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Hyping doesn’t help the economy, work does

Written By: - Date published: 8:45 am, February 26th, 2014 - 65 comments
Categories: Economy - Tags:

At the end of last week Treasury announced that they were surprised by the lower than predicted tax take. I wasn’t, and I suspect that no-one who is involved in businesses would have been. I am anticipating quite a lot of faux surprise this year and next from the numbwits who have been hyping an illusory “recovery” when it doesn’t happen.

The Crown’s operating balance before gains and losses (obegal) was a deficit of $1.79 billion in the six months ended December 31, $380 million wider than forecast in its Dec. 17 half-year economic and fiscal update, and down from a shortfall of $3.19 billion a year earlier. Core tax revenue was $602 million below forecast at $29.18 billion.

“At this stage it is difficult to determine how much of the lower than forecast tax is temporary versus permanent, but we expect this to become clearer over the next few months,” the Treasury’s acting chief government accountant Fergus Welsh said in a statement.

The smaller tax take was across the board, with GST 2.3 per cent below forecast at $7.5 billion, source deductions for personal income tax 1.2 per cent below forecast at $11.71 billion, and total corporate tax 4.9 per cent below expectations at $3.56 billion.

Now that means that National’s long promised return to a government surplus is going to keep retreating over the horizon. But it is also a pretty good indicator about the real economy. While it could simply be delayed tax payments, it is probably more likely that it reflects the reality of businesses.

It is a small market, and the government simply isn’t providing an environment that fosters economic activity. There are few new jobs, there are few wage increases coming through, and generally business is tough. The lack of effective growth means that businesses are still folding, few new ones are being created (especially new export orientated ones) and the difference between optimistic Treasury forecasts and the reality of the tax take will continue.

Sure it is less tough than it was early last year. But last summer the farming sector was still in the grip of a rather nasty drought with the inevitable flow on effects to the rest of the country. While not as severe, it is still looks pretty damn dry out there this year. Also we didn’t have the much hyped and very belated trickle of rebuild money coming into Christchurch.

The same effect is showing up in other measures. Last year the reserve bank signalled that they were likely to push the baseline interest rate (OCR) from 2.5% to 2.75% to counter price inflation that was persistently above the centre line of their band at 2%. They based this on last years expected inflation expectations. Turns out as the Greens reported, that:-

The Reserve Bank released its March 2014 Survey of Inflation Expectations this afternoon which shows that inflation prospects remain stable at two percent – the mid-point of the Bank’s Policy Targets Agreement.

I completely agree with Russel Norman (and I have to say that I’m still a bit freaked out saying that about any Green economics statement) when he then says:

“We need smart policies to fix the causes of inflation, not the blunt tool of higher interest rates that hurts families and businesses.”

The last Consumer Price Index figures released by Statistics New Zealand show that inflation was 0.1% in the December quarter and 1.6% in the past year. Housing and electricity were significant contributors to the little inflation there was. The Reserve Bank has indicated it intends to raise interest rates this year.

“New Zealand families don’t deserve to be hit with higher mortgage rates when inflation is stable,” said Dr Norman.

“Raising the Official Cash Rate now would hurt the economy and hurt families with mortgages.

“We need smart policies to address inflation in the sectors where prices are rising too rapidly – the Auckland housing market and National’s broken electricity system.”

We have a stalled economy.  I see it in my area of interest with the complete lack of new startup export orientated tech businesses over the last 5 years. All the growth that our sector is doing is coming from businesses started when the government gave a damn about them before National cut down the policy garden that they started in.

Even if the government continues with it’s simple neglect of every export sector outside of farming, then it should at least fix the infrastructure factors that are pushing inflation – housing and electricity profit gouging. Instead they’re about to sell another electricity company, Genesis, to patch the hole in their tax take.

Sure businesses are getting excited about the short term benefits of the Christchurch rebuild, but the reality is that it just a one off. It is also likely to get in the way of Aucklands ever increasing deficit in affordable housing that the government has been avoiding addressing. Almost every housing initiative they have been involved in there involves very few affordable houses, and many of the large types of houses that return developers more money. Outside of Christchurch, companies intentions on hiring more staff are going down – not up.

But there are a no longer term plans for growth from this government. But we can expect more high quality hyping of retail sales like this from National’s media outlet. What is the bet that when the stats department releases actual numbers, that we’ll find the December quarter growth to be les sthan expectations.

65 comments on “Hyping doesn’t help the economy, work does”

  1. shorts 1

    hype and bluster is all this govt has…. leaving loads of room for the opposition to make some pre election hay

    We know the Greens and Labour have policies – now for both to convey that to the public in a positive and filled with hope manner – the average kiwi needs some hope… underscored with solid prospects

  2. Colonial Viper 2

    Apart from the right policy environment, Government has to spend into local communities and SMEs in order for the economic engine to fire. Exporting NZ tax payers dollars by awarding contract after contract overseas is part of what is killing the NZ economy.

    • Pasupial 2.1

      CV

      I don’t disagree, but SME is a truly awful TLA.

      “Government must invest in SME, so we can all reap the bounty of SMEG” would be a misguided, if accurate, slogan. Then we’d have to deal with press releases issuing from a Small & Medium Enterprise Growth Maximisation Association. Best avoided by sticking with Small & Medium Businesses as a tag.

  3. Saarbo 3

    I reckon that the larger than projected deficit is a sign that things are probably MUCH worse than suggested. Quietly bean counters tend to keep upsides hidden away in case of inaccurate projections, so Im guessing that in this case the mistake in the projection (over estimating the Tax take) was so large that it absorbed the upsides and then some (not that I ever did this when I was a bean counter :-)).

    Something has gone wrong and I will be very interested in the next Deficit announcement.

  4. Ant 4

    I’m unsurprised economists were wrong, for the plain old fact that they have things the wrong way round and try to make reality fit their models.

    The people who are winning are white collar home owners, but their consumption can’t prop up an economy on its own

  5. Ad 5

    Would be a little cosmically unfair if the Christchurch earthquakes’ insurance-based sugar-rush provided the economic growth impetus to win an entire election. It may.

    To counter this, Labour needs two stories to grow: firstly that economic growth must be for the many and not the few (if it is to be real for individuals, families and for the country), and secondly that inequality can break down for each person when they can see a ladder of success upwards and that only central government can make that ladder of success.

    I hope that is the challenge David Cunliffe is articulating. I will get pretty tired of Russell Norman saying that “we need policies…”. He needs to do his own job and convince the public of what those policies are.

    • Crunchtime 5.1

      I’ve come to the realisation that National must be hiring the all the marketing and PR people money can buy. Their words are always pitch-perfect – usually far from the truth, and often full of bullshit, but pitch-perfect. Labour’s and the Green’s words in response are usually a little weaker, and without knowing the truth of the matter National “seems” better, comes across better.

      In short, Labour needs better and quicker wordsmiths for every occasion. Every soundbite coming out of every Labour spokesperson needs to be turned up a notch or two to dominate this election. …same goes for the Greens.

  6. Crunchtime 6

    Weird – I just tried to share this to Google+ publicly – it would not share. I tried to paste the link and share it – it said “Your link was not shared, please try again”. I tried many times. Stupid G+.

    I was able to paste the URL and post but no preview.

    [lprent: Added to my longish list of things to test and fix. I have to confess that I have never tested the google+ mostly because I haven't really used it. ]

  7. captain hook 7

    the actual economy is too hard for the National Party. They are more interested in looting the treasury and finding sinecures for their mates than actually getting the country working again.

    • captain hook 7.1

      Imagine my surprise when I picked up the Dompost after writing the above and there was an item about one of their mates picking up a top job with a faked CV.
      Standing there with a big cheezy grin next to Murray McCully.
      hmmmmmmmmmm.

      • Tracey 7.1.1

        and michelle boag saying it was a minor matter, he just failed to put “incomplete” beside his law degree

        Lprent

        I have been waiting for some one in opposition to remind people that while the Pm crows about lowest interest rates… they are still high compared to everywhere else, hence the climbing dollar… and a RB raise will see this escalate.

        Aussie is a big market for NZ businesses and the dollar is hammering them.

        Th economy and its rockstarness is being perpetuated despite much of it being down to earthquake recovery. In fairness tot he Govt without the earthquake they would have had some money they otherwise had to put into CHCH BUT alot of the “boom” they now crow about is due to that same event.

        Despite being poo-pooed by many the recent warning of an economist to his clients about trouble ahead for NZ deserves more analysis than it is getting. Why? because the majority of economists have missed the last few major economic crises in recent history.

        Economist and public relations are the growth communicators of the neo lib movement. God help us all, you can barely move without falling over one or the other.

  8. Rob 8

    I’ll enter into this discussion in good faith and outlay our experiences of managing a medium sized manufacturing business in consumer durables through the GFC and now.

    Prior to GFC in 2008 we employed 217 souls nationwwide. From mid 2008, the GFC eneterd and as a result our revenues were in a consistant decline of 10 -15% PA until our bottom in Sept 2012. During this time the business went through a huge re-engineering and change . Staff dropped to a low of 98. We moved buildings , exited out leases, implemented new ERP with increased BI capability and a full CRM. We negotiated with suppliers on increased payment terms, indent raw material supply and other initatives. We opened new distribution, closed non performing distribution. We were forced to innovate and we developed more products and new services in 3 years than the business had done in the previous 10 years. In short , this business like many others around us worked incredibly hard to get through and it was full of sleepless nights, constant stress and health issues. Our peer group have all had similar circumstances. Dealings with the bank and taking on more debt and signing many PG’s was a sign of the times

    Where we now is that the business is up 22% on the year to date previous, last October we did starting wage salary increases of 4% . We will end this year with +10% NPAT, a massive improvement.

    My view and many others around is that this is a fastly growing economy and it is not hype.

    • Tracey 8.1

      Glad to hear it Rob.

      What is your debt level today compared to, say, 2007?

      • Rob 8.1.1

        Yep good question

        Debt has grown, so we have greater debt servicing charges. however due to our profitability now we are well under our banking covenant so we are able to negotiate better rates etc. But it will be a long road back for us. To be honest I think most banks did do a pretty good job of helping businesses through the GFC, if the business understood the level of change required in their businesses and were able to articulate a way forward in a strong business plan.

        Just on a side note I really enjoyed reading this and actuially had the full study sent to me. Being a manufacturer and fighting to keep manufacturing in NZ this did make me feel stronger.

        NZ Maufacturing Sector

        • Tracey 8.1.1.1

          Thanks Rob

          Is your debt double, triple that of 2007? You said you made some pretty big changes. Am thinking in manufacturing that would be expensive?

          Thanks for the link

          • Rob 8.1.1.1.1

            Yes, some big capital investments, new machinery, RF wireless bar coding that came from doing a “Lean” Six Sigma review. Thats the thing about running a manufacturing base is that it is hard, expensive and long and requires visible leadership and management

            The idea of being able to take a day to”work from home”, when you run shifts and millions of dollars of assets to keep opertaing doesn,t really happen in these types of businesses.

            Just on a side note, NZTE subsidised our “Lean” manufacturing programme and co-ordinated all the ‘tool box’ sessions and work shops on deconstructing our processes, then rebuilding them and time and effort balancing them. We gained a great deal from their input. I would recommend any manufacturing unit to look at using these guys.

            • Tracey 8.1.1.1.1.1

              So how much has your borrowing increased by Rob? Just percentages, I dont want you to risk any commercial sensitivity. It seems tome your debt will be pretty big? I know you are able to service it and give 4% wage increases, but am still interested.

            • Ad 8.1.1.1.1.2

              Be great to see Rob do his own post.

              Sounds like a hard, dedicated, rewarding life.

              Great lessons for a progressive gov’t there that need unpacking further.

              • Rob

                Thank you very much Ad. I am not sure I could be as articulate and entertaining as your regular posters.

                • JK

                  Rob – you didn’t say how many your firm now employs. What’s that figure ?

                • RedLogix

                  Your comments Rob reminded me of something I’ve often said before – that SME business owners are emphatically not the problem. For instance:

                  I too am pretty close to a company very similar to the one you describe. Your typical SME owner is a very courageous and decent individual who works very hard in his business, and is very, very loyal to good staff… who are often more like family than employees. This downturn will hit these good folk harder than anyone else.

                  But as much as these people are nominally business owners, I wonder if they are really capitalists? Sure they may well be owners of the means of production, but the reality is that they are also workers in their business, equally as much as their employees. The capital they have invested is often a secondary consideration to the fact that the business only exists because of their skill, knowledge and the enormous commitment of time and energy they put into it.

                  The real capitalist is a rather more removed creature, someone whose participation in the productive process is one almost entirely of a monetary/predatory nature.

                  http://thestandard.org.nz/es-ist-mein-teil/#comment-116426

                  Any real economy has three principal actors; workers, business owners and various forms of financiers, bankers, speculators and sundry corporate spivs. Its this latter class of parasites who attract most of the angst around here.

                  While there is always a natural tension between employers and employees much of that has been moderated in recent decades with the rise of the skilled knowledge worker whose become an important part of the business.

                  This merging and blurring of the old distinction between employer and employee means that almost no-one really thinks of themselves as ‘working class’ in the old economic sense of the word. (Sure there are plenty of people who don’t identify with the habits and customs of the middle class – but they’re more likely to call themselves bogans, or goths, or Gen-Y – anything but working class.)

                  But while no-one was watching our real owners, that class of hyper-wealthy who control more wealth than the bottom 3.5 BILLION humans – were fighting a stealth class war behind our collective backs. And won comprehensively.

        • KJT 8.1.1.2

          I found it rather depressing actually.

          The report says our level of manufacturing is comparable to countries, which, like us, have decimated their manufacturing base in fits of idealogical madness. UK, Ireland, Greece, UK

          The lack of skilled workers is an own goal by employers, who do not want to pay the price of training and paying them, nor pay the taxes required for the State to do it…

          The perennial complaints about not being able to get skilled workers.
          Expecting the lack to be supplied by Government or immigration.
          Well. Employers supported reducing taxes, so the Government has no money to train workers.
          And, expecting skilled workers to pay for their own training and, then, work for the low wages on offer………..
          That is why we are all working in Australia, Asia or Saudi Arabia.

          Then there is the unsaid problems, of over-hyped exchange rates and costs of borrowing, due to the insanity of the reserve bank act.

          • Rob 8.1.1.2.1

            Oh well KJT that is your view, I did see it differently as actually being part of the sector.

            I assure you that a lack of skilled workers is certainly not a goal of ours , nor any business i am aware of and if you really think about it , its not a method to build a sustainable and strong business.

            I think the call is ” what happens if you train people and they leave , or, what happens if you dont train people and they stay” . A business is reliant on people, processes and technology. Under investement in any of these three leads to poor performance.

            • Ennui 8.1.1.2.1.1

              Rob, you did not mention the pace of change and the increasing specialization that takes time and effort to learn / train. We constantly face that issue, I am sure you do as well. We bite the bullet and do it, yes we may lose people. I think that retaining staff comes down more to being a good employer and creating a good atmosphere / environment.

              • Rob

                Yes, one of the big requiremenst in specialisation and increased skill sets actually came from putting in the new ERP. It completely changed the way all aspects of our business was run and enabled simple and complex changes.

                For example at the simple change end before ERP we would be mailing out 2,000 statements per month, now we have a bulk email generator, obviuolsy savings in terms of postage and envelopes has been considerable, but we have had to train internal skills to be able to manage CRM systems and be able to generate our own reporting systems to so these seamingly simple tasks.. Order confirmation is now emailed.

                The more complex changes were in regards to runing Kan Ban “lean” inventory systems and this has required a huge change in working practices and systems.

                What I dont get is that there is this idea that manufacturers want to chuck skilled staff out for untrained staff to save a few dollars per hour. Once you have invested and implemented these changes and skills then you would be an absolute moron to just chuck skilled staff (even if you could) because it could save a few dollars less per hour. I just cant believe that businesses could do that and still be in business.

                I would like to think we have a good working environement with stable staff. However I am a realist as well.

                • KJT

                  “I just cant believe that businesses could do that and still be in business”.

                  Seen it happen often.

                  I was one, at one stage. They kept the people that were costing them several million a year, and chucked anyone who could show the managers up..

                  Many businesses do. Usually so they can pay a useless administrator more 100’s of k. Which is one of the reasons I think, so many New Zealand businesses are finding it hard to compete.

                • Ennui

                  Rob, which ERP / CRM package are you using (just curious as we are currently reviewing our CRM)?

                  Also you are so right about the foolishness of chucking out trained staff. That ignores the amount of cultural fit, company / workplace intellectual property embedded in these employees and resultant effectiveness. Then there is the cost and time frames around rehiring, training etc…the lower wages have to be extremely significant (and market warping) to justify such a move.

                  • Rob

                    We assessed SAP One, Infor and Microsoft AX (eventually went with AX) and bolted on their Dynamics CRM and BI Module.

            • KJT 8.1.1.2.1.2

              What makes you think I wasn’t in the sector?

              Gave up when National got in and made all my local customers too poor.
              A wise decision, as it turned out.

              I Agree with you. Which is why I am puzzled why so many new Zealand employers treat good staff like crap, and refuse to invest in people expecting the Government, or their employees, to do it. A vote for “big Government” I suppose.

              Or worse, bleat to the immigration department.

              Though I will admit it is not all employers, just too many of them.

              • Rob

                If you havn’t been in manufacturing for a while then I tell you business is very different that what is was even 5 years ago. Maybe it is time for you to have an honest look and you may be suprised by what you see.

                • KJT

                  I am not aware of what is happening in your industry necessarily.

                  However I do keep in touch with various people in the ones I was involved in.
                  Still do some subbing occasionally..

                  Another one, Fitzroy Yachts, has just hit the wall. So from where I sit, things look far from rosy with export manufacturing.

          • Saarbo 8.1.1.2.2

            “The lack of skilled workers is an own goal by employers, who do not want to pay the price of training and paying them, nor pay the taxes required for the State to do it…”

            Agree with this 100%

    • Ennui 8.2

      Great result Rob. My companies don’t manufacture but we do add value by way of developing IP and deploying systems to improve other companies process etc. Our experience was subtly different, but we had to basically change the way we operated (processes, deliverables etc) to maintain margins. I am really interested in your comments below re Lean Sigma Six and NZTE help, will definitely follow up on that.

      The Personal Guarantee thing from the banks…dont get me started. The bit which annoys me most is the way they expect to be bailed out by the taxpayer, plus hand off all risk. The charges also increase to reflect this when in reality the bastards carry no risk.

      On the debt loading, we don’t carry debt, there was years back a deliberate move by us to avoid overdraft..(because of the lovely personal guarantees) what it means is that we have some very scary cash flow patches that are highly stressful. What we have struggled to do is to keep the fixed costs (salaries etc) down as a decreasing proportion of revenue…if anything it goes in line or increases….which is why we need to constantly rejig the processes etc to drive more efficiency.

      Yes it is tough out there, which is why on this blog I criticise those who seem to think the money grows on trees and can just be spent into existence, or taxed out of companies to pay for whatever they wish to be funded.

      • KJT 8.2.1

        Like the businesspeople who expect State support, infrastructure and educated employees, yet demand ever decreasing tax rates.

        • Ennui 8.2.1.1

          Don’t get me started down that track either: Cant think of a single bit of state support we receive (or for that matter really need). Infrastructure and educated employees….fekk what we get in the way of both of those is becoming increasingly substandard. Good thing is we have got it into our directors heads that it is good for us to train and develop talent.

          On that note we have hired young people with aptitude and attitude who don’t have tertiary qualifications: a degree comes with an expectation that is rarely realistic and the debt impoverishes the holder. Better no debt and real world development whilst earning cash. I wish to hell other employers would do the same, give young people an career entry without a debt.

          • Draco T Bastard 8.2.1.1.1

            Infrastructure and educated employees….fekk what we get in the way of both of those is becoming increasingly substandard.

            The inevitable consequences of cutting taxes on the rich and pushing productivity in education.

            On that note we have hired young people with aptitude and attitude who don’t have tertiary qualifications: a degree comes with an expectation that is rarely realistic and the debt impoverishes the holder.

            That’s something that I agree with.

          • KJT 8.2.1.1.2

            Certainly agree with you there.

            My best apprentice was a retired housebreaker. Very useful when someone forgot to leave the key out. :-)

            I still prefer those I can train myself, before they learn bad habits. Or get their heads filled with theory, overconfidence and BS at a tertiary institution.

      • Rob 8.2.2

        Good on you Ennui. Really agree on your PG issue with banks.

        I am very impressed at how you obviusoly manage working capital to be able to run a business without even a basic overdraft.

        Your last comment is on the money. Non producers that have no regard for how jobs, incomes and communities are actually created, have an innate ability to over spend and over commit as they do not care where it has come from. There does need to be more accountability on how tax payers contributions are distributed.

        I had a converstaion on Friday with a guy from Auckland Transport and he was laughing at how the office on a Friday is cleaned by 4:00pm and in fact at 3:00pm people are “still” rolling out the drinks trolley. This is what creates anger from producers around lazy, fat and soft civil servants and their operations.

        • greywarbler 8.2.2.1

          Rob
          And I have a laugh at the way that some employers will embroider their stories and then it becomes an anecdote, based very loosely on fact, which becomes airier and fairier each time it is repeated. By the end the workers have caused the employer an ulcer, and his family is breaking up and he has to sell his boat to avoid his house being foreclosed on – all because they won’t work hard enough and want to have a cup of tea in the afternoons as well as half an hour for lunch, sitting down at Their Leisure, or talking on the phone doing their own business. On the premises!!

          and Ennui
          I think the money grows on trees thing that I have read, is that the government can create money to fund infrastructure, instead of borrowing it overseas it borrows it within NZ’s financial system, and then applies it to the needed infrastructure that may not be earning any income but forms the basis of other revenue-earning businesses to utilise the advantages at no or low cost.

          I thought that was the idea. And the money would not be inflationary, although there would be a rise in the amount of money in circulation from net wages.

          • Ennui 8.2.2.1.1

            Grey, raising cash by fractional banking practices, even by national treasuries works on the basis of generating tomorrow sufficient from the investment to pay off yesterdays debt. That works well in a growth economy. What happens however if we decline or stay in stasis? I don’t favour it any longer because i believe we have reached the end of growth due to energy and resource constraints. I think fractional activities incredibly imprudent.

            • KJT 8.2.2.1.1.1

              Generating enough to simply pay off the debt amount in future, should be fine so long as the spending is sensible. Such as spending on poverty reduction, export substitution and sustainable energy.
              Spending which reduces our costs in future.

              What we cannot do is add interest.

              Even in my teens, when I was told about the “magic of compound interest”. I thought here is something which cannot be sustained.
              The wonder is that it has carried on for so long.

              Though you could argue that the frequent system crashes, (GFC’s) are part of the self correction. Inflation used to be, until it was artificially restricted.

              Compounding interest, of course, is an exponential function.
              Like all exponential rises it looks like a hockey stick, tending, eventually towards infinity.

              For everyone to get their “magical compound interest” on their investments the money supply has to expand at an exponential rate.
              Which is fine so long as, inflation equals the interest rates, (Your savings are worth the same amount of goods and services on realisation, as they did when you put them in the bank) or no-one expects to spend the increase in money supply on real goods and services.

              Infinite growth, which is a requirement for our present economic system to function, is not possible in a finite world.

              Something even the Greens find hard to grasp.

              • Draco T Bastard

                Though you could argue that the frequent system crashes, (GFC’s) are part of the self correction. Inflation used to be, until it was artificially restricted.

                Actually, inflation pretty much didn’t exist until the private banks got seriously into creating money ex nihilo over the last couple of centuries.

                For everyone to get their “magical compound interest” on their investments the money supply has to expand at an exponential rate.
                Which is fine so long as, inflation equals the interest rates,

                Nope, not even then. Because of the way that capitalism channels the bulk of the money to the few those few will have more return from interest than inflation is eating away at their accumulated money. Those few want to keep it that way which is why they pushed governments to restrict inflation. It’s interesting to note that the way that was chosen to restrict inflation also gives higher returns to money and, as we’ve seen, doesn’t really limit inflation in critical things such as housing.

                Infinite growth, which is a requirement for our present economic system to function, is not possible in a finite world.

                Something even the Greens find hard to grasp.

                Actually, they’ve known that since the 1970s and the first publishing of Limits to Growth. The problem is that the rest of the population, especially the RWNJs, don’t want to believe it.

          • Rob 8.2.2.1.2

            Yep Grey , there are certainly many winging business owners out there that are pretty good at blaming all their issues on poor staff, poor tools, poor circumstances etc. All they end up doing is putting there own capital at risk and the livelyhoods of their staff.

            The key difference I think simply between management and leadership is that management requires a microscope (ie lets view all activities and tasks to a micro level and be able to form fixed judgement on the outcomes of the analuysis), where as leadership requires a mirror (ie how are my expressions and behaviours and clarification of direction inspiring the team and people around me).

            Obviusoly there is arequirement for both , good business management requires you to have a solid grasp of the numbers and the detail. Good leadership requires excellent self awareness and knowldge of how your behaviours, commenets and direction lead a team successfully. Average businesses are often management driven, where as very good businesses couple good management with strong leadership.

            • greywarbler 8.2.2.1.2.1

              Rob
              Thinking of the difference between management and leadership. I’m thinking management is more following precepts, ensuring orderly provision of the company’s product, and can be done in a number of ways.

              My relative tells me that their team leader is often elsewhere, not where required, and this no doubt adds to the efficiencies and costs that balloon in hospital expenditure. And management has not devised a way of gathering knowledge and feedback from the doers of the work.

              Leadership is surely about direction which goes beyond checking on the zeitgeist and effectiveness of the organisation, it’s examining the whole dynamic of the company, looking to the future, what will be lost and is there business in being a specialist preserving it? How many customers would like to recover some of that lost benefit and at what cost? What is the future and what will need to be incorporated into the business without losing its spirit of loyalty, commitment and communication with the customer? What is the mission statement and whether it is being reflected in the attitudes of the staff to those they deal with?

              And in government, is the policy that has been made law being delivered in the manner intended? It can be skewed and twisted and squeezed into another than its intended shape by the policy deliverers, who are likely to be reflecting their managers’ ideas and approaches. And also affected by the difference between the high-minded ideas in the law, and the low-budget desire of people who just want to quiet a problem, not invest in a solution.

              The leader can see the tracks, or make new ones, and then has to turn and guide the managers along and influence the workers to transport the company well and profitably.

        • Ennui 8.2.2.2

          Rob, Managing the cashflow:we are lucky that the business has grown faster in sales with reasonable margins than costs have been incurred in delivery…over the years lump sums deposited have been used for working capital but they often get eroded and it can get very seat of the pant especially in terms of us paying suppliers. The key thing is that the balance of aged sales and opposed to aged payables remains positive, and we crunch delivery times to enable fixed costs to not erode the margins. Life would certainly be a lot easier if we had overdraft facilities (we now do) that we used, but for me that is also a bad discipline to rely upon.

      • Draco T Bastard 8.2.3

        Yes it is tough out there, which is why on this blog I criticise those who seem to think the money grows on trees and can just be spent into existence, or taxed out of companies to pay for whatever they wish to be funded.

        Money is always spent into existence and then taxed out afterwards. It’s the basic nature of fiat currency. It’s more a question of who you’re paying the tax to – the private banks or the government.

        • Ennui 8.2.3.1

          Draco, it depends on whether the tax is extraneous to the economy / environment / community that the individual or business is being taxed in. What I am getting at is that taxes are necessary to provide that environment / community, and as such should be paid as part of the total cost of doing business. When taxes are seized by banks for private gain, or by governments for private gain / distribution to their mates etc then (a la Edmund Burke) they should be strenuously opposed.

          • Draco T Bastard 8.2.3.1.1

            Which is why total transparency is needed in the creation, distribution and destruction of money. That latter bit is actually really important as people, especially banks and economists, think that money should last forever when it actually shouldn’t. Payment of taxes to the government should be recognised as removing money from the economy which is why the government should also be the only ones to create money.

    • Mike S 8.3

      So the GFC wasn’t really the cause of your business going backwards. The GFC merely highlighted the fact that your business needed changing. I find the term “forced to innovate” particularly interesting. It is a shame that so many of our businesses need to be forced to innovate rather than being innovators.

      You stated yourself that you’ve had to take on more debt, which is essentially how we measure economic growth. i.e more borrowing = higher GDP. Not sure if this is a good thing as it always leads to boom / bust cycles. However, that is the way our current economic system functions and an economy can only grow monetarily from more debt or increased exports..

      It’s great that you took the anti-austerity path though, as more private debt should mean less government borrowing, although as far as I’m aware, government borrowing isn’t slowing down? This would indicate that your business is the exception rather than the norm due to the fact that in order for an economy to grow, either the private sector or the government must borrow money. more private sector debt = less public sector debt and vice vers. If the private sector saves money instead of spending, then the government must spend money or the economy deflates. it’s one of the ridiculous things about our economic system that you can’t have less private and less public debt at the same time or the economy will crash. (Because all money is created as debt, less debt = less money in circulation = lower economic growth.) If government borrowing is steady or increasing that would indicate not much business growth in the private sector )at a very basic level), or, not many businesses like yours who are spending and growing their businesses and adding to the country’s economic growth.

      “last October we did starting wage salary increases of 4% .” – Does that mean that prior to last October there were no increases from 2008 to 2013? If not, then although the 4% increase is better than nothing, it still means that you are paying paying a lower starting rate than you paid prior to 2008. (in real terms)

  9. Poission 9

    Almost every housing initiative they have been involved in there involves very few affordable houses, and many of the large types of houses that return developers more money.

    One of the emerging trends in CHCH is the appearance of Ghost houses in new subdivisions.Unoccupied houses owned by offshore investors as passive investors.

    http://www.stuff.co.nz/the-press/opinion/columnists/mike-yardley/9758984/Mike-Yardley-Rental-housing-still-in-crisis

    The other constraint on affordable housing is the ubiquitous use of building covenants in new housing developments,that stipulate minimum floor size and building materials (which by proxy dictates capital expenditure).

    This land use constraint precludes the relocation of reusable redzone housing stock at a substantial discount to a greensite rebuild.

    Policy initiatives need to address the use of building covenants.

    • Tracey 9.1

      Still wondering how to find out if broownlee is renting out any of his fendalton or Ilam properties and for how much.

  10. Ennui 10

    LPrent, Hyping does’nt help the economy…… just to be really contentious just look at the stock market, its all hype!!!!!!! (Hmmmmm! Whether the stock market helps the economy, well that’s open to conjecture).

    • Colonial Viper 10.1

      The really poisonous neolib meme is that the financial gambling markets ARE the economy.

    • Mike S 10.2

      The stock market as it’s called, has nothing to do with the real economy of goods and services. It does however suck money from the real economy which is harmful, as do all the other financial markets. These ‘markets’ offer nothing whatsoever in terms of productive economic activity, they are simply a means for the elite to make money from money, whilst destroying the real economy.

  11. aerobubble 11

    English.
    We have incurred significant extra debt by spending in excess of our revenue to protect the most vulnerable families, to maintain living standards and to support the renewal of our second-largest city.

    Labour went the polls, like National promising tax cuts, but Key lied and increased GST.

    Labour then let National crucify them about govt debt being out of control under Labour.

    Labour even today lets National spew lies, for obviously the rise in GST hurts vulnerable families
    more! That the debt increase is largely due to lower tax for businesses and higher income earners.

    Remember Labour is a monopole thinker, it can’t accept dual narratives, that tax cuts stimulated the fast food sector as the public cut back on finer dining and fast food cut prices thanks to lower taxes and youth rates etc. Labour finds its impossible to attack lower taxes as harmful to the economy while also attacking National for raising debt and so the currency.

    Fairer taxes on the richest, progressive taxation, is still National policy, so why hasn’t Labour lied and attacked it for wanting to let the rich off taxes. Do all the snide underhanded lying that takes place routinely in the media about the majority of people in NZ who aren’t in the top 10%.

    Thats the problem, the chatter is hype to serve the richest (who strangely enough are realizing that people who kiss their hairy fat behinds aren’t actually doing them any favors, as the banking system wobbles thanks to thirty years of arse kissing excesses).

  12. geoff 12

    LPrent:
    I wonder how much of this hype is coming from the banks. Sales volumes are down since the reserve bank changed loan to value ratios (https://www.reinz.co.nz/shadomx/apps/fms/fmsdownload.cfm?file_uuid=C21A025B-C03C-8FFA-BE0F-B05619338669&siteName=reinz).

    Therefore there is less new mortgage business for the banks and therefore the only way for the banks to maintain their level of profitability is to increase interest rates, and the only way they can do that is by talking up the economy and putting pressure on the reserve bank to raise the official cash rate. Hence hype from a very powerful industry.

    Sound reasonable?

    • lprent 12.1

      It will. However what you’ll see is a non-monopolistic unstated increase in the effective interest rates..

      They don’t have to increase business if they can cooperate to increase nett profit.

  13. Interesting blogpost…

    • lprent 13.1

      Tax takes below spec on friday and then the RB inflation expectations lower than expected. Not symptoms of a economy getting hot.

      Problem is that National are so hung up on milk powder that, like previous resource commodity booms from Korean war era wool to their current obsession with mining. They all end. Then where will we be?

      BTW: Saw your one at TDB when I was hunting around for links.

  14. greywarbler 14

    About business and getting jobs.
    This about the wonderful developers behind the Life of Pi Rhythm and Hues. All about chasing the job from country to country as the film coys game the countries for the most tax breaks etc.
    http://www.youtube.com/watch?v=9lcB9u-9mVE

    http://www.hollywoodreporter.com/behind-screen/revealing-rhythm-hues-life-pi-682526

  15. greywarbler 15

    Good line from an Australian social funder helping social entrepreneurs.
    http://www.youtube.com/watch?v=JRHKMH0pJEQ

    http://www.philanthropy.org.nz/node/8771
    There will also be events for business donors in Auckland.
    Auckland: ‘Building Great Partnerships’, 9am to 4pm, Tuesday March 4th, Telecom Conference Centre, Telecom Place, Auckland. A full day event with a variety of speakers. PNZ members: $100.00, Non-members: $250.00

    Rotorua: ‘From Success to Significance’, 10.30am to 12.30pm, Wednesday March 5th, Rm 1, Civic Centre Building, 1061 Haupapa St, Rotorua. No entry fee.

    Wellington: Meeting of the Wellington Funders’ Network, 9.30am to 11.30am, Thursday March 6th, Willis Tower, Telecom Central, 42 – 52 Willis St, Wellington. No entry fee.

    We are also hosting events for new philanthropists in Hamilton, Tauranga and Christchurch.
    To register for an event or to request more information, please contact Yvonne: yvonne@philanthropy.org.nz.

    Audio from Thursday 27 February 2014
    From Success to Significance ( 20′ 36″ )
    19:12 The importance of supporting social entrepreneurs with Australian businessman now philanthropist Allan English.
    Radionz Thurs
    7:10 From Success to Significance

    Audio from Thursday 27 February 2014
    From Success to Significance ( 20′ 36″ )
    19:12 The importance of supporting social entrepreneurs with Australian businessman now philanthropist Allan English.

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    Labour | 08-09
  • Let’s do the FEED before the weed
    “Last week I put out a very strongly worded email to my colleagues about an online promotion about cannabis law reform” said MANA leader and Tai Tokerau MP, Hone Harawira “and I stand by that criticism today.” My concern was...
    Mana | 08-09
  • TE KAEA and NATIVE AFFAIRS live to fight another day
    “I understand that both the chair of the Board of Maori Television, Georgina Te Heuheu, and new CEO, Paora Maxwell, are now saying that my comments this morning about their plans to cut Te Kaea and Native Affairs, were wrong, and that...
    Mana | 08-09
  • How come the PM only pays 2.8% of his income in tax – Harawira
    “Before John Key talks about the piddling tax cuts he plans for low and middle income families today he needs to explain why he only pays 2.8% of his income on tax while a minimum wage worker pays 28% tax,”...
    Mana | 07-09
  • THE DEATH OF INDEPENDENCE FOR MAORI TV
    “If what I’m hearing is true, tomorrow Maori Television Service (MTS) will dump its news programme, Te Kaea, and staff will lose their jobs” said MANA Leader and MP for Te Tai Tokerau, Hone Harawira “and the Minister of Maori...
    Mana | 07-09
  • Labour recommits to Pike River families
    An incoming Labour-led government will do everything possible to recover the bodies of the Pike River Miners and return them to their families, says Labour Leader David Cunliffe. “This tragedy and its aftermath has left the families of the 29...
    Labour | 06-09
  • Voting has started and still no tax plan or fiscal budget for voters to see
    "Even though voting for the election has already begun, National still refuses to provide any details of its proposed tax cuts. And Bill English admitted this morning that he won’t provide any specifics until after the election", Labour’s Finance spokesperson...
    Labour | 06-09
  • National’s partners’ tax plans cost at least $42 billion
    If National forms the next government its partners’ tax plans will cost the country at least $42 billion, and maybe as much as $50 billion, wreaking havoc with the books, says Labour’s Finance spokesperson David Parker. “National claims to be...
    Labour | 05-09
  • Labour: Providing more opportunities for young Kiwis
    A Labour Government will ensure every young Kiwi under the age of 20 is given the opportunity to be in work, education or training, and plans to develop a conservation apprenticeship scheme to help do that, Labour’s Youth Affairs spokesperson...
    Labour | 04-09
  • Candles out on teachers’ slice of birthday cake
    Today may be Novopay’s second birthday, but there’s little to celebrate, Labour’s Education spokesperson Chris Hipkins says. “Novopay has cost the taxpayer tens of millions of dollars already, and the cost is still climbing....
    Labour | 04-09
  • National’s blatant broadband pork barrelling misses the mark by a country...
    National’s blatant pork-barrelling ICT announcement today should reinforce a growing sceptical electorate’s view that they are all about the gift wrap and not the present, Labour’s ICT spokesperson Clare Curran says. “Instead of addressing the real issues - the woeful...
    Labour | 04-09
  • More evidence of the need to clean up the system
    The latest release of emails and messages between disgraced Minister Judith Collins and blogger Cameron Slater are more evidence of the urgent need to clean up politics, Labour MP Grant Robertson says. "This new evidence confirms a near constant flow...
    Labour | 04-09
  • Labour commits to stable funding for voluntary sector
    A Labour Government will establish long-term funding and streamline contract accountability for community and voluntary groups, says Labour’s spokesperson for the sector Louisa Wall. Announcing Labour’s policy for the community and voluntary sector, she said this would give much greater...
    Labour | 04-09
  • Better trained and skilled workforce under Labour
    Labour is committed to a skilled workforce that benefits businesses as well as their workers, and will increase workplace training to improve productivity and drive innovation, Labour Leader David Cunliffe says. “Labour believes the Government should support New Zealanders into...
    Labour | 03-09
  • Labour will make renting a better option
    Labour will provide greater security of tenure for renters, and build more state and social housing, says Labour’s housing spokesperson Phil Twyford. “Labour believes every kid deserves a decent start in life. That means a warm, dry and secure home....
    Labour | 03-09
  • At least 15 new taxes under National
    John Key is the last person to talk about creating taxes, presiding over a Government that has imposed at least 15 new taxes, Labour Leader David Cunliffe says. “John Key tried a novel line in the debate last night claiming...
    Labour | 03-09
  • Labour will strengthen New Zealand’s democracy
    A Labour Government will act quickly to protect and enhance New Zealand’s reputation as one of the most open and least corrupt countries in the world, Labour Leader David Cunliffe says. “The health of any democracy is improved by greater...
    Labour | 02-09
  • MANA Movement says tax cut on GST must be first priority – Minto
    “If Prime Minister John Key has money available for tax cuts then cutting GST must be the first priority”,  said MANA Movement Economic Justice Spokesperson John Minto. GST is a nasty tax on low-income families”, said Minto. “People in the...
    Mana | 02-09
  • The Maori Party’s Mana-Enhancing Relationship with National – Minto
    “First we had Cameron Slater and David Farrar backing Labour’s Kelvin Davis bid to unseat MANA Movement Leader and MP for Te Tai Tokerau Hone Harawira.  Now we have Slater writing a pro-Te Ururoa Flavell article on his website, Whale...
    Mana | 02-09
  • There’s Only One Poll That Counts
    “One of the oldest sayings in politics is that there is only one poll that counts – the one on Election Day – and that’s the one that I am focusing on” remarked the MANA Movement candidate for Waiariki, Annette...
    Mana | 02-09
  • Local communities critical to Civil Defence
    Labour will focus on empowering New Zealand communities to be resilient in Civil Defence disasters, says Labour’s Civil Defence spokesperson Clare Curran. Announcing Labour’s Civil Defence policy, she says that Labour will work with schools, voluntary agencies and community groups...
    Labour | 02-09
  • Labour looks to long-life passports, gambling harm review
    A return to 10 year passports and a review of gambling laws are highlights of Labour’s Internal Affairs policy released today. “More than 15,000 New Zealanders signed a petition calling on the Government to revert to the 10 year system...
    Labour | 02-09
  • MANA Movement Leadership stands strong behind Internet MANA relationship
    “There is now, and always will be, a range of views about many issues within our movement and members are free to express them, but Georgina’s views on Kim Dotcom are not shared by the MANA Movement leadership or the vast majority...
    Mana | 01-09
  • Rebuilding the New Zealand Defence Force
    A Labour Government will make it a priority to rebuild the capacity of the Defence Force to carry out the tasks expected of it, says Labour’s Defence Spokesperson Phil Goff. Releasing Labour’s Defence Policy today he said the NZDF has...
    Labour | 01-09
  • Speech to Canterbury Chamber of Commerce
    Today I'm going to talk about our policy package to upgrade and grow our economy and how we turn that growth into a foundation for a decent and fair society. But first I want to address the issue of our...
    Labour | 01-09
  • Jeremy Wells’ Mike Hosking rant on Radio Hauraki: Today, another week of ...
    Jeremy Wells’ Mike Hosking rant on Radio Hauraki: Today, another week of being the most in demand broadcaster in the country...
    The Daily Blog | 18-09
  • EXCLUSIVE: Te Tai Tokerau independent poll (44% Hone-27% Kelvin) vs Maori T...
    The Te Tai Tokerau Maori TV poll on Monday this week painted a bleak picture for Internet MANA supporters, and it’s results have been seized upon by Labour, NZ First and even the Maori Party (who seem set once again...
    The Daily Blog | 18-09
  • The time for TPPA weasel words is over
    Almost every day of the election campaign there has been a policy announcement that would potentially run foul of what I understand is currently in the Trans-Pacific Partnership Agreement (TPPA):  more constraints on foreign investment or investors … regulation of...
    The Daily Blog | 18-09
  • MELTDOWN – Maori Party turns on their own Te Tai Tokerau candidate – ag...
    The tensions are building in Te Tai Tokerau with the Maori Party on the verge of meltdown. Days out from the election, the Maori Party Executive has tried to heavy their own Te Tai Tokerau Electoral Committee and their own candidate, Te Hira Paenga,...
    The Daily Blog | 18-09
  • We Can Change this Government
    We Can Change this Government – Mike Treen at the First Union stop work election meeting...
    The Daily Blog | 18-09
  • Election 2014: For and Against
    With the general election tomorrow, we have had a very noisy campaign but little sign that the electorate wishes for a fundamental change of governmental direction. This reflects in part the fact that the economic cycle is close to its decadal...
    The Daily Blog | 18-09
  • Eye To Eye Uploaded: Martyn ‘Bomber’ Bradbury
    This interview was filmed a couple of weeks ago between Willie Jackson and myself, I was a tad off with my prediction of NZ First....
    The Daily Blog | 18-09
  • The Donghua Liu Affair – The Players Revealed
      . . – Special investigation by Frank Macskasy & ‘Hercules‘ Speculation that the Beehive office of Immigration Minister, Michael Woodhouse, was behind the release of a letter linking Labour leader, David Cunliffe, with controversial Chinese businessman, Donghua Liu, is...
    The Daily Blog | 18-09
  • As if you needed another reason to boycott Telecom/Spark – they sold NZ d...
    It should read ‘never stop spying’. As if you needed another reason to boycott Telecom/Spark – they sold us down the river to the US by allowing the Southern Cross cable to be tapped… The ability for US intelligence agencies...
    The Daily Blog | 18-09
  • The NZ First-Labour Party attack strategy against Internet MANA better work
    The final days of the campaign are ticking down and Labour and NZ First are manoeuvring to kill off the Internet MANA Party by both backing Kelvin Davis for Te Tai Tokerau. It’s a risky gambit that they better pray to Christ...
    The Daily Blog | 18-09
  • Bill English’s latest insult to beneficiaries – apparently they are lik...
    National’s hatred towards the poor continues unabated as National desperately try to throw raw meat to their reactionary voter base in the hope to inspire enough hate and loathing to win back their redneck voters from the Conservative Party and from...
    The Daily Blog | 18-09
  • Eminem ain’t happy with John Key
    Eminem ain’t happy with John Key...
    The Daily Blog | 18-09
  • Key claims he did not inhale
    Key claims he did not inhale...
    The Daily Blog | 18-09
  • Final prediction on election result 2014
    What an election campaign. The character assassination of David Cunliffe kicked things off with the Herald on Sunday falsely claiming $100 00 bottles of wine, $15 000 books and $150 000 in donations  from a donor that turned out to be...
    The Daily Blog | 18-09
  • Live blog: Bainamarama takes commanding lead in Fiji elections
      Interview with Repúblika editor Ricardo Morris and Pacific Scoop’s Mads Anneberg. PACIFIC SCOOP TEAM By Ricardo Morris, Mads Anneberg, Alistar Kata and Biutoka Kacimaiwai in Suva WHILE the results are provisional at this stage, it is clear today that...
    The Daily Blog | 17-09
  • 5AA Australia: NZ Elections Two Days To Go! + Edward Snowden + Julian Assan...
    Recorded live on 18/09/14 – Captured Live on Ustream at http://www.ustream.tv/channel/multimedia-investments-ltd 5AA Australia’s Peter Godfrey and Selwyn Manning deliver their weekly bulletin: Across The Ditch. This week, they discuss the latest news as New Zealanders go to the polls on...
    The Daily Blog | 17-09
  • What has Colin Craig done for his Press Secretary to quit 2 days before ele...
    This is VERY strange.  Colin Craig’s Press Secretary Rachel McGregor, has quit 2 days before the election, allegedly telling ZB that Colin Craig was a “very manipulative man”. I’ve met Rachel many times in the past as Colin’s Press Secretary, she is...
    The Daily Blog | 17-09
  • “If you want steak, go to the supermarket and buy steak,” – A brief w...
    “If you want steak, go to the supermarket and buy steak,” said Key in the final leaders debate. Problem of course is that the 250 000 – 285 000 children living in poverty can not afford steak, milk, butter, eggs...
    The Daily Blog | 17-09
  • National’s final bash of beneficiaries before the election
    On cue, whenever National feel threatened, they roll out a little bennie bash just to keep their redneck voter base happy. Nothing like a bit of raw meat policy to keep National voters focused on the evil threat solo parents...
    The Daily Blog | 17-09
  • With All Of This In Mind, I Vote
    This is my last blog before the election and I really just want to speak from the heart. Right now in this country it seems to me that a lot of people consider the “essentials” in life to be simply...
    The Daily Blog | 17-09
  • Left has to vote strategically this election
    The dedication, loyalty, and tribalism of party politics means that sometimes the left lets itself down by not voting strategically. We all want our favoured party to get maximum votes, naturally, but the winner-takes-all approach doesn’t always suit multi-party left...
    The Daily Blog | 17-09
  • Dear NZ – as you enter the polling booth, stand up for your rights
    The last days before a NZ general election are a busy time as politicians make their pitch and party activists prepare to get out the vote. It is sort of weird watching from the distance of Europe the strangest election...
    The Daily Blog | 17-09
  • What is Waihopai, John, if it isn’t a facility for “mass surveillance...
    John Key assured us on RNZ’s Nine to Noon programme yesterday that “In terms of the Fives Eyes data bases… yes New Zealand will contribute some information but not mass wholesale surveillance.” How does this square with the operation of the...
    The Daily Blog | 17-09
  • GUEST BLOG: Catherine Delahunty – Mass Surveillance and the Banality of E...
    Renowned journalist and intellectual Hannah Arendt coined the phrase “the banality of evil” to describe the normalisation of genocide in Nazi Germany. I thought of her phrase when I was listening to Glenn Greenwald and other international whistle-blowers talking about...
    The Daily Blog | 17-09
  • Election. Down. To. The. Wire
    Funny how last week it was John Key winning by 50%, now it’s neck and neck. I have always believed this election would be down to the wire and it is proving so. The flawed landline opinion polls the mainstream...
    The Daily Blog | 17-09
  • 3rd Degree uses Whaleoil for story ideas as if Dirty Politics never happene...
    TV3s 3rd Degrees smear job on Kim Dotcom last night doesn’t bear much repeating. It was pretty pathetic journalism from a team who have brought us some great journalism in the past. It is sad to see 3rd Degree stooping...
    The Daily Blog | 17-09
  • Live blog: Bainimarama takes early lead in Fiji’s election
    Pacific Scoop’s Alistar Kata reports from yesterday’s voting. By Alistar Kata of Pacific Scoop in Suva Prime Minister Voreqe Bainimarama took an early lead in provisional results in the Fiji general election last night. With provisional results from 170 out...
    The Daily Blog | 17-09
  • Has The NSA Constructed The Perfect PPP?
    Former intelligence analyst and whistleblower, Edward Snowden – speaking live to those gathered at the Auckland Town Hall on Monday September 17, 2014. Investigation by Selwyn Manning. THE PRIME MINISTER JOHN KEY’s admission on Wednesday that whistleblower Edward Snowden “may...
    The Daily Blog | 17-09
  • No way – Key admits Snowden is right
    After claiming there was no middle ground. After claiming there was no mass surveillance. After calling Glenn Greenwald a henchman and a loser. After all the mainstream media pundits screamed at Kim’s decision to take his evidence to Parliamentary Privileges...
    The Daily Blog | 17-09
  • Bad luck National
    ...
    The Daily Blog | 16-09
  • The incredible changing John Key story on mass spying – why the Moment of...
    While the mainstream media continue to try and make the Moment of Truth about Kim’s last minute decision to prolong his battle against John Key past the election into the Privileges Committee, the reality is that the Moment of Truth...
    The Daily Blog | 16-09
  • GUEST BLOG: Curwen Rolinson – Themes of the Campaign
    There’s one area of a political campaign that just about everyone, at some point, falls afoul of. The campaign song. I’m not sure quite why it is, but it seems to be almost impossible for political parties to come up...
    The Daily Blog | 16-09
  • GUEST BLOG – Denis Tegg – The NSA slides that prove mass surveillance
    The evidence presented by Glenn Greenwald and Edward Snowden on The Intercept of mass surveillance of New Zealanders by the GCSB is undeniable, and can stand on its own. But when you place this fresh evidence in the context of...
    The Daily Blog | 16-09
  • Ukraine, United Kingdom, Ireland, Scotland
    The Ukrainian civil war discomforts me. It seems to me the most dangerous political crisis since the Cuban missile crisis of 1962. And it’s because of our unwillingness to examine the issues in a holistic way. We innately prefer to...
    The Daily Blog | 16-09
  • John Key’s love affair with a straw man – the relationship intensifies
    John Key’s love affair with the straw man is now a fully-committed relationship. It’s now the first love of his life. Sorry Bronagh. Yesterday I pointed to Key’s constant assurances that there is no mass surveillance of New Zealanders by...
    The Daily Blog | 16-09
  • A brief word on why Wendyl Nissen is a hero
    Wendyl Nissen is a hero. The sleazy black ops attack on her by Slater and Odgers on behalf of Grocery Council chief executive Katherine Rich is sick. All Nissen is doing in her column is point out the filth and...
    The Daily Blog | 16-09
  • She saw John Key on TV and decided to vote!
    . . NZ, Wellington, 15 September – ‘Tina’* is 50, a close friend,  and one of the “Missing Million” from the last election. In fact, ‘Tina’ has never voted in her life.  Not once. In ‘Tina’s’ own words, politics has...
    The Daily Blog | 16-09
  • Eminem sues National Party for unlawful use of ‘Lose yourself’ bhahahah...
    …ahahahahahahahaha. Oh Christ this is hilarious… National Party sued over Eminem copyright infringment US rapper Eminem is suing the National Party for allegedly breaching copyright by using his song Lose Yourself in its campaign advertisements. The Detroit-based publishers of Eminem’s...
    The Daily Blog | 16-09
  • Are the Greens about to be snookered by a Labour-NZ First Government?
    I wrote last week that it was smart politics that the Greens pointed out they could work with National, the soft blue vote that’s looking for a home in the wake of Dirty Politics isn’t going to Labour, so the...
    The Daily Blog | 16-09
  • BLOGWATCH: Fonterra join 2Degrees and boycott Whaleoil
    In the wake of Dirty Politics, advertisers are pulling their advertising out of Whaleoil. PaknSave, Evo Cycles Pukekohe, Localist, 2 Degrees, Fertility Associates, iSentia, NZ Breast Cancer Foundation, Maori TV, Bookme.co.nz, Dobetter.co.nz and the Sound are now joined by Fonterra...
    The Daily Blog | 16-09
  • PM Key accused of allowing secret ‘spook’ cable sensors to spy on citiz...
    Pulitzer prize-winning journalist Glenn Greenwald (left) and Kim Dotcom at the “moment of truth” political surveillance meeting in Auckland last night. Image: PMW By ANNA MAJAVU of Pacific Media Watch NEW ZEALAND Prime Minister John Key has been accused of...
    The Daily Blog | 15-09
  • Fiji pre-election ‘politics’ blackout stirs media protests, frustration
    BLACKOUT DAY – Monday, day one of the “silence window” in Fiji leading up to the close of polling in the general election at 6pm on Wednesday. And this is under the draconian threat of a $10,000 fine or five...
    The Daily Blog | 15-09
  • “Now the work of movements begins”: government corruption, media bias, ...
    I am so tired of the dirty politics of the National government, aren’t you? I am tired of John Key and his pathetic attacks on award-winning journalists who have spent their careers fighting and digging for truth and good. The...
    The Daily Blog | 15-09
  • Moment of Truth review, smoking guns and the awful coverage by the NZ msm
      There were queues unlike any the Town Hall has seen, 1000 were turned away once it became full…     …full to the rafters. The energy and atmosphere within the room was extraordinary, and it begun…   …Glenn Greenwald...
    The Daily Blog | 15-09
  • Why Maori TV’s Te Tai Tokeraou Poll will be proved wrong
    If Hone Harawira had a dollar every time the media wrote off his chance of winning Te Tai Tokeraou, he would have more money than Kim Dotcom. Remember the by-election? Hone was 1 point ahead of Kelvin in an exact...
    The Daily Blog | 15-09
  • September 15 RNZ interviews – and then the Moment of Truth
    . Acknowledgement: Emmerson . 15 September – Leading up to the Moment of Truth public meeting this evening, these Radio NZ interviews are worth listening to; . Alt link . Alt link . Alt link . Alt link . Alt...
    The Daily Blog | 15-09
  • Live Stream: Moment of Truth Tonight 7pm
    Live Video Stream by eCast: The Daily Blog will Live Stream the Moment of Trust public meeting from 7pm. The meeting will feature Glenn Greenwald, Kim Dotcom, Robert Amsterdam, and a very special guest…...
    The Daily Blog | 15-09
  • The proof Key lied about GCSB mass surveillance
    And we start getting to the evidence that proves Key has lied about mass surveillance. The article by Glenn Greenwald is out and it is beyond damning… Documents provided by NSA whistleblower Edward Snowden show that the government worked in...
    The Daily Blog | 15-09
  • A brief word on the Ede-Slater emails
    Every day I have rushed to read the paper to see if a breaking story on the Ede-Slater emails had broken yet. They haven’t. Day after day, where are these emails? We know Rawshark sent the emails to David Fisher...
    The Daily Blog | 15-09
  • The email that proves Key is a liar
    This is the Email proving Key knew about Kim Dotcom before he claims he did… “We had a really good meeting with the Prime Minister. He’s a fan and we’re getting what we came for. Your groundwork in New Zealand...
    The Daily Blog | 15-09
  • Live Election Night Coverage on TV And Online
    Māori Television’s KOWHIRI 2014 – ELECTION SPECIAL kicks off at 7.00pm this Saturday with a five-hour broadcast focusing on the Māori electorates....
    Scoop politics | 18-09
  • Judge’s Decision Disappoints Fish & Game
    Today’s decision to give a Temuka man 100 hours of community service for selling sports fish to the public has disappointed Fish & Game, which believes the sentence handed down was “too lenient and will not go far enough to...
    Scoop politics | 18-09
  • Cutting-Edge Graphics Fire up TV3’s Election Night Coverage
    TV3’s Election Night coverage, hosted by John Campbell, will be enhanced by cutting-edge graphics that will showcase the night’s results....
    Scoop politics | 18-09
  • Govt rushes to open charter schools in New Year
    The government’s decision to approve four new charter schools last week to open in January next year goes against the Minister of Education’s own advice that the schools ought to have at least a year’s preparation time....
    Scoop politics | 18-09
  • 7 Days And Jono And Ben at Ten Hijack Election Weekend
    The 7 Days and Jono and Ben at Ten (JABAT) comedians are running their own version of election coverage, with a schedule of entertainment and comedy across TV3, Kiwi FM, the web and social media this Friday and Saturday under...
    Scoop politics | 18-09
  • Fewer Prisoners Equals Less Crime
    In its latest blog, ‘Abolishing Parole and other Crazy Stuff’,’ at http://blog.rethinking.org.nz/2014/09/krill-and-womble-independent-policy.html , Rethinking Crime and Punishment urges government to rethink its approach to releasing prisoners. “The public expectation is that the excellent reductions in the crime...
    Scoop politics | 18-09
  • McVicar slams his political opponents
    I want a safe and prosperous society and that can only be achieved if we have strong and vi-brant families – McVicar...
    Scoop politics | 18-09
  • Falling economic growth – wage rises overdue
    “The lower GDP growth in the three months to June is further evidence that growth has peaked. New Zealand’s economy is on the way down to mediocre growth rates,” says CTU economist Bill Rosenberg. “Yet wage rises are still weak...
    Scoop politics | 18-09
  • Get Out and Vote campaign a success
    Tens of thousands of workers from all around New Zealand have embraced the Get Out and Vote campaign and have created their own personalised voting plan, the CTU said today. “With three days of voting left in the 2014 General...
    Scoop politics | 18-09
  • Animal Research Failing – So Do More Animal Research?
    Victoria University of Wellington is about to host a lecture on why the success rates of pharmaceutical development is so low and what can be done about it. The New Zealand Anti-Vivisection Society (NZAVS) welcomes discussion on this important...
    Scoop politics | 18-09
  • ALCP welcomes Prime Minister’s cannabis comments
    Mr Abbott's comments came on the same day as New South Wales and Victoria states announced they would be doing clinical trials of cannabis....
    Scoop politics | 18-09
  • Conservative Party Press Secretary Resignation
    The Conservative Party is given to understand that this morning Press Secretary, Miss Rachel Macgregor resigned althought no formal advice of this has yet been received....
    Scoop politics | 18-09
  • By ACT’s logic, Epsom should vote for Conservative Candidate
    “Polling released late in the campaign shows that ACT is a busted flush and that by ACT’s own logic, centre-right Epsom voters should vote for the Conservative candidate”, says Labour candidate for Epsom Michael Wood....
    Scoop politics | 17-09
  • New online medical system
    Immigration New Zealand (INZ) is seeking registrations of interest for a new onshore panel physician network to support an online immigration health processing system....
    Scoop politics | 17-09
  • Students, You Have a Choice, Vote!
    The New Zealand Union of Students’ Associations (NZUSA) is imploring students to ensure they make their voices heard this election, and join the many thousands who have already heeded the call....
    Scoop politics | 17-09
  • Party vote ACT for three years of stability.
    Voters who are concerned that on the latest polls we may be heading for three years of instability have it in their hands to deliver a decisive result....
    Scoop politics | 17-09
  • Women’s Suffrage Movement – Get Out and Vote!
    Tomorrow, Friday 19th September, MANA Movement Candidate for Waiariki, Annette Sykes, will cast her vote at 12 noon at the Zen’s Building, Rotorua. This will follow a march through Rotorua that will assemble at 10am at City Focus, Rotorua. The...
    Scoop politics | 17-09
  • iPredict Daily Update
    David Cunliffe and Labour have made gains over the last 24 hours, according to the combined wisdom of the 8000+ registered traders on New Zealand’s predictions market, iPredict, but John Key’s National is still strongly expected to lead the next...
    Scoop politics | 17-09
  • Conservative’s Proposal to Abolish Parole Fatally Flawed
    The Conservative Party’s proposal to abolish parole doesn't stack up, however which way you look at it, concludes Kim Workman in Rethinking Crime and Punishment latest blog, ‘Abolishing Parole and Other Crazy Stuff’ at http://blog.rethinking.org.nz/2014/09/krill-and-womble-independent-policy.html...
    Scoop politics | 17-09
  • Special Edition : The letter 18 September 2014
    Dr Jamie Whyte has been giving thoughtful speeches largely unreported. So we thought we would put out an edited version on the speech he gave yesterday. The full speech is on the website....
    Scoop politics | 17-09
  • Differences in educational level reflected in voter choice
    Differences in educational level reflected in voter preferences The Green party has the highest proportion of tertiary educated supporters and NZ First has the least according to an analysis by the Election Data Consortium. The Consortium is made...
    Scoop politics | 17-09
  • Renters need assistance to improve poor housing conditions
    Thursday 18 September 2014 Renters are living in poorer conditions than homeowners and are less empowered to improve their housing situation according to a study by medical students at the University of Otago, Wellington. The fourth year medical...
    Scoop politics | 17-09
  • Pacific Island Affairs & NZ Police to work more closely
    The Ministry of Pacific Island Affairs Chief Executive, Pauline Winter, and The Commissioner of Police, Mike Bush, are this afternoon signing a Memorandum of Understanding (MoU) between the Ministry and the New Zealand Police....
    Scoop politics | 17-09
  • Te Hira Paenga sets the record straight
    In recent days there has been much speculation about my campaign in Te Tai Tokerau. Some commentators have suggested that I should step down or endorse the Labour candidate in an attempt to stop the Internet Party riding on the...
    Scoop politics | 17-09
  • Last Chance to Enrol to Vote – Don’t Miss Out
    Last Chance to Enrol to Vote – Don’t Miss Out If you’re not enrolled now, you need to hurry or you won’t be able to vote in this Saturday’s general election. “Election day is almost here, and it’s your last...
    Scoop politics | 17-09
  • Stuart Nash voted against wishes of Napier Electorate
    Napier Conservative Party Candidate Garth McVicar says the recent decision by the Advertising Standards Authority in reply to a complaint laid by Stuart Nash’s campaign manager confirms that Nash voted against the wishes of the Napier electorate. Robert...
    Scoop politics | 17-09
  • What price life asks Conservative Party
    The Conservative Party are asking what is the price of life if the killer of a defenceless homeless man who was viciously beaten and left to die was jailed for just 11 and a half years....
    Scoop politics | 17-09
  • National Stands To Lose Votes If Animal Welfare Is Ignored
    SAFE has presented Prime Minister John key with a 40,000 signature-strong petition calling for a farrowing crate ban....
    Scoop politics | 17-09
  • Statement From Kim Dotcom
    Tonight Third Degree broadcast issues raised by three former staff members who are in dispute with us....
    Scoop politics | 17-09
  • Three Internet-Mana Policies Blow the Bribe-O-Meter to Bits
    The Taxpayers’ Union has received advice that the cost of just three Internet-Mana policies is $17.6 billion - higher than the entire policy packages of the three main political parties combined. Taxpayers’ Union Executive Director Jordan Williams...
    Scoop politics | 17-09
  • Pregnancy Help Welcomes Green Party Packs for Newborn Babies
    Pregnancy Help applauds Metiria Turei acknowledging that “for many parents the birth of a new child is a highly stressful and financially straining time” and the desire for every child to thrive....
    Scoop politics | 17-09
  • McVicar Welcomes ASA Decision
    Napier Conservative Party Candidate Garth McVicar welcomes the Advertising Standards Authority’s decision to not uphold the pamphlet complaint of Robert Johnson, Campaign Manager for Napier Labour candidate Stuart Nash. The ASA acknowledged that one complaint...
    Scoop politics | 17-09
  • Whyte: In 12 months’ time, here is what will matter
    In three days’ time I will be elected along with a number of ACT MPs. I think the media will be surprised and ask how it happened?...
    Scoop politics | 17-09
  • Internet MANA Will Grant Special Residency to Edward Snowden
    Internet MANA will put the case to the new government to welcome global surveillance whistle blower Edward Snowden, granting him safe passage and residency in New Zealand....
    Scoop politics | 17-09
  • Ten millionth traveller uses SmartGate
    The 10 millionth traveller to pass through SmartGate, Customs’ automated passenger processing system, was greeted by Customs Manager Passenger Operations, Peter Lewis today at Auckland International Airport....
    Scoop politics | 17-09
  • Key vs. Cunliffe: Final Live NZ Election Reactor 7pm Tonight
    John Key and David Cunliffe go head to head for the last time tonight and you can decide who wins by driving the worm. This is the last live Election Reactor covering the debate tonight at 7pm on TV One....
    Scoop politics | 17-09
  • Offenders Get Road Safety Message
    Wellington Community Corrections partnered with emergency services, government agencies, organisations and Kapiti Coast District Council to deliver an innovative road safety programme to 70 community-based offenders at Southwards Car Museum on Tuesday 16...
    Scoop politics | 17-09
  • Proposed law to decriminalise Abortion
    http://images.tvnz.co.nz/tvnz_images/news2011/politics_news/12/q_a_interview__list_mp_jan_logie_n2.jpgRight to Life is disappointed that the Green Party is refusing to provide a response to the seven very important questions that have been addressed to Jan Logie, spokesperson...
    Scoop politics | 17-09
  • Election 2014 Will Be Costly
    The Taxpayers’ Union has today released the final update for its ' Bribe-O-Meter ' election costing website in the lead-up to Saturday’s general election. Taxpayers’ Union Executive Director Jordan Williams says:...
    Scoop politics | 17-09
  • Roy Morgan Poll September 17
    John Key set to win narrow election victory on Saturday as Labour/Greens slump puts Winston Peters in powerful position as NZ First surge to 8% Today’s New Zealand Roy Morgan Poll shows National (46.5%, up 1.5%) set to win a...
    Scoop politics | 17-09
  • Wahakura Package would provide warm welcome for babies
    The Greens Wahakura Welcome package announced yesterday is a wonderful example of child-centred policy which would help all children get a fair and equal start in life, says Child Poverty Action Group. CPAG health spokesperson Innes Asher says,...
    Scoop politics | 17-09
  • TPPA a Sellout to American Corporate Greed
    New Zealand will become a permanent prisoner to the United States’ greed and global arrogance if the Trans-Pacific Partnership Agreement (TPPA) isn’t stopped, warns Internet MANA....
    Scoop politics | 17-09
  • Wintry showers and blustery winds for Election Day
    As we head towards the weekend, it is time to look at what the weather will be for New Zealand's "Have Your Say" Day....
    Scoop politics | 17-09
  • New national secretary announced
    The PSA is pleased to announce the appointment of Erin Polaczuk to the role of national secretary....
    Scoop politics | 17-09
  • Public Secotr & TISA: On the cusp of something very special?
    Is the National Party keeping some things out of sight in case they frighten the electorate? Here is some worrying evidence that this may be the case....
    Scoop politics | 17-09
  • MPI ups yacht biosecurity ante
    Yachts arriving in Northland from overseas this season will face greater biosecurity scrutiny, says the Ministry for Primary Industries (MPI)....
    Scoop politics | 17-09
  • iPredict Election Update
    John Key’s National Party now has an 88% probability of leading the next government , most probably with the support of NZ First, according to the combined wisdom of the 8000+ registered traders on New Zealand’s predictions market, iPredict. There...
    Scoop politics | 17-09
  • Crowdfunding to Save Native Fish
    NZ Landcare Trust is offering an exciting project designed to assist native fish, as part of the launch of a new global crowdfunding category called 'The Landcare & Environment Collection.' This exciting step, aims to help raise funds and support,...
    Scoop politics | 17-09
  • New methods needed to reach non-voters
    Non-voters are much heavier users of the internet than those who do vote, while 43 per cent of non-voters say they never read a newspaper according to research released today by the Election Data Consortium....
    Scoop politics | 16-09
  • Parties sent home with report cards
    More than 2000 New Zealanders came together to run a full page ad in the Herald today asking all Parties what they will commit to do to clean up politics. The answers are in, and ActionStation has graded Parties on...
    Scoop politics | 16-09
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