Local Bodies: Novopay Exemplifies National’s Governance

Written By: - Date published: 11:45 am, July 31st, 2014 - 26 comments
Categories: bill english, education, Hekia parata, national, same old national, schools, Steven Joyce, wages - Tags: , , , , , ,

Reposted from Local Bodies.

This National led Government is strong on ideology, weak on process and reluctant to accept responsibility. The Novopay debacle exemplifies all of these well.

When questioned about Novopay, National Ministers will never accept full responsibility. Initially the Government blamed Labour because they had employed Talent2 to develop a more sophisticated payroll system to the existing Datacom. This was a total cop out, because software and systems development is a fraught process and always involves a certain leap of faith. Labour’s initial agreement recognized this and included the need for testing and trials before implementation.

There is a long history of difficulties in implementing new IT systems within many government departments under both Labour and National. The most important element in introducing any new system is the management of the implementation and the ability to exit something that is unlikely to work before there are serious consequences. There are many historical experiences like the Police INCIS system that all Ministers should be aware of and contingency plans need to be made if things turn pear shaped.

Stephen Joyce has just announced that the Government will be taking over the management of Novopay after almost two years of stress and wide-ranging issues. Joyce was able to admit that the implementation issues were not all Talent2’s fault and that the Ministry had to share some responsibility. Cleverly, by blaming the Ministry he was able to shift the responsibility away from his cabinet colleagues and his own Government’s ideological interference.

From 2008 the National led Government was determined to introduce widespread systemic change to the way that our public education system has operated. This was entirely ideological because our education system was one of the highest performing in the world (based on international assessments) and other sectors and Ministries were in far greater need of support and change. My most read post The Destruction of New Zealand’s Public Education System (currently 33,000 views) documents the wider changes imposed on education, but I will focus on the particular elements that led to the Novopay mess.

National regarded the Ministry of Education as an overly expensive bureaucracy that needed trimming and cut its budget by $25 million (they gave private schools $35 million at the same time). This was done without any meaningful review and many experienced staff with useful institutional knowledge lost their jobs. New Ministry appointments after this time often did not always have education backgrounds or any experience of working in a school environment.

Ten months before Novopay went live the Government appointed Lesley Longstone to head the Ministry. Longstone was employed from the UK, she had no experience of the New Zealand education system and was obviously chosen because of her expertise in leading the introduction of Free Schools (the UK equivalent of Charter Schools). Longstone struggled in the role and was hardly the best qualified person to fix a ministry that had received one of the lowest ranking of all government departments when it was reviewed a few months earlier by the State Services Commission and the Prime Minister’s office.

The Ministerial Inquiry into the Novopay launch identified a long series of poor decisions and lack of robust oversight. The project was well behind schedule and little of the planned testing and trials had occurred. What tests that had been done had identified numerous faults and yet Ministers English, Parata and Foss were advised that what ever was wrong could be easily rectified after implementation. Very little had been done to prepare schools ahead and there were woefully few staff assigned to field questions and problems that may arise after launching.

The launch was an unmitigated disaster, around 8,000 errors were identified and schools and staff were left suffering for months with a totally dysfunctional system that overpaid, underpaid or didn’t pay at all. Help was almost non existent and many schools ended up paying staff from their own tight budgets and there was no system to return overpayments for many months.

In an effort to save money and implement a system before it was ready has ended upcosting the tax payer $110 million, according to Joyce. Knowing this Government’s manipulation of data it is likely to be much more, but even if we used this figure, that sum would have paid around 2,200 extra teachers for a year or almost 8,000 teacher aids.

Joyce and his colleagues have shifted the responsibility onto Talent2 and the Ministry for the huge waste of money and school disruption that has lasted two long years. This is disingenuous in the extreme and more passing buck that is common under this regime.

It was this Government and its Ministers that:

  • Substantially cut funding to the Ministry of Education without a robust review to support it.
  • Identified the Ministry of Education as poorly performing but did little to address this.
  • Employed someone to head the Ministry with limited local knowledge or relevant expertise.
  • Allowed the Ministry to be staffed with those with little experience of working in a school.
  • Trusted the advice of a Ministry with a poor record and asked few questions.
  • When the implementation went badly, delayed decisive action.
  • Refused any responsibility, but blamed Labour, school staff and the under-resourced Ministry for ongoing problems.
  • As with all other recent school changes, did not widely consult with the profession before hand.
  • Relied heavily on the goodwill of teachers and schools over many months.
  • Paid Lesley Longstone $268,000 in severance pay when many education staff went unpaid for several weeks and even months.
  • Allowed Hekia Parata remain as Minister despite a long history of failure andagainst public wishes (she is still highly ranked in National’s latest list)
No matter what National and its Ministers claim, Novopay is largely their fault, and taking responsibility and making apologies are not what this Government does readily.

See also:

26 comments on “Local Bodies: Novopay Exemplifies National’s Governance ”

  1. Lan 1

    It is ridiculous to try and “fix” the software..payroll should be handled by each school, or maybe region ..why they ever hired an Australian company is a mystery ..madness .. plenty of skills for such a routine matter here ..and plenty of business software. Whole thing is nuts!

    • Sam 1.1

      The timeline of Novapay is of no importance, any color of Government makes decisions that come back to haunt them. The contract was let in 2005 and signed off in 2008. The only consolation is that the hard lessons suffered by Education staff and Post Office employees may allow the Billion dollar IRD system be robust and roll out with few problems.

      • Ennui 1.1.1

        Whats the bet that the same idiots will be “consulting” and advising on contracts and deliverables. In a nutshell that is where most IT contracts go off the rails, and the delivering company surrounds itself with bullet proof legal nonsense.

  2. Richard 2

    And it is soooo not fixed. My partner hasn’t received a payslip for 6 months. Wouldn’t have a clue if the pay amounts are correct.

  3. kenny 3

    Captain Fail strikes again!

    Blame everyone but those responsible – gutless!

  4. vto 4

    The novopay bailout by taxpayers is another example of the failure of the policies and philosophies of the current right, as exhibited by the likes of gosman, srylands (same person), farrar, key, joyce, whyte. It now sits on the mantelpiece beside….

    deregulation – 29 dead men at Pike River
    the driver of self-interest – 29 dead men at Pike River
    contracting out to private firms – novopay
    private firms run things better – Air NZ, NZ Rail, Novopay, electricity companies
    deregulation – finance companies, banks and the GFC

    the list is endless and I imagine a BLiP list of such would run mr prents server dry

    the neoliberal dogma that has been foisted on us has failed.

    I once supported it myself but the evidence is now abundantly clear that those principles have very limited use and application.

    You watch the National Party post-Key begin to dump these and manoeuvre back to the middle ways and policies of the past.

  5. Tiger Mountain 5

    In a better world the “NeverPay” debacle would become a standard text on why Freidmanite economics should not be applied to public service delivery.

    Governments should stay out of business the ACToids say (until they crap out) then the long suffering tax payer gets to bail out failed capitalist enterprise again.

    How about; corporates keep out of citizens affairs such as education, health, science, utilities and transport and stick to gadgets, leisure and junk food.

    • Chooky 5.1

      Agreed Tiger Mountain ..this NACT government is a failure and it is exemplified by the shocking mismanagement of professional teachers’ pay…..it is a disgrace!

      Hopefully all teachers will collectively and individually speak out on this before the Election

      • tinfoilhat 5.1.1

        hmmmm unfortunately National and Labour are peas in a pod on much of education…. absolutely hopeless.

        My advice would be to vote Green.

  6. SpaceMonkey 6

    Seems to me the decision for the Government to take over Novopay is a tacit acknowledgement by National that the market doesn’t always get it right…

  7. Stuart Munro 7

    If the government had any integrity they’d sic Paula Bennet and her faceless legions on Talent2. Their fraud has cost NZ four times as much as all benefit fraud put together, so they should face a practical infinity of harassment.

    • ropata 7.1

      but still nowhere near as much as the billions in tax fraud regularly committed by Aussie banks … no penalty as long as we have a bankster PM

  8. Tracey 8

    Does this mean that PPP now stands for piss poor performance?

  9. Macro 9

    Furthermore….
    This “deal” with Talentless2 ends up costing NZ taxpayers $9m a year for a system that is clearly under performing and not up to specification!

    And Furthermore….
    Captain “fix it” has been crowing all year that it was “Improving” – Well we know he is nothing but a bullshit artist – and this is his masterpiece.
    See NRT for more on this sorry tale:
    http://norightturn.blogspot.co.nz/2014/07/improving.html

  10. disturbed 10

    NOVA stands for:
    not obviously very affordable
    Captain fix it said our Gisborne rail wouldn’t pay, and it rings a bell now his NOVAPAY management stinks.
    Roll on election so they can get tossed out and find some other county to mess up not ours.

  11. Tc 11

    The zealots of privatisation get taken for a ride, joyce has failed to deliver which is no surprise.

    Bullying doesnt fix code or process and all labour asked for was an improved system with a web based entry leaving national to make a pigs ear of a payroll system yup payroll nothing new or difficult.

    There are a few enterprise strength systems could have been stood up and running in the time its taken Joyce to fix nothing. But then I think pissing teachers off is a fav nact pastime.

  12. ropata 12

    It was necessary to replace the outdated manual system maintained by Datacom with something. I would be interested to see the criteria for accepting the Novopay tender.

    After INCIS and many many many IT failures around the world surely departments with multi million dollar budgets should have some robust governance. Who the f*ck is responsible for governance of projects if not ultimately the Government.

    Who ignored the warning signs?
    Who forced the system to go live knowing there were 8000 defects, including dozens that were marked as CRITICAL?

    • Draco T Bastard 12.1

      After INCIS and many many many IT failures around the world surely departments with multi million dollar budgets should have some robust governance.

      Something the size of government can support an IT department to maintain and advise on all hardware and software across all of government. IMO, We’re having these failures because the government doesn’t have such a department and we don’t have that department because of the failed ideology that the private sector does it better. The failures that we’ve gotten from INCIS onwards is proof that the private sector sux as far as government is concerned.

  13. Draco T Bastard 13

    Identified the Ministry of Education as poorly performing but did little to address this.

    This is incorrect. They did quite a bit to address it. They:

    1. Cut funding
    2. Lost experienced people
    3. Employed inexperienced people

    and everything else you list. Basically, they did their utmost to utterly destroy the ministry.

  14. tricledrown 14

    Nova Pay has become a whip to beat the teachers with.
    Insider Knowledge has it that it will take at least another 2 years to fix and that anyone caught leaking this information will be instantly dismissed!

  15. dave 15

    well we can all help long suffering teachers by sacking this government on sept 20th

  16. burt 16

    Nova pay sure does exemplify the National Government. Put in place by Labour and inherited by National when it was in a mess – just like the recession handed to National by Labour.

    • Burt, you have an interesting take on responsibility. If we used the analogy of Novopay as a school bus, then we could say that Labour bought the shell of a bus that needed to be constructed for future use. It doesn’t really matter if that shell had some unidentified defects it is the responsibility of the next owner to oversee the construction and not put it on the road until it is properly road worthy.

    • tricledrown 16.2

      burt you are lying it was not put in place by Labour they were only going to trial it for 6 months only in Canterbury to see if the software had any problems and to sse if they could be worked out.
      Hekia Parata rolled it out Nation wide without any trial.
      She is the most incompetent education minister ever.
      This was rolled out with out the trial deliberately to screw teachers over !
      After nationals debacle with INSIS National must have known that one of software like this is prone to failure.

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  • Weekly Roundup 19-April-2024
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    Democracy ProjectBy bryce.edwards
    2 days ago
  • Clearing up confusion (or trying to)
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  • How to Retrieve Deleted Call Log iPhone Without Computer
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  • How to Factory Reset iPhone without Computer: A Comprehensive Guide to Restoring your Device
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  • Skeptical Science New Research for Week #16 2024
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  • Where on a Computer is the Operating System Generally Stored? Delving into the Digital Home of your ...
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  • How Much Does it Cost to Fix a Laptop Screen? Navigating Repair Options and Costs
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  • Climate Change: Turning the tide
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  • Server-Based Computing Powering the Modern Digital Landscape
    In the ever-evolving world of technology, server-based computing has emerged as a cornerstone of modern digital infrastructure. This article delves into the concept of server-based computing, exploring its various forms, benefits, challenges, and its impact on the way we work and interact with technology. Understanding Server-Based Computing: At its core, ...
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  • Vroom vroom go the big red trucks
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    Point of OrderBy Bob Edlin
    2 days ago
  • Again, hate crimes are not necessarily terrorism.
    Having written, taught and worked for the US government on issues involving unconventional warfare and terrorism for 30-odd years, two things irritate me the most when the subject is discussed in public. The first is the Johnny-come-lately academics-turned-media commentators who … Continue reading ...
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  • Despair – construction consenting edition
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    Point of OrderBy poonzteam5443
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  • Coalition promises – will the Govt keep the commitment to keep Kiwis equal before the law?
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    Point of OrderBy poonzteam5443
    2 days ago
  • An impermanent public service is a guarantee of very little else but failure
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    Point of OrderBy poonzteam5443
    2 days ago

  • PM’s South East Asia mission does the business
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  • $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 ...
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    1 day 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 ...
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  • Judicial appointments announced
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  • 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 ...
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  • Value of stopbank project proven during cyclone
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  • Anzac commemorations, Türkiye relationship focus of visit
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  • 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 ...
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  • 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 ...
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  • 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 ...
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  • 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
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  • Government backing mussel spat project
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  • Government focused on getting people into work
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    BeehiveBy beehive.govt.nz
    3 days ago
  • Clean energy key driver to reducing emissions
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    3 days ago
  • Earthquake-prone buildings review brought forward
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    3 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 ...
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    3 days ago
  • Government consults on extending coastal permits for ports
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    3 days ago
  • Inflation coming down, but more work to do
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    3 days ago
  • School attendance restored as a priority in health advice
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    BeehiveBy beehive.govt.nz
    3 days ago
  • Unnecessary bureaucracy cut in oceans sector
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    BeehiveBy beehive.govt.nz
    4 days ago
  • Patterson promoting NZ’s wool sector at International Congress
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    BeehiveBy beehive.govt.nz
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  • Removing red tape to help early learners thrive
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    BeehiveBy beehive.govt.nz
    5 days ago
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    BeehiveBy beehive.govt.nz
    5 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
    5 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
    5 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
    5 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
    5 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 ...
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    5 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
    5 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 ...
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    6 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 ...
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    6 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 ...
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    1 week ago
  • Roads of National Significance planning underway
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    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 ...
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    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

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