The economics of the Christchurch earthquake

Written By: - Date published: 1:00 pm, September 7th, 2010 - 30 comments
Categories: Economy - Tags:

There’s been some frankly bizarre talk about the earthquake being an economic boon for the country. I guess the Right is just desperate for anything to improve the economy under National. So, I thought it would be worthwhile going through the economic ramifications of the earthquake from the immediate effects to long term:

Initial effects: The economic heart of Christchurch is shut down. About $2 billion worth of damage has been done, much of this damage will impede economic activity. Infrastructure is damaged as are buildings and factories. People are dislocated, injured, or busy trying to get their personal lives together. People needing elective surgery are unable to get it. In economic terms, the large parts of both the capital and labour needed for production are out of action.

Westpac, using a model derived from the Los Angeles and Napier earthquakes, estimates that $300 million of economic activity will be lost (0.2% of GDP). ASB chief economist Nick Tuffley puts the hit at 0.6% of GDP. NZIER was already forecasting that growth in this December quarter would be -0.2%. That’s likely to be much worse now.

The damage will include businesses that are already on the brink thanks to the recession going to the wall and hundreds if not thousands of job losses. Those workers who lose their jobs will flood an already bad jobs market. The government will lose tens of millions of dollars in tax revenue and face big increases in costs from emergency benefits, ACC claims, and its share of the cost of rebuilding local infrastructure before we even get to the EQC payouts. The added borrowing needed to fill the gap will probably mean the government has to pay more interest on its debt.

The Earthquake Commission, logically, has most of its assets offshore, and so do the insurance companies. To make the payouts, they’re going to have to buy a lot of New Zealand dollars – higher demand equals higher exchange rate. Offsetting this, possibly, is that it just became much less likely the Reserve Bank will increase interest rates again, which should dampen demand for the dollar. Overall, the effect is that we haven’t seen a sharp fall in the currency, which would have been a boon for exporters, that you might expect from a disaster like this.

Medium term: EQC and insurance companies will begin making payouts within weeks but it will be months before the big rebuilding starts. The rebuilding will increase GDP by about 1% of a year’s output when it is spent because GDP simply reflects economic activity in a given time period not accumulated wealth. But that will only be returning the country’s physical wealth to where it was before, it will not be real economic gain.

If I break my cellphone and have to dip into my savings to replace it, I am not better off, I am worse off – even if the new phone is better because obviously I had preferred to have my old phone and my savings rather than the new phone. The same is true of the need to spend our savings on rebuilding. People who say it’s good for the economy are forgetting that the rebuilding is funded by giving up our savings and the option to spend them elsewhere. That’s the broken windows fallacy – it mistake of seeing what is gained but not what is lost, or mistaking temporary economic activity for economic wealth.

It is good timing, however, in one sense. The slow-down in commercial construction was about to put 20,000 jobs at risk. At least they’ll have something to do for a while now, and the construction industry has the spare plant and equipment for the rebuilding task. Of course, that’s just jobs that would otherwise be lost saved, not new jobs created.

Longer term: once the rebuilding is over, there will be little to show for it. The boost of the rebuilding itself will not be permanent and will contribute little to long-term production capacity. Once the rebuilding is over, the GDP boost will disappear. That’s true of a stimulus package too, of course. But the idea is that a stimulus package gets the economy revved up again and builds up its production capacity. The rebuilding of Christchurch will not be like that it’s not going to create sustainable economic momentum or add greatly to the productive capacity of Christchurch.

As Westpac noted “This will boost national GDP by far more than the initial income loss, with a corresponding letdown once the reconstruction boom ends.” Just as with the Rugby World Cup, the one-off up-tick in GDP will be matched by a corresponding downwards movement when the spending stops. This is not a permanent increase in economic output.

This boom and bust might further damage business confidence and, with it, longer-term growth.

Ultimately, about $2 billion of capital from the government and private insurers will be converted into expenditure to rebuild the capital that was lost. In the end, we replace the physical assets by running down our financial assets via a temporary increase in economic activity but our national wealth is decreased – that can’t be forgotten.

Of course, I and others have been arguing for some time that the government should decrease its net assets to more economic activity. Of course, we meant by borrowing, rather than selling assets like the EQC will but essentially it’s the same thing from the perspective of the government books. The difference is that, without the earthquake, we could have spent that money on re-igniting the economy and making a wealthier country for the future. Now it needs to be spent just on what was lost.

We’re going to be left with higher net debt, which we will either pay interest on or pay down – either option means less consumption/lower economic standard of living in the long term

30 comments on “The economics of the Christchurch earthquake ”

  • Comments are now closed

  1. Richard 1
    7 September 2010 at 1:34 pm

    I agree with all that.

    However, there will be a boom for individual businesses, particularly those in construction. It is for the economy as a whole that there is a net loss.

    As you note, there will be in some cases some marginal benefit, in that when something is rebuilt it could be “better” than what existed previously. For example, when considering energy efficiency, it is often uneconomic to retro-fit energy efficiency measures to a built structure, whereas it is quite economically viable to incorporate energy efficiency into a new build. Likewise, replacement buildings are likely to have better earthquake strengthening incorporated (or you’d like to think so).

    • ZB 1.1
      9 September 2010 at 4:51 pm

      I disagree. A sustainable economy requires a working ChCh. The argument basically seems to
      be that its a cost, but actually its more like a reinvestment. Companies, Households, Nations,
      all have crisis that hit them, if they are governed well they have stores of money to cover the
      re-investment. Government runs a EQC for this, has insurace for this, has a low govt debt for
      this reason. We’ve already saved to pay for disasters. We’ve already had some of the pain.

      The economy needs a kick in the teeth, if the ChCh Quake makes manufacturing exporters
      jobs harder, if it puts money into tradespeople in ChCh, if we build new quake resistent
      buildings, and stop new subsections on sand (like on that beach subsection in the Coromandal,
      because its now a huge insurance risk to build so close to the sea, on sand.

      Sorry, we live in interesting times and we should beware because simple analysis doesn’t work.
      We are rebuilding! Rebuilding with savings! We saved for the purpose! At the bottom of the
      market, not the top! Not when every developer shister is selling crap – like that subsection in
      ChCh built on SAND! Nobody knows if this is a good thing, I think sometimes you get lucky
      with a early morning quake removing a lot of previously buildings needing expensive
      quake resistent upgrades without any loss of life.

      And the Quake just keeps giving, dispelling the impression of the loose financal era,
      that we can trust big business, that markets will save us not good regulation.

      It could have be so much worse. Imagine the quake with Key in charge in 2006-7,
      and the whole developer speculator class lining up for handouts to rebuild ChCh,
      the debt Key would have run up with tax cuts to the few would have made NZ
      a Greece, Ireland, Spain.

  2. Zaphod Beeblebrox 2
    7 September 2010 at 1:42 pm

    I was under the impression that for economic stimulus to be effective it had to be spent quickly so that the money recycled through the economy immediately for short periods of economic downturn. Given how long it takes it get building permits, import building materials (which adds to the current account deficit) and get a builder, I would have thought the stimulus effect would be extremely diluted by the anticipitated time this money will be spent over.

    • Blighty 2.1
      7 September 2010 at 1:50 pm

      to make a measurable difference, you would have to spend it quickly but it would just be quicker up, quicker down.

      • Zaphod Beeblebrox 2.1.1
        7 September 2010 at 2:49 pm

        But whats the point of stringing it out? In 12 months time the recession may be a distant memory and all you will end up doing is stoking inflation, higher interest rates and government debt. Economic cycles move a lot quicker than decision makers apparently which renders a lot of these decisions irrelevant.

    • Loota 2.2
      7 September 2010 at 1:55 pm

      The stimulus effect is a lost cause – yes firms and contractors are going to get big injections of Govt and insurance money – but they are probably going to direct it to paying off debt (household and company) and saving reserves for (the next) rainy/shaky day.

      They are not going to spend up large.

      Trickle down is dead.

      • nzfp 2.2.1
        7 September 2010 at 1:58 pm

        “They are not going to spend up large” maybe, maybe not – but it doesn’t matter because the Government could spend up large and should – we need soo much infrastructure built and repaired in our nation and that doesn’t include the lack of investment in human infrastructure such as health and education. You’ve seen my other posts so you know where the money can come from tax free – without interest or debt.

  3. nzfp 3
    7 September 2010 at 1:55 pm

    But why stop at Christchurch Marty, and why stop at rebuilding what exists. Economic activity can be stimulated by something as simple as a bridge in the right place which reduces the cost of transport for products from A to B.

    Why not use this stimulus to build a high speed rail network with Christchurch as the nexus throughout the entire South Island, couple this with building Fiber to the home and improved telecommunications. Both of these suggetions would reduce the cost of transport of goods and improve the Online economy – both would boost sustainable economic productivity.

    The only problem we have is creating the necessary funds and putting the money to use fueling the labour necessary to produce the necessary infrastructure. Make the infrastructure green while you’re at it and you reduce the environmental impact.

    The Earth Quake represents the single best opportunity for real economic progress for our country. Yes what I’m saying is Pie in the Sky but as you well know this was the policy of Sir Michael Joseph Savage so it’s happened before.

    • Zaphod Beeblebrox 3.1
      7 September 2010 at 2:50 pm

      What a sad reflection upon our government.

    • Rex Widerstrom 3.2
      7 September 2010 at 3:02 pm

      I find myself nodding in agreement with what seems like the common sense of much that you say above nzfp (with the exception of handing out a knighthood to Savage, whom I’m pretty sure never got, nor probably wanted, one – a recolelction his official biography seems to confirm).

      However, how would you respond to the coventional wisdom that what you’re proposing would be inflationary and thus damaging?

      • nzfp 3.2.1
        7 September 2010 at 4:35 pm

        Hey Rex,
        “how would you respond to the coventional wisdom that what you’re proposing would be inflationary and thus damaging”

        Great question as it is the question that is always raised when public credit is proposed in opposition to private bank credit.

        In short public credit is no more inflationary then credit created as a result of foreign borrowing (debt). In fact it is less inflationary as it doesn’t include the requirement to service interest on debts denominated in foreign currency.

        When the Government borrows 200 Million dollars as a result of the sale of NZ Bonds, the Governments receives 200 Million dollars in foreign currency. The 200Million in Foreign Currency was created out of nothing at all by foreign banks – an exercise the Government could do itself.

        However, the foreign currency cannot be spent into the NZ economy so the Government converts the 200 Million into NZ Dollars. To do this they park the foreign currency in a foreign currency account and create an equivalent 200 Million NZD out of nothing.

        Already you can see the injustice and fraud of this system:

        NZ Govt sells 200 Million in NZ bonds -> Foreign Bank creates 200 Million from nothing to Buy Bonds -> NZ Govt creates an equivalent 200 Million against the 200 Million in Foreign currency created by foreign banks out of nothing -> NZ Govt spends or lends the new money into the economy -> NZ Govt taxes NZr’s to service the interest on the foreign debt (GST increases).

        To counter this the Government has two options:

        1. Keynesian – the Government issues 200 Million in NZ Bonds -> The RBNZ creates 200 Million out of nothing to Buy the NZ Bonds -> The Govt spends or lends the money into the economy -> NZ Govt taxes NZr’s to service the interest on the debt to ourselves. This is also part of the State Theory of Money. The Tax ensures the velocity of money – that it circulates. However the level of tax could be set a lot lower then the neo-liberal monetarist model and in many cases most taxes could be eradicated.

        2. Public credit – the Govt issues 200 Million in money and spends or lends it directly into the economy. Essentially it is the same as pure Keynesian theory with the exeption that we don’t borrow from our own bank but have the Treasury create the money directly – otherwise the rules apply.

        In both cases there is no need to service foreign interest debts and no need to pay money back to foreign banks in a currency we have no control over. If interest rates increase our interest and repayment burdens increase – it only takes a little war in Iran to cause interest rates to sky rocket.

        Remember that either of these methods are required to pay for infrastructure that cannot be paid for out of current taxes – and shouldn’t be.

        Remember that inflation of the money supply is only inflationary if there isn’t an equivalent increase in products and services including human services such as health and education. Infrastructure improvements by definition are an increase in products and services and have the benefit of improving commerce which stimulates productivity increasing products and services.

        It is better explained by Professor Michael Hudson in an earlier post of mine here and on his website here.

        Radio NZ reported this morning that the Govt was selling 200 Million in NZ Bods today (this afternoon). Rather then sell 200 Million – since they obviously need the money – they could create 20 Million via the RBNZ or Treasury. The net effect would be a reduction in inflation due to the fact that we don’t need to service foreign interest debts. Any foreign capital that comes into our nation for investment of purchases of NZ products could be used to service current debts – while the Govt creates credit to fuel infrastructure instead of borrowing.

        The overall effect would be hugely beneficial to our economy and would result in a net lowering of all taxes.

      • nzfp 3.2.2
        7 September 2010 at 5:15 pm

        Thanks for the correction and the Savage BIO Rex. I never knew Savage was a Georgist although in hindsight it seems obvious. George was one of the “Renegade Economists” – a term coined by SMH and TheAge columist and economist “Ross Gittins”.

        By the way:
        “200 Million in NZ Bods” should be “200 Million in NZ Bonds”
        And
        “they could create 20 Million” should be “they could create 200 Million”

  4. Armchair Critic 4
    7 September 2010 at 2:55 pm

    “The difference is that, without the earthquake, we could have spent that money on re-igniting the economy and making a wealthier country for the future. Now it needs to be spent just on what was lost.”
    I thought the EQC funds were set aside specifically for post-disaster rebuilding. On this basis, how could the money have been spent re-igniting the economy etc.? It’s set aside for a specific purpose, not for politicians to spend on whatever whim takes their fancy, even if their fancy happens to be a good idea.

    • Lanthanide 4.1
      7 September 2010 at 3:00 pm

      Essentially the EQC money has been saved previously. So instead of spending $50 back in 1990, the government spent $40 and banked $10. Now we’re getting access to that $10 again, but it isn’t new money magicked out of nowhere, but deferred spending from 1990.

      • Armchair Critic 4.1.1
        7 September 2010 at 3:55 pm

        Yeah, I got that bit. And I agree with most of the post. The bit I don’t get is where Marty G says:
        “…we could have spent that money on re-igniting the economy…”
        I understood that the money (especially from EQC) to be spent rebuilding is dedicated to rebuilding. As it was deliberately set aside for a specific purpose, it can’t be used for another purpose.
        anti-spam: following. Not at the moment; I’ve tried following the logic and I’m missing out somewhere.

    • Bright Red 4.2
      7 September 2010 at 4:09 pm

      yeah but one pot of government money is the same as another in reality. And borrowing is pretty much the same as selling an asset

  5. Grant M. McKenna 5
    7 September 2010 at 3:46 pm

    I’ve missed the bit where “the Right” said that the earthquake would be good for the economy. Where and when was that averred?

  6. aj 6
    7 September 2010 at 5:02 pm

    No matter what way you look at this, in human terms it is far less than a zero sum game. A small number may have short term gain through the economic boom as a consequence of repairs. The cost in human terms will be long lasting and greatly outweigh simple $$ calculations. Stress over the long term, that is within families and individuals will result in many problems further down the track for health authorities, social services, etc.

  7. Kleefer 7
    7 September 2010 at 8:06 pm

    Once again you are labouring under the misapprehension that, while an earthquake destroying buildings is bad for the economy, the government spending money to “stimulate” the economy is good. Both are bad for the economy but due to the visual impact of buildings literally being destroyed it is easier for the layman to identify the economic damage from an earthquake than from government “stimulus”.

    Advocates of government spending fall prey to the same broken window fallacy that afflicts those touting the supposedly stimulatory effects of the earthquake. In both cases they think only of one side of the transaction, those who financially benefit from the broken window/government spending, while forgetting those who are worse off, the person with the broken window/less money because the government has taken it to give to someone else.

    What the broken window fallacy is really about is opportunity cost. While we can see the benefit to the glazier from repairing the window (or in this case the contractors for repairing the buildings) we can’t see what the person with the broken window would have done with the money if he hadn’t had to pay for the repair.

    We can see the results of government stimulus such as school buildings, roads and poorly-fitted insulation but we can’t see what wasn’t made as a result of resources being diverted by the government to these uses. So while the government isn’t necessarily knocking things down (although wars do plenty of that), it is still fallacious to tout the results of stimulus without thinking about the other side of the ledger.

    Henry Hazlitt, the former New York Times economics editor, wrote in his book Economics in One Lesson that when assessing the economic impact of a policy we must look not just at its immediate effect on one group but on its long-term effect on everybody in society. I applaud the writers of The Standard for taking on the idiots saying the earthquake will be good for the economy. Now you just need to apply economic principles consistently.

    • nzfp 7.1
      7 September 2010 at 8:49 pm

      Henry Hazlitt is credited with bringing Austrian economics to an English-speaking audience, he secured a position at New York University for the economist Ludwig von Mises, and he introduced the novelist Ayn Rand (Alisa Zinolev’yevna Rosenbaum) to Mises. His influences included: Frédéric Bastiat, Philip Wicksteed and Ludwig von Mises. He opposed Karl Marx, Thorstein Veblen, Major Douglas (Major Clifford H. Douglas), John Maynard Keynes and Alvin Hansen. He influenced Milton Friedman.

      Milton Friedman gave us the Washington Consensus and the Chicago School of Economics which in turn gave us Rogernomics and Ruthenasia in the 80’s and 90’s. Friedman also gave Chile Augusto Pinochet and the Chilean deathsquads and disappeared.

      Von Mises gave us Ayn Rand and Libertarianism. However, the Austrian School of Economics defines money as a commodity with intrinsic value, which is contradictory to historical and empirical evidence. Aristotle best defines money in Ethics 1133 where he states “Money exists not by nature but by law”.

      Hazlitt opposed Major Douglas – Major Clifford H. Douglas the founder of the Social Credit school of economic democracy.

      Considering these points it makes it difficult to take seriously the economic theory of somebody who is unable to correctly define money and who’s economic theories influenced the architect of Washington Consus neo-liberal monetarist policy – the fruits of which are evident in the current Global Financial Crises.

  8. Bright Red 8
    8 September 2010 at 12:25 pm

    Patrick Smellie agrees with you, Marty http://www.stuff.co.nz/business/industries/4107029/Shaky-times-for-the-economy

    good work on forcing this argument. the msm would just have blindly followed the stupid ‘silver lining’ angle otherwise.

  9. Draco T Bastard 9
    8 September 2010 at 4:13 pm

    So, breaking news is that the estimate for rebuilding Christchurch has increased to $4b. At the same time there’s some question about availability of resources. This is where the government really needs to step in an ban all exports of building and construction materials. We’re going to need those ourselves for the foreseeable future (It’s going to take years to get Christchurch back to the same level that it was).

  10. Too much coffee man 10
    9 September 2010 at 7:27 am

    Well said. I remember when that visionary leader George Dubbyerbush decided to dump billions of dollars of bombs on Iraq and Afghanistan the right crowed with delight about the benefits to the US economy that would entail. Dropping a million dollar bomb doesn’t result in a million dollars worth of production, it results in a million dollars with of destruction, and that million dollars has gone for good.

    When a building gets replaced at a cost of a million dollars, that million dollars is also lost forever.

  11. Anthony 11
    1 October 2010 at 5:55 pm

    Dear Marty

    I must say that this is a very critical analysis.

    But one thing I would like to ask how does an increase in interest rate will dampen the demand for kiwi dollar?

    As you pointed out in the last paragraph, “Offsetting this, possibly, is that it just became much less likely the Reserve Bank will increase interest rates again, which should dampen demand for the dollar.”

    Because an increase in interest rate will lift up the return for every dollar overseas investors invest in New Zealand relative to other countries’ interest rates, therefore the demand for kiwi dollar should have increased rather than decreased.

Links to post

Recent Comments

Recent Posts

  • PM announces changes to portfolios
    Paul Goldsmith will take on responsibility for the Media and Communications portfolio, while Louise Upston will pick up the Disability Issues portfolio, Prime Minister Christopher Luxon announced today. “Our Government is relentlessly focused on getting New Zealand back on track. As issues change in prominence, I plan to adjust Ministerial ...
    BeehiveBy beehive.govt.nz
    15 hours ago

  • New catch limits for unique fishery areas
    Recreational catch limits will be reduced in areas of Fiordland and the Chatham Islands to help keep those fisheries healthy and sustainable, Oceans and Fisheries Minister Shane Jones says. The lower recreational daily catch limits for a range of finfish and shellfish species caught in the Fiordland Marine Area and ...
    BeehiveBy beehive.govt.nz
    19 hours ago

  • Minister welcomes hydrogen milestone
    Energy Minister Simeon Brown has welcomed an important milestone in New Zealand’s hydrogen future, with the opening of the country’s first network of hydrogen refuelling stations in Wiri. “I want to congratulate the team at Hiringa Energy and its partners K one W one (K1W1), Mitsui & Co New Zealand ...
    BeehiveBy beehive.govt.nz
    1 day ago

  • Urgent changes to system through first RMA Amendment Bill
    The coalition Government is delivering on its commitment to improve resource management laws and give greater certainty to consent applicants, with a Bill to amend the Resource Management Act (RMA) expected to be introduced to Parliament next month. RMA Reform Minister Chris Bishop has today outlined the first RMA Amendment ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Overseas decommissioning models considered
    Overseas models for regulating the oil and gas sector, including their decommissioning regimes, are being carefully scrutinised as a potential template for New Zealand’s own sector, Resources Minister Shane Jones says. The Coalition Government is focused on rebuilding investor confidence in New Zealand’s energy sector as it looks to strengthen ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Release of North Island Severe Weather Event Inquiry
    Emergency Management and Recovery Minister Mark Mitchell has today released the Report of the Government Inquiry into the response to the North Island Severe Weather Events. “The report shows that New Zealand’s emergency management system is not fit-for-purpose and there are some significant gaps we need to address,” Mr Mitchell ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Justice Minister to attend Human Rights Council
    Justice Minister Paul Goldsmith is today travelling to Europe where he’ll update the United Nations Human Rights Council on the Government’s work to restore law and order.  “Attending the Universal Periodic Review in Geneva provides us with an opportunity to present New Zealand’s human rights progress, priorities, and challenges, while ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Patterson reopens world’s largest wool scouring facility
    Associate Agriculture Minister, Mark Patterson, formally reopened the world’s largest wool processing facility today in Awatoto, Napier, following a $50 million rebuild and refurbishment project. “The reopening of this facility will significantly lift the economic opportunities available to New Zealand’s wool sector, which already accounts for 20 per cent of ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • Speech to the Southland Otago Regional Engineering Collective Summit, 18 April 2024
    Hon Andrew Bayly, Minister for Small Business and Manufacturing  At the Southland Otago Regional Engineering Collective (SOREC) Summit, 18 April, Dunedin    Ngā mihi nui, Ko Andrew Bayly aho, Ko Whanganui aho    Good Afternoon and thank you for inviting me to open your summit today.    I am delighted ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • Government to introduce revised Three Strikes law
    The Government is delivering on its commitment to bring back the Three Strikes legislation, Associate Justice Minister Nicole McKee announced today. “Our Government is committed to restoring law and order and enforcing appropriate consequences on criminals. We are making it clear that repeat serious violent or sexual offending is not ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • New diplomatic appointments
    Foreign Minister Winston Peters has today announced four new diplomatic appointments for New Zealand’s overseas missions.   “Our diplomats have a vital role in maintaining and protecting New Zealand’s interests around the world,” Mr Peters says.    “I am pleased to announce the appointment of these senior diplomats from the ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • Humanitarian support for Ethiopia and Somalia
    New Zealand is contributing NZ$7 million to support communities affected by severe food insecurity and other urgent humanitarian needs in Ethiopia and Somalia, Foreign Minister Rt Hon Winston Peters announced today.   “Over 21 million people are in need of humanitarian assistance across Ethiopia, with a further 6.9 million people ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • Arts Minister congratulates Mataaho Collective
    Minister for Arts, Culture and Heritage Paul Goldsmith is congratulating Mataaho Collective for winning the Golden Lion for best participant in the main exhibition at the Venice Biennale. "Congratulations to the Mataaho Collective for winning one of the world's most prestigious art prizes at the Venice Biennale.  “It is good ...
    BeehiveBy beehive.govt.nz
    4 days ago

  • Supporting better financial outcomes for Kiwis
    The Government is reforming financial services to improve access to home loans and other lending, and strengthen customer protections, Commerce and Consumer Affairs Minister Andrew Bayly and Housing Minister Chris Bishop announced today. “Our coalition Government is committed to rebuilding the economy and making life simpler by cutting red tape. We are ...
    BeehiveBy beehive.govt.nz
    4 days ago

  • Trade relationship with China remains strong
    “China remains a strong commercial opportunity for Kiwi exporters as Chinese businesses and consumers continue to value our high-quality safe produce,” Trade and Agriculture Minister Todd McClay says.   Mr McClay has returned to New Zealand following visits to Beijing, Harbin and Shanghai where he met ministers, governors and mayors and engaged in trade and agricultural events with the New ...
    BeehiveBy beehive.govt.nz
    4 days ago

  • PM’s South East Asia mission does the business
    Prime Minister Christopher Luxon has completed a successful trip to Singapore, Thailand and the Philippines, deepening relationships and capitalising on opportunities. Mr Luxon was accompanied by a business delegation and says the choice of countries represents the priority the New Zealand Government places on South East Asia, and our relationships in ...
    BeehiveBy beehive.govt.nz
    5 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
    5 days 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
    6 days 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
    6 days 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
    6 days 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
    6 days 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
    6 days 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
    6 days 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
    6 days 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
    6 days ago

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

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

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

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

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

  • Earthquake-prone buildings review brought forward
    The Government is bringing the earthquake-prone building review forward, with work to start immediately, and extending the deadline for remediations by four years, Building and Construction Minister Chris Penk says. “Our Government is focused on rebuilding the economy. A key part of our plan is to cut red tape that ...
    BeehiveBy beehive.govt.nz
    7 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
    1 week 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
    1 week 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
    1 week 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
    1 week 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
    1 week 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
    1 week 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
    1 week 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
    1 week 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
    1 week ago

Page generated in The Standard by Wordpress at 2024-04-24T15:45:56+00:00