Some facts on Wages, Inflation and GDP

Written By: - Date published: 2:56 pm, May 17th, 2011 - 40 comments
Categories: john key, making shit up, wages - Tags: , ,

Further to today’s Keeping The Buggers Honest, John Key made a number of claims at the same press conference yesterday that do not bear scrutiny.

He claimed that while there had been substantial wage growth under Labour, it had been eroded by high inflation.  National would deliver, according to their Treasury predictions, significantly higher wages that weren’t eaten by inflation.  When reporters asked how much wage growth, he wouldn’t reveal, but agreed that 4-5%pa was an educated guess.

Now I knew that his spiel wasn’t right, and was pretty rich coming from someone whose most recent statistics say: 4.5% inflation (higher than at any time under Helen Clark), 6.1% food price inflation, 1.9% average wage growth and 6.6% unemployment.  So I headed to the statistics website.

Looking at each of those claims:

  1. Wage growth under Labour meant that the median income rose by 69% during their term in office, while over those 9 years the CPI (inflation) grew 28%.  ie, Wages grew nearly 2.5 times faster than inflation.
  2. Inflation was not high under Labour – that 28% CPI increase means an average rise of 2.8% pa.
  3. If we’re looking at 4-5% being National’s strong wage growth – 69% over over 9 years means an average of 6% per year under Labour.
  4. If we look at National’s record? So far there’s been a 6.9% CPI increase under their watch, and a 1.3% drop in the median income.  That’s right, the median income earner in New Zealand is 8.2% worse off under National’s “Brighter Future.”
  5. Treasury predictions haven’t been great.  According to them we’re meant to be having high wage growth now, not the 1.9% average wage growth we have.  We were also meant to have GDP growth in 2008/9/10 of 1.5%, 2.3% and 3.2%. Instead we got -1.1%, -0.4% and -0.1%. (Bernard Hickey’s article is excellent)

At the same press conference John Key also said that a lot of people will be worse off due to the Working for Families changes, but a lot of people will be better off:

There are a number of changes and I’m not going to detail them today, but one impact is of course the CPI [consumer price index] adjustment that comes. But people are better off in cash terms.

That’s right – people are better off in cash terms because they’ll get an inflation adjustment…  Because the number will be bigger, even though it will only buy the same amount.  There’s some spin for you.

Of course it’s not a food price inflation adjustment, so it’ll buy less food…

* Average Wage Growth = the increase in the average wages of all those earning salary/wages – but not other income. Median Income = what the middle income earner in New Zealand is getting – including pensioners and beneficiaries and those earning income from shares etc (doesn’t include those with no income).  In the last year Average Wages are up 1.9% and Median Income is down 1.7%.

40 comments on “Some facts on Wages, Inflation and GDP ”

  1. Good post Bro. I think I’ve said this to you before –

    I did the GDP calculations, and it shows that the economy grew by 25% in real terms while the fifth Labour Government was providing leadership.

    Contrast the situation now: GDP per capita is actually shrinking.

  2. Zaphod Beeblebrox 2

    That 4.5% inflation must be real problem for retirees at the moment. Especially given low interest rates. A lot of them would also be coughing up for the 15% GST on everything. How must they be feeling about the current situation.

  3. Peter 3

    Excellent post, a sincere dig for the truth. Refreshing compared to the disingenuous PM. Keep it coming. During the Clark era inflation below 3% was the expectation, now we are conditioned to accept higher rates.

  4. Pascal's bookie 4

    I’m guessing with Johnny trumpeting away about the big juicy wage increases that are coming down the pike he won’t have a mean word to say about unions negotiating said rises this year right? And if employers are stingy, then he might have to make a wee speech about shared sacrifice and shit, right?

  5. KJT 5

    Like this year.

    Average wages for executives up 14%. Most other workers nil or 1.5% wage increases.
    CPI inflation about 6%.
    Food and necessities up between 15 and 35%, depending on who you talk to.

    Mass exodus of the skilled to Australia.

    Government deficit rising from a net zero under Labour.

    15 billion now forecast.

    Brighter future?

  6. Sean 6

    John Key tells lies. It is as simple as that.

    The reason he tells lies is because for National, the truth hurts.

    Good piece Mr Clark.

    • Carol 6.1

      I was watching today’s question time & was particularly disgusted by a nasty jeering Key saying that Labour makes things up & lies. I will be soooo glad when shonkey gives up politics & leaves NZ for good:

      http://www.parliament.nz/en-NZ/PB/Business/QOA/9/3/0/49HansQ_20110517_00000004-4-KiwiSaver-Prime-Minister-s-Statements.htm

      Hon Phil Goff: Why is it “borrowing” to put money into KiwiSaver but not “borrowing” to give $2.5 billion a year in tax cuts to the top 10 percent?

      Rt Hon JOHN KEY: That is an outstanding question. For a start off, National’s tax plan 2010—it does not matter how many times Labour members want to disagree with it; they are just making it up as they do with so much other stuff—was fiscally neutral. By the way, the entire personal tax cuts right across the board for every New Zealander totalled $2.5 billion. As we see so often, when Labour members cannot win the argument with facts, they just make it up and they say it only inside the House, not outside the House.

      • Zaphod Beeblebrox 6.1.1

        Its a good question and Labour should just keep asking it. In a way National have already admitted the tax cuts were a big mistake. The WFF and Kiwisaver changes in this budget amount to a selective tax increase (how else could you interpret them).

  7. Afewknowthetruth 7

    To be writing about GDP as if it has any validity is an act of gross ignorance or insanity.

    Which is it Ben?

    • McFlock 7.1

      GDP isn’t all bad, and has some validity. It just needs to be taken in context.
      GDP is a bit like BMI – I could get to my ideal weight if someone chopped off my arm, and GDP will rise as the reconstruction of Christchurch progresses. But to discount GDP as a measure out of hand is a bit … fundamentalist.

      • Afewknowthetruth 7.1.1

        GDP has validity? Please explain.

        GDP measures how quickly we convert fossil fuels into waste, i.e. the faster we deplete rapisdly declining resources and convert them into poisonous wastes that pollute the environment (and will eventually make the Earthg uninhabitable), the bneter the economy is.

        GDP measures ill-helath and accidents as positives -the more we spend trying to recover the better the conomy is.

        GDP measures the covering of agricultural land in concrete and asphalt as positive, i.e. complete destruction of the planet =a successful economy.

        Sorry mate, ir’s all bullshit.

        GDP = Global Destruction Process.

        GDP = Global Deception Paradigm

        GDP = Grand Delusons of Politicians.

        Unfortuanetly the bulk of the populace has been very successfully brainwashed and doesn’t bother to do any research.

        • McFlock 7.1.1.1

          GDP measures the activity in the economy. Its biggest limitation, as you point out, is that it makes no judgement on the quality of that activity. Hayek had a bit to say in that regard.
          But the fact is that an economy with no GDP is an economy with no activity – everyone is dead (or ‘permanently inactive economic agents’, as a banker would say). So it serves as a broad, crude, blunt instrument, but for some things, in partnership with other tools, it can be useful.
          I suspect you would agree with me that the almost exclusive focus on GDP as an economic target over the last 30+ years was a major and harmful error that damaged societies across the globe.
          I suspect that where we differ is I think that if a hammer is a shite hex wrench it still shouldn’t be thrown out, because hammers are useful, too. Just for different jobs.
           
           
           

      • KJT 7.1.2

        GDP is only one measure, but it can be useful.

        Such as for showing the relative effectiveness of economic policy between countries.

        NZ GDP rose 4% in the same period the OECD average rose 28%.

        In the same period we have had our great experiment in Neo-Liberal economics.

        • ZeeBop 7.1.2.1

          Yeah, we were all paid by the neo-liberal experiment to feel better as we started the long decline into debt. They took our own money, gave us a bonus from it, pocketed a nice fee for themselves, then wrote a debt contract for us to sign. When anyone whined, they would point to how the farmers were carrying us all. The farmers saw their farms rise in value, and loved the stories of those who sold off making millions. Had they looked around they’d have seen others making 100s of millions when the farmers took on more debt to expand!

  8. Great Ben
    Now will you please read this report, http://oilcrash.com/articles/wake_up2.htm and get back to us on how Kiwi Saver is going to survive an on going fall in global GDP (unless you count cadavers)
    As ‘new blood’ why don’t you act differently than the old guard? Start by telling the truth, but please read the above report first.
    Thanks

    • Afewknowthetruth 8.1

      The only logical conslusion one can draw from Ben’s TOTAL FAILURE to respond points made on the crucial issues of our times is that Ben really doesn’t give a damn about the nation, and especially does not give a damn about the next generation. We must conclude he just wants to get his snout into the feeding trough, like all the rest of them.

      • McFlock 8.1.1

        dude, a “total failure” within 8 hours of the Article being posted isn’t much of a total failure. Leave it a day or two – not all of us are constantly on the net.

        • Robert Atack 8.1.1.1

          McFlock
          ‘we’ have been asking Ben for several weeks now, I will come back to this in a ‘day or two’ and see if we have an honest answer to the request to have Kiwi Saver explained – in the light of this parliamentary report http://oilcrash.com/articles/wake_up2.htm

          Sorry to harp on, considering all the information we have given Ben you would think he might have formed an opinion by now … on PEAK OIL verses KIWI SAVER

          “If you see a problem in the world and you have the ability to do something about it — then it’s your duty to take action” Don Brash

          • Ben Clark 8.1.1.1.1

            I’m not sure of your obsession with KiwiSaver wrt peak-oil.

            As the article quoted says, peak oil is not the end of oil. And the end of oil does not need to be the end of our economy.

            We do need much more action on weaning our society and economy off oil. And you are right, in that we cannot have exponential growth in our use of resources on a finite planet. Economic growth does not mean resource use growth (particularly in my line of work), but there is a correlation.

            But even if we take your premise and the economy were to largely collapse, KiwiSaver would seem a very sensible hedge. It would still mean you have assets stored for your retirement, that would quite probably be worth more than sticking your cash in your mattress. Saving will certainly be better for the planet that spending all your money on consumer goods. And hopefully those savings have funded the capital investments in technology companies that help us transition out of our current resource-hungry, oil-eating ways.

            And yes AFKTT, I’d prefer if GDP wasn’t the measure of our economy, let alone our society – there is no judgement on the quality, source or (social/ecological) cost of that growth. It’s largely got the job because it’s simple, and now because it’s established. At the absolute minimum I’d like to change the measure to GDP/capita so you couldn’t mask your figures by merely adding more people. But given GDP is our current measure, one can’t simply ignore it. We need to come up with better alternatives to GDP of course, and Bhutan’s Gross National Happiness doesn’t quite work, as appealing as it is. Oddly the Conservatives in the UK are putting up some good ideas on adding well-being into their societal measures.

            • Afewknowthetruth 8.1.1.1.1.1

              Since every aspect of NZ industrial society is dependent on the use of oil -mining, forestry, fishing, dairy, manufacture, transport, food production in general, distribution, retailing, tourism- and since the global supply of oil is declining, the NZ economy and the global economy must contract.

              That contraction will accelerate as oil extraction falls by ever greater amounts, year after year. True, the NZ economy will not end instantaneously; it will suffer death by a thousand cuts over a period of a few years …. maybe as long as a decade.

              However, global and local financial arrangements are totally dependent on continuous expansion of the economy -to maintain the bankers’ Ponzi scheme, based on Fractional Reserve Banking and interest payments. Financial markets can and do collapse over a matter of months.

              • Colonial Viper

                Financial markets can and do collapse over a matter of months.

                Clearly, that is what tax payer funded bailouts are for 😈

            • Robert Atack 8.1.1.1.1.2

              >But even if we take your premise and the economy were to largely collapse, KiwiSaver would seem a very sensible hedge.
              A collapsed economy
              has no banks
              no shops
              KS is not govt guaranteed, because they are spread all over the world and very dependent on Ben’s printing press or Bull Shit.
              It would be way smarter to invest your KS funds in canned goods and gardening tools

              Economic growth does not mean resource use growth<
              Sorry Ben but clearly you haven't listened to Professor Bartlett, not that he is of any import, he dose such a great job of explaining it all, way better than me that is for sure.
              Everything humans do uses resources, as soon as you dig a hole you are living an unsustainable lifestyle. Everything has a limit
              What is the point of this debate??
              How about I get a group of friends together and we come into Wellington and spend a day with you, we will go through everything, climate change, peak oil, over population, etc etc bla bla bla bla you shout lunch .. for 5
              I know it is utterly fucking pointless, but the offer is on the table
              ring me http://oilcrash.com/contact.htm

              • Ben Clark

                Hi Robert,

                I live in the North Shore electorate where I’m standing, so it would be a bit of a mission for me to come all the way to shout you and your mates lunch (not to mention the oil it would burn getting me there…)

                I am reasonably aware of the huge problems of climate change, peak oil, over-population etc that seem intractable but desperately need a solution. As I plan on still being on this planet in 50 or 60 years’ time, I feel I have a personal interest in trying to find those solutions however hard they may be.

                And if you’re talking complete collapse of the economy – no banks/shops etc, then I don’t think your lost KiwiSaver funds will be of much concern compared to staying alive…

                • Ben said – And if you’re talking complete collapse of the economy – no banks/shops etc, then I don’t think your lost KiwiSaver funds will be of much concern compared to staying alive…

                  That is why I said invest your KS funds in canned goods and gardening tools … also learn how to use them.

                  Ben said – As I plan on still being on this planet in 50 or 60 years’ time,find those solutions however hard they may be.

                  It isn't brain surgery, the solutions have been here before the problem, but as James Lovelock said "there is plenty you can do, it is just you will not like it"

                  And McFlock
                  I have no solutions as there are non, the main driving factor behind my 8 year 'crusade' was to point this out, then ask why have another child? http://www.vhemt.org
                  The only way to reduce suffering in the future is if the person wasn't born.
                  Humans are going to depart this rock in an orgy of death and violence, as we fight over the dwindling resources

              • McFlock

                actually, yeah – what is the point of this conversation? Do you have any specific solutions on offer for the problem you identify?
                Or is it just the same as a Rapture warning – calamity for most if it happens on Saturday. If it doesn’t happen on your timeframe, there might be time to adapt a bit.
                 
                And if there isn’t time to adapt, why are you wasting my time? Just so you can say “I told you so”?
                 
                 

  9. morning 9

    Median income includes income from all sources. You’re comparing apples with oranges.

    • Ben Clark 9.1

      I was comparing median income with median income (which is the best measure of how ‘ordinary people’ are doing) and explaining the difference between that and also the mentioned average wage.

      It doesn’t matter where your income comes from (except for tax purposes), what matters is how much you’re getting in versus how much money is going out. The median income gives us the measure of what’s going in for an everyday New Zealander, and the CPI gives us a measure of how much their out-goings are increasing.

      • Herodotus 9.1.1

        Ben, medium income does lack in that there is no consideration as to the changes of tax implications. the likes of tax creep that reduced the said increases in income. As income rose and inflations increased the real term value of wages did not increase as these stats make believe, as we were payiong an increasing % of tax than from the previous year.
        Also with the housing boom and the stresses that came on in 08 regarding mortgage rates do also not reflect as housing price increases and interest rates are excluded from inflation and the such like. So as propertry increased and the value of mortgages increased a 3-4% increase in rates that reduced “disposable incomes by $80 – $200/week did more damage than a 3% increase in inflation indicated. That is a major reason why many of us felt poorer and yetthe news headlines were not reflecting this.
        In the end Lab and Nat can have their cat fights, and botgh can throw stats to display how “their ” side is doing well and how bad the other side is- but in reality nothing changes in the ‘burbs.

      • evening 9.1.2

        “Wage growth under Labour meant that the median income rose by 69% during their term in office, while over those 9 years the CPI (inflation) grew 28%. ie, Wages grew nearly 2.5 times faster than inflation.”

        So you’re saying you netted off all other sources of income contributing to median income growth during the period? If not I think you’re missing the point…

        • Ben Clark 9.1.2.1

          Sorry, my language was a little loose there. It should read incomes grew 2.5 times faster than inflation. But it’s incomes that matter when you’re at the supermarket, not wages.

          But to entirely meet Key’s point on what average income did and whether it was swallowed up by inflation I’ll go find more stats for you.

          (…working on stats.govt.nz… …working on stats.govt.nz… )

          Yes average wage grew less, as part of the drive up of median income was the massive increase in employment, moving people off benefits. The move back onto benefits under National is a large part of why median income has dropped 1.7% when average wages have risen 1.9%

          So entirely on Key’s own terms the figures are: average wage up 45% or 4.2% per year – still significantly more than inflation, and indeed what he’s apparently aiming for with his rosy Treasury stats.

          • lprent 9.1.2.1.1

            *sarcasm mode on* 

            So pushing lower waged people onto the dole is good for average wages because they are not receiving wages. So they stop reducing average wages. So that nice Mr Key can keep pushing up average wages by simply making more people unemployed. It must be obvious to any currency trader that this makes the country more wealthy……..

            Ok – that explains his current inspired strategy that drives tomorrows aspirational budget. 

            *sarcasm mode off*

            But of course it is lousy for average incomes — which includes under employed, and does cause problems with government revenues and expenses. That probably explains the rapidly rising government debt levels.

      • Afewknowthetruth 9.1.3

        Isn’t it interesting that the rising energy costs, rising food costs, collapsing values of fiat currencies and environmental degradation we repeatedly warned everyone about for so many years (and were ignored) are now showing up as meltdown of so many economies, and as surging inflation in those that haven’t yet collapsed. And falling tax revenues compared to rising costs of course.

        The government-rigged official numbers are concealing the truth for the moment (does anyone actually believe the official unemployment, deficit, or CPI numbers?), but there will soon come a time when all hell will break lose … around 2013 the way things are looking.

        I guess we ill have new bunch of incompetent fools who don’t know the first thing about energy, the environment or even economics in power by then … or the same old deadbeats.

        • Tangled up in blue 9.1.3.1

          Around 2013? Isn’t it 21/12/12? Glad to see you already have your tinfoil hat ready.

  10. Gazza 10

    And still Mr Donkey has not explained to the people why when the Govt announced to the media a 3.75% cost of living increase to super & beneficiaries, and then only gave 1.85% so any tax reduction last October was wiped out with the increased cost of living.
    We can imagine by this that any adjustments or promises by this current Govt will not or ever be adhered to if they ever get back into power after November.

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    Nick’s KōreroBy Nick Rockel
    2 days ago
  • Bring out your Dad
    Happy fourth anniversary, Pandemic That Upended Bloody Everything. I have been observing it by enjoying my second bout of COVID. It’s 5.30 on Sunday morning and only now are lights turning back on for me.Allow me to copy and paste what I told reader Sara yesterday:Depleted, fogged and crappy. Resting, ...
    More Than A FeildingBy David Slack
    2 days ago
  • Bring out your Dad
    Happy fourth anniversary, Pandemic That Upended Bloody Everything. I have been observing it by enjoying my second bout of COVID. It’s 5.30 on Sunday morning and only now are lights turning back on for me.Allow me to copy and paste what I told reader Sara yesterday:Depleted, fogged and crappy. Resting, ...
    More Than A FeildingBy David Slack
    2 days ago
  • Bring out your Dad
    Happy fourth anniversary, Pandemic That Upended Bloody Everything. I have been observing it by enjoying my second bout of COVID. It’s 5.30 on Sunday morning and only now are lights turning back on for me.Allow me to copy and paste what I told reader Sara yesterday:Depleted, fogged and crappy. Resting, ...
    More Than A FeildingBy David Slack
    2 days ago
  • The bewildering world of Chris Luxon – Guns for all, not no lunch for kids
    .“$10 and a target that bleeds” - Bleeding Targets for Under $10!.Thanks for reading Frankly Speaking ! Subscribe for free to receive new posts and support my work.This government appears hell-bent on either scrapping life-saving legislation or reintroducing things that - frustrated critics insist - will be dangerous and likely ...
    Frankly SpeakingBy Frank Macskasy
    3 days ago
  • Expert Opinion: Ageing Boomers, Laurie & Les, Talk Politics.
    It hardly strikes me as fair to criticise a government for doing exactly what it said it was going to do. For actually keeping its promises.”THUNDER WAS PLAYING TAG with lightning flashes amongst the distant peaks. Its rolling cadences interrupted by the here-I-come-here-I-go Doppler effect of the occasional passing car. ...
    3 days ago
  • Manufacturing The Truth.
    Subversive & Disruptive Technologies: Just as happened with that other great regulator of the masses, the Medieval Church, the advent of a new and hard-to-control technology – the Internet –  is weakening the ties that bind. Then, and now, those who enjoy a monopoly on the dissemination of lies, cannot and will ...
    3 days ago
  • A Powerful Sensation of Déjà Vu.
    Been Here Before: To find the precedents for what this Coalition Government is proposing, it is necessary to return to the “glory days” of Muldoonism.THE COALITION GOVERNMENT has celebrated its first 100 days in office by checking-off the last of its listed commitments. It remains, however, an angry government. It ...
    3 days ago
  • Can you guess where world attention is focussed (according to Greenpeace)? It’s focussed on an EPA...
    Bob Edlin writes –  And what is the world watching today…? The email newsletter from Associated Press which landed in our mailbox early this morning advised: In the news today: The father of a school shooter has been found guilty of involuntary manslaughter; prosecutors in Trump’s hush-money case ...
    Point of OrderBy Bob Edlin
    3 days ago
  • Further integrity problems for the Greens in suspending MP Darleen Tana
    Bryce Edwards writes – Is another Green MP on their way out? And are the Greens severely tarnished by another integrity scandal? For the second time in three months, the Green Party has secretly suspended an MP over integrity issues. Mystery is surrounding the party’s decision to ...
    Point of OrderBy poonzteam5443
    3 days ago
  • Jacqui Van Der Kaay: Greens’ transparency missing in action
    For the last few years, the Green Party has been the party that has managed to avoid the plague of multiple scandals that have beleaguered other political parties. It appears that their luck has run out with a second scandal which, unfortunately for them, coincided with Golraz Ghahraman, the focus ...
    Democracy ProjectBy bryce.edwards
    3 days ago
  • Bernard’s Dawn Chorus with six newsey things at 6:46am for Saturday, March 16
    TL;DR: The six newsey things that stood out to me as of 6:46am on Saturday, March 16.Andy Foster has accidentally allowed a Labour/Green amendment to cut road user chargers for plug-in hybrid vehicles, which the Government might accept; NZ Herald Thomas Coughlan Simeon Brown has rejected a plea from Westport ...
    The KakaBy Bernard Hickey
    3 days ago
  • How Did FTX Crash?
    What seemed a booming success a couple of years ago has collapsed into fraud convictions.I looked at the crash of FTX (short for ‘Futures Exchange’) in November 2022 to see whether it would impact on the financial system as a whole. Fortunately there was barely a ripple, probably because it ...
    PunditBy Brian Easton
    4 days ago
  • Elections in Russia and Ukraine
    Anybody following the situation in Ukraine and Russia would probably have been amused by a recent Tweet on X NATO seems to be putting in an awful lot of effort to influence what is, at least according to them, a sham election in an autocracy.When do the Ukrainians go to ...
    4 days ago
  • Bernard’s six stack of substacks at 6pm on March 15
    TL;DR: Shaun Baker on Wynyard Quarter's transformation. Magdalene Taylor on the problem with smart phones. How private equity are now all over reinsurance. Dylan Cleaver on rugby and CTE. Emily Atkin on ‘Big Meat’ looking like ‘Big Oil’.Bernard’s six-stack of substacks at 6pm on March 15Photo by Jeppe Hove Jensen ...
    The KakaBy Bernard Hickey
    4 days ago
  • Buzz from the Beehive Finance Minister Nicola Willis had plenty to say when addressing the Auckland Business Chamber on the economic growth that (she tells us) is flagging more than we thought. But the government intends to put new life into it:  We want our country to be a ...
    Point of OrderBy Bob Edlin
    4 days ago
  • National’s clean car tax advances
    The Transport and Infrastructure Committee has reported back on the Road User Charges (Light Electric RUC Vehicles) Amendment Bill, basicly rubberstamping it. While there was widespread support among submitters for the principle that EV and PHEV drivers should pay their fair share for the roads, they also overwhelmingly disagreed with ...
    No Right TurnBy Idiot/Savant
    4 days ago
  • Government funding bailouts
    Peter Dunne writes – This week’s government bailout – the fifth in the last eighteen months – of the financially troubled Ruapehu Alpine Lifts company would have pleased many in the central North Island ski industry. The government’s stated rationale for the $7 million funding was that it ...
    Point of OrderBy poonzteam5443
    4 days ago
  • Two offenders, different treatments.
    See if you can spot the difference. An Iranian born female MP from a progressive party is accused of serial shoplifting. Her name is leaked to the media, which goes into a pack frenzy even before the Police launch an … Continue reading ...
    KiwipoliticoBy Pablo
    4 days ago
  • Treaty references omitted
    Ele Ludemann writes  – The government is omitting general Treaty references from legislation : The growth of Treaty of Waitangi clauses in legislation caused so much worry that a special oversight group was set up by the last Government in a bid to get greater coherence in the public service on Treaty ...
    Point of OrderBy poonzteam5443
    4 days ago
  • The Ghahraman Conflict
    What was that judge thinking? Peter Williams writes –  That Golriz Ghahraman and District Court Judge Maria Pecotic were once lawyer colleagues is incontrovertible. There is published evidence that they took at least one case to the Court of Appeal together. There was a report on ...
    Point of OrderBy poonzteam5443
    4 days ago
  • Bernard's Top 10 @ 10 'pick 'n' mix' for March 15
    TL;DR: My top 10 news and analysis links this morning include:Today’s must-read: Climate Scorpion – the sting is in the tail. Introducing planetary solvency. A paper via the University of Exeter’s Institute and Faculty of Actuaries.Local scoop: Kāinga Ora starts pulling out of its Auckland projects and selling land RNZ ...
    The KakaBy Bernard Hickey
    4 days ago
  • The day Wellington up-zoned its future
    Wellington’s massively upzoned District Plan adds the opportunity for tens of thousands of new homes not just in the central city (such as these Webb St new builds) but also close to the CBD and public transport links. Photo: Lynn Grieveson / The KākāTL;DR: Wellington gave itself the chance of ...
    The KakaBy Bernard Hickey
    4 days ago
  • Weekly Roundup 15-March-2024
    It’s Friday and we’re halfway through March Madness. Here’s some of the things that caught our attention this week. This Week in Greater Auckland On Monday Matt asked how we can get better event trains and an option for grade separating Morningside Dr. On Tuesday Matt looked into ...
    Greater AucklandBy Greater Auckland
    4 days ago
  • That Word.
    Something you might not know about me is that I’m quite a stubborn person. No, really. I don’t much care for criticism I think’s unfair or that I disagree with. Few of us do I suppose.Back when I was a drinker I’d sometimes respond defensively, even angrily. There are things ...
    Nick’s KōreroBy Nick Rockel
    4 days ago
  • The Hoon around the week to March 15
    Photo: Lynn Grieveson / The KākāTL;DR: The five things that mattered in Aotearoa’s political economy that we wrote and spoke about via The Kākā and elsewhere for paying subscribers in the last week included:PM Christopher Luxon said the reversal of interest deductibility for landlords was done to help renters, who ...
    The KakaBy Bernard Hickey
    5 days ago
  • Labour’s policy gap
    It was not so much the Labour Party but really the Chris Hipkins party yesterday at Labour’s caucus retreat in Martinborough. The former Prime Minister was more or less consistent on wealth tax, which he was at best equivocal about, and social insurance, which he was not willing to revisit. ...
    PolitikBy Richard Harman
    5 days ago
  • Skeptical Science New Research for Week #11 2024
    Open access notables A Glimpse into the Future: The 2023 Ocean Temperature and Sea Ice Extremes in the Context of Longer-Term Climate Change, Kuhlbrodt et al., Bulletin of the American Meteorological Society: In the year 2023, we have seen extraordinary extrema in high sea surface temperature (SST) in the North Atlantic and in ...
    5 days ago
  • Melissa remains mute on media matters but has something to say (at a sporting event) about economic ...
     Buzz from the Beehive   The text reproduced above appears on a page which records all the media statements and speeches posted on the government’s official website by Melissa Lee as Minister of Media and Communications and/or by Jenny Marcroft, her Parliamentary Under-secretary.  It can be quickly analysed ...
    Point of OrderBy Bob Edlin
    5 days ago
  • The return of Muldoon
    For forty years, Robert Muldoon has been a dirty word in our politics. His style of government was so repulsive and authoritarian that the backlash to it helped set and entrench our constitutional norms. His pig-headedness over forcing through Think Big eventually gave us the RMA, with its participation and ...
    No Right TurnBy Idiot/Savant
    5 days ago
  • Will the rental tax cut improve life for renters or landlords?
    Bryce Edwards writes –  Is the new government reducing tax on rental properties to benefit landlords or to cut the cost of rents? That’s the big question this week, after Associate Finance Minister David Seymour announced on Sunday that the Government would be reversing the Labour Government’s removal ...
    Point of OrderBy poonzteam5443
    5 days ago
  • Geoffrey Miller: What Saudi Arabia’s rapid changes mean for New Zealand
    Saudi Arabia is rarely far from the international spotlight. The war in Gaza has brought new scrutiny to Saudi plans to normalise relations with Israel, while the fifth anniversary of the controversial killing of Jamal Khashoggi was marked shortly before the war began on October 7. And as the home ...
    Democracy ProjectBy Geoffrey Miller
    5 days ago
  • Racism’s double standards
    Questions need to be asked on both sides of the world Peter Williams writes –   The NRL Judiciary hands down an eight week suspension to Sydney Roosters forward Spencer Leniu , an Auckland-born Samoan, after he calls Ezra Mam, Sydney-orn but of Aboriginal and Torres Strait ...
    Point of OrderBy poonzteam5443
    5 days ago
  • It’s not a tax break
    Ele Ludemann writes – Contrary to what many headlines and news stories are saying, residential landlords are not getting a tax break. The government is simply restoring to them the tax deductibility of interest they had until the previous government removed it. There is no logical reason ...
    Point of OrderBy poonzteam5443
    5 days ago
  • The Plastic Pig Collective and Chris' Imaginary Friends.
    I can't remember when it was goodMoments of happiness in bloomMaybe I just misunderstoodAll of the love we left behindWatching our flashbacks intertwineMemories I will never findIn spite of whatever you becomeForget that reckless thing turned onI think our lives have just begunI think our lives have just begunDoes anyone ...
    Nick’s KōreroBy Nick Rockel
    5 days ago
  • Who is responsible for young offenders?
    Michael Bassett writes – At first reading, a front-page story in the New Zealand Herald on 13 March was bizarre. A group of severely intellectually limited teenagers, with little understanding of the law, have been pleading to the Justice Select Committee not to pass a bill dealing with ram ...
    Point of OrderBy poonzteam5443
    5 days ago
  • Gordon Campbell on National’s fantasy trip to La La Landlord Land
    How much political capital is Christopher Luxon willing to burn through in order to deliver his $2.9 billion gift to landlords? Evidently, Luxon is: (a) unable to cost the policy accurately. As Anna Burns-Francis pointed out to him on Breakfast TV, the original ”rock solid” $2.1 billion cost he was ...
    5 days ago
  • Bernard's Top 10 @ 10 'pick 'n' mix' for March 14
    TL;DR: My top 10 news and analysis links this morning include:Today’s must-read: Jonathon Porritt calling bullshit in his own blog post on mainstream climate science as ‘The New Denialism’.Local scoop: The Wellington City Council’s list of proposed changes to the IHP recommendations to be debated later today was leaked this ...
    The KakaBy Bernard Hickey
    5 days ago
  • No, Prime Minister, rents don’t rise or fall with landlords’ costs
    TL;DR: Prime Minister Christopher Luxon said yesterday tenants should be grateful for the reinstatement of interest deductibility because landlords would pass on their lower tax costs in the form of lower rents. That would be true if landlords were regulated monopolies such as Transpower or Auckland Airport1, but they’re not, ...
    The KakaBy Bernard Hickey
    5 days ago
  • Cartoons: ‘At least I didn’t make things awkward’
    This is a re-post from Yale Climate Connections by Tom Toro Tom Toro is a cartoonist and author. He has published over 200 cartoons in The New Yorker since 2010. His cartoons appear in Playboy, the Paris Review, the New York Times, American Bystander, and elsewhere. Related: What 10 EV lovers ...
    5 days ago
  • Solving traffic congestion with Richard Prebble
    The business section of the NZ Herald is full of opinion. Among the more opinionated of all is the ex-Minister of Transport, ex-Minister of Railways, ex MP for Auckland Central (1975-93, Labour), Wellington Central (1996-99, ACT, then list-2005), ex-leader of the ACT Party, uncle to actor Antonia, the veritable granddaddy ...
    Greater AucklandBy Patrick Reynolds
    5 days ago
  • I Think I'm Done Flying Boeing
    Hi,Just quickly — I’m blown away by the stories you’ve shared with me over the last week since I put out the ‘Gary’ podcast, where I told you about the time my friend’s flatmate killed the neighbour.And you keep telling me stories — in the comments section, and in my ...
    David FarrierBy David Farrier
    5 days ago
  • Invoking Aristotle: Of Rings of Power, Stones, and Ships
    The first season of Rings of Power was not awful. It was thoroughly underwhelming, yes, and left a lingering sense of disappointment, but it was more expensive mediocrity than catastrophe. I wrote at length about the series as it came out (see the Review section of the blog, and go ...
    6 days ago
  • Van Velden brings free-market approach to changing labour laws – but her colleagues stick to distr...
    Buzz from the Beehive Workplace Relations and Safety Minister Brooke van Velden told Auckland Business Chamber members they were the first audience to hear her priorities as a minister in a government committed to cutting red tape and regulations. She brandished her liberalising credentials, saying Flexible labour markets are the ...
    Point of OrderBy Bob Edlin
    6 days ago
  • Why Newshub failed
    Chris Trotter writes – TO UNDERSTAND WHY NEWSHUB FAILED, it is necessary to understand how TVNZ changed. Up until 1989, the state broadcaster had been funded by a broadcasting licence fee, collected from every citizen in possession of a television set, supplemented by a relatively modest (compared ...
    Point of OrderBy poonzteam5443
    6 days ago
  • Māori Party on the warpath against landlords and seabed miners – let’s see if mystical creature...
    Bob Edlin writes  –  The Māori Party has been busy issuing a mix of warnings and threats as its expresses its opposition to interest deductibility for landlords and the plans of seabed miners. It remains to be seen whether they  follow the example of indigenous litigants in Australia, ...
    Point of OrderBy Bob Edlin
    6 days ago
  • There’s a name for this
    Every year, in the Budget, Parliament forks out money to government agencies to do certain things. And every year, as part of the annual review cycle, those agencies are meant to report on whether they have done the things Parliament gave them that money for. Agencies which consistently fail to ...
    No Right TurnBy Idiot/Savant
    6 days ago
  • Echoes of 1968 in 2024?  Pocock on the repetitive problems of the New Left
    Mike Grimshaw writes – Recent events in American universities point to an underlying crisis of coherent thinking, an issue that increasingly affects the progressive left across the Western world. This of course is nothing new as anyone who can either remember or has read of the late ...
    Point of OrderBy poonzteam5443
    6 days ago
  • Two bar blues
    The thing about life’s little victories is that they can be followed by a defeat.Reader Darryl told me on Monday night:Test again Dave. My “head cold” last week became COVID within 24 hours, and is still with me. I hear the new variants take a bit longer to show up ...
    More Than A FeildingBy David Slack
    6 days ago
  • Bernard's Top 10 @ 10 'pick 'n' mix' for March 13
    TL;DR: My top 10 news and analysis links this morning include:Today’s must-read: Angus Deaton on rethinking his economics IMFLocal scoop: The people behind Tamarind, the firm that left a $500m cleanup bill for taxpayers at Taranaki’s Tui oil well, are back operating in Taranaki under a different company name. Jonathan ...
    The KakaBy Bernard Hickey
    6 days ago

  • Positive progress for social worker workforce
    New Zealand’s social workers are qualified, experienced, and more representative of the communities they serve, Social Development and Employment Minister Louise Upston says. “I want to acknowledge and applaud New Zealand’s social workers for the hard work they do, providing invaluable support for our most vulnerable. “To coincide with World ...
    BeehiveBy beehive.govt.nz
    5 hours ago
  • Minister confirms reduced RUC rate for PHEVs
    Cabinet has agreed to a reduced road user charge (RUC) rate for plug-in hybrid electric vehicles (PHEVs), Transport Minister Simeon Brown says. Owners of PHEVs will be eligible for a reduced rate of $38 per 1,000km once all light electric vehicles (EVs) move into the RUC system from 1 April.  ...
    BeehiveBy beehive.govt.nz
    7 hours ago
  • Trade access to overseas markets creates jobs
    Minister of Agriculture and Trade, Todd McClay, says that today’s opening of Riverland Foods manufacturing plant in Christchurch is a great example of how trade access to overseas markets creates jobs in New Zealand.  Speaking at the official opening of this state-of-the-art pet food factory the Minister noted that exports ...
    BeehiveBy beehive.govt.nz
    7 hours ago
  • NZ and Chinese Foreign Ministers hold official talks
    Minister of Foreign Affairs Winston Peters met with Chinese Foreign Minister Wang Yi in Wellington today. “It was a pleasure to host Foreign Minister Wang Yi during his first official visit to New Zealand since 2017. Our discussions were wide-ranging and enabled engagement on many facets of New Zealand’s relationship with China, including trade, ...
    BeehiveBy beehive.govt.nz
    21 hours ago
  • Kāinga Ora instructed to end Sustaining Tenancies
    Kāinga Ora – Homes & Communities has been instructed to end the Sustaining Tenancies Framework and take stronger measures against persistent antisocial behaviour by tenants, says Housing Minister Chris Bishop. “Earlier today Finance Minister Nicola Willis and I sent an interim Letter of Expectations to the Board of Kāinga Ora. ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Speech to Auckland Business Chamber: Growth is the answer
    Tēna koutou katoa. Greetings everyone. Thank you to the Auckland Chamber of Commerce and the Honourable Simon Bridges for hosting this address today. I acknowledge the business leaders in this room, the leaders and governors, the employers, the entrepreneurs, the investors, and the wealth creators. The coalition Government shares your ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Singapore rounds out regional trip
    Minister Winston Peters completed the final leg of his visit to South and South East Asia in Singapore today, where he focused on enhancing one of New Zealand’s indispensable strategic partnerships.      “Singapore is our most important defence partner in South East Asia, our fourth-largest trading partner and a ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Minister van Velden represents New Zealand at International Democracy Summit
    Minister of Internal Affairs and Workplace Relations and Safety, Hon. Brooke van Velden, will travel to the Republic of Korea to represent New Zealand at the Third Summit for Democracy on 18 March. The summit, hosted by the Republic of Korea, was first convened by the United States in 2021, ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Insurance Council of NZ Speech, 7 March 2024, Auckland
    ICNZ Speech 7 March 2024, Auckland  Acknowledgements and opening  Mōrena, ngā mihi nui. Ko Andrew Bayly aho, Nor Whanganui aho.  Good morning, it’s a privilege to be here to open the ICNZ annual conference, thank you to Mark for the Mihi Whakatau  My thanks to Tim Grafton for inviting me ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Five-year anniversary of Christchurch terror attacks
    Prime Minister Christopher Luxon and Lead Coordination Minister Judith Collins have expressed their deepest sympathy on the five-year anniversary of the Christchurch terror attacks. “March 15, 2019, was a day when families, communities and the country came together both in sorrow and solidarity,” Mr Luxon says.  “Today we pay our respects to the 51 shuhada ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Speech for Financial Advice NZ Conference 5 March 2024
    Speech for Financial Advice NZ Conference 5 March 2024  Acknowledgements and opening  Morena, Nga Mihi Nui.  Ko Andrew Bayly aho, Nor Whanganui aho. Thanks Nate for your Mihi Whakatau  Good morning. It’s a pleasure to formally open your conference this morning. What a lovely day in Wellington, What a great ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Early visit to Indonesia strengthens ties
    Foreign Minister Winston Peters held discussions in Jakarta today about the future of relations between New Zealand and South East Asia’s most populous country.   “We are in Jakarta so early in our new government’s term to reflect the huge importance we place on our relationship with Indonesia and South ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • China Foreign Minister to visit
    Deputy Prime Minister and Minister of Foreign Affairs Winston Peters has announced that the Foreign Minister of China, Wang Yi, will visit New Zealand next week.  “We look forward to re-engaging with Foreign Minister Wang Yi and discussing the full breadth of the bilateral relationship, which is one of New Zealand’s ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Minister opens new Auckland Rail Operations Centre
    Transport Minister Simeon Brown has today opened the new Auckland Rail Operations Centre, which will bring together KiwiRail, Auckland Transport, and Auckland One Rail to improve service reliability for Aucklanders. “The recent train disruptions in Auckland have highlighted how important it is KiwiRail and Auckland’s rail agencies work together to ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Celebrating 10 years of Crankworx Rotorua
    The Government is proud to support the 10th edition of Crankworx Rotorua as the Crankworx World Tour returns to Rotorua from 16-24 March 2024, says Minister for Economic Development Melissa Lee.  “Over the past 10 years as Crankworx Rotorua has grown, so too have the economic and social benefits that ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government delivering on tax commitments
    Legislation implementing coalition Government tax commitments and addressing long-standing tax anomalies will be progressed in Parliament next week, Finance Minister Nicola Willis says. The legislation is contained in an Amendment Paper to the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill issued today.  “The Amendment Paper represents ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Significant Natural Areas requirement to be suspended
    Associate Environment Minister Andrew Hoggard has today announced that the Government has agreed to suspend the requirement for councils to comply with the Significant Natural Areas (SNA) provisions of the National Policy Statement for Indigenous Biodiversity for three years, while it replaces the Resource Management Act (RMA).“As it stands, SNAs ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government classifies drought conditions in Top of the South as medium-scale adverse event
    Agriculture Minister Todd McClay has classified the drought conditions in the Marlborough, Tasman, and Nelson districts as a medium-scale adverse event, acknowledging the challenging conditions facing farmers and growers in the district. “Parts of Marlborough, Tasman, and Nelson districts are in the grip of an intense dry spell. I know ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government partnership to tackle $332m facial eczema problem
    The Government is helping farmers eradicate the significant impact of facial eczema (FE) in pastoral animals, Agriculture Minister Todd McClay announced.  “A $20 million partnership jointly funded by Beef + Lamb NZ, the Government, and the primary sector will save farmers an estimated NZD$332 million per year, and aims to ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • NZ, India chart path to enhanced relationship
    Foreign Minister Winston Peters has completed a successful visit to India, saying it was an important step in taking the relationship between the two countries to the next level.   “We have laid a strong foundation for the Coalition Government’s priority of enhancing New Zealand-India relations to generate significant future benefit for both countries,” says Mr Peters, ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Ruapehu Alpine Lifts bailout the last, say Ministers
    Cabinet has agreed to provide $7 million to ensure the 2024 ski season can go ahead on the Whakapapa ski field in the central North Island but has told the operator Ruapehu Alpine Lifts it is the last financial support it will receive from taxpayers. Cabinet also agreed to provide ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Govt takes action to drive better cancer services
    Health Minister Dr Shane Reti says the launch of a new mobile breast screening unit in Counties Manukau reinforces the coalition Government’s commitment to drive better cancer services for all New Zealanders. Speaking at the launch of the new mobile clinic, Dr Reti says it’s a great example of taking ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Govt takes action to drive better cancer services
    Health Minister Dr Shane Reti says the launch of a new mobile breast screening unit in Counties Manukau reinforces the coalition Government’s commitment to drive better cancer services for all New Zealanders. Speaking at the launch of the new mobile clinic, Dr Reti says it’s a great example of taking ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Work begins on SH29 upgrades near Tauriko
    Unlocking economic growth and land for housing are critical elements of the Government’s plan for our transport network, and planned upgrades to State Highway 29 (SH29) near Tauriko will deliver strongly on those priorities, Transport Minister Simeon Brown says. “The SH29 upgrades near Tauriko will improve safety at the intersections ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Work begins on SH29 upgrades near Tauriko
    Unlocking economic growth and land for housing are critical elements of the Government’s plan for our transport network, and planned upgrades to State Highway 29 (SH29) near Tauriko will deliver strongly on those priorities, Transport Minister Simeon Brown says. “The SH29 upgrades near Tauriko will improve safety at the intersections ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Fresh produce price drop welcome
    Lower fruit and vegetable prices are welcome news for New Zealanders who have been doing it tough at the supermarket, Finance Minister Nicola Willis says. Stats NZ reported today the price of fruit and vegetables has dropped 9.3 percent in the 12 months to February 2024.  “Lower fruit and vege ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Speech to the 68th United Nations Commission on the Status of Women (CSW68)
    Tēnā koutou katoa and greetings to you all.  Chair, I am honoured to address the 68th session of the Commission on the Status of Women. I acknowledge the many crises impacting the rights of women and girls. Heightened global tensions, war, climate related and humanitarian disasters, and price inflation all ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Statement to the 68th United Nations Commission on the Status of Women
    Tēnā koutou katoa and greetings to you all.  Chair, I am honoured to address the sixty-eighth session of the Commission on the Status of Women. I acknowledge the many crises impacting the rights of women and girls. Heightened global tensions, war, climate related and humanitarian disasters, and price inflation all ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Government backs rural led catchment projects
    The coalition Government is supporting farmers to enhance land management practices by investing $3.3 million in locally led catchment groups, Agriculture Minister Todd McClay announced. “Farmers and growers deliver significant prosperity for New Zealand and it’s vital their ongoing efforts to improve land management practices and water quality are supported,” ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Speech to Auckland Business Chamber
    Good evening everyone and thank you for that lovely introduction.   Thank you also to the Honourable Simon Bridges for the invitation to address your members. Since being sworn in, this coalition Government has hit the ground running with our 100-day plan, delivering the changes that New Zealanders expect of us. ...
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  • Speech to Life Sciences Summit
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