Losing money

Written By: - Date published: 7:32 am, December 2nd, 2014 - 26 comments
Categories: Economy, exports, farming, trade - Tags: , ,

I am always intrigued by the kind of upbeat bullshit that we get out of our cowed public services these days. For instance the press release on the provisional Overseas Trade Index for the September 2014 quarter

The merchandise (goods) terms of trade fell 4.4 percent in the September 2014 quarter, due to export prices falling more than import prices, Statistics New Zealand said today.

The price of exported goods fell 4.5 percent, led by dairy and forestry products. Excluding dairy, the fall in export prices was about 0.9 percent. High meat prices partly offset the fall in dairy prices.

Huh? Talk about a false equivalence. Looking at the June 2014 Goods and Services spreadsheet, milk powder butter and cheese accounted for 23.3% of our exports by FOB value. Meat and edible offal was 8.3%. Logs and wood 5.9%. So a relatively small rise in beef prices is worth mentioning against a pretty massive fall in dairy prices which account for about a quarter of our exports?

But I guess that allows room for the government to get those nice headlines. Like James Weir in the Herald. “Beef boom partly offsets dairy dive“. Spinning under a National government we get good news first, bad news later. It starts like this…

Diving dairy prices have pulled New Zealand’s terms of trade off a 40-year high, statistics released today show.

But export beef prices hitting their highest levels in 12 years helped limit the impact.

Again, a peanut contribution from rising beef prices is somehow equivalent to a frigging disaster of a fall in dairy – exactly what National’s spin doctors ordered.

What is failed to be mentioned is that we are now heading for a record low in terms of trade. Looking over the last decade we see that we have had a very good first part of the year and a bad second half. THis year it will be an excellent first half and a catastrophic second half. Exactly as I anticipated last year. Next year it will just be catastrophic all year.

Essentially the dairy boom that National has been riding has dissipated in increased production world wide and a glut of inventory both offshore and here.

Terms of Trade 2004-2014

As for the “40 year high”… does anyone think that the Herald will be trumpeting the 40 year low. Look at the trade balance over the last 40 years and at the end of that graph. That really doesn’t look good for next year does it?

Terms of Trade 1974-2014

And it gets worse when you start looking through the details. For instance the Overseas Merchandise Trade for October.  That shows that while our income has now flattened (and is likely to fall), our demand for imports has kept increasing.

Merchandise trade values for October months

Fortunately there is always Brian Fallow in the Herald with his understated “Terms of trade picked to fall further“. He seldom repeats press releases so he starts with the picture of reality..

Falling dairy prices have begun to undermine one of the foundations of the economic upswing, rising national income from the most favourable terms of trade for more than 40 years.

The terms of trade fell 4.4 per cent in the September quarter as a 4.5 per cent drop in export prices swamped the benefit from a 0.1 per cent fall in import prices.

It was the first decline in the terms of trade – a measure of the quantity of imports which can be funded by a fixed quantity of exports – since December 2012. It took the terms of trade back to its level a year ago, though that was a 40-year high then.

Economists see the latest decline as just the beginning, however.

Four-fifths of the September quarter’s fall in export prices is explained by an 11 per cent drop in dairy prices.

But less than a third of the slump recorded by Fonterra’s global dairy auctions since February has flowed through to the terms of trade data so far. The terms of trade data use the contract prices agreed before goods are shipped in or out of the country.

Then he gets on to the few minor bits of bright news. But at the end points out the short term view to next year.

Bank of New Zealand economist Craig Ebert said most forecasters including the Reserve Bank had long forecast a decline of around 10 per cent in the terms of trade by 2015.

“This still looks to be in the ballpark, even with the surprisingly big hit from dairy prices we’ve since come to know about.”

Surprising? That has been bloody obvious for years as being highly likely to happen. Given a really big market, good prices and a competitive international market – what did they think would happen? It invariably goes from good times to glut very very fast. As soon as it does, people start dumping their inventory for whatever they can get. Prices plummet like a rock.

If you want to get really depressed about the economy then look at Jamie Gray writing on the Fonterra dairy payout “Payout below $5 a kg picked”

Tomorrow will see the last GlobalDairyTrade auction before Fonterra releases its revised farmgate milk price forecast for 2014/15, and indications are that product prices will remain flat at best, say economists.

Fonterra’s board is set to meet early next week and bank economists expect the co-operative dairy giant to revise its current $5.30 per kg of milksolids forecast for 2014/15 to sub $5 levels.

Prices have fallen by close to 50 per cent since February, driven mostly by excess supply.

The payout peaked at $8.50/kg last season. Now we are looking at something like $4.85/kg for the coming season. Ouch.

This is why the National party policy of favouring rentiers, extractive industries and commodity sales in NZ is and will be a long-term economic failure for the bulk of the population (ie people who don’t contribute anonymously to National’s donations).

We need productive export jobs using our most sustainable resource – our people.

26 comments on “Losing money ”

  • Comments are now closed

  1. hoom 1
    2 December 2014 at 10:52 am

    Rockstar Economy

  2. Macro 2
    2 December 2014 at 11:31 am

    Excellent analysis LPrent. Way better than what any can read in NBR or the daily rags. What anyone with any sense has been saying for the past 6 years or more is about to come to pass. The consequences are not going to be good for anyone. Hopefully the people will finally awaken to the fact that they have been lied to consistently by those who govern them. But just what the outcome will be in the long term is anyones guess. I live in hope for a just government. But who knows.

    • lprent 2.1
      2 December 2014 at 11:42 am

      I was a bit constrained by blog post length. I think that I have another couple of posts on related topics.

      But as you say, pretty damn obvious where an repeated over expansion into a commodity based extractive economy would lead to – yet again.

      • Colonial Rawshark 2.1.1
        2 December 2014 at 6:17 pm

        And as massive dairy returns fail, the underlying massive dairy debt persists…

  3. Poission 3
    2 December 2014 at 11:52 am

    The terms of trade data use the contract prices agreed before goods are shipped in or out of the country.

    The hedged price also constrains imports,in the q3 data oil and petroleum prices increased by 2.7 %.

  4. tricledrown 4
    2 December 2014 at 12:03 pm

    Lprent Beef prices are steady have gone off peak prices already!

    • lprent 4.1
      2 December 2014 at 12:30 pm

      I didn’t even bother looking at them as they always yoyo, and in the terms of the effect on the overall economy the change in price is a pittance.

  5. adam 5
    2 December 2014 at 1:15 pm

    There was a time when the last place for outright spin was missing or at least obvious in the press – the business pages. It was the place we’re those running the country knew they’d better not tell porkies, or the whole system might be put in trouble.

    Come 2014, and even that part of the press is now in spin mode. I know many people in the middle of NZ politics think the left whinge – a lot, and are prone to hyperbole. But, sorry folks, in the sphere of economics it’s simple – you’re being lied to. It is worse than you think, and having a positive attitude, just won’t cut it.

    If an economic conservative like lprent, is pointing out this fiscal decline in stark terms, I’d be worried middle NZ – maybe some of the so called hyperbole wasn’t so rampantly off the mark in the first place.

    • linda 7.1
      2 December 2014 at 8:39 pm

      we are in the housing bubble ,society is loaded with debt and it will be game over sooner or later there is going to be a lot of tears I fear. since 2008 I paid down all my debt and got rid of the credit cards .2008 was a wake up call but and sadly this John key government has not learned its lesson national has mortgaged the future by favouring speculation over production it will all come to a sad end and right fast.

  9. Saarbo 9
    2 December 2014 at 10:49 pm

    The media seem to get most of their information from the banks who are feeding them their version of things (Westpac and ASB bullish while Rabo/ANZ more pessimistic). This time of the year is when 80% to 90% of the dairy farms are sold and consequently banks are competing very hard for farmers debt, to the point that we have seen huge price increases in the sale prices of dairy farms in the Waikato http://www.stuff.co.nz/business/farming/dairy/63472936/waikato-farm-sales-at-record-highs .

    The main problem is that Dairy farmers are driven by what they think that they can afford when purchasing a farm, not by the economics of the investment. The banks are encouraging the high prices but ultimately it is the farmers that are paying these absurd prices.

    The big question for New Zealand is whether the current downturn is cyclical or structural. Most banks are claiming that it is cyclical despite new milk powder capacity destined for the Chinese market being built by Dairy farmers of America in Nevada and Kansas, Glanbia Ingredient’s in Ireland, Arla Foods in Denmark, Sodiaal in France and Freisland Campina in Holland. Many of these Dairy Manufacturers have joined forces with Chinese dairy companies because they don’t want to be too reliant on New Zealand supply.

    But I think the biggest threat to NZ’s place at the bottom of the cost curve is the new Mega dairies in the US. http://www.stuff.co.nz/business/farming/dairy/63591509/us-mega-dairies-a-threat . This is what could turn the current downturn from cyclical to structural (and if that’s the case then this could be economically devastating). In Mondays “The NZ farmers Weekly” on pg 15 (Pay walled online) is an article quoting ANZ’s Ross Verry

    …total NZ dairy farm costs including a capital charge were about $6.70-$7.50 /Kg ms against the Mega Dairies $7.40 – $8.20…

    So when a capital charge is included, the US Mega Dairies are very close to New Zealand because although the US operational costs are higher, when we add in Capital costs (our over inflated cost of our dairy farms combined with our over leveraged farms ) NZ has no cost advantage over the US farms. This is potentially a major problem that must require a political solution. Currently the only farmers who are purchasing these over inflated farms are large multi farm owners. These farmers actually have a vested interest in overpaying for farms as it actually increases their equity on the 10 other farms that they own and the Banks equity is protected in a similar way. Buts its actually nothing more than a Ponzi scheme that will unravel if this payout stays under $6.00 for more than 2 years. Ross Verry reckons that the average breakeven on a NZ dairy farm is $6.80 (when you include capital costs)…which surprised me but if this payout stays subdued we could see what we saw in 2008/09 but much worse.

    • lprent 9.1
      3 December 2014 at 9:50 am

      Most banks are claiming that it is cyclical despite new milk powder capacity…

      That was what struck me as well. I know of major expansions of milk production and milk powder capacity in quite a few countries including China, the US, Denmark and others because of the high prices (the current ‘low’ prices are historically high as well).

      But the banks have been consistently running that “its almost bottomed out” line since prices started dropping early in the year. You have to ask how deeply their fingers are into those farms, and are they trying to retain their asset values up to get their money out.

      • Saarbo 9.1.1
        3 December 2014 at 12:56 pm

        Exactly right. Most rural bankers own dairy farms, I know a dozen rural bankers and every single one of them owns a dairy farm or an interest in one. These people have serious conformation bias issues, they also have short memories…people forget quickly how serious 2008/2009 was. In 2008/09 payout was $5.20…and this caused immense pain, imagine what a sub $5 payout will do.

    • Colonial Rawshark 9.2
      3 December 2014 at 10:09 am

      Buts its actually nothing more than a Ponzi scheme that will unravel if this payout stays under $6.00 for more than 2 years. Ross Verry reckons that the average breakeven on a NZ dairy farm is $6.80 (when you include capital costs)…which surprised me but if this payout stays subdued we could see what we saw in 2008/09 but much worse.

      The majority of dairy debt is owned by the most indebted bottom 20% of farms. There will be definite winners and losers in our local industry if the market stays this low.

      • Saarbo 9.2.1
        3 December 2014 at 12:59 pm

        Yep, I think it was the Reserve Bank Governer who said something like 10% of farmers have 50% of the dairy debt.

    • Jimmy 9.3
      11 December 2014 at 6:05 pm

      Hi, I know this is an older post, but Im interested in your point about the new mega dairies in the US being a threat to NZ dairy.
      Specifically if you think the mega dairies who must bring in grains as feed for cows, can compete with a grass/pasture only based NZ system (not talking about PKE and other NZ bought in supplements).
      Because at the end of the day the profit is made by having the cheapest feed available.
      I see the American corn harvest for them last season was spectacular and the cheaper corn available for american cows has increased their production.
      But if they suffer a drought next corn harvest, or just return to more normal feed prices, how do you think a NZ grass based system would fare?

  10. miravox 10
    3 December 2014 at 7:22 am

    Groser is spinning low monthly trade figures as ‘noise’ not ‘data’

    http://www.stuff.co.nz/business/industries/63767102/monthly-trade-figures-irrelevant

  11. nadis 11
    4 December 2014 at 10:10 am

    try $4.25 not $4.85

  12. nadis 12
    4 December 2014 at 10:39 am

    $4.85 is based on a 20% recovery of WMP plus a sub 75 cent USD

  13. nadis 13
    4 December 2014 at 11:02 am

    A few other bits I’d add. Some of the trade graphs are reflective of the currency – with a 10% drop in currency (so far) you’ll see a reduction in the import value and an increase in the export value which will whipsaw some of those graphs in a more favourable direction.

    The dairy industry’s real problem is that Fonterra is an engineering and logistics company and hasn’t got a clue on how to add serious innovative value to milk. Fonterra is very, very good at building a newer, more productive shiny building that can produce Whole Milk Powder 2% cheaper than the last factory they built, but when it comes to being a Nestle, an Danone or a biotech company they are worse than useless. Nothing wrong with betting large on milk – after all we are the most efficient in the world at producing it – but we have never been able to do what every other developed country does, shift the value from commodity to value add.

    Its also easy to overestimate the size of Dairy in our economy. I have seen it described as either 3% or 8% of GDP but never more than that.

    I’d also urge people not to crow about the coming pain for some dairy farmers – the ones that struggle will likely be young, with a young family, and living on an income in the good years of less than 60k. These are the ones that will disproportionately suffer from overwork, depression, mental illness, marital break-up and suicide. So a little less triumphalism from some would be civilised.

    Alongside Lprents good review, you should read Graham Wheelers speech from May here:
    http://www.rbnz.govt.nz/research_and_publications/speeches/2014/5721595.html

    • Saarbo 13.1
      4 December 2014 at 6:07 pm

      Agree. Regarding the impact of the lower price on farming, in our farming area farm workers have already been made redundant so this will be definately hitting the workers hard in the short term, but Labour still needs to push hard to ensure that the Labour Dept. are checking that farmers are sticking to the rules.

      To be fair, Fonterra’s “Turn the Wheel” strategy of slowly adding more higher value products makes sense, its easy to talk about building “brands” but incredibly hard and expensive to actually do it.

  14. millsy 14
    4 December 2014 at 8:23 pm

    It will only get worse — wait till the Chinese, Russians and Mongolians start producing dairy products way cheaper than we can, railing it all into Europe.

    Why do you think the Chinese are pouring big money into our agricultural industry?

    Climate change will no doubt open up the likes of Siberia to pastoral farming, by which time Chinese and Russian producers would be able to apply New Zealand farming techniques to an area which is several times larger than our country (with a lot less restrictive labour and environmental laws).

    In 20 years, we could be buttering our bread with Chinese made butter.

  15. Saarbo 15
    4 December 2014 at 8:42 pm

    Wow, read this article. Certainly no “brand” value in NZ 100% Pure anymore in China. Particularly the LAST paragraph.

    http://www.reuters.com/article/2014/12/02/china-dairy-europe-idUSL3N0T90QG20141202

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    Open access notables Glacial isostatic adjustment reduces past and future Arctic subsea permafrost, Creel et al., Nature Communications: Sea-level rise submerges terrestrial permafrost in the Arctic, turning it into subsea permafrost. Subsea permafrost underlies ~ 1.8 million km2 of Arctic continental shelf, with thicknesses in places exceeding 700 m. Sea-level variations over glacial-interglacial cycles control ...
    Skeptical Science
    2 days ago

  • Where on a Computer is the Operating System Generally Stored? Delving into the Digital Home of your ...
    The operating system (OS) is the heart and soul of a computer, orchestrating every action and interaction between hardware and software. But have you ever wondered where on a computer is the operating system generally stored? The answer lies in the intricate dance between hardware and software components, particularly within ...
    Gareth’s WorldBy admin
    2 days ago

  • How Many Watts Does a Laptop Use? Understanding Power Consumption and Efficiency
    Laptops have become essential tools for work, entertainment, and communication, offering portability and functionality. However, with rising energy costs and growing environmental concerns, understanding a laptop’s power consumption is more important than ever. So, how many watts does a laptop use? The answer, unfortunately, isn’t straightforward. It depends on several ...
    Gareth’s WorldBy admin
    2 days ago

  • How to Screen Record on a Dell Laptop A Guide to Capturing Your Screen with Ease
    Screen recording has become an essential tool for various purposes, such as creating tutorials, capturing gameplay footage, recording online meetings, or sharing information with others. Fortunately, Dell laptops offer several built-in and external options for screen recording, catering to different needs and preferences. This guide will explore various methods on ...
    Gareth’s WorldBy admin
    2 days ago

  • How Much Does it Cost to Fix a Laptop Screen? Navigating Repair Options and Costs
    A cracked or damaged laptop screen can be a frustrating experience, impacting productivity and enjoyment. Fortunately, laptop screen repair is a common service offered by various repair shops and technicians. However, the cost of fixing a laptop screen can vary significantly depending on several factors. This article delves into the ...
    Gareth’s WorldBy admin
    2 days ago

  • How Long Do Gaming Laptops Last? Demystifying Lifespan and Maximizing Longevity
    Gaming laptops represent a significant investment for passionate gamers, offering portability and powerful performance for immersive gaming experiences. However, a common concern among potential buyers is their lifespan. Unlike desktop PCs, which allow for easier component upgrades, gaming laptops have inherent limitations due to their compact and integrated design. This ...
    Gareth’s WorldBy admin
    2 days ago

  • Climate Change: Turning the tide
    The annual inventory report of New Zealand's greenhouse gas emissions has been released, showing that gross emissions have dropped for the third year in a row, to 78.4 million tons: All-told gross emissions have decreased by over 6 million tons since the Zero Carbon Act was passed in 2019. ...
    No Right TurnBy Idiot/Savant
    2 days ago

  • How to Unlock Your Computer A Comprehensive Guide to Regaining Access
    Experiencing a locked computer can be frustrating, especially when you need access to your files and applications urgently. The methods to unlock your computer will vary depending on the specific situation and the type of lock you encounter. This guide will explore various scenarios and provide step-by-step instructions on how ...
    Gareth’s WorldBy admin
    2 days ago

  • Faxing from Your Computer A Modern Guide to Sending Documents Digitally
    While the world has largely transitioned to digital communication, faxing still holds relevance in certain industries and situations. Fortunately, gone are the days of bulky fax machines and dedicated phone lines. Today, you can easily send and receive faxes directly from your computer, offering a convenient and efficient way to ...
    Gareth’s WorldBy admin
    2 days ago

  • Protecting Your Home Computer A Guide to Cyber Awareness
    In our increasingly digital world, home computers have become essential tools for work, communication, entertainment, and more. However, this increased reliance on technology also exposes us to various cyber threats. Understanding these threats and taking proactive steps to protect your home computer is crucial for safeguarding your personal information, finances, ...
    Gareth’s WorldBy admin
    2 days ago

  • 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, ...
    Gareth’s WorldBy admin
    2 days ago

  • Vroom vroom go the big red trucks
    The absolute brass neck of this guy.We want more medical doctors, not more spin doctors, Luxon was saying a couple of weeks ago, and now we’re told the guy has seven salaried adults on TikTok duty. Sorry, doing social media. The absolute brass neck of it. The irony that the ...
    More Than A FeildingBy David Slack
    2 days ago

  • Jones finds $410,000 to help the government muscle in on a spat project
    Buzz from the Beehive Oceans and Fisheries Minister Shane Jones relishes spatting and eagerly takes issue with environmentalists who criticise his enthusiasm for resource development. He relishes helping the fishing industry too. And so today, while the media are making much of the latest culling in the public service to ...
    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 → ...
    KiwipoliticoBy Pablo
    2 days ago

  • Despair – construction consenting edition
    Eric Crampton writes – Kainga Ora is the government’s house building agency. It’s been building a lot of social housing. Kainga Ora has its own (but independent) consenting authority, Consentium. It’s a neat idea. Rather than have to deal with building consents across each different territorial authority, Kainga Ora ...
    Point of OrderBy poonzteam5443
    2 days ago

  • Coalition promises – will the Govt keep the commitment to keep Kiwis equal before the law?
    Muriel Newman writes – The Coalition Government says it is moving with speed to deliver campaign promises and reverse the damage done by Labour. One of their key commitments is to “defend the principle that New Zealanders are equal before the law.” To achieve this, they have pledged they “will not advance ...
    Point of OrderBy poonzteam5443
    2 days ago

  • An impermanent public service is a guarantee of very little else but failure
    Chris Trotter writes –  The absence of anything resembling a fightback from the public servants currently losing their jobs is interesting. State-sector workers’ collective fatalism in the face of Coalition cutbacks indicates a surprisingly broad acceptance of impermanence in the workplace. Fifty years ago, lay-offs in the thousands ...
    Point of OrderBy poonzteam5443
    2 days ago

  • What happens after the war – Mariupol
    Mariupol, on the Azov Sea coast, was one of the first cities to suffer almost complete destruction after the start of the Ukraine War started in late February 2022. We remember the scenes of absolute destruction of the houses and city structures. The deaths of innocent civilians – many of ...
    Open ParachuteBy Ken
    2 days ago

  • Babies and benefits – no good news
    Lindsay Mitchell writes – Ten years ago, I wrote the following in a Listener column: Every year around one in five new-born babies will be reliant on their caregivers benefit by Christmas. This pattern has persisted from at least 1993. For Maori the number jumps to over one in three.  ...
    Point of OrderBy poonzteam5443
    2 days ago

  • Should the RBNZ be looking through climate inflation?
    Climate change is expected to generate more and more extreme events, delivering a sort of structural shock to inflation that central banks will have to react to as if they were short-term cyclical issues. Photo: Lynn Grieveson / The KākāMy pick of the six newsey things to know from Aotearoa’s ...
    The KakaBy Bernard Hickey
    2 days ago

  • Bernard's pick 'n' mix of the news links
    The top six news links I’ve seen elsewhere in the last 24 hours, as of 9:16 am on Thursday, April 18 are:Housing: Tauranga residents living in boats, vans RNZ Checkpoint Louise TernouthHousing: Waikato councillor says wastewater plant issues could hold up Sleepyhead building a massive company town Waikato Times Stephen ...
    The KakaBy Bernard Hickey
    2 days ago

  • Gordon Campbell on the public sector carnage, and misogyny as terrorism
    It’s a simple deal. We pay taxes in order to finance the social services we want and need. The carnage now occurring across the public sector though, is breaking that contract. Over 3,000 jobs have been lost so far. Many are in crucial areas like Education where the impact of ...
    Gordon CampbellBy lyndon
    2 days ago

  • Meeting the Master Baiters
    Hi,A friend had their 40th over the weekend and decided to theme it after Curb Your Enthusiasm fashion icon Susie Greene. Captured in my tiny kitchen before I left the house, I ending up evoking a mix of old lesbian and Hillary Clinton — both unintentional.Me vs Hillary ClintonIf you’re ...
    David FarrierBy David Farrier
    2 days ago

  • How extreme was the Earth's temperature in 2023
    This is a re-post from Andrew Dessler at the Climate Brink blog In 2023, the Earth reached temperature levels unprecedented in modern times. Given that, it’s reasonable to ask: What’s going on? There’s been lots of discussions by scientists about whether this is just the normal progression of global warming or if something ...
    Skeptical Science
    2 days ago

  • Backbone, revisited
    The schools are on holiday and the sun is shining in the seaside village and all day long I have been seeing bunches of bikes; Mums, Dads, teens and toddlers chattering, laughing, happy, having a bloody great time together. Cheers, AT, for the bits of lane you’ve added lately around the ...
    More Than A FeildingBy David Slack
    3 days ago

  • Ministers are not above the law
    Today in our National-led authoritarian nightmare: Shane Jones thinks Ministers should be above the law: New Zealand First MP Shane Jones is accusing the Waitangi Tribunal of over-stepping its mandate by subpoenaing a minister for its urgent hearing on the Oranga Tamariki claim. The tribunal is looking into the ...
    No Right TurnBy Idiot/Savant
    3 days ago

  • What’s the outfit you can hear going down the gurgler? Probably it’s David Parker’s Oceans Sec...
    Buzz from the Beehive Point  of Order first heard of the Oceans Secretariat in June 2021, when David Parker (remember him?) announced a multi-agency approach to protecting New Zealand’s marine ecosystems and fisheries. Parker (holding the Environment, and Oceans and Fisheries portfolios) broke the news at the annual Forest & ...
    Point of OrderBy Bob Edlin
    3 days ago

  • Will politicians let democracy die in the darkness?
    Bryce Edwards writes  – Politicians across the political spectrum are implicated in the New Zealand media’s failing health. Either through neglect or incompetent interventions, successive governments have failed to regulate, foster, and allow a healthy Fourth Estate that can adequately hold politicians and the powerful to account. ...
    Point of OrderBy poonzteam5443
    3 days ago

  • Matt Doocey doubles down on trans “healthcare”
    Citizen Science writes –  Last week saw two significant developments in the debate over the treatment of trans-identifying children and young people – the release in Britain of the final report of Dr Hilary Cass’s review into gender healthcare, and here in New Zealand, the news that the ...
    Point of OrderBy poonzteam5443
    3 days ago

  • A TikTok Prime Minister.
    One night while sleeping in my bed I had a beautiful dreamThat all the people of the world got together on the same wavelengthAnd began helping one anotherNow in this dream, universal love was the theme of the dayPeace and understanding and it happened this wayAfter such an eventful day ...
    Nick’s KōreroBy Nick Rockel
    3 days ago

  • Texas Lessons
    This is a guest post by Oscar Simms who is a housing activist, volunteer for the Coalition for More Homes, and was the Labour Party candidate for Auckland Central at the last election. ...
    Greater AucklandBy Guest Post
    3 days ago

  • Bernard's pick 'n' mix of the news links at 6:06 am
    The top six news links I’ve seen elsewhere in the last 24 hours as of 6:06 am on Wednesday, April 17 are:Must read: Secrecy shrouds which projects might be fast-tracked RNZ Farah HancockScoop: Revealed: Luxon has seven staffers working on social media content - partly paid for by taxpayer Newshub ...
    The KakaBy Bernard Hickey
    3 days ago

  • Fighting poverty on the holiday highway
    Turning what Labour called the “holiday highway” into a four-lane expressway from Auckland to Whangarei could bring at least an economic benefit of nearly two billion a year for Northland each year. And it could help bring an end to poverty in one of New Zealand’s most deprived regions. The ...
    PolitikBy Richard Harman
    3 days ago

  • Bernard's six-stack of substacks at 6:26 pm
    Tonight’s six-stack includes: launching his substack with a bunch of his previous documentaries, including this 1992 interview with Dame Whina Cooper. and here crew give climate activists plenty to do, including this call to submit against the Fast Track Approvals bill. writes brilliantly here on his substack ...
    The KakaBy Bernard Hickey
    4 days ago

  • At a glance – Is the science settled?
    On February 14, 2023 we announced our Rebuttal Update Project. This included an ask for feedback about the added "At a glance" section in the updated basic rebuttal versions. This weekly blog post series highlights this new section of one of the updated basic rebuttal versions and serves as a ...
    Skeptical Science
    4 days ago

  • Apposite Quotations.
    How Long Is Long Enough? Gaza under Israeli bombardment, July 2014. This posting is exclusive to Bowalley Road. ...
    Bowalley Road
    4 days ago

  • What’s a life worth now?
    You're in the mall when you hear it: some kind of popping sound in the distance, kids with fireworks, maybe. But then a moment of eerie stillness is followed by more of the fireworks sound and there’s also screaming and shrieking and now here come people running for their lives.Does ...
    More Than A FeildingBy David Slack
    4 days ago

  • Howling at the Moon
    Karl du Fresne writes –  There’s a crisis in the news media and the media are blaming it on everyone except themselves. Culpability is being deflected elsewhere – mainly to the hapless Minister of Communications, Melissa Lee, and the big social media platforms that are accused of hoovering ...
    Point of OrderBy poonzteam5443
    4 days ago

  • Newshub is Dead.
    I don’t normally send out two newsletters in a day but I figured I’d say something about… the news. If two newsletters is a bit much then maybe just skip one, I don’t want to overload people. Alternatively if you’d be interested in sometimes receiving multiple, smaller updates from me, ...
    Nick’s KōreroBy Nick Rockel
    4 days ago

  • Seymour is chuffed about cutting early-learning red tape – but we hear, too, that Jones has loose...
    Buzz from the Beehive David Seymour and Winston Peters today signalled that at least two ministers of the Crown might be in Wellington today. Seymour (as Associate Minister of Education) announced the removal of more red tape, this time to make it easier for new early learning services to be ...
    Point of OrderBy Bob Edlin
    4 days ago

  • Bryce Edwards: Will politicians let democracy die in the darkness?
    Politicians across the political spectrum are implicated in the New Zealand media’s failing health. Either through neglect or incompetent interventions, successive governments have failed to regulate, foster, and allow a healthy Fourth Estate that can adequately hold politicians and the powerful to account. Our political system is suffering from the ...
    Democracy ProjectBy bryce.edwards
    4 days ago

  • Was Hawkesby entirely wrong?
    David Farrar  writes –  The Broadcasting Standards Authority ruled: Comments by radio host Kate Hawkesby suggesting Māori and Pacific patients were being prioritised for surgery due to their ethnicity were misleading and discriminatory, the Broadcasting Standards Authority has found. It is a fact such patients are prioritised. ...
    Point of OrderBy poonzteam5443
    4 days ago

  • PRC shadow looms as the Solomons head for election
    PRC and its proxies in Solomons have been preparing for these elections for a long time. A lot of money, effort and intelligence have gone into ensuring an outcome that won’t compromise Beijing’s plans. Cleo Paskall writes – On April 17th the Solomon Islands, a country of ...
    Point of OrderBy poonzteam5443
    4 days ago

  • Climate Change: Criminal ecocide
    We are in the middle of a climate crisis. Last year was (again) the hottest year on record. NOAA has just announced another global coral bleaching event. Floods are threatening UK food security. So naturally, Shane Jones wants to make it easier to mine coal: Resources Minister Shane Jones ...
    No Right TurnBy Idiot/Savant
    4 days ago

  • Is saving one minute of a politician's time worth nearly $1 billion?
    Is speeding up the trip to and from Wellington airport by 12 minutes worth spending up more than $10 billion? Photo: Lynn Grieveson / The KākāTL;DR: The six news items that stood out to me in the last day to 8:26 am today are:The Lead: Transport Minister Simeon Brown announced ...
    The KakaBy Bernard Hickey
    4 days ago

  • Long Tunnel or Long Con?
    Yesterday it was revealed that Transport Minister had asked Waka Kotahi to look at the options for a long tunnel through Wellington. 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 ...
    Greater AucklandBy Matt L
    4 days ago

  • PM’s South East Asia mission does the business
    Prime Minister Christopher Luxon has completed a successful trip to Singapore, Thailand and the Philippines, deepening relationships and capitalising on opportunities. Mr Luxon was accompanied by a business delegation and says the choice of countries represents the priority the New Zealand Government places on South East Asia, and our relationships in ...
    BeehiveBy beehive.govt.nz
    55 mins ago

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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