Tenants already taking the hit

Written By: - Date published: 4:45 pm, March 18th, 2010 - 79 comments
Categories: benefits, gst, poverty, tenants' rights - Tags:

I got a call from a friend today, thanks to National his rent is going up.

I’ll call him Ned. He’s retired and rents a two bedroom home for $310 a week. He recently received a letter from his landlord advising him of a rent increase of $40 a week. He’s sure his landlord is preempting proposed GST hikes and changes to tax on rental properties. Ned’s landlord is a family trust that owns a lot of property in his area. Ned took a straw poll and found most other tenants had got the same letter.

In the past his rent might increase be perhaps $10 a week a time, never anything as steep as $40 a week extra. He did some more asking and found that other friends who rent from different landlords were also getting notice about rent hikes. A young immigrant family operating a corner shop dairy have been hit with a $70 a week increase. That’s a lot of money to find from nowhere.

It seems in the absence of any detail before the Budget, landlords are just making up figures to offset coming changes to the way rental property is taxed. Seems they’re covering every angle to make sure that if anybody’s losing out, it sure won’t be them.

So it looks like a 2% increase in Ned’s pension isn’t going do much to offset his almost 13% increase in rent.

79 comments on “Tenants already taking the hit ”

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  1. irnswn 1
    18 March 2010 at 5:16 pm

    Why doesnt Ned move into rental accomodation that is more suitable for his needs? If he is livign alone and /or is retired he will have no children then why does he need a pricey 2 bedroom flat?

    • ghostwhowalksnz 1.1
      18 March 2010 at 5:31 pm

      One bedroom flats are harder to get or even find

      • Bright Red 1.1.1
        18 March 2010 at 5:50 pm

        yeah there was something on the wireless this morning about the council in wellington getting rid of a whole lot of bedsits, changing to one room, two room.

        • Lanthanide 1.1.1.1
          18 March 2010 at 8:12 pm

          My understanding is that those bedsits were set aside for people with disabilities, and were temporary accomodation only. Not sure how “temporary” though.

    • Galeandra 1.2
      18 March 2010 at 9:24 pm

      Relevance nil, irnswn. (He could live in the town belt under a cardboard box, too, and save money – but that doesn’t address the issue of landlord gouging.)
      Inflation doesn’t justify the increase, but the fall out from the real estate bubble might explain it, as it seems rental supply is currently contracting.
      Love these rich ‘n greedy families who no doubt expect to increase their holdings as the over- leveraged crash and burn. It’s an ill wind…

    • A Nonny Moose 1.3
      19 March 2010 at 12:40 pm

      Sometimes, due to circumstances, just “up and moving” isn’t that easy. Perhaps you are elderly, perhaps you have a disability or you’re sick, perhaps you have kids and need to stay in a particular area for the school; perhaps you actually LIKE the house you’re in because, you know, it doesn’t have shitty rising damp, crap neighbours, it’s close to transport, or it’s reasonably warm in winter.

      Moving COSTS. It takes time to find and negotiate a new place; it takes money – bond, rent in advance, moving company (if you can’t do it yourself), phone, Sky, internet, power; the act of moving is time consuming and stressful, having to live “in between” and unsettled, and sometimes your services aren’t available for a few days (power etc). A financial outlay like that is hard on people who are budgeted to the max.

      Catch 22 – stay, and take the hike hit, or move and take a painful outlay in the hundreds. Yeah, it’s just SO easy to move /sarcasm

    • Paul3 1.4
      19 March 2010 at 3:46 pm

      Yes and the rent increases for his one bedroom flat go up he can always live in a cardboard box in the street! Get a life – this is a person you are talking about. He is elderly, retired and settled in his home. Does anyone really think that it is ok that he would be priced out of what, though not his house, is his home?

      There but for the grace of God go you (or your parents). Where have people gone from all of our equations and where is your compassion and empathy?

  2. Thomas Beagle 2
    18 March 2010 at 5:20 pm

    I wonder what would happen if he wrote back to the landlord and made a counter-offer of $40/week under the current rent.

    It’s all about the local rental market…

  3. torydog 3
    18 March 2010 at 5:31 pm

    Yeah why doesnt Ned live on the streets…or get a box in a park somewhere….thats what the right wingers would like….they simply couldnt careless!

    I sometimes wonder if John Key hasnt taken a bet with one of his foreign money mates to see how quicky he can run NZ into the ground!

  4. freedom 4
    18 March 2010 at 5:59 pm

    It never ceases to amaze me how many people think rents froze in 1982 or some-when.
    The quality of properties and the rents that are being charged are not balanced in any sense of the words that i am aware of.

    go look for a 2 br under $300pw, try looking for a 1br under $200pw that is not a bedsit. Now tell me with a straight face that you believe it is a fair rent for the property. Before you begin your soundbite response, i am not talking abput the ability of the property to meet the mortage you took out, that is your problem and the banks problem. I will not share what i really think of the property pigs wallowing in the accommodation needs of other New Zealander’s

    I am talking of a fair percentage of a person’s income spent on accommodation

    I thankfully have one of the last fair rents i know, but i live in my studio and my circumstances most definitely do not suit most people

  5. Bill 5
    18 March 2010 at 8:57 pm

    Isn’t there a legal limit on the amount that rent can be raised in any twelve month period? And isn’t it somewhat below 13%?

    I know it doesn’t make too much of a difference unless there has already been an increase within the previous twelve month period, but hey….

  6. Eddie (the plonker from the past) 6
    18 March 2010 at 9:04 pm

    Oh my giddy Aunt! A hypothetical rent rise is the gubbermints fault. I despair at the quality of youse commie trolls these days, under Auntie Helen you were at least an organised rabble, these days its just a joke!!!!!!!!!!

    [Please change your handle, there is already an “Eddie” here who is an author on the site. Please lift your game too, that comment didn’t add much to the sum total of the human condition I’m afraid — r0b]

    [lprent: I extended its name to reflect its attitudes. It sounds like something left over from the McCarthy period. ]

    • uddie 6.1
      18 March 2010 at 9:42 pm

      & your posts improve the ‘human condition’ r0b bro tell u what u lift your game a few inches & stop blogging bollx and I’l do tha same bro. ka pai.

    • Phil 6.2
      30 March 2010 at 5:40 pm

      Oh come on Eddie or Uddie – the extra revenue gained by the landlords – it’s their property, why not get as much as they can for it, that’s the market economy, which you may have heard of in some ultra-right wing tract “What the market will bear” – is going to trickle down to the market and stimulate the economy. It’s economics you should be well aware of. The words “you” and “drongo” keep coming to mind here; not sure why.

      There’s no commie trolls left old son, and Helen was at least a leader with a depth of intelligence not seen in the present glove puppet. Why the extra-low shot?

      And let’s face it, governments get voted out, not in – that means that we got the little money market supermouse by default – and I sincerely believe it was the sleepwalkers like you with entrenched, narrow-minded and mostly ill-conceived opinions that put him and the desperate last-hoper miners in there. And Paula “I was in HR!” Bennett. Cripes!

      If you were like me – self-employed, two teenage kids, mortgage and rent to pay, major health problems to boot as well as an Mba – you’d have a wider view and probably gain a glimpse into this century.

      Stop putting the boot in and contribute to our society – all of it – or will you be moving to another planet soon?

  7. Cactus Kate 7
    18 March 2010 at 9:08 pm

    Thank you Tammy for providing a superb example of how government’s extorting more money from landowners through higher tax and less deductions doesn’t help the poor.

    As I have predicted costs are just passed on, and look for the corner dairy owner to amp up prices to pay for rents.

    What is a fair rent? If Ned don’t like it he can move and someone else will move in or the landlord will be forced to drop the price of the rent. Ned has the power. That is fair.

    More examples please…..

    • SPC 7.1
      18 March 2010 at 10:59 pm

      Maybe this is just the fruit of government inaction to stimulate the economy through state house building – despite knowing that private sector building was in decline and global recessions attract home ex-pats who have lost jobs.

      In the environment of a growing housing shortage it is possible for landlords to extract higher rents to compensate them for loss of depreciation write-offs. Thus the government can survive the fall-out.

      As for the tenants who will be worse off because of this.

      Of course it is important to the government that these rent increases occur prior to the budget to minimise the PR damage from reports of people worse after the budget.

      Otherwise the no one will be worse off line would be exposed for the shallow and empty promise it was. The government is full of experts in rorting the accommodation market.

    • Sam 7.2
      19 March 2010 at 8:49 am

      Translation: He can’t afford an unjustified rent hike and this is his fault so he must pack up everything he owns and find a new place or live on the street. Meanwhile, the landlord can fuck around doing what he or she does anyway, completely unaffected because he or she knows that the pensioner is unlikely to move out, and if he does then some other poor soul will pay for it because not everyone has the security of a roof over their head. This is a fair and balanced relationship and there is no power imbalance whatsoever.

      Peyote Kate is on the magic tea and again, has no idea whatsoever of the real issues affecting ordinary people in the real world. Much like the rest of her ilk.

    • prism 7.3
      19 March 2010 at 1:04 pm

      You think like a robot Cactus Kate.

  8. infused 8
    18 March 2010 at 9:18 pm

    I smell bullshit. You can’t just up rent like that on someone. Also, he has an opptunity to move. Pre empting GST rise? Give me a fucking break. That’s ages away. Why would someone do it now? Sounds like you need something to blame a rent increase on.

    I live in a 3bdrm house in the hutt for $270 a week.

  9. Wilson Philips 9
    18 March 2010 at 9:20 pm

    Hey Katus, why should the government provide more deductions for landlords and thereby reduce tax revenues and force up tax demands on those taxpayers who are not landlords? You’re talking shit.

  10. Wilson Philips 10
    18 March 2010 at 9:21 pm

    infused, OMG, why would you live there?

  11. Jollies 11
    18 March 2010 at 10:52 pm

    GST isn’t payable on rent on residential property. This story is bunkum from the get-go.

    • lprent 11.1
      18 March 2010 at 11:13 pm

      Nope GST isn’t payable on rent. However it is payable on just about everything else (apart from interest payments) that goes into maintaining a property. Everything from rates, water bills, paint, taps, windows, etc… GST goes up, and the rents will follow costs and go up as well.

      Your point is what? That you are a bumpkin who really doesn’t know much about property?

      • jedi 11.1.1
        18 March 2010 at 11:38 pm

        Iprent leaves you in the dust buster with his withering attack and special moves otherwiseknownas being a prize old fool

        • lprent 11.1.1.1
          19 March 2010 at 1:35 am

          Yeah and I notice that you contribute such a lot to the debate. What is the value of sweet 5/8th of fuck all?

      • Lanthanide 11.1.2
        19 March 2010 at 12:04 am

        It is difficult to see that a 2.2% price rise in all of those things would translate to $40/week. That’s $2080 a year, meaning that the landlord must be paying $95,545 on maintenance/rates of that house in order for a $2080 rent raise to cover the higher GST cost.

        Clearly the rent rise is not *just* to cover GST, although it may be a small portion of it.

        • luva 11.1.2.1
          19 March 2010 at 1:29 am

          As Lanth demononstrates, this guy’s issue is with an arsehole landlord rtaher than the government. The increase in rent is a hell of a lot more than the increase in GST on rates etc.

          I find it quite disturbing that intelligent people blame every disaster and credit every success in society on the government, depending on what side of the very high fence they sit. Blame the man who put up the rent, credit the boss who put up the wages, blame the man who sacked the employee, credit the company that takes 100 new unqualifed employees. Not everything happens as a consequence of what John Key say’s or does.

          • lprent 11.1.2.1.1
            19 March 2010 at 2:00 am

            Actually, not really. The price increase is probably also (as the post points out) going to preempt the increased property tax forecast for this year. Why bother putting in a separate rent change for each.

            Between the rises in cost structures from GST, and a shift in property taxes impacting landlords, it would not surprise me if the total cost change is not heading towards a few thousand a year on a property.

            I’d assume that the owner dropped a increased profit percentage on as well to maintain or even increase their ROI as well.

            But in this case, I’d would suspect that most of the rent increase is directly related to anticipated tax changes (and rates changes as well probably). The orders of the costs to the landlord are probably about correct based on what we currently know about eventual tax changes for both GST and property taxes. Of course the rent increase will be higher because there is always risk in having imperfect information. At this point Bill English hasn’t announced what his economic direction for the country is, so we’re just left with the yammerings of a clueless Key. Who by contradicting himself each week (or having his ministers do it for him) increases the uncertainty and risk levels to landlords

            In other words – this rent rise is probably largely due to the government increasing taxes. Specifically so they can give large tax reductions on the people who don’t need them, to be paid by raising costs like rent and GST on the people who can’t afford to pay them.

            • TightyRighty 11.1.2.1.1.1
              19 March 2010 at 9:28 am

              couldn’t have anything to do with a ten year property boom that was encouraged by the last government as a way to increase prosperity? and when the market needed correction and homeowners and landlords saw that capitals gains would not provide a decent return on investement, then of course the tenants had to pay their fair share.

              interesting though, for less than 250k, which ned will be able to service the mortgage on fairly easily, there are houses all over the country which are two bedroom and he could purchase and then not have to worry. but of course, rather than be proactive and help himself out. the lazy old shit suffering from entitleitis, if he even exists, gets used to score political points by blaming it all on the governemnt.

              • lprent …
                19 March 2010 at 10:46 am

                I thought that Ned was retired, or did I read that incorrectly? Try finding a bank that will lend to someone on a pension. I suspect that you’re speaking crap….

              • felix …
                19 March 2010 at 11:10 am

                I love the implication that Ned can just go and live somewhere else, anywhere in the country will do according to TR.

                See according to the likes of TR there’s no such thing as society, and Ned is just a rational self-interested economic unit. This means we can completely ignore things like Ned’s links to his community, his friends, his family etc and pack him off to Westport where he can afford a house. How convenient.

              • TightyRighty …
                19 March 2010 at 1:36 pm

                well not given any information on where ned lives, and seeing the preponderence of homes available throughout the country that fall within neds budget, i don’t see how your comment has any relevance at all. maybe if ned wasn’t fictitious, we could focus on his situation more. and lprent, could someone on just the pension alone really afford $620 a fortnight to live on his own? fixed income maybe, pension doubtful.

                of course let’s not think rationally about that, lets just blame someone else for a situation that is within neds control

                • lprent …
                  19 March 2010 at 1:54 pm

                  Same point really regardless of if it is a fixed income or pension, the banks won’t lend a mortgage to someone in that age-range. Which is what your original point was – that Ned should buy a house or apartment or something. He is retired – the ability to do that is likely to be severely constrained.

                  But even that is not all that relevant. Quite simply people have their support networks set up in the area that they live. It is often more expensive and a lot harder to set those up in a new location. Plus there are a lot of studies that show that the elderly death rate is a *lot* higher after a move from their old neighbourhood (actually it is everyone, but the elderly are more vulnerable). You’re looking purely at the financial, and that is the least of the costs involved in moving.

              • felix …
                19 March 2010 at 1:41 pm

                It doesn’t matter where he lives, moron. The fact that you think anyone can just pack up and go wherever the cheap houses are shows the ignorance, naivety, and arrogance so typical of the privileged when discussing the rest of us.

              • TightyRighty …
                19 March 2010 at 2:06 pm

                it does matter moron. what if the house next door to him is for sale? instead of being negative about an option and refusing to explore other alternatives and generally blaming everyone else, why not be proactive?

              • felix …
                19 March 2010 at 2:13 pm

                Can’t afford the rent on this house, think I’ll buy the one next door.

                Just shows how removed you are from the real world issues most people have to deal with.

              • TightyRighty …
                19 March 2010 at 2:30 pm

                down the streeet, round the corner, next block over. whatever. your attitude shows what you think of positive action. situation: grumpy old fuck not liking market forces, complains to someone who writes blog post saying it’s all governments fault. solution according to felix: rather sit there and grumble than make a proactive move. don’t look at options except of options of who to blame.

                solution according to sensible person: weigh up options, decide to stay in neighbourhood, look around for more sensibly priced accomodation given budgetary constraints. do a bit of looking, discover that house can be bought that suits needs for same amount of money, but actually having owenership.

              • felix …
                19 March 2010 at 2:35 pm

                That’s because you have a religious-like devotion to the supremacy of market forces, hence your inability to take notice of anything else being discussed in this thread.

                In short, you are a death-eyed zombie and there is no hope of anyone extracting anything close to a human response from you.

              • TightyRighty …
                19 March 2010 at 3:16 pm

                what a facile thing to say felix. if that’s the best you have because you want the last word you truly are plumbing new depths of pig headedness. you’ll never get the response from me that you think this deserves because you don’t understand that unlike you, some people are proactive in making a bad situation ok. the government doesn’t need to be there to handhold you each time something you don’t like happens. it’s an ugly thing the abrogation of personal responsibility.

              • felix …
                19 March 2010 at 4:24 pm

                And you don’t understand, from your obvious position of privilege, that many of the solutions you find so abundant are simply not available to everybody else.

                It’s the height of irony for you to accuse me of being facile when your entire contribution to this thread thus far has amounted to saying “If he doesn’t like it he can fuck off”.

              • TightyRighty …
                19 March 2010 at 5:06 pm

                hilarious, when you can’t fault the message attack the messenger. privilege is earned felix. every day thousands, no millions of people adapt to adverse circumstances, and most will blame someone, but change anyway. you on the other hand, sit there like some weasel and make sure that some one else should do the hard work. you miserable prick.

              • felix …
                19 March 2010 at 5:35 pm

                I think you’ll find I’ve attacked your message (what there is of it) pretty thouroughly.

                You’re actually the one advocating a passive stance, TR, not me. You’re the one who believes each individual should be thrown to the whims of the market under the guise of personal responsibility and may the richest man win.

                Some of us have a more humanist view of society. Do not mistake that for passivity or advocating a lack of action.

                Care to point me to a comment you’ve made here which goes beyond “If he doesn’t like it he can fuck off”?

        • lprent 11.1.2.2
          19 March 2010 at 1:34 am

          Agreed that GST is unlikely to be the full amount. There is also likely to be property tax changes as was pointed out in the post. And after all you have to make a profit on any money paid out as well :twisted:…

          I was more annoyed by jiggles being stupid enough to forget that GST is a double sided system. Regardless if you don’t receive GST, it is in almost all of the goods and services consumed by landlords (and home-owners and tenants).

          It mounts up pretty fast. Just thinking on what I pay for my apartment annually. Ummm about a grand and a bit for rates. Just over two grand for body corporate fees (including water and sewerage). Usually a thousand or so for various repairs a year – fixing waste disposal units, toilet seats, carpet cleaning, etc. What else – insurance!

          Ummm, 2.5% of that alone would be a few hundred bucks. And my property is pretty new after they finished fixing up the leaky building problems last year. Older properties require more maintenance, and maintenance costs.

          Of course the property tax changes will probably hurt landlords more – if they didn’t preemptively pass them on to tenants. I’d expect to see quite a jump in rental prices over the next year in the stats.

          Anyway any change to GST or property taxes (or rates or…) flows through into the cost structure, and will eventually result in either increased rents or decreased numbers of rental housing.

          • blinded by the right 11.1.2.2.1
            19 March 2010 at 8:52 am

            for 2.5% to be a few hundred bucks, you’d need to be spending around $12,000 a year. From the figures you supply, your increase could be expected to be roughly $120, spread over the full year.

  12. ropata 12
    18 March 2010 at 10:52 pm

    Maybe the rental market is humming right now because nobody wants to BUY houses at prices inflated by Labour policy designed to overheat the economy, such as Welcome Home and WFF. Perhaps rentals are inflated by the Accommodation supplements too.

    • SPC 12.1
      19 March 2010 at 12:56 am

      Just one thing ropata – most of the increase in house values occured 2002-2006 before WFF came in. Possibly caused by the amount of credit in the world economy banks could on-lend to people buying houses – which explains housing bubbles occuring around the world at the same time. Thanks for coming.

      • ropata 12.1.1
        19 March 2010 at 8:37 am

        The point is that the property market has been filled with speculators and rent seekers .. which successive governments have either openly endorsed, or done nothing to restrain. A lot of foreign capital has been sloshing round buying up NZ assets and shutting Kiwis out of the chance to have their own home.

    • Sam 12.2
      19 March 2010 at 8:50 am

      Wait, so WFF fuelled the property boom?

      Who taught you economics?

  13. Barnaby Bennett 13
    18 March 2010 at 11:51 pm

    There are some international agreement that housing should be considered excessive or unaffordable if it makes up more than 30% of someones income. I’m not sure of the economic reasons behind it but a good chunk of the nz population, those on student allowance, the dole, or minimum wage in Auckland or Wellington fall into this category. Despite the relative abundance of land in NZ and Aus they are two of the least affordable places to be housed in the world.

    Partially this I think this is caused by an uneven spread of ownership, creating two classes of people, owners and renters. Worryingly though is rent has been suppressed in the last decade by explosive growth in the capital value. As this starts to slow and disappear the land owners are going to start demanding more to pay for those excessive mortgages they bought their third house with.

  14. pollywog 14
    19 March 2010 at 7:57 am

    “Maybe the rental market is humming right now because nobody wants to BUY houses ”

    …made in the last decade out of shit materials that wont last 15 years. Hiking rents in the short term might be a way of paying off that crappy investment property faster before you can charge stuff all for it.

    • Bored 14.1
      19 March 2010 at 8:11 am

      Perhaps our bloated middle classes were encouraged by the ability to offset tax against rental properties prior to and into the boom. Maybe they thought that they could have it all ways, a tax break, an increasing capital return, and an income later. All paid for by us, the taxpayers and our societies speculative fascination with the idea that prices would only ever go up.

      Now that the chickens have come home to roost it is entirely predictable that as the gravy train dries up and the chill winds of lower income and capital losses appear that the landlords will demand that somebody else pays, that anybody but them foots the bill.

      Me, Im with the Dead Kennedy’s little ditty “Lets lynch the landlord”..easiest way to do it is to refuse the increases enmasse and overload the procedings of the tenancy tribual.

      • scrote 14.1.1
        19 March 2010 at 8:35 am

        The bloated middle classes that pay all the tax to ensure the beneficiary classes can enjoy their subsidised lifestyles? That middle class?

        • ropata 14.1.1.1
          19 March 2010 at 8:44 am

          scrote,
          Next you’ll be claiming that people who own 50 rentals are doing it from the goodness of their heart to support society.

          • scrote 14.1.1.1.1
            19 March 2010 at 4:04 pm

            I didn’y say anything about landlords or house owners or rental landlords.

            I said that the middle classes pay the taxes that support the beneficiaries subsidised lifestyles.

            Try and keep up and debate the argument and not words you place in others mouths.

            • ropata 14.1.1.1.1.1
              19 March 2010 at 11:01 pm

              “bloated” middle class = landlords = tax avoiders = subsidised lifestyles = beneficiary class
              != taxpayers or the actual *working* class

              Maybe you didn’t notice that rental tenancy is the title of the post?

  15. andy (the other one) 15
    19 March 2010 at 8:09 am

    Tell your Friend that it is illegal under the Residential Tenancy Act 1986to charge more than ‘Market Rent’ for any property, he should call tenancy services and they will advise him if the rent is above or at market rates.

    Next step is to apply to the tenancy tribunal to have the increase overturned. The rental market is very hot at present because there is a lack of rentals because of uncertainty of what is going to happen in the may budget, but If I was your ‘friend’ I would prepare to move anyway.

    If the rent is excessive, the tenant may apply to the Tenancy Tribunal for a market rent assessment. If the Tribunal finds that the rent is too high, it may order a reduction in the rent. Market rent applications can only be filed for fixed-term tenancies within 3 months of the beginning of the tenancy or 3 months of the date of the last rent review.

    http://dbh.govt.nz/sorting-out-problems

    • blinded by the right 15.1
      19 March 2010 at 8:45 am

      Except market rent is usually quite high, and it’s entirely possible that Ned is getting the place for less than market anyway. I know that our apartment is rented to us at less than market rates (as we challenge our proposed increases and make them smaller, and know what apartments in Wellington can cost) but it has still increased by 25% over the last 2 years (total).

  16. Cam 16
    19 March 2010 at 8:47 am

    This is a curious post. If Labour really cared about housing the poor then they would have stopped the property bubble from escalating during the 9 years they were in power. Instead Labour did absolutely nothing while property prices spiralled higher and higher. No capital gains tax, no ring fencing, no controls on depreciation- Labour did absolutely nothng. Labour even continued to let foreign speculators buy our residential property which was utterly shamefully. With foreign ownership we get the people with favourable exchange rates being able to outbid local buyers, and then the final insult of large amounts of money (rent) flowing out of the NZ economy. Shame on you Labour.

    And now we have a mess that I hold Labour responsible for. Yes- there is going to be some pain and yes the poor will be impacted (not that you really care- I get the impression most of the angst over this issue is coming from property speculators within Labour). But in the end people will only be able to pay what they can afford and I think landlords are going to struggle to get more money. Property prices will drop (unless foreign speculators buy from local distressed sellers and even more of our residential property falls into foreign ownership- a real risk). Once property prices drop then low income people can afford to buy property ,and landlords can also afford to buy property at a price that gives them a reasonable return without needing a taxpayer handout to make ends meet. A win-win for the country- maybe a lose-lose for some Labour politicians.

    [lprent: What makes you think that this post was written by someone associated with Labour? I read all of Tammys posts and I have no idea what her politics are except in a general way.

    Read the about and make less of a fool of yourself next time.

    Of course the rest of your comment is at a similar level of pig-ignorant stupid assumptions as the one I just noted. It is pretty obvious that your politics are those of making stupid assumptions and passing judgements on people that you don’t know. Sounds like ACT to me.

    See how easy it is to be as intellectually lazy as you are… ]

    • SPC 16.1
      19 March 2010 at 11:26 am

      Cam, do you have any idea how many foreigners own housing here and how many of them that rent out their properties? I have never seen any statistics on this.

      I was under the impression that most people buying houses with forex were ex-pats returning from OE, there were some foreigners who had holiday homes here but they did not rent them out. There were a few reports about Australians looking at rental property (real estate agency advertising was going to them) – how many bought and do they still own here?

      Labour was responsible for not acting, but remember that National in opposition was not advocating any action either (NZ First and Greens did advocate change). Note now that National is intending to act – all Labour is saying is that, people need to be compensated for rent rises in the budget.

    • Cam 16.2
      19 March 2010 at 11:43 am

      Well- I don’t think ad hominem is very helpful in this instance. I don’t regard myself as ignorant nor do I think I have made a fool of myself. I have been a reader of “The Standard” since the beginning and it is very much associated with the left and with Labour- the caption on the website used to read “The NZ labour movement used to have its own newspaper – a group of us thought that now might be a good time for it to be digitally reborn.” Are you saying that this blog doesn’t represent the left at all now and all comers of any political persuasion are welcome to post articles?

      And instead of attacking me why don’t you argue my points instead? What was incorrect about what I said?

      [lprent: The statement is still there in the source. It is also in the about. However the “labour movement” is not the Labour party as you’re asserting. That is an error of basic fact.

      If you’ve been reading the site for any length of time you’ll be aware that conflating the two together in the manner you did is guaranteed to get a response from me. Experience has told us that anyone not bothering to read about the site, but who rather prefers to express their own prejudices, is unlikely to be useful at writing comments or fostering debate.

      All they ever do is to assert their own opinions as facts without bothering to debate at all. In particular people with that attitude don’t respond to being requested to show links supporting their opinions when requested. That makes them trolls in my book, and you just triggered my troll detector.

      I haven’t bothered to even read your ‘argument’. If you’re stupid enough to not understand the site and site rules then you’re too stupid to write here. You’re a guest on the site, and you’re acting like you own it. The probability of you taking the same stupid attitude to other people leaving comments is too high to be bothered with. I’ll just preempt and add you to moderation for my personal attention.

      I’ll expect that I won’t see an attitude change and will eventually drop you into banned. For me this is less work that banning you later. ]

      • shakes head 16.2.1
        19 March 2010 at 3:52 pm

        Jolly jeepers Batman! Iprent is really mentally disturbed.

        • Bright Red 16.2.1.1
          19 March 2010 at 4:08 pm

          have some manners. You come to someone’s site you don’t behave like a dork towards them.

          and lynn, maybe reply in the comments, rather than in the black if it’s going to be so long? it’s unreadable in bold.

          • shakes head 16.2.1.1.1
            19 March 2010 at 4:13 pm

            Maybe being less of a Stalinist would help too Bright Red. Ya know?

            [lprent: Shakes head… Maybe not using antique language out of another age would help your McCarthy time-warp syndrome… But I suspect you stopped thinking decades ago. Otherwise you wouldn’t say things that get caught in auto-moderation. ]

          • lprent 16.2.1.1.2
            19 March 2010 at 5:40 pm

            I got carried away.

            One of the more stupid inanities that I’ve had the pleasure to be sarcastic over for a while. Maybe the drought has broken. I can resume being the cruel and unkind BOFH that I truly am at heart….

      • ropata 16.2.2
        19 March 2010 at 11:11 pm

        Can’t fault your comments Cam, clearly you’ve struck a nerve

  17. Indiana 17
    19 March 2010 at 9:15 am

    One cost that a proportion shold be passed on to tenants is city coucil rates. If you rent a comercial property the tenant pays the rates in full. Private tenants avoid this cost somehow, even though they get the benifits of city council services. Andy (the other one) sums up exactly what “Ned” can do. Tenancy laws in NZ are very much aligned to be favour of tenants. Rogue lanlords only exist because the tenants they attract are ignorant of their rights.

  18. Herodotus 18
    19 March 2010 at 10:06 am

    So from many comments here and on Red Alert regarding property taxes. There will be no changes or suggestions to review this aspect of rorts. As we will be to frightened of the effect that this COULD have on tennants. Give me a break.
    Perhaps it has something to do with supply and demand. Look at immigration figures and that with the lowest level of housing for many a generation. perhaps it has to do with spec builders having to fundfor a $550k dwelling, $475-500k of this, thanks to new rules it takes 8+ months to build when it was done 5 years ago it was easily achievable in under 5 months from S224. And we think that to risk $500k to make $50k less GST and the risk is a good option, perhaps that is why builders are going labour only, add ons, repair leakys ( where there is a pot of gold)or bugger off overseas.
    What will happen when these same dwellings require maintenance to sort out the leaky issue. Will rents go up then to cover the costs that the tax payer either in subsidies or tax w/o does not cover.
    House prices in NZ do not make any logical sense, and they haven’t since about 2002/3, for me when the fin crash eventuated prices had to drop 25+% not the 12% and rebound back up within 18 months. Perhaps that is because (in AK at least) town planning is crap there is no involvement with central govt we have these issues.
    Being constructive we need a total review of the tax system (esp in resid housing) and to apply taxes accordingly, limit immigration as ZN cannot substain the net levels that have occurred within the last 10 years (This would also assist in our co2 footprint as we have one of the highest levels in the world per cap) not just hit the PAYE worker which LAb and NAt have, are, and will do.

  19. Herodotus 19
    19 March 2010 at 10:38 am

    From reading all the issues NOT to continue with GST and Depn and any other review on this sector, the only solution I can see is a CGT (And it could be placed very high say 50% to compensate the tax payer(Read PAYE) for all the assistance we have given to this sector)as this will have no impact on tennants as landlords are only concerned with operating cashflow!!!

    • SPC 19.1
      19 March 2010 at 11:46 am

      This year should be seen as a trial run for tax reform, not an end play.

      The property changes this year are financial changes within the existing system – depreciation claims limited and ring fencing property losses and GST/income tax changes. This will place pressure for a transfer of some housing stock from rental to homeowner.

      We need so much more. Carbon tax until any ETS accord with Oz. A FTT. A CGT (excluding the family residence and one other property owned for more than 5 years) at the company tax rate (with a surcharge on mortgages – not equity, how wrong are those experts – held by landlords). GST at 20% – and exemptions (once you see it as a de facto import tariff you know what to exempt). This should afford the necessary – small business loan insurance, R and D tax incentives, tax only applied on half the interest income of savings/corp bonds and some significant change to income tax rates.

  20. RedLogix 20
    19 March 2010 at 12:21 pm

    Property prices will drop (unless foreign speculators buy from local distressed sellers and even more of our residential property falls into foreign ownership- a real risk). Once property prices drop then low income people can afford to buy property

    To put it in a nutshell house prices were historically about 15 times the annual imputed rental value. The median rent at present is $15k pa; this means that the median house price SHOULD be $225k. Instead it is about $350k. This means that in order to restore historic ‘affordability’ for first time buyers by deflating the property market, prices would have to drop about 35%. (350-225/350 *100).

    At any one time about 33% of people rent and the other 66% own. Of the 2/3rd that do own about 2/3rd of them have a mortgage, or about 50% of the total. Because of the way most table mortgages are structured, of this 50%, around 20% of the total have a relatively small equity in their property.

    If the property market deflates 35% then around 20% of dwelling occupiers will find themselves ‘under water’ with their mortgage. In the short-term the bank usually doesn’t worry too much, but inevitably something forces their hand… illness, loss of job, forced to move to a new job, pregnancy, relationship break-up… and the property undergoes a forced sale leaving the owner with no equity, or due to the iniquitous nature of commercial law in this country, a substantial debt.These people are then forced back into renting and if overseas experience is anything to go by, will likely never own a home again.

    Moreover property deflation does not benefit first home buyers much either. In any one year they barely amount to 2% of the total market, but when prices are dropping banks demand larger deposits, ie LVR ratios of at least 80% to cover themselves, which makes it proportionately no easier for the first home buyer at all.

    New first time buyers will remain scarce, and would likely be heavily outnumbered by those being forced out of home-ownership.

    Deflation is the most destructive condition any economy can fall into… be very careful what you ask for.

    • Herodotus 20.1
      19 March 2010 at 3:42 pm

      I agree with you regarding deflation, but how else do we get a correction within this market when it is so severely overvalued. WE cannot mange this so that there is a nil increase within the market until a time comes when this stagnation of price/value allows market fundamentals to marry up. This management must also not allow for external influences (i.e. Tax treatment) to alow one sector unreasonable advantage over another, which for me under the current regime there exists. The longer that fundamentials remain out of balance the more severe any correction will be.
      In summary there will be coleteral damage it is just a question of do we take an active part with expected consequences (I hope) or just allow the beast loose and take whatever eventualtes?

      • RedLogix 20.1.1
        19 March 2010 at 4:02 pm

        Keep it simple.

        1. The Reserve Bank regulates banks to lending no more than 12 times the imputed annual value of a property. Introduce this gradually at starting at 2o times this year and reduce it by an increment of 1 annually for 8 years until the 12 times ratio is met. This would link property prices to rental values and impose a maximum LVR ratio of about 80% ie, 12/15.

        2. For the same period make all mortgage interest, including the family home tax deductable as long as the deduction is used to reduce the principle and term of the loan. In essence a form of enforced national saving to reduce the ridiculous $180b of home mortgages we owe to foreign banks.

        3.

      • RedLogix 20.1.2
        19 March 2010 at 4:07 pm

        The root cause of the problem is excessive debt. We either pay it down, inflate it away or default on it. Only three options.

  21. prism 21
    19 March 2010 at 1:27 pm

    Certain people on this thread are extremely smug and take a derisive attitude to people renting. These renters are not gay young things happy shifting and sharing, or comfortably off older people making a judicious decision between the house that has been beautifully restored or the one with a spa pool in the grounds.
    Years ago when the Nats were putting up state house rents to market level, and were maximising usage looking for greater efficiency, an elderly lady was shifted from the town were she rented a two-bedroom state house, to another town two hours away where she was allocated one with one-bedroom. When she left she would be leaving behind friends, her familiar neighbourhood and amenities, and these things mean much to people with little money for discretionary spending, holidays and consumer pleasures. Only trouble is, with the rise to market rent on the one-bedroom place it was going to be unaffordable and she was wearily looking at moving again.

    People need security of tenure, neighbourhoods with people who aren’t anti-social with amenities available, not to be treated like pawns in an investor’s game. House prices need to come down to a level that gives the investor a reasonable net return, I think at the moment it is 8% on capital value. The government subsidises a certain amount of the rent, and it is possibly that and not putting that money into state houses with say five year leases and mortgage offers to suitable tenants, that have helped the housing boom. What a vicious circle.

  22. Brett Dale 22
    19 March 2010 at 1:38 pm

    A two bedroom home for $310 a week??? I think this penisioner needs to look for a place in a different area, or a smaller home.

    Does he live bny himself??

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  • 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
    2 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
    3 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
    3 days ago

  • Apposite Quotations.
    How Long Is Long Enough? Gaza under Israeli bombardment, July 2014. This posting is exclusive to Bowalley Road. ...
    Bowalley Road
    3 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
    3 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
    3 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
    3 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
    3 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
    3 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
    3 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
    3 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
    3 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
    3 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
    3 days ago

  • Smoke And Mirrors.
    You're a fraud, and you know itBut it's too good to throw it all awayAnyone would do the sameYou've got 'em goingAnd you're careful not to show itSometimes you even fool yourself a bitIt's like magicBut it's always been a smoke and mirrors gameAnyone would do the sameForty six billion ...
    Nick’s KōreroBy Nick Rockel
    3 days ago

  • What is Mexico doing about climate change?
    This is a re-post from Yale Climate Connections The June general election in Mexico could mark a turning point in ensuring that the country’s climate policies better reflect the desire of its citizens to address the climate crisis, with both leading presidential candidates expressing support for renewable energy. Mexico is the ...
    Skeptical Science
    4 days ago

  • State of humanity, 2024
    2024, it feels, keeps presenting us with ever more challenges, ever more dismay.Do you give up yet? It seems to ask.No? How about this? Or this?How about this?When I say 2024 I really mean the state of humanity in 2024.Saturday night, we watched Civil War because that is one terrifying cliff we've ...
    More Than A FeildingBy David Slack
    4 days ago

  • Govt’s Wellington tunnel vision aims to ease the way to the airport (but zealous promoters of cycl...
    Buzz from the Beehive A pet project and governmental tunnel vision jump out from the latest batch of ministerial announcements. The government is keen to assure us of its concern for the wellbeing of our pets. It will be introducing pet bonds in a change to the Residential Tenancies Act ...
    Point of OrderBy Bob Edlin
    4 days ago

  • The case for cultural connectedness
    A recent report generated from a Growing Up in New Zealand (GUiNZ) survey of 1,224 rangatahi Māori aged 11-12 found: Cultural connectedness was associated with fewer depression symptoms, anxiety symptoms and better quality of life. That sounds cut and dry. But further into the report the following appears: Cultural connectedness is ...
    Point of OrderBy poonzteam5443
    4 days ago

  • Useful context on public sector job cuts
    David Farrar writes –    The Herald reports: From the gory details of job-cuts news, you’d think the public service was being eviscerated.   While the media’s view of the cuts is incomplete, it’s also true that departments have been leaking the particulars faster than a Wellington ...
    Point of OrderBy poonzteam5443
    4 days ago

  • Gordon Campbell On When Racism Comes Disguised As Anti-racism
    Remember the good old days, back when New Zealand had a PM who could think and speak calmly and intelligently in whole sentences without blustering? Even while Iran’s drones and missiles were still being launched, Helen Clark was live on TVNZ expertly summing up the latest crisis in the Middle ...
    Gordon CampbellBy lyndon
    4 days ago

  • Govt ignored economic analysis of smokefree reversal
    Costello did not pass on analysis of the benefits of the smokefree reforms to Cabinet, emphasising instead the extra tax revenues of repealing them. Photo: Hagen Hopkins, Getty Images TL;DR: The six news items that stood out to me at 7:26 am today are:The Lead: Casey Costello never passed on ...
    The KakaBy Bernard Hickey
    4 days ago

  • True Blue.
    True loveYou're the one I'm dreaming ofYour heart fits me like a gloveAnd I'm gonna be true blueBaby, I love youI’ve written about the job cuts in our news media last week. The impact on individuals, and the loss to Aotearoa of voices covering our news from different angles.That by ...
    Nick’s KōreroBy Nick Rockel
    4 days ago

  • Who is running New Zealand’s foreign policy?
    While commentators, including former Prime Minister Helen Clark, are noting a subtle shift in New Zealand’s foreign policy, which now places more emphasis on the United States, many have missed a key element of the shift. What National said before the election is not what the government is doing now. ...
    PolitikBy Richard Harman
    5 days ago

  • 2024 SkS Weekly Climate Change & Global Warming News Roundup #15
    A listing of 31 news and opinion articles we found interesting and shared on social media during the past week: Sun, April 7, 2024 thru Sat, April 13, 2024. Story of the week Our story of the week is about adults in the room setting terms and conditions of ...
    Skeptical Science
    5 days ago

  • Feline Friends and Fragile Fauna The Complexities of Cats in New Zealand’s Conservation Efforts

    Cats, with their independent spirit and beguiling purrs, have captured the hearts of humans for millennia. In New Zealand, felines are no exception, boasting the highest national cat ownership rate globally [definition cat nz cat foundation]. An estimated 1.134 million pet cats grace Kiwi households, compared to 683,000 dogs ...

    Gareth’s WorldBy admin
    5 days ago

  • Or is that just they want us to think?
    Nice guy, that Peter Williams. Amiable, a calm air of no-nonsense capability, a winning smile. Everything you look for in a TV presenter and newsreader.I used to see him sometimes when I went to TVNZ to be a talking head or a panellist and we would yarn. Nice guy, that ...
    More Than A FeildingBy David Slack
    5 days ago

  • Fact Brief – Did global warming stop in 1998?
    Skeptical Science is partnering with Gigafact to produce fact briefs — bite-sized fact checks of trending claims. This fact brief was written by Sue Bin Park in collaboration with members from our Skeptical Science team. You can submit claims you think need checking via the tipline. Did global warming stop in ...
    Skeptical Science
    6 days ago

  • Arguing over a moot point.
    I have been following recent debates in the corporate and social media about whether it is a good idea for NZ to join what is known as “AUKUS Pillar Two.” AUKUS is the Australian-UK-US nuclear submarine building agreement in which … Continue reading → ...
    KiwipoliticoBy Pablo
    6 days 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
    57 mins 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
    3 hours ago

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

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

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

  • Anzac commemorations, Türkiye relationship focus of visit
    Foreign Affairs Minister Winston Peters will represent the Government at Anzac Day commemorations on the Gallipoli Peninsula next week and engage with senior representatives of the Turkish government in Istanbul.    “The Gallipoli campaign is a defining event in our history. It will be a privilege to share the occasion ...
    BeehiveBy beehive.govt.nz
    5 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
    7 hours ago

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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