • Draco T Bastard 12.2
      21 April 2011 at 3:45 pm

      Why shouldn’t the private sector also be scrutinised for value for money?

      Because then the delusion that the private sector is inherently more efficient than government would be shown for what it is – a delusion.

      Without Nationals  convenient use of the public sector where would they and the private sector be right now?

      Collapsing. That has always been true of conservative government though. As much as they rail against Big Government they’re usually the ones that use the government most. Usually in subsidies, bailouts and pork barrel politics.

      • KJT 12.2.1
        21 April 2011 at 8:27 pm

        An occasional left wing Government is a necessity, for Neo-Liberal types, to build things up so they can rob us again. As they are too incompetent to make their own businesses work they have to steal the public’s.
        Round one 1984 to 1990,s started it. The first ACT Government, then National. Now they are back for another go.
        I wonder which failed private businesses, which buy into necessary infrastructure, we will have to bail out or buy back this time.

Recent Comments

Recent Posts

  • $41m to support clean energy in South East Asia
    New Zealand is demonstrating its commitment to reducing global greenhouse emissions, and supporting clean energy transition in South East Asia, through a contribution of NZ$41 million (US$25 million) in climate finance to the Asian Development Bank (ADB)-led Energy Transition Mechanism (ETM). Prime Minister Christopher Luxon and Climate Change Minister Simon Watts announced ...
    BeehiveBy beehive.govt.nz
    2 hours ago

  • Minister releases Fast-track stakeholder list
    The Government is today releasing a list of organisations who received letters about the Fast-track applications process, says RMA Reform Minister Chris Bishop. “Recently Ministers and agencies have received a series of OIA requests for a list of organisations to whom I wrote with information on applying to have a ...
    BeehiveBy beehive.govt.nz
    4 hours ago

  • Judicial appointments announced
    Attorney-General Judith Collins today announced the appointment of Wellington Barrister David Jonathan Boldt as a Judge of the High Court, and the Honourable Justice Matthew Palmer as a Judge of the Court of Appeal. Justice Boldt graduated with an LLB from Victoria University of Wellington in 1990, and also holds ...
    BeehiveBy beehive.govt.nz
    4 hours ago

  • Education Minister heads to major teaching summit in Singapore
    Education Minister Erica Stanford will lead the New Zealand delegation at the 2024 International Summit on the Teaching Profession (ISTP) held in Singapore. The delegation includes representatives from the Post Primary Teachers’ Association (PPTA) Te Wehengarua and the New Zealand Educational Institute (NZEI) Te Riu Roa.  The summit is co-hosted ...
    BeehiveBy beehive.govt.nz
    5 hours ago

  • Value of stopbank project proven during cyclone
    A stopbank upgrade project in Tairawhiti partly funded by the Government has increased flood resilience for around 7000ha of residential and horticultural land so far, Regional Development Minister Shane Jones says. Mr Jones today attended a dawn service in Gisborne to mark the end of the first stage of the ...
    BeehiveBy beehive.govt.nz
    5 hours ago

  • Anzac commemorations, Türkiye relationship focus of visit
    Foreign Affairs Minister Winston Peters will represent the Government at Anzac Day commemorations on the Gallipoli Peninsula next week and engage with senior representatives of the Turkish government in Istanbul.    “The Gallipoli campaign is a defining event in our history. It will be a privilege to share the occasion ...
    BeehiveBy beehive.govt.nz
    6 hours ago

  • Minister to Europe for OECD meeting, Anzac Day
    Science, Innovation and Technology and Defence Minister Judith Collins will next week attend the OECD Science and Technology Ministerial conference in Paris and Anzac Day commemorations in Belgium. “Science, innovation and technology have a major role to play in rebuilding our economy and achieving better health, environmental and social outcomes ...
    BeehiveBy beehive.govt.nz
    8 hours ago

  • Comprehensive Partnership the goal for NZ and the Philippines
    Prime Minister Christopher Luxon held a bilateral meeting today with the President of the Philippines, Ferdinand Marcos Jr.  The Prime Minister was accompanied by MP Paulo Garcia, the first Filipino to be elected to a legislature outside the Philippines. During today’s meeting, Prime Minister Luxon and President Marcos Jr discussed opportunities to ...
    BeehiveBy beehive.govt.nz
    19 hours ago

  • Government commits $20m to Westport flood protection
    The Government has announced that $20 million in funding will be made available to Westport to fund much needed flood protection around the town. This measure will significantly improve the resilience of the community, says Local Government Minister Simeon Brown. “The Westport community has already been allocated almost $3 million ...
    BeehiveBy beehive.govt.nz
    1 day ago

  • Taupō takes pole position
    The Government is proud to support the first ever Repco Supercars Championship event in Taupō as up to 70,000 motorsport fans attend the Taupō International Motorsport Park this weekend, says Economic Development Minister Melissa Lee. “Anticipation for the ITM Taupō Super400 is huge, with tickets and accommodation selling out weeks ...
    BeehiveBy beehive.govt.nz
    1 day ago

  • Cost of living support for low-income homeowners
    Local Government Minister Simeon Brown has announced an increase to the Rates Rebate Scheme, putting money back into the pockets of low-income homeowners.  “The coalition Government is committed to bringing down the cost of living for New Zealanders. That includes targeted support for those Kiwis who are doing things tough, such ...
    BeehiveBy beehive.govt.nz
    1 day ago

  • Government backing mussel spat project
    The Coalition Government is investing in a project to boost survival rates of New Zealand mussels and grow the industry, Oceans and Fisheries Minister Shane Jones has announced. “This project seeks to increase the resilience of our mussels and significantly boost the sector’s productivity,” Mr Jones says. “The project - ...
    BeehiveBy beehive.govt.nz
    1 day ago

  • Government focused on getting people into work
    Benefit figures released today underscore the importance of the Government’s plan to rebuild the economy and have 50,000 fewer people on Jobseeker Support, Social Development and Employment Minister Louise Upston says. “Benefit numbers are still significantly higher than when National was last in government, when there was about 70,000 fewer ...
    BeehiveBy beehive.govt.nz
    1 day ago

  • Clean energy key driver to reducing emissions
    The Government’s commitment to doubling New Zealand’s renewable energy capacity is backed by new data showing that clean energy has helped the country reach its lowest annual gross emissions since 1999, Climate Change Minister Simon Watts says. New Zealand’s latest Greenhouse Gas Inventory (1990-2022) published today, shows gross emissions fell ...
    BeehiveBy beehive.govt.nz
    1 day ago

  • Earthquake-prone buildings review brought forward
    The Government is bringing the earthquake-prone building review forward, with work to start immediately, and extending the deadline for remediations by four years, Building and Construction Minister Chris Penk says. “Our Government is focused on rebuilding the economy. A key part of our plan is to cut red tape that ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Thailand and NZ to agree to Strategic Partnership
    Prime Minister Christopher Luxon and his Thai counterpart, Prime Minister Srettha Thavisin, have today agreed that New Zealand and the Kingdom of Thailand will upgrade the bilateral relationship to a Strategic Partnership by 2026. “New Zealand and Thailand have a lot to offer each other. We have a strong mutual desire to build ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Government consults on extending coastal permits for ports
    RMA Reform Minister Chris Bishop and Transport Minister Simeon Brown have today announced the Coalition Government’s intention to extend port coastal permits for a further 20 years, providing port operators with certainty to continue their operations. “The introduction of the Resource Management Act in 1991 required ports to obtain coastal ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Inflation coming down, but more work to do
    Today’s announcement that inflation is down to 4 per cent is encouraging news for Kiwis, but there is more work to be done - underlining the importance of the Government’s plan to get the economy back on track, acting Finance Minister Chris Bishop says. “Inflation is now at 4 per ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • School attendance restored as a priority in health advice
    Refreshed health guidance released today will help parents and schools make informed decisions about whether their child needs to be in school, addressing one of the key issues affecting school attendance, says Associate Education Minister David Seymour. In recent years, consistently across all school terms, short-term illness or medical reasons ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Unnecessary bureaucracy cut in oceans sector
    Oceans and Fisheries Minister Shane Jones is streamlining high-level oceans management while maintaining a focus on supporting the sector’s role in the export-led recovery of the economy. “I am working to realise the untapped potential of our fishing and aquaculture sector. To achieve that we need to be smarter with ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Patterson promoting NZ’s wool sector at International Congress
    Associate Agriculture Minister Mark Patterson is speaking at the International Wool Textile Organisation Congress in Adelaide, promoting New Zealand wool, and outlining the coalition Government’s support for the revitalisation the sector.    "New Zealand’s wool exports reached $400 million in the year to 30 June 2023, and the coalition Government ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • Removing red tape to help early learners thrive
    The Government is making legislative changes to make it easier for new early learning services to be established, and for existing services to operate, Associate Education Minister David Seymour says. The changes involve repealing the network approval provisions that apply when someone wants to establish a new early learning service, ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • RMA changes to cut coal mining consent red tape
    Changes to the Resource Management Act will align consenting for coal mining to other forms of mining to reduce barriers that are holding back economic development, Resources Minister Shane Jones says. “The inconsistent treatment of coal mining compared with other extractive activities is burdensome red tape that fails to acknowledge ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • McClay reaffirms strong NZ-China trade relationship
    Trade, Agriculture and Forestry Minister Todd McClay has concluded productive discussions with ministerial counterparts in Beijing today, in support of the New Zealand-China trade and economic relationship. “My meeting with Commerce Minister Wang Wentao reaffirmed the complementary nature of the bilateral trade relationship, with our Free Trade Agreement at its ...
    BeehiveBy beehive.govt.nz
    4 days ago

  • Prime Minister Luxon acknowledges legacy of Singapore Prime Minister Lee
    Prime Minister Christopher Luxon today paid tribute to Singapore’s outgoing Prime Minister Lee Hsien Loong.   Meeting in Singapore today immediately before Prime Minister Lee announced he was stepping down, Prime Minister Luxon warmly acknowledged his counterpart’s almost twenty years as leader, and the enduring legacy he has left for Singapore and South East ...
    BeehiveBy beehive.govt.nz
    4 days ago

  • PMs Luxon and Lee deepen Singapore-NZ ties
    Prime Minister Christopher Luxon held a bilateral meeting today with Singapore Prime Minister Lee Hsien Loong. While in Singapore as part of his visit to South East Asia this week, Prime Minister Luxon also met with Singapore President Tharman Shanmugaratnam and will meet with Deputy Prime Minister Lawrence Wong.  During today’s meeting, Prime Minister Luxon ...
    BeehiveBy beehive.govt.nz
    4 days ago

  • Antarctica New Zealand Board appointments
    Foreign Minister Winston Peters has made further appointments to the Board of Antarctica New Zealand as part of a continued effort to ensure the Scott Base Redevelopment project is delivered in a cost-effective and efficient manner.  The Minister has appointed Neville Harris as a new member of the Board. Mr ...
    BeehiveBy beehive.govt.nz
    4 days ago

  • Finance Minister travels to Washington DC
    Finance Minister Nicola Willis will travel to the United States on Tuesday to attend a meeting of the Five Finance Ministers group, with counterparts from Australia, the United States, Canada, and the United Kingdom.  “I am looking forward to meeting with our Five Finance partners on how we can work ...
    BeehiveBy beehive.govt.nz
    4 days ago

  • Pet bonds a win/win for renters and landlords
    The coalition Government has today announced purrfect and pawsitive changes to the Residential Tenancies Act to give tenants with pets greater choice when looking for a rental property, says Housing Minister Chris Bishop. “Pets are important members of many Kiwi families. It’s estimated that around 64 per cent of New ...
    BeehiveBy beehive.govt.nz
    4 days ago

  • Long Tunnel for SH1 Wellington being considered
    State Highway 1 (SH1) through Wellington City is heavily congested at peak times and while planning continues on the duplicate Mt Victoria Tunnel and Basin Reserve project, the Government has also asked NZ Transport Agency (NZTA) to consider and provide advice on a Long Tunnel option, Transport Minister Simeon Brown ...
    BeehiveBy beehive.govt.nz
    4 days ago

  • New Zealand condemns Iranian strikes
    Prime Minister Christopher Luxon and Foreign Minister Winston Peters have condemned Iran’s shocking and illegal strikes against Israel.    “These attacks are a major challenge to peace and stability in a region already under enormous pressure," Mr Luxon says.    "We are deeply concerned that miscalculation on any side could ...
    BeehiveBy beehive.govt.nz
    5 days ago

  • Huge interest in Government’s infrastructure plans
    Hundreds of people in little over a week have turned out in Northland to hear Regional Development Minister Shane Jones speak about plans for boosting the regional economy through infrastructure. About 200 people from the infrastructure and associated sectors attended an event headlined by Mr Jones in Whangarei today. Last ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • Health Minister thanks outgoing Health New Zealand Chair
    Health Minister Dr Shane Reti has today thanked outgoing Health New Zealand – Te Whatu Ora Chair Dame Karen Poutasi for her service on the Board.   “Dame Karen tendered her resignation as Chair and as a member of the Board today,” says Dr Reti.  “I have asked her to ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • Roads of National Significance planning underway
    The NZ Transport Agency (NZTA) has signalled their proposed delivery approach for the Government’s 15 Roads of National Significance (RoNS), with the release of the State Highway Investment Proposal (SHIP) today, Transport Minister Simeon Brown says.  “Boosting economic growth and productivity is a key part of the Government’s plan to ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • Navigating an unstable global environment
    New Zealand is renewing its connections with a world facing urgent challenges by pursuing an active, energetic foreign policy, Foreign Minister Winston Peters says.   “Our country faces the most unstable global environment in decades,” Mr Peters says at the conclusion of two weeks of engagements in Egypt, Europe and the United States.    “We cannot afford to sit back in splendid ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • NZ welcomes Australian Governor-General
    Prime Minister Christopher Luxon has announced the Australian Governor-General, His Excellency General The Honourable David Hurley and his wife Her Excellency Mrs Linda Hurley, will make a State visit to New Zealand from Tuesday 16 April to Thursday 18 April. The visit reciprocates the State visit of former Governor-General Dame Patsy Reddy ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • Pseudoephedrine back on shelves for Winter
    Associate Health Minister David Seymour has announced that Medsafe has approved 11 cold and flu medicines containing pseudoephedrine. Pharmaceutical suppliers have indicated they may be able to supply the first products in June. “This is much earlier than the original expectation of medicines being available by 2025. The Government recognised ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • NZ and the US: an ever closer partnership
    New Zealand and the United States have recommitted to their strategic partnership in Washington DC today, pledging to work ever more closely together in support of shared values and interests, Foreign Minister Winston Peters says.    “The strategic environment that New Zealand and the United States face is considerably more ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • Joint US and NZ declaration
    April 11, 2024 Joint Declaration by United States Secretary of State the Honorable Antony J. Blinken and New Zealand Minister of Foreign Affairs the Right Honourable Winston Peters We met today in Washington, D.C. to recommit to the historic partnership between our two countries and the principles that underpin it—rule ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • NZ and US to undertake further practical Pacific cooperation
    Foreign Minister Winston Peters has announced further New Zealand cooperation with the United States in the Pacific Islands region through $16.4 million in funding for initiatives in digital connectivity and oceans and fisheries research.   “New Zealand can achieve more in the Pacific if we work together more urgently and ...
    BeehiveBy beehive.govt.nz
    1 week ago

Page generated in The Standard by Wordpress at 2024-04-19T05:56:55+00:00